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Tag Archive for w2

IRS Offers Payment Plans For Those Who Filed Taxes But Did Not Pay

The Internal Revenue Service today advised those now receiving tax bills because they filed on time but didn’t pay in full that there are many easy options for paying what they owe to the IRS.

If a tax return was filed but the balance due remains unpaid, the taxpayer will receive a letter or notice in the mail from the IRS, usually within a few weeks. These notices, including the CP14 and CP501, both of which notify taxpayers that they have a balance due, are frequently mailed in the months of June and July.

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The 6 Most Basic Rules Of Tax Preparation

Dealing with kids and marriages

If you’re married or divorced be sure that you and your spouse’s last names match all social security records, because your return will be rejected if they don’t. Also, if you’re divorced with children, be sure you know who’s claiming the kids. The rule is that whoever files first will initially get the credit and if it’s not the right person, correspondence with the IRS will be required by both parties to resolve the matter. To avoid that mess, it’s something you NEED to work out beforehand. Read more

Canada Is Checking Foreign Tax Credits

It is not uncommon for e-filed returns or paper filed returns that claim a credit for US tax for CRA to request verification.

US tax paid per Canadian withholding slips are not requested because the slips are issued  by a Canadian entity. They are looking to US tax claimed per US reporting slips such as W2s, 1099s, 1042s or from the US 1040/1040NR tax returns. US social security tax and medicare (ie., FICA) is creditable if it relates to US source wages or services performed in the US which is evident  on the W2.

Foreign tax credits claimed in respect of US computed from  the US tax return based on determination of what portion of the tax payable of the return relates to US source income that is creditable is usually supportable by submitting to CRA your schedules and copy of the federal (and state where applicable) return. Recently CRA has Read more

Missing Your W2’s? What To Do Next!

It’s that time of the year, however cliched that sounds, when your W2 comes in the mail. The W2 as you know shows your annual taxable earnings, tax payments and other deductions. The due date for the employers to send those out was January 31st, 2014. Some employers do send those out via email as well. Whereas others still rely on the pony express errrr the regular mail.

If you have not received yours and are anxious because you need that refund (like yesterday!!). First step, check your Email Inbox (yeah, I know…but please read on), some emails are ignored and may have slipped down the list. Your employer might require you to log in to a separate secure website. Read more

If You Hire A Cook Or A Nanny – Are Employer Related Taxes Applicable?

If you hire someone to do household work and that person is considered your employee, you may be liable for paying employer related taxes. Although it is commonly called the “Nanny Tax” it covers more than just nannies, it includes workers who perform household work, which the IRS defines as “work done in or around your home”. This definition captures babysitters, yard workers, drivers, private nurses, private cooks, etc.

Your first task is to determine if the person you hired is your employee or is self-employed. The worker is your employee if you control what work is done and how it is done. The household worker may have been sent to you by an agency but if you control what work is done and how it is done the worker is still considered your employee. Whether the worker is part-time or full-time or is paid daily, weekly, hourly or for each job is not relevant once Read more

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