Federal Employees and Delinquent Taxes

Posted on: March 19, 2013

Currently in the United States there are about 9.8 million people employed with the federal government. A growing percentage of these employees are delinquent on their taxes.  It seems workers including Social Security Administration, Homeland Security Administration, U.S.Postal workers, Departments of the Navy, Army, and Defense, among others owe the government about $3.5 billion in unpaid taxes for the year of 2011. This number is up from previous years. On March 8th the Federal Employee/Retiree Delinquency Initiative (FERDI) released the information that about 312,000 workers owe the government a total of $3,519,410,517. The U.S Postal service owes the most at … [Read more…]

Common “Surprise” Taxes and How To Handle Them!

Posted on: March 13, 2013

One thing is certain besides taxes….you probably will want to stay on IRS’s good side! Here are some common items you may come upon this tax season. These are a few terrible tax surprises and how to handle them! Alimony Collected Now that you made it through the divorce you will also have to accept the fact that the IRS is going to take some of your alimony. It is important to know that alimony is completely taxable. Alimony and other similar payments of the type from your former spouse are taxable the year that you receive them. Child support … [Read more…]

Don’t Lose Your Refund to an Identity Theft Scam

Posted on: March 4, 2013

In 2012 the IRS uncovered a mounting problem involving the thefts of innocent taxpayers’ refunds. According to the IRS, investigators found 898 identification theft cases in 2012. This is a number that has tripled in comparison to the previous years. The IRS has issued numerous media alerts and has hired an additional 3,000 employees to be on high alert for such thefts. Here is how it works: Somehow the criminal gets access to a person’s social security number and then they file a fraudulent claim and receive the refund check. One couple found out when they went to file their … [Read more…]

Tax Time! Time to File your Taxes!

Posted on: January 31, 2013

It’s that time of the year again! People need to start thinking about their taxes. Wednesday, January 30th marks the beginning of tax season for 2013. The IRS had originally planned for tax season to begin on January 22nd, but the fiscal cliff debate pushed the start date back. Everyone needs to start organizing and preparing to file their taxes. Generally, you can expect your refund three weeks after the IRS receives your return. Last year, over 110 million taxpaying citizens received an average refund of $2,803 each. However, there are certain taxpayers who will need to wait to file. Those taxpayers who … [Read more…]

New Cut In Payroll Tax

Posted on: January 15, 2013

In January 2013 people opening their first paycheck of the year may be in for a surprise. Their paycheck will be less money than usual. This is due to a bill that congress let expire during the fiscal cliff fallout. Two years ago a temporary cut in Social Security withholdings gave American workers hundreds of additional dollars to spend. However, now taxes have gone back to 6.2% of the salary as compared to the temporary cut of 4.2%. Many are wondering if this pay cut could prevent economic growth or is it just a temporary setback? Companies may notice that … [Read more…]