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Introduction to U.S. Form 1099-NEC
Beginning with the 2020 tax year, the IRS would require business taxpayers to report nonemployee compensation on the new Form 1099-NEC instead of on Form 1099-MISC. Businesses would need to use this form if they made payments totaling $600 or more to a nonemployee, such as an independent contractor.
Returning an IRS Erroneous Refund
Sometimes taxpayers may receive the erroneous refund by IRS’s mistake. The “erroneous refund” is the refund you are not entitled to at all or for an amount more than you are entitled to. If you receive the erroneous refund, you have the legal obligation to repay the amount to the IRS. And the sooner the better – holding onto the money for too long could result in the need to pay interest or penalties.
U.S. Federal Tax Payment Options
If you are not able to pay the tax you owe by your original filing due date, the balance is subject to interest and a monthly late payment penalty. There is also a penalty for failure to file a tax return, so you should file timely even if you cannot pay your balance in full. It is always in your best interest to pay in full as soon as you can to minimize the additional charges. This article will discuss U.S. federal tax payment options for your reference.
U.S. Individual Capital Loss Deduction
we should figure out some basic concepts. A capital asset includes inherited property or property someone owns for personal use (e.g. cars and home) or as an investment (e.g. stocks and bonds). A capital gain or loss is the difference between the basis and the amount the seller gets when they sell an asset. The basis is usually what the seller paid for the asset.
States with No Income Tax - Nevada
Nevada is a U.S. state in the Western region of the United State. Nevada is the seventh largest by area in the country. Tourism (especially gambling and entertainment related business) is the largest industry in the state. Nevada has very mature gaming regulations on operating and gaming products. The tax climate in the state is incredibly business-friendly. Nevada does not have a corporate income tax, nor does it have franchise tax
U.S. Gross Receipt Tax Introduction
Sales tax is paid by the consumer based on the amount purchased. This is not an expense to the business owner because the amount owed to the taxing authority is no more than what the customer has paid. On the other hand, the gross receipts tax is a percentage of revenue received. Although some states do not charge sales tax on services rendered
Are Employee Fringe Benefits Taxable in U.S.
Employers can offer fringe benefits to employees; common fringe benefits include health insurance, retirement plans, and parking passes. Although most employee fringe benefits are nontaxable and may be excluded from an employee’s income, some benefits must be reported on the employee’s Form W-2 and included in your taxable income. This article will discuss some common fringe benefits for your reference.
U.S. Business Reporting Requirements
Form W-2: A business must complete and file Forms W-2, Wage, and Tax Statement, showing the wages paid and taxes withheld for the year for each employee. A copy of the W-2 must be given to each current and former employee who received taxable wages or salaries during the year by no later than January 31 of the following year.
U.S. Child and Dependent Care Credit
How to balance the family and work is a complicated topic for working couples. More and more family choose to send children to day care center to take care of their children during working time. According to IRS publication, you may be able to claim the U.S. child and dependent care credit if you paid expenses for the care of a qualifying individual to enable you to work or actively look for work.
U.S. Individual Tax-Itemized Deduction or Standard Deduction?
The standard deduction amount varies depending on your income, age, whether or not you are blind, and filing status and changes each year. For 2020, the standard deduction for married filing jointly is $24,800. For single taxpayers and married individuals filing separately, the standard deduction is $12,400, and for heads of households, the standard deduction will be $18,650 for tax year 2020.