The earned income credit (EIC) is a federal tax credit that helps low to moderate income workers reduce their federal tax liability. This article and video covers an example EIC calculation for the 2021 tax year.
Many taxpayers filed their returns early and have not received their tax refunds. When can you expect to receive a direct deposit or a paper refund check in the mail?
The IRS CP80 tax notice is issued to taxpayers when the IRS received estimated tax payments or extension payments but the IRS has yet to receive a federal tax return. It's important for taxpayers to timely file their tax returns to reconcile these payments and calculate the actual amount of federal taxes owed each year.
The IRS Letter 6419 helps taxpayers reconcile their advanced child tax credit payments received in 2021. Taxpayers should keep this letter and use this information when preparing their Form 1040.
Every business entity that applies for an employer identification number (EIN) must appoint an individual to be the responsible party. A business can change its responsible party by filing Form 8822-B.
Individuals must generally file their federal income tax return (IRS Form 1040) on or before April 15th of each tax year. If the individual needs more time, they can file the Form 4868 extension request.
U.S. taxpayers will generally report gross income from whatever source derived. This includes dividend income that is automatically reinvested by the broker.
When a company makes payments to an independent contractor, they are generally required to report the payments on a Form 1099-MISC or a Form 1099-NEC. This article and video tutorial covers those basic rules and some of the reporting implications.
The IRS sends you a CP49 tax notice when you have a tax balance due and didn't pay the full amount. When you filed your next tax return which showed a refund due, the IRS keeps your refund to apply towards the outstanding balance.
The IRS has published the marginal tax rate tables for the 2021 tax year. Although the tables are largely similar to last year, there are some updates.
