FICA Tax Basics
FICA Tax Basics FICA tax is short for Federal Insurance Contributions Act tax. It makes up part of your W-2 employee withholdings on your paystubs. But what is this withholding for? In this article, we will go over the basics of FICA tax. The Use The use of your FICA tax withholdings is twofold. This tax funds both the Social Security and Medicare programs. Without paying this tax you will not qualify for any [...]
2020 Taxes
2020 Taxes With COVID-19 still widespread in most communities, it has had some effects on 2020 taxes. In this article, we will go over some of these changes. This way you can be ready to file your return. Start Date Due to issues within the IRS, the start date for filing taxes will be Friday, February 12th, 2021. However, the deadline will still be April 15th. Since tax season will be short, schedule with [...]
Tax Identification Numbers
Tax Identification Numbers Tax identification numbers, or TINs, are numbers the IRS uses for tracking purposes. In this article, we will go over the basics of tax identification numbers and the different types you may need to use. The Basics TINs are nine-digit identification numbers the IRS uses. They are a way for the IRS to numerically keep track of taxpayers, whether they are individuals or entities. A TIN is a requirement for filing [...]
Tax Audit-Common Questions Answered
Tax Audit-Common Questions Answered Tax audit-a phrase that strikes fear into most hearts. A tax audit is something we all want to avoid, but many are not prepared for what to expect. This article will answer some common questions about dealing with a tax audit. How Likely is a Tax Audit? This is one of the most common questions about tax audits. The good news is the probability is low. From 2010-2018, IRS data [...]
History of Taxes in the United States
History of Taxes in the U.S. The history of taxes in the U.S. may be shorter than in other countries, but it is full of information. In this article, we will go over a condensed history of taxes in the U.S. and how the past affects us today. Early History of Taxes Before the Revolutionary War, American colonists paid taxes to the British government. This was the case because there was not a government [...]
Filling Out a W4
Filling Out a W4 Filling out a W4 is an important part of successful tax planning. A Form W4 is an Employee’s Withholding Certificate. It is an IRS form that you fill out when you start a new job. Many are unsure on how to complete these properly. In this article, we will go over what this form is and how you should be filling out a W4. The Purpose of a Form W4 [...]