Hi Friendos, Today I am going to share a little tax “trick” that could help some people avoid an underpayment penalty if they did not make quarterly estimated payments on schedule. Maybe it will help you out. The scenario: You received some income where taxes were not withheld, like self-employment income or interest income. You […]
Hi Friendos, Last week I wrote about tax withholding, and possibly adjusting yours if you end up owing more, or receiving a larger refund, than what you prefer. Today’s newsletter is about paying quarterly estimated taxes, an alternative to increasing withholding. What causes the need for quarterly estimated payments? Self-employed people (whether full-time or part-time […]
Hello Friendos! What with all the recent excitement around Silicon Valley Bank, a couple of other bank collapses, and the Federal Reserve raising rates this week, I thought this was the perfect time to really go deep on paystubs (from a W-2 job). That’s right, I’m giving you my sizzling hot take on paystubs and […]
Or…why do I have to pay more money in April when I’ve been paying all year long? The U.S. income tax system is pay-as-you-go, meaning, the IRS expects you to pay taxes on your income as you earn it throughout the year. In fact, if you owe too much at tax time (relative to your […]
Frequently Taxed Questions 