Small Business Financials

One of the best money moves you can make this year is maximizing contributions to your deductible or nondeductible retirement plan. Whether you’ve contributed all year or have yet to start, here are a few tips to get the most from tax-advantaged retirement plans. 1. Know your contribution limits. Try to contribute as much as the law allows so you  get the most benefit , but don’t go over the annual contribution limit. If you contribute too much to your retirement account, you may have to pay double the taxes. If you have an Individual Retirement Arrangement (IRA), the contribution limits for 2021 and 2022 are $6,000 ($7,000 for any taxpayer aged 50 or older at the end of the tax year). If you are married and filing jointly, each of you can contribute up to that amount in your retirement accounts. For Roth IRAs, the amount you can contribute in 2021 starts to phase out when your modified adjusted gross income reaches $125,000 ($129,000 in 2022) or $198,000 if married filing jointl

  Updated for tax year 2020. When you start a new job as an employee, your new employer typically asks you to fill out Form W-4 , Employee Withholding Certificate . This document is a one-page Internal Revenue Service (IRS) form. It tells your employer how much money to take out of your paycheck to cover federal and state income taxes. The IRS recommends submitting a new Form W-4 each year, as well as any time your personal or financial situation changes regardless of your tax bracket. This ensures the right amount of tax is withheld during the year. For instance, if you get a promotion, get married or have a baby, you may want to adjust your W-4 to match the changes. Leaving it the same could result in too much money withheld each pay period – or worse, too little withheld resulting in a large tax bill come tax season. Form W-4, Step 4, Item (a) The beauty of W4 forms is that your employer handles withdrawing and paying your taxes for you based on your allowances. But, if

Do you need more time to file your business return this year? No sweat — that’s what tax extensions are for. Read on to learn more about filing for a business return extension this year. What is a business tax extension? Sole proprietorships, partnerships, LLCs, and corporations can file a six-month extension request with the IRS to receive extra time to complete their tax return without penalty. Which request form you need to file depends on your business structure: Sole proprietorships and single-member LLCs use Form 4868 . Partnerships, multi-member LLCs, and corporations use Form 7004 . Generally, the extension period is automatic if you file your request by the due date. To submit your form, you can request an extension online (TaxAct can help you do this when you e-file with us) or submit an extension request by mail. What is the filing deadline to request a business tax extension? The deadline for filing an extension request for your business also depends on what ki

The April 18 tax deadline is quickly approaching. If you haven’t filed your taxes yet and are starting to feel the pressure, you’re not alone. According to a recent IPX 1031 survey , one-third of Americans say they wait until the last minute to file their taxes. But if tax season snuck up on you this year, there’s no need to panic — you can always request a tax extension. What is a tax extension? If you need more time to file your individual federal income tax return, you can request an automatic extension from the IRS using Form 4868 . The filing deadline to request a tax extension is the same as filing your return, April 18, 2022. A tax extension will give you an additional six months to file your taxes; this year’s tax extension due date is Oct. 17, 2022. Will filing a tax extension give me an extension of time to pay my tax bill? No, a tax extension only gives you more time to file your return; it doesn’t give you extra time to pay any taxes you owe. You must pay your tax bi

As a tax prep service, we know financial literacy is an invaluable skill to have, no matter your goals or occupation. But finances tend to be a touchy subject for many Americans. A Global Financial Literacy survey back in 2018 found that 60 percent of U.S. adults classified themselves as financially anxious. This was even before the coronavirus pandemic and the record inflation rate we’ve had to adjust to over the past year. TaxAct ® wants to help change this statistic. This year, we partnered with the Dallas Stars Foundation to support an excellent community program centered around building financial literacy. The program is run by the Dallas Area Habitat for Humanity nonprofit organization. They offer a digital financial education program for children called Pocketwise Prep . TaxAct and the Dallas Stars are sponsoring three schools in the Dallas Community, giving students access to the Pocketwise Prep program. This education program aims to educate students about various fi