Article Highlights: Withholding Estimated Tax Payments Underpayment Penalties Safe Harbor Payments Withholding Strategy Uncle Sam considers our tax system a "pay-as-you-go" system and expects taxpayers to prepay taxes on income as they receive it throughout the year. Taxes are prepaid through withholding and by estimated tax payments. Since withholding is not an exact … [Read more...] about Increase Your Withholding to Avoid Underpayment Penalties
Marketplace Insurance Checkup
Article Highlights: Advance Premium Tax Credit Family Income Family Size Reporting Changes to the Marketplace Repayment of Credit Married Filing Separately If you are one of the many individuals or families who purchase their health insurance through the federal or a state government health insurance marketplace and are receiving an advance premium tax credit (subsidy … [Read more...] about Marketplace Insurance Checkup
Was Your No-Health-Insurance Penalty A Surprise?
Article Highlights: 2014 Uninsured Penalty Notices Flat Dollar Amount Penalty Percentage of Income Penalty Penalties Increase in 2015 and 2016 A tweet from an Indiana resident by the name of Benjamin Miller, including a picture of the IRS notice he received advising him that he owes $2,344 as a penalty for not having health insurance, has gone viral and ignited a … [Read more...] about Was Your No-Health-Insurance Penalty A Surprise?
October 2015 Individual Due Dates
October 13 - Report Tips to Employer If you are an employee who works for tips and received more than $20 in tips during September, you are required to report them to your employer on IRS Form 4070 no later than October 13. Your employer is required to withhold FICA taxes and income tax withholding for these tips from your regular wages. If your regular wages are insufficient … [Read more...] about October 2015 Individual Due Dates
Are Charity Auction Purchases Deductible Contributions?
Article Highlights: Purchase of Items At Charity Auction Auction Donor Appreciated Property Fair Market Value (FMV) Unrelated Use It is common practice for charities to hold auction events where attendees will bid upon and purchase items. The question often arises whether the money spent on the items purchased constitutes a charitable donation. The answer to that … [Read more...] about Are Charity Auction Purchases Deductible Contributions?