If you don't pay your taxes by today's filing deadline, even if you get a tax filing extension, it may mean paying even more money to the IRS in the form of penalties and interest. Here are some consequences of not paying taxes — on time or at all — and how quickly the IRS...
Americans often complain about high taxes. However, compared to other countries around the world, Americans pay relatively low income tax rates. The highest marginal income tax rate in America is 39.6% for the highest tax bracket. However, income and payroll tax rates average out to a much low...
Dive into this small business owner guide to understand the difference between payroll tax vs. income tax and how to manage them.
Knowing what to claim as taxable and nontaxable income can reduce your tax liability. Here's what you should know.
Even if you don’t have any red-flag triggers on your tax return, you may need to calculate your alternative minimum tax just because of your income level. It may seem unfair to have to pay more taxes than are calculated by your tax forms, but the goal of the AMT is to make sure...
Employers must withhold federal income tax, plus any state or local taxes. Here’s what every small business owner should know.
When the government offers you a tax break, it means you’re getting a reduction in your taxes. A tax break can come in a variety of forms, such as claiming deductions or excluding income from your tax return. In some situations, a tax break may not even require any action on your pa...
(Note that this applies only to long-term capital gains; short-term gains on assets held one year or less are taxed as ordinary income.) 2. You plan to also realize some losses If you realize a loss on an investment, you can use it to offset your taxable capital gains and potentially...
The Bottom Line Ordinary income is taxed at marginal rates. Individuals pay taxes on ordinary income, such as salaries, tips, rent, and interest. Businesses earn ordinary income from business operations while supplying goods and services.