Not everyone filed their federal income taxes back in April. For example, you may be among the many individuals who requested an extension. For individuals who filed for an extension, an important deadline is coming up in a little under three months. This is the extended tax filing deadline. This year, this deadline is Oct. 15.
Unless a Massachusetts resident worked as an independent contractor, he or she probably received a paycheck that negated the need to worry about taxes but once a year. Now that the opportunity to retire has arisen, it is important to know that obligations to the IRS continue, but in a different way. How tax payments are made and how much is owed depends on whether funds come from a pension, Social Security benefits, a retirement account or a combination of the three.
Changes coming as a result of the 2018 Tax Cuts and Jobs Act could leave some alimony recipients – and payers – out in the proverbial cold in 2019. Next year will bring the end of a very popular tax credit that allows alimony payers to deduct payments from their overall taxable income. This means that, for the wealthiest Americans, their entire yearly income will be taxed at the 37 percent tax rate, not just the amount left over after paying alimony.
If you owe more than $51,000 in back taxes, penalties and interest, your U.S. passport/renewal application might be denied. The IRS estimates approximately 362,000 taxpayers fall into this category.
Perhaps the only thing worse than owing taxes is not being able to pay them. Many Boston residents find themselves in this predicament, and they wonder what the IRS will do to collect. Some people receive phone calls, emails or personal visits from people claiming to be agents, but taxpayers need to be cautious. Scammers take advantage of people every day.