Don’t overlook this extra Tax Day task if you’re self-employed

Personal Finance


“If you owe more than $1,000 at the end of the year and you don’t qualify for one of the [exceptions], you will be penalized,” said certified financial planner and certified public accountant DeDe Jones, managing director of Innovative Financial in Lakewood, Colorado.

The IRS can assess underpayment penalties above that threshold unless:

1) You earn below $150,000 and paid 90 percent of your current-year tax burden or 100 percent of the previous year’s tax bill; or

2) You earn more than $150,000 and paid at least 90 percent of your current-year tax burden or 110 percent of what you paid the previous year.

While the above generally holds true for all workers, those with taxes withheld by an employer typically are less likely to underpay by enough to generate a penalty.



Source link

Products You May Like

Articles You May Like

Bond market sounds alarm on economy but it may be a false one for now
Jack Dorsey loses 200,000 followers on Twitter after fake user purge
DOJ challenge to AT&T-Time Warner deal could affect Disney-Fox merger
How Citi, JPMorgan, Wells Fargo could move on earnings this week
Your first trade for Thursday, July 12

Leave a Reply

Your email address will not be published. Required fields are marked *