Do retirees have to file a federal income tax return? You might think that the days spent filing an income tax return each year is behind you once you are retired. However, being retired doesn’t necessarily get you out of filing a return with the IRS. In fact, you may want to file even if … Read more Federal Income Tax Return Filing Requirements for Retirees
One of the realities of earning more money is that you also need to report that income to the IRS. When you have a side hustle, you are supposed to report that income — no matter how insignificant it seems to you. Your income is reported on your tax return, usually using Form 1040. Additionally, … Read more What Income Do You Need to Report to the IRS?
If you sell on eBay or one of the many online marketplaces, you might be wondering if you have to pay taxes on your eBay income? You certainly don’t want to get in hot water with the IRS! So what is the right answer when it comes to taxes and eBay income? The short answer … Read more Do You Have to Pay Income Taxes on eBay Sales?
When you own rental property, you are essentially running a small business. This means that you can use your business expenses to reduce your business income, thus reduce your overall taxes. It is not uncommon for rental property investors to pay no income tax at all. Here are ten primary tax deductions for rental property … Read more Top 10 Tax Deductions for Landlords
When the year draws to close, it’s time to take stock of what you are doing to increase your overall tax efficiency. If you are looking to lower your taxes, another way is to sell some of your losing investments to offset capital gains and up to $3,000 of your taxable income. The deduction you … Read more Tax-Loss Harvesting and Wash Sale Rule Examples
As a small business owner, you have to make estimated tax payments to the Internal Revenue Service throughout the year (about once a quarter). This makes it easier to afford the taxes you owe rather than have a lump-sum balance due at tax time. As a business owner, I will share with you how I … Read more Quarterly Estimated Taxes Due Dates, Calculation, and Late Payment Penalty
For all the freelancers, small business owners and self-employed individuals out there, staying on top of when the estimated tax payments are due is important to help you stay within the IRS tax payment guideline and avoid penalty. Making estimated tax payments also helps you avoid financial shortfall when you file your tax returns. How … Read more How to Pay Quarterly Estimated Taxes
When you first start a job, it’s exciting. You agree on a salary, and you are thrilled that you will soon be getting paid. If your salary is $40,000 a year and you are paid every two weeks, you might be expecting $1,538.46 each check (i.e., your salary divided by 26 pay periods). Unfortunately, this … Read more Your Paycheck: Tax Withholdings and Payroll Deductions Explained
In this article, I will explain a few basic tax concepts related to our Federal income tax system that includes Tax Brackets, Marginal Tax Rate, and Effective Tax Rate. In the United States, we have a progressive tax system where people who earn more money generally pay more. Tax Brackets There are seven Federal tax … Read more How Do Marginal Tax Rate and Effective Tax Rate Work
The following article contains information about the federal income tax rates for 2019. You’ll use these tax tables to help you calculate your 2019 taxes in early 2020. Federal Income Tax Rates (2019) The table below gives you the marginal tax brackets for single, married couples filing jointly, and head of household. Marginal Tax Rate … Read more 2019 IRS Tax Tables: Federal Income Tax Brackets and Rates