Did you file your taxes online? Then it’s possible you forgot to prepare a Local Income Tax Return. Most online tax software does not prepare or file a local income tax return. In the state of Pennsylvania, a local income tax return is required in most counties. You pay 1% or in some areas a…
“I’m paid as a self-contractor – what should I be doing to prepare for taxes?” If you are paid as a self-contractor and no taxes are being withheld from your pay then you’re responsible to pay the federal, Social Security, Medicare, state and local taxes on this income at tax time. You also can deduct…
What is virtual currency? Virtual currency is a digital representation of value, other than a representation of the U.S. dollar or a foreign currency (“real currency”), that functions as a unit of account, a store of value, and a medium of exchange. Some virtual currencies are convertible, which means that they have an equivalent value…
What if I missed a tax year and didn’t file my taxes? You can file your taxes any time, however, if you owe the IRS for that tax year you will incur hefty penalties and interest from the due date of the tax return. If you’re due a refund, the IRS will pay you interest,…
Owed taxes? How do I fix it for next year? There are many ways to adjust your tax situation now, so you won’t owe 2022 taxes. If you are an employee and are paid on a W2, then fill out a new W4 with your employer. The easiest way is to take the amount you…
The April 18th deadline is approaching fast, what happens if you’re not ready to file? You may request up to an additional 6 months to file your U.S. individual income tax return. There are three ways to request an automatic extension of time to file your return. You must request the extension of time to…
So, I owe taxes, now what? First off, many people think if they owe taxes they should just not file their tax return. This is the most misunderstood concept when it comes to owing taxes. If you file a tax return, you will avoid the late filing penalties. The IRS will continue to assess interest…
I Owe on My 2021 Taxes, Is It Too Late for Any Deductions? For 2021, the total contributions you make each year to all of your traditional IRAs and Roth IRAs can’t be more than: $6,000 ($7,000 if you’re age 50 or older), or If less, your taxable compensation for the year Therefore, if you…
Claiming my charity donations, medical bills, or mortgage interest? Taxpayers who take the standard deduction can claim a deduction of up to $300 for cash contributions to qualifying charities made in 2021. Married couples filing jointly can claim up to $600. For the 2021 tax year, the standard deduction for single taxpayers and married people filing separately…
Depending on your income, you may be able to write off 50% of your child or dependent care expenses through this care credit for 2021.