April 15, the personal tax deadline is long gone and still there are many who have done their duty. If you owe a refund and you did not file it on time, you are safe. But, if you owe tax to the IRS and did not file it on time, you are sure to invite late filing and late payment penalties on to yourself.
Late Filing Penalty:
When you do not file your tax on time, you will have to pay 5 percent of the unpaid taxes for each month or part of a month that that you delay in filing as penalty. Late filing penalty normally won’t exceed 25 percent of your unpaid taxes. Read More Late Filing and Late Paying Penalties
There is this ‘Someday’ concept that we keep applying for almost all long term financial goals. “Someday I will buy a house of my own”, “Someday I will go for a world tour”, and when it comes to saving money for this “Someday” we never ever start it unless there is some pushing need. And one fine day, after it gets too late for saving, you just while away the rest of the time complaining about how you wasted your time or how you never got a chance to save money for your desire. Financial planning experts say, “Your money saving goal starts only when you actually start putting your efforts towards it. You just can’t expect things to happen just because you want it to happen- you will need to give your hard work.” Read More When to Plan for your Child’s Financial Future?
Affordable care act is one of the latest headaches for many taxpayers who already find tax season tedious and demanding. People had been running from corner to corner in hope to get enrolled in some eligible health coverage. Not because they just want coverage but to escape the shared responsibility payments which will only add to their already hefty tax liability.
On the other hand, there were people who found it hard to even file their tax on time and have moved on to file form 4868 to extend their filing for another 6 months. But what good does it do to the Affordable Care Act payment. Can filing a tax extension buy some time for the penalty it imposes for not having a valid health insurance during that tax year? There are lot of other doubts and speculations around this new topic but let’s stick to what good can tax filing extension do to the health care penalty in this post.
Read More Tax Extension and Affordable Care Act Exemption
Health Insurance as we all know has become one of the important factors that affect your tax return and refund if any. Just about when most of the taxpayers have bought a valid cover, there are also a considerable number of taxpayers who were given coverage by their employer. Let’s discuss some of the facts involved in this, so that it gets easier to handle affordable care act and shared responsibility payments the next time your employers chooses to do the coverage for you. Read More Having Health Insurance through Employer
While millions of students come off with flying colors graduating every year, they have a ticking time bomb under their hats in the name of –Student Loan. Many academically strong students also find it hard to get a job that will help them pay off their student loan.
Some of them get lucky when someone offers to pay off their debt totally or a share of it as a gift for graduating or as a good will gesture. Whatever it may be, it’s a total relief to see your debt come down and allows you more breathing space. But, you are not going to enjoy all of it without paying tax. Yeah, we mean it! Even if your loans get magically paid off, be informed that it might invite various tax consequences under difference situations. Read More Did Someone Pay Off Your Student Loan?