-
Keeping the Tax Underpayment Penalty at Bay
Keeping the Tax Underpayment Penalty at Bay If you underpay your Federal Tax obligation throughout the year you could be in for a tax penalty when you file next year’s tax return. Outlined here are steps to take to avoid this underpayment penalty. With the 2013 tax year behind you, now is the time to plan appropriately to make sufficient estimated tax payments. An underpayment of estimated tax may apply if you still owe $1,000 or more in additional tax after accounting for withholdings and estimated payments made throughout the year. Remember, to avoid underpayment penalties you are required to
-
Virtual Currency…Every Bit Counts
Virtual Currency…Every Bit Counts A recent IRS ruling on virtual currencies like Bitcoin classify them as property. This ruling has far reaching consequences on this new concept. Here is what you need to know. In recent Internal Revenue Service Notice 2014-21, virtual currencies like Bitcoin have been classified as property. The IRS is aware of the growing popularity of this medium of exchange and that it is not considered legal tender by any government. The IRS notice hopes to clarify how you must treat your use of this new technology. The outcome for users is not good. Here is what
-
Leaving a Job? Don’t Take a Tax Surprise with You
Leaving a Job? Don’t Take a Tax Surprise with You A recent Supreme Court decision could impact the taxes you pay when you leave a job. Being aware of this new change could save you plenty if you pay attention to your severance… An inevitable part of life is a changing jobs. Now a recent Supreme Court decision clarifies that severance payments you receive when you leave your job are wages and subject to employment taxes. So how might this impact you? Background All employees and employers pay FICA taxes. There are two components; Social Security. Social Security tax rates
-
Tax-Free Roth IRA Withdrawal Options
Tax-Free Roth IRA Withdrawal Options – What every Roth IRA account holder should know While Roth IRAs are funded in after-tax dollars, making a mistake on fund withdrawal could still subject you to tax and penalties on withdrawal of earnings. Here are some tips. You must take care to plan your retirement plan withdrawals to avoid a potential 10% early withdrawal penalty. Unfortunately, each retirement account type has different rules. Here are some tips for Roth IRAs. Roth IRA basics Roth IRA accounts differ from other IRAs in that your contributions are made in after-tax dollars. If you follow the
Opening : Mon-Fri 08:00 – 17:00