With e-file now open, Lisa Greene-Lewis, CPA and TurboTax tax expert, discusses why it is a good idea to file your taxes now.
but often if you overpaid on your federal income taxes and you itemized your deductions the year before, then more-than-likely you are going to have to pay state tax on your refund. This will show up in the mail as a form 1099-G. To put this in plain English: You overpaid on...
These income tax withholdings might run short to cover your taxes if your financial transactions increase during the year-end. These unexpected spendings can have an unexpected impact on your 2019 federal income tax returns and increase the amount of tax owed. This becomes the sole reason for yo...
You'll also avoid failure-to-file penalties, which can add up to25%of the tax due. If you file an extension but miss the extended deadline, you will be subject to this penalty. Keep in mind that filing an extension when you owe taxes only gives you more time t...
Also, keep in mind that you’ll owe taxes on the bonuses earned. You should receive a 1099-MISC tax form from your bank at the end of the year. 5. Keep your money insured One of the things that makes a savings account one of the best places to store extra cash is insurance from ...
Funds can then be taken from your account for debt collection, but the creditor can only seize what you owe, along with lawful fees. Some funds, such as federal benefits or funds reserved for basic necessities, are protected and cannot be taken. The court will determine how much can be se...
More time to devise a payment plan (if you owe money) Most Americans get a tax refund, because most workers pay their income taxes every two weeks through automatic federal and state withholding from their paycheck. However, you could get hit with a tax bill if you haven’t updated your ...
If you don’t pay your taxes, the Internal Revenue Service (IRS) can even put a tax levy on you. This won’t go away until you pay the full amount you owe, so be careful. The government or your federal loan lender can do different things if you don’t pay back your student loans...
You Owe Federal Income Taxes Your refund can be taken to pay or offset the amount due if you owe back income taxes. Anything that's left will be refunded as requested on your tax return, either by direct deposit or by check. You should also get a notice from the IRS explaining why th...
Filing early gives you time to save up to pay money that you may owe to the IRS. Remember, you don’t have to pay your taxes until the filing deadline. If you wait too long to get started, you may discover that you owe more than you expected. That could put a real crimp in you...