Many people assume tax planning is the same as tax preparation, but the two are quite different. Let’s take a closer look: Continue reading
TAX PREPARATION VS. TAX PLANNING
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Category Archives: Amended Tax Returns
IT’S NEVER TOO EARLY TO CHECK TAX WITHHOLDING
While it might seem like tax season just ended, it is never too early to do a “Paycheck Checkup” to make sure the right amount of tax is withheld from earnings – and avoid a tax surprise next year when filing your 2020 tax return. As a reminder, because income taxes operate as a pay-as-you-go system, taxpayers are required by law to pay most of their tax as income is received. Continue reading
SMALL BUSINESS UPDATE: PAYROLL TAX DEFERRAL
On August 8, 2020, the President of the United States issued a Presidential Memorandum allowing employers to defer withholding and payment of the employee’s portion of the Social Security tax if the employee’s wages are below a certain amount. Medicare taxes are not covered, only FICA taxes (i.e., the 6.2% portion of the federal payroll tax on employees). The deferral also applies to the employee portion of the Railroad Retirement Act Tier 1 tax. Let’s take a look at what this means: Continue reading
FILING AN AMENDED TAX RETURN
If you discover a mistake on your tax return after you’ve already filed, don’t panic. In most cases, all you have to do is file an amended tax return. Here’s what you need to know: Continue reading
Relief for Other Coronavirus-related Tax Issues
Relief for taxpayers facing the challenges of COVID-19-related tax issues is now available through the IRS People First initiative. The projected start date will be April 1 and the effort will initially run through July 15, 2020. During this period, to the maximum extent possible, in-person contact will be avoided; however, the IRS will continue to take steps where necessary to protect all applicable statutes of limitations. Continue reading
Are Social Security Benefits Taxable?
Social Security benefits include monthly retirement, survivor, and disability benefits; they do not include Supplemental Security Income (SSI) payments, which are not taxable. Continue reading
What To Do If You Are Missing Important Tax Forms
If you are ready to file your taxes but are missing important tax forms here’s what you should do: Continue reading
Sign Up for The Lahrmer Letter
Would you like reminders about upcoming tax deadlines? How about knowing the latest tax news and changes? Curious about what’s happening at Lahrmer & Company? You can receive all of this and more right in your inbox every month. Just sign up for our newsletter at www.lahrmercpa.com and click on the subscribe link on the right side of our home page. Here’s a sample of what you might see each month:
Your Canceled Debt Could Be Taxable
Generally, debt that is forgiven or canceled by a lender is considered taxable income by the IRS and must be included as income on your tax return. When that debt is forgiven, negotiated down (when you pay less than you owe), or canceled you will receive a Form 1099-C, Cancellation of Debt, from your financial institution or credit union. Form 1099-C shows the amount of canceled or forgiven debt that was reported to the IRS. Creditors who forgive $600 or more of debt are required to issue this form. Continue reading
What to Do If You Receive and IRS CP2000 Notice
An IRS CP2000 notice is mailed to a taxpayer when income reported from third-party sources such as an employer, bank, or mortgage company does not match the income reported on the tax return. Continue reading
