“Audit-proofing” your return means documenting deductions so that you can prove them if you’re audited. Today’s historically low audit rates make it pay to be aggressive. But you should file your return as if you expect to be audited. That way, if it happens, you can support your deductions and walk away a winner. The IRS generally doesn’t require records in specific forms (except for travel, entertainment, automobiles, and gifts- 1). To verify expenses, you need to show wha

Knowing where you fall matters a lot when it comes to filing your taxes. Specifically, if you’re an employee , the company you’re working for is responsible for withholding taxes throughout the year, as well as costs like the employer’s share of Social Security and unemployment taxes. If you’re an independent contractor , you’ll need to be paying quarterly taxes and will be fully responsible for those additional tax costs. It's not as easy as just looking at how many hours y

Normally, taxes are due by April 15 every year, unless that date falls out on a weekend or holiday, in which case it's pushed back a number of days. However, due to the impact of COVID-19, the White House declared to change the tax deadline and announced some changes based on this global-illness disaster. Your payment to the IRS can defer If you owe a payment to the IRS, you can defer up to $1 million as an individual. adding that the payments would be interest free and pen

There are a range of reasons to keep records. In addition to tax purposes, people may need to keep them for insurance purposes or for getting a loan. Good records is useful to: Identify sources of income. People may receive money or property from a variety of sources. Records help them determine the sources of income needed to separate business from non- business income and taxable from nontaxable income. Keep track of expenses. This will help taxpayers identify expenses

What is a tax deduction? A tax deduction helps you to lower taxable income, which results in reduces tax liability.

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The consequences coming from non-filed returns can be absolutely severe for noncompliance. Even if people don’t owe any tax, it still be extremely important to file. Let’s look at what happens unless people file tax returns. 1. Non-filling Letter As someone has a late tax return, the IRS will send out letter having an assortment of code numbers like CP515 , CP516 , CP518 and CP515B . Uncle Sam will eventually step up their aggressiveness in the matter and send a notice rela