Page 3 - Tax Reference News Today : Breaking News, Live Updates & Top Stories | Vimarsana

"The large percentage of people who don't owe federal income tax is a feature, not a bug, of the revenue code," write the Tax Policy Center's Philip Stallworth and Daniel Berger. "By design, the federal income tax always has excluded a significant fraction of households through a combination of personal exemptions, the standard deduction, zero bracket amounts, and more recently, tax credits." According to the Tax Policy Center's 2018 estimation, nearly 99 million Americans were expected to file a tax return in 2020. That figure may increase due to the pandemic, however, since people are being...

What is the penalty for filing taxes late? The good news is that if you're expecting a tax refund and don't file your federal income tax return on time, there's no late charge. The bad news is that you won't get your refund until you file. You have three years from the due date of your tax return to file and claim your refund. After that, the money goes back to the US Treasury. But if you owe taxes and fail to file your return, the IRS essentially starts a running tab in your name. Every 30 days, you'll be charged 5% of any unpaid tax you're required to report on your return. Even if you fil...

Some self-employed workers and independent contractors have to pay quarterly taxes. The due dates are the 15th of April, June, and September. The final payment is due January 15th next year. In general, if you expect to have a tax liability of $1,000 or more, you should estimate and pay quarterly taxes on your earnings. This article was reviewed for accuracy and clarity by Luis Rosa, an expert on Personal Finance Insider's tax review board.  Most people who earn a steady paycheck only think about paying taxes when they sit down to file their tax return once a year.  But if you don't earn ...

You may be able to claim a tax credit for installing energy efficient property If you installed energy efficient equipment at your home last year, including solar panels, solar water heaters, geothermal heat pumps, small wind turbines, or fuel cell property, you may be able to claim a tax credit on your 2020 tax return. A tax credit is a dollar-for-dollar reduction of your tax bill. Some tax credits are refundable, meaning that if what you owe in federal taxes is less than your credit amount, you'll receive the remainder as a refund. A r...

Is PPE tax deductible? Yes — for tax year 2020, the IRS is allowing PPE, or personal protective equipment, to be considered a qualifying medical expense. This includes masks, hand sanitizer, and sanitizing wipes to prevent the spread of the coronavirus. Remember: Only medical expenses paid out-of-pocket and not reimbursed by your health insurance plan may qualify as tax deductible. Educators — K-12 teachers, principals, instructors, counselors, and school aides — can also now include these coronavirus protection items in their maximum $250 yearly educator expense deduction. What other m...