Anthony Sykes & Company

                 The tax filing deadline has passed. However, there are some common issues that come up that have relatively simple solutions. If a taxpayer expects a refund, they are usually processed in 21 days. Keep in mind that the Internal Revenue Service ( IRS ) will take longer to release a refund if the tax return is claiming a credit, has errors, or is affected by identity theft.           If you are not receiving a refund and are surprised by that development, then checking your withholding should be done. This will make sure that the correct amount of tax is being withheld from your paycheck.           Sometimes after filing their return, a taxpayer will realize that they made an error or forgot to attach a form. A common reaction is to amend their return. This should only be done to fix errors like filing status, income, deductions, ...

             Every year some are surprised by a large tax bill. It can often be resolved by adjusting the withholding on paychecks with the Internal Revenue Service ( IRS ) to avoid the same thing happening the next year. However, there are some who choose to pay their income tax on an estimated quarterly basis. Taxes are paid as you go during the year so either method works.           If that was the situation last year, and no action was taken, you can expect the same results. There may also be a penalty that comes with underpaying taxes. But there is a chance to avoid this. The last day to make a payment for the fourth quarter is January 18, 2022 . Making a payment by this date can cover a missed payment from 2021 and might lessen a possible penalty. Do not confuse this with the 2021 tax return, it’s too early for that. If you need to make a quarterly payment, don’t wait. It will reduce the stress...

       How has 2021 been for you so far? After going through 2020, you can probably handle anything. We all learned a lot, and the best thing to do is to put that knowledge into practice. Making sure that your Tax Withholding is correct will give you one less thing to worry about this year.      If your family situation has changed, it would be good to fill out a new Form W-4 and give it to your employer. This will help to make sure that the proper amount of taxes are withheld from your wages and avoid a tax surprise next year. While receiving Unemployment Benefits, you can choose to have taxes withheld from that income source as well. As your tax documents arrive this month, you will see where adjustments need to be made for this year. If you need guidance on the path to take for this year, reach out to your Qualified Tax Professional .

     About this time the Internal Revenue Service ( IRS ) releases its new tax rates for the upcoming year. These will apply starting January 1, 2021 . They are a good way to estimate what your tax responsibility might be if you don’t plan on any changes in the coming year. However, if you are planning on major changes, like marriage or starting a business, this is the best time to adjust your withholding and avoid a tax surprise in 2022.      There will still be seven tax brackets and the rates will range from 10% to 37%. The only way taxes can change is by an act of Congress or a sunset clause in the law, whichever comes first. The Standard Deduction will increase to $12,550 for Single Taxpayers. The rules on deducting State and Local Taxes ( SALT ) put in place by the Tax Cuts and Jobs Act ( TCJA ) will remain at $10,000. Other adjustments have been made for 2021. Now is the time to reach out to your Qualified Tax Professional and prepare for next yea...

        When it comes to taxes, there is a certain amount of anxiety for most people. According to some surveys, there is a greater amount of anxiety for younger Taxpayers than most. It might be due to inexperience and it might involve a lot of misconceptions that continue to confuse people every year. Not having a clear understanding of how the tax code in the United States works cost many people lots of money every year. In this post we will discuss 2 of the most common tax myths.           A tax extension means I have until October 15 to pay the Internal Revenue Service . A tax extension usually means there are documents that need to be gathered or complicated situations to handle. If that is the case, an extension is the right choice. However, in the eyes of the IRS , any taxes owed must be paid by April 15. It is not an extension on your tax obligation and penalties and interest can be added to the balance. No...

        One of the big surprises created by the Tax Cuts and Jobs Act ( TCJA ) was the disappointment many Taxpayer’s received when it came to their refund, or lack thereof. As many now understand, the tax savings that were promoted can be found in each paycheck. As a result, their tax refund was smaller, or it even an unexpected tax bill. This led to strong reactions and encouragement to do a Paycheck Checkup to make sure the next year would not turn out the same.           Next year has arrived. Did you make the necessary changes to your withholdings? If not, the problem could be magnified. In 2018, the new withholdings table was only in effect from about February or March. This means it did not cover the entire year. All of 2019 was covered, so if the withholding was too little, the amount owed will be greater . Nothing can change that now. But making changes now will keep you from dealing with the same problem n...

        It can be easily said that the Tax Season last year was the most difficult in recent memory. It can also be said that this year will probably not be any easier. As we have stated in previous posts, the Internal Revenue Service ( IRS ) still must provide written guidance for all the changes brought about by the Tax Cuts and Jobs Act ( TCJA ) of 2017. There were also many tax breaks extended by Congress in December of 2019. So, this filing season is shaping up to be very busy and challenging.           For Taxpayers who are involved in Partnerships or Hedge Funds , many are opting for extensions. In this way, they might have all available guidance provided for them by the September deadline. This type of strategy might also work for those who are looking to see if the recently extended tax breaks will apply to them. Talk to a Qualified Tax Professional to determine the best choice for you.   ...

         After a time of adjustment, the Form W-4 has been redesigned and is available for comment from the public. It is expected to be used in 2020. This is the form used to determine how much tax is to be withheld from an employee’s paycheck. This version will reflect the changes brought on by the Tax Cuts and Jobs Act ( TCJA ). A portion of the draft has been provided below.           It will require the Taxpayer to list every position they have. Essentially, they must tell their employer if they are holding another job, which is becoming increasingly common in the age of the side hustle. This might make some uncomfortable, but it is important to get the right balance on your Paycheck Withholding. This year, many were shocked to see their refunds shrink, or turn into a surprise debt. This is because the TCJA changed the withholding tables, and often this meant more take home pay during the year.  In ...

         Federal income tax that is withheld from paychecks is generally paid over the year. The amounts withheld are shown on the Form W-2 . That has not changed. However, this has been a big issue when filing 2018 Tax Returns because of how the Tax Cuts and Jobs Act ( TCJA ) changed Withholding Tables. That directly impacted the Tax Refund or debt responsibility given to Taxpayers.           To avoid another surprise next year, the Internal Revenue Service ( IRS ) recommends a Paycheck Checkup as soon as possible. This should be done even if there are no significant changes from last year. This way, you can plan to get the refund you want next year. Withholding can be changed by filling out a Form W-4 . The amount withheld depends on the amount of income earn, along with filing status (married or single), the number of allowances (the more claimed, the less withheld), and any other additional amount request...