What happens if you are unable to pay your taxes on time? Are there other options for you? Don't panic, that is what we will be discussing!
Tax Day will be here on Wednesday, April 15, 2020, if we are ready or not. You can file your taxes as soon as you get all of your W2s, 1099s, and other tax forms from your employers. One of the perks of filing early is getting that prized tax return early. You should receive it within three weeks of filing. If you file your taxes sooner than most, you won't be fighting against the crush of everyone else who waited until the last moment to get everything filed. But what happens if you've filled out all your tax paperwork and you can't pay what you owe the IRS? What happens if you don't fill out your paperwork and file on time? Take a breath and let's review some options out there for you.
Not being able to pay your taxes can cause huge amounts of stress and panic, but try and not let it. Just make sure you are using the options and resources available to you. You will make it through this tax season, and many more to come! For more information and help from the IRS follow the link below!
Our most recent blog was dedicated to all the known and unknown items you can look forward to writing off your personal taxes this year. But with new tax cuts and the Job Act of 2017 are you aware of everything you can no longer write off on your personal taxes this year?
It was a delight to share in our last blog all of the wonderful known, and possibly unknown items, that you can write off of your personal taxes come April 15th. These write-offs can be such a relief to any family and a surprise to your bank account when Uncle Sam comes knocking. But it's just as important to know what you cannot write off your family's taxes, so there are no unpleasant surprises. This year could be one of the most difficult years of write-offs thanks to Tax Cuts and the Job Act of 2017. Tax code has changed dramatically, and once you have filed your 1040 (your personal federal income return) this tax season - these write-offs will no longer be available to you.
Understandably, you may not know about these new laws. Tax law for your personal taxes are hard to keep up with or hard to follow - the documents are all available for research, but they can be difficult volumes to understand and interpenetrate. But these new changes are credited to be the largest tax overhaul in over 30 years. A lot of people won't even know about these changes until they go to file. Beat this statistic and read up now - this way you can prepare your finances to pay for items this tax season that you've never had to pay for before.
As we begin preparations for tax season coming in April of 2019, we thought we would cover some basics for those who may be new to the world of taxes. Tax Brackets are an important factor when it comes to taxes, and can also be daunting for those who are new to paying taxes.
The Federal Tax Brackets
It all depends on your taxable income, but you will fall into one of seven brackets. These brackets are 10%, 12%, 22%, 24%, 32%, 35%, and 37%. Each bracket will determine the amount of taxes you will have to pay in correlation with your income of that year.
How will you file?
Depending on the way by which you file your taxes can also change the amount you pay within those tax brackets. The options to file are single, head of household, Married filing jointly (or qualifying widow), and Married filing separately.
Difference of Cost
Below is a chart of the brackets and their correlating amounts for this tax season,
For those of you who need assistance with their taxes, Hoods Tax & Accounting will happily help and assist you in filing your taxes! Come meet with us today and get a head start on the upcoming tax season!
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