Quid Pro Grow

Tuesday, July 4, 2017

Taxes not Simple

Taxes are an intricate system, yet they are easy to understand rules-of-thumb. If you can remember quarterly payments, you can pay taxes. January, March, June and September are the months for notification from the government. Prepare a month before the notice. The month after is when it is due. Some of the business and corporate taxes are due at the end of the month or pay taxes monthly.

Taxes involve socialized government actions to enact socialized development. Most social efforts are military, transportation, communication and energy. There are a few specific taxes for specific groups: kids, elderly, poor, wealthy and so-on.

The biggest tax deadline in the United States is April 15th. All income from corporations, businesses, charities and individuals is paid to the Internal Revenue Service. There is a six month exemption to pay taxes if filing on-time and a 90 day past due period if unable to file or filing an appeal.

The 1040 form features every type of tax that is filed throughout the entire year. There are boxes for income from employers, state sales tax and more.

Many small and large business owners are unsure about how to file state sales taxes. They are due on December 31st each year; however, the actual deadline is January 31st. Sales tax is assessed by the sale of goods and not the same as contractual work. Marketing is a service. Service and products have a sales tax. Make a decision and pay taxes.

Employers must file W-2 and MISC 1099 forms with social security and the Internal Revenue Service by January 31st.

What is an employer? An employer, by tax definition, deducts social security and federal withholdings from employee paychecks.

Employees fill-out an I-9 for employers. Employers send a W-2 to employees.

Employers send a MISC 1099 to contractors. Contractors are self-employed. Since they employ themselves, they are responsible for declaring social security and federal withholdings.

Some business owners do not understand the importance of declaring FICA or medicaid. To receive unemployment benefits an individual must make more than minimum wage for six months in an annual cycle to claim unemployment. To receive medicare benefits, an individual must work for 40 quarters or ten years. This statement is based on paid taxes.

This is a tax definition. There are other definitions. When paying taxes, the only perspective that matters is the IRS and States who actually make the payments.

The government, who issues these benefits, makes these decisions from a personal basis. People who work pay money into the federal and state fund. If there are no taxes, there is no personal fund to pay benefits. This is like the removal of taxes from paychecks. You pay the taxes first and then claim deductions. A deduction subtracts from something. It is impossible to deduct from nothing.

The state collects sales tax. They are responsible for energy, phone communication, waste disposal, fuel, insurance and motor carrier. This is filed through the state. You find the tax schedule through the website or government building. The SBA or Small Business Association has information on finding the information.

County business and individual taxes for property, parks, waste management and management other are also found on the website. Additional laws are applicable. A county or city must maintain a building to the public to be considered as a county or city.

It is the responsibility of the state, county or city to send information and notifications of taxes. However, it is the business owner's or individual's responsibility to notify these offices of property and business ventures. It is mandatory to maintain a current address that is updated and verified at their offices. This can occur annually or biannually. Just verify they have the correct contact information.

Property tax is due by October 15 in several states, but not all of them.

The Taxpayer Bill of Rights states you have the right to know you should pay taxes and pay a fair amount. You also have the right to make an appeal or dispute tax assessments.

Some states, but not all of them, will remove property rights from individuals who do not pay property tax. It has been a huge problem for some states. Not as much of a problem for others. Pay property tax to avoid complication and loss of investment capital.

While clarifying taxes, professional accountants are available everywhere. Most people do not need to hire a full-time accountant, yet it is nice to have someone double check the tax form. Even if double checking, it is the taxpayer's responsibility to know what is taxable.

Property and sales tax do not apply to everyone. Most people pay sales tax to the cashier. It is the business who batches all the smaller sales tax payments and transfers it to state offices. It has to be declared during the year. The business adds the amount to box on the 1040 form. I think it is Schedule C. People worry about audits; however, you have to pay-in to get a payout.

Related Article
Tax Code Blues
Welfare Programs and Taxes

External Link
Taxpayer Bill of Rights