These Situations Could Lead to a Higher Tax Bill This Year
Unless you’ve filed for an extension then the tax deadline is officially upon us. That means you need to get your taxes in pronto, if you still haven’t. While most people hate doing their taxes, they do enjoy the typical reward after the hard work is all done: a nice refund check.
However, there is no guarantee that you will get a refund. In fact, it’s entirely possible that you could end up owing the IRS some money, even if you weren’t expecting to. That’s because there are certain life events and decisions that can end up putting you in the red instead of the black.
For example, if you have started a side business there is a good chance you could end up owing more in taxes than you expected. If you don’t plan ahead and you don’t make any estimated tax payments on that additional income, you will owe some extra money when you report it come tax time.
Getting married or filing for divorce can also impact your tax status greatly. If you change your filing status to married filing jointly, you could end up owing more than you did when you filed as a single. Additionally, when you get divorced you might end up losing some of the deductions you once enjoyed when you were married.
There are several other events in life that could negatively affect your tax bill, including selling your home, withdrawing money from a retirement account, losing your job, winning prize money or receiving an inheritance from someone. The bottom line is, there are several things that can affect your tax bill, so make sure you track everything and be prepared for the worst. As always you can contact us at GROCO for more tax help.
http://www.denverpost.com/2017/04/09/surprise-tax-bill
Don’t Gamble With Your Taxes: Read the Fine Print About Incorporating in Nevada
Don’t Gamble With Your Taxes: Read the Fine Print About Incorporating in Nevada Source: FTB Publication 689 Posted: 3/2/2010 Ever wonder about those ads that promise big tax savings for incorporating in Nevada? While there is nothing inherently wrong with incorporating or registering in Nevada or any other state for that matter, we do see…
Doing Business in the United States
Doing Business in the United States By Alan Olsen, CPA 67 Pages $24.95 + $2.00 S/H Alan L. Olsen, CPA, MBA (tax) Foreign Corporations, Individuals and Trusts The booklet can be purchased vis this “link“. It discusses the basic issues of foreign corporations and individuals wishing to do business in America. This booklet contains detailed…
The Wash Sale Rule of Capital Gains Tax
The Wash Sale Rule of Capital Gains Tax Awash sale is a trading activity in which shares of a security are sold at a loss and substantially identical security is purchased within 30 days. The subsequent purchase could occur before or after the security is sold, creating a 61-day window that must be monitored to…
Employers linking employee premiums to health screen programs
Employers linking employee premiums to health screen programs As more employers require employees to take greater financial responsibility for their own health care as part of the consumerism movement, some employers are going even further, tying employees’ premium contributions to their participation in health risk appraisals and, in some cases, to improvements in health status.…