Common Individual Income Tax Questions Archives - Blau Company Accounting & Tax Preparation

Why do I have to pay estimated tax payments?

Individuals must pay 25% of a “required annual payment” by Apr. 15, June 15, Sept. 15, and Jan. 15, to avoid an underpayment penalty. (When that date falls on a weekend or holiday, the payment is due on the next business day.) The required annual payment for most individuals is the lower of 90% of the tax shown on the current year's return or 100% of the tax shown on the return for the previous year. Certain high-income individuals must meet a more rigorous requirement. If the adjusted gross income on your previous year's return is over $150,000 (over $75,000 [...]

August 22nd, 2017|Common Individual Income Tax Questions|Comments Off

The government charged me interest and penalties. Who is responsible to pay this?

Federal, state, and local tax authorities impose various penalties and interest charges for non-compliance with tax laws and regulations, including failure to file or late filing of returns, and underpayment of taxes. You, as the taxpayer, remain responsible for the payment of all tax, penalties, and interest charges imposed by tax authorities. We rely on the accuracy and completeness of the information you provide to us in connection with the preparation of your tax returns. Failure to disclose or inadequate disclosure of income or tax positions may result in the imposition of penalties and interest charges.

December 30th, 2016|Common Individual Income Tax Questions, Office Policies and Procedures|Comments Off

What if I need to file an extension?

The original filing due date for your tax returns is April 15, 2017 for federal and state. Due to the high volume of tax returns prepared by our firm, the information needed to complete the tax returns must be received no later than April 9, 2017 so that the returns can be completed by the original filing due date. It may become necessary to apply for an extension of the filing deadline if there are unresolved tax issues or delays in processing, or if we do not receive all of the necessary information from you in a timely basis. [...]

December 30th, 2016|Common Individual Income Tax Questions, Office Policies and Procedures|Comments Off

What is the tax treatment of a vacation rental property?

The tax treatment depends on how many days it's rented and your level of personal use. Personal use includes vacation use by your relatives (even if you charge them market rate rent) and use by nonrelatives if a market rate rent is not charged. If you rent the property out for less than 15 days during the year, it's not treated as “rental property” at all. In the right circumstances, this can produce significant tax benefits. Any rent you receive isn't included in your income for tax purposes (no matter how substantial the amount). On the other hand, [...]

December 19th, 2016|Common Individual Income Tax Questions|Comments Off