Six Tips to Help You Pay Your Tax Bill this Summer

If you receive a tax bill from the IRS, don’t ignore it.

The reason is because the longer you wait the more interest and penalties you will have to pay. Below are six tips to help you pay your tax debt and avoid extra charges:

1. Reply promptly.   The IRS usually sends out millions of notices to taxpayers after tax season.  Please read it carefully and follow the instructions. If you owe money, the notice will tell you how much and also give you a due date to send in your payment. You should respond to the notice promptly and pay the fees to avoid further interest and penalties charges..

What you need to know about Late Filing and Late Paying Penalties

April 15 was the last day to file tax return for most people. If you are due a refund there is no penalty even if you file a late tax return. But if you have a balance to pay, and you failed to file and pay on time, you will usually owe interest and penalties on the tax you pay late. You should file your tax return and pay your balance as soon as possible to stop them.   Below are eight facts that you should know about these penalties.

If You Missed the Tax Deadline These Tips Can Help

Now April 15 has come and gone. If you didn’t file your tax return or an extension yet, you need to take action now. Below are some tips for taxpayers who missed the tax filing deadline:

Top Four Year-End IRA Reminders

Contribution Limits

Individual Retirement Accounts (IRAs) are an important way for anyone  to save for retirement. If you already have an IRA or may open one soon in the near future, there are some key year-end rules that you may want to know. Below are the top four reminders on IRAs:

Four Basic Tax Tips about Hobbies

There are lots of people who enjoy hobbies that are also a source of their income.

 Stamp Collection

Some examples include stamp collection, coin collections, craft making, and horsemanship.

You must report on your tax return all of the income that you earn from your hobby. The rules of how you report your income and expenses depend on whether the activity is considered a hobby or a business. There are special rules and limitation for deductions that you can claim for a hobby. Here are four tax tips you should know about hobbies:

More about Premium Tax Credit

If you moved or get married recently, it is a good idea to add a health insurance review to your to-do
list. This is particularly important if you receive an advance payment of the premium tax credit through a Health Insurance Marketplace.

IRA contribution and deduction rules for 2014

Using individual retirement arrangements (IRA) is a very good way to save for your retirement. However, there are limits on how much you can contribute each year. There are also other factors that will affect the amount you can deduct on your traditional IRA contributions.  Roth IRA contributions, however, are not deductible.