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 » SEND 1099S In the US, this time of year, we engage in an annual January ritual, initiated by our Internal Revenue Service, to tell on the other guy. This is when we gather the data from our accounting records about all the PEOPLE we paid for rents or services and turn them in to the tax collectors. The purpose of this is to ensure that they also pay taxes. The Form is called a 1099-MISC. They must be sent out to hapless victims by February 2nd. (Actually, this is a good thing. If we must pay taxes, so should they.) We have until February 29th, actually, March 1st to file the reports with the IRS. But there are penalties for not sending them out to to recipients by February 2nd. See TaxMama's article for CBS Market Watch, "How you help the IRS 1099 forms help agency track billions of unreported income" » UPDATE YOUR W-4 W-4 to the rescue Tax changes, paycheck schedule calls for withholding adjustment Paychecks dropped for hundreds of thousands of salaried taxpayers this month. For some, it's simply because deductions for which they reached the limit before the end of the year, like Social Security and state disability, are starting all over again. See TaxMama's article on CBS MarketWatch.com, "W-4 to the rescue Tax changes, paycheck schedule calls for withholding adjustment" » GET ADVANCE REFUNDS IN YOUR PAYCHECK File a Form W-5 to take advantage of the Earned Income Credit when you need it most, to cover groceries. See TaxMama's article on CBS MarketWatch.com, "W-5 can add up for low-income payers". » UPDATE W-2s People are always complaining to TaxMama that they didn't get their W-2s. Well, did you tell your employer that you moved? Did you give them your current address? Duuuuh! Do it now. before they send out the W-2s. If you were working somewhere else last year, call up all your old employers ASAP and update your mailing address with them. » PAY YOUR ESTIMATED TAXES FOR 2003 OK, this is the time to catch up for having used the money all last year. You'll find forms and the overall concept on this page It has NOT been updated for the new minimum requirements. And if you don't want to pay the last estimate, is it the end of the world? Don't tell anyone I told this, but ... don't sweat it. With the IRS interest rates being as low as they are (around 4%), it's much cheaper to pay them at the last minute than to borrow the money from your 10% or 19% credit card. Shhhh...you didn't hear it here.  |
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