Tag: estimated tax

Can I Electronically Pay My Estimated Taxes?

Written by Paul Belfiore on September 15, 2023. Posted in Blog, Taxes.

Nashua Residents Looks to Simplify the Process

Estimated tax payments are required for those self-employed individuals, with quarterly payments sent in to cover taxes on income earned for that period. While you can mail a check to cover these payments, you can also pay these online to ensure that they are received on time by the IRS. This will keep you from incurring a penalty for a missed or late estimated tax payment. This can easily be done through the IRS’ website or using the mobile app IRS2Go. The IRS will retain records of the payments and you can account for this in your end of the year tax filing.

What Determines Head of Household Status When Filing Taxes?

Written by Paul Belfiore on July 14, 2022. Posted in Blog, Taxes.

Goffstown, NH Resident Has Questions

Head of household tax filers can claim significantly more tax deduction than their single counterparts. To qualify for head of household status you must be unmarried or living separately from your spouse for at least six months of the year. Temporary absences for work or school are not considered living separately. The head of household must pay more than half of the expenses for the home, including rent or a mortgage, utilities, repairs and property taxes. You must have a qualifying dependent, such as a child or elderly parent, residing in the home the majority of the year.

What Tax Documents Should You Collect at the End of the Year?

Written by Paul Belfiore on January 14, 2022. Posted in Blog, Taxes.

Brookline, NH Resident Looks to Plan Ahead

Employers and financial institutions have until January 31^st to send your end of year tax documents. Knowing that this will be coming soon, it is a good idea to keep an eye out for these critical items. This includes a W2 from employers, 1099-INT and 1099-DIV from financial institutions documenting interest and dividends earned throughout the year, Form 1098 outlining any mortgage interest paid, and additional 1099 forms for other income earned.

How Does a Stock Sale Affect Your Taxes?

Written by Paul Belfiore on December 31, 2021. Posted in Blog, Taxes.

Hudson, NH Resident Seeks Clarity

Stock shares sold from a regular brokerage account will be subjected to capital gains tax. If the assets were owned for less than a year, this is short-term capital gains. For assets that you have had longer, you will need to pay long-term capital gains on the profit. Short-term capital gains are typically the same tax rate as your current tax bracket, while long-term capital gains can be anywhere from 0% to 20% depending on your taxable income and filing status.

What to Do if You Can’t Pay Your Tax Bill

Written by Paul Belfiore on December 17, 2021. Posted in Blog, Taxes.

Hudson, NH Resident Has Concerns

If you cannot pay your tax bill when it is due, the outstanding amount owed will begin to accrue interest and penalties. If time goes on without any payment to the IRS, they may put liens on your property or garnish your wages. In extreme cases of tax evasion, violators may be subjected to jail time.

How to Prepare Your Taxes for an Income Increase

Written by Paul Belfiore on September 24, 2021. Posted in Blog, Taxes.

Milford, NH Resident Expects a Big Bonus

Any significant changes to your annual income can push you to the next tax bracket. This means that the additional money received may be taxed at a higher rate. The good news is that the original income that you were anticipating throughout the year will not be taxed at a higher rate. The federal tax system in the United States is progressive, which means as your income increases only these additional portions that exceed the limits of a current tax bracket are taxed at a higher rate.

What Happens If You Miss an Estimated Tax Payment?

Written by Paul Belfiore on July 16, 2021. Posted in Blog, Taxes.

Amherst, NH Residents Asks for Help

For each month that your estimated tax payment is due, but not paid, the IRS charges a 0.5% penalty. As the months go by, this penalty percentage will increase to a maximum of 25% of the taxes owed. Quarterly estimated tax payments are due April 15^th, June 15^th, September 15^th, and January 15^th of the following year. When the date falls on a weekend, the payment is due the following weekday. A missed payment is seen by the IRS as an underpayment and is treated as such.