Wage garnishments occur when you have an outstanding tax debt owed to the IRS and any other means of collecting the debt have not been achieved. Your employer receives a written notice from the IRS requesting a portion of your wages to satisfy your outstanding tax bill. By law, your employer must obey this request. There are ways to avoid and stop wage garnishments. If you receive a notice that you owe taxes, take action immediately. Options Of course, the most sensible way to avoid wage garnishments is to file your taxes on time and pay the taxes you owe.
If you think the IRS can collect unpaid taxes only up to a maximum of 10 years, you need to revisit the assumption. No matter the time lapsed, if the IRS finds out that someone owes them taxes, they leverage all possible means to recover the amount. In a recent case of unpaid employment taxes – “Beeler vs. the IRS” – the federal body went after three individuals as their employer failed to pay the withheld payroll taxes. What is surprising is that the IRS went after one of these employees 30 years after the company defaulted. You might be
They say, “ignorance of the law excuses no one”, and the maxim also stands true for self-employed professionals. Tax laws impose stiff penalties on those who fail to honor their tax liabilities, which is why it is essential for self-employed professionals to familiarize themselves with all applicable taxes. While some engage in acts of creative accounting, others find themselves in the same category due to a lack of information, and therefore, at odds with the law. Let’s take a look at who fits into this category and the precise obligations entailed. Who is Self-Employed? According to Internal Revenue Services (IRS)
The Small Business Health Care Tax Credit is a tax provision for small employers that provide qualified health coverage to their employees. A part of the Affordable Care Act , also known as Obamacare, entitles qualified employees to claim a tax credit of 50 percent of their premium contributions. To qualify for the tax credit, employers need to meet certain conditions, which we will discuss in this blog post. Let’s begin. Qualification Criteria In order to be considered a “small employer” and qualify for the Small Business Health Care Tax Credit, the business must meet the following criteria: Have no
US taxpayers are eligible for a number of deductions at the time of filing federal tax returns. Surprisingly, most taxpayers use the standard deduction amount, unaware of the fact that itemizing their returns may help them lower their tax liabilities. Therefore, before you go ahead and file a standard tax return, you must calculate your taxes using both the methods – standard and itemized deduction – to find out the more beneficial option. To help, here are a few things that you must know when calculating the deductions. Standard Deductions Taxpayers, based on their filing status, are eligible for different
Homeowners are entitled to receive a tax credit on several home improvement purchases that relate to energy efficiency and alternate energy equipment. These tax credits apply to not only the home improvement items purchased in 2016, but also extends to the investments made last year. It is, however, important to mention that, this year, the US government has revised multiple tax credits related to residential energy efficiency upgrades. To help you get the maximum benefit from the provision, we take a look at some of the facts related to home energy credits, highlighting energy efficiency and alternate energy equipment credits.
Self-employed individuals are those who carry out a trade or business as an individual contractor or a sole-proprietor. Similarly, those who have a part-time business, or are a partner in a business, are also considered self-employed. Being their own bosses, a lot of self-employed people are unsure about their tax obligations, which is the reason we have put together this post, answering six most frequently asked questions we receive from self-employed taxpayers. 1. What are my tax obligations? Self-employed individuals are required to pay both income tax and the self-employment tax (SE Tax). The SE tax refers to the Social Security
Unemployment benefits were first introduced in the U.K. in the year 1911. Two decades later, in the year 1932, the Unemployment benefits scheme was introduced in the US, in Wisconsin. The federal government of the U.S, then, through its Social Security Act of 1935, encouraged states to adopt and implement unemployment insurance schemes for the welfare of people. Since then, though there have been countless debates on whether the government should be paying these benefits, the U.S. government has continued to set-off a significant sum from its treasury as unemployment benefits for its citizens. However, without getting into that debate,
1. What is Form 1095-B? Every year, taxpayers who enroll in health care coverage receive Form 1095-B from their health Insurance provider. The form reports: The type of coverage the taxpayers and their families have The number of dependents covered The period of coverage 2. Who is a health insurance provider? The term “health insurance providers” refers to insurance companies, self-insured employers and government agencies that provide Medicaid, CHIP or Medicare plans. 3. Why did I receive more than one Form-1095 B? You may have received more than one Form 1095-B for one or more of the following reasons: Your
Though standard deduction is an easy choice, there are many taxpayers who are leveraging the benefits of itemizing their tax deductions in form of reduced tax bills. If you are confused about whether to itemize the deduction or stick to a no-question-asked standard deduction, this brief read is for you. Here are some handy tips to avoid paying more taxes than you owe. Evaluate Itemized Deductions Identify and add all deductible expenses you paid during the year, keeping in mind that there are specific rules and regulations that may apply to specific expenses. The list includes: Home mortgage interest State