This article was published by the IRS. The Internal Revenue Service has provided details clarifying the federal tax status involving special payments made by 21 states in 2022. The IRS has determined that in the interest of sound tax administration and other factors, taxpayers in many states will not need to report these payments on their [...]
Massachusetts follows most federal laws for small businesses. The majority of small businesses are sole proprietorships. A sole proprietor is an unincorporated business with one owner who pays personal income tax on business profits. A sole proprietor will complete Schedule C. Schedule C acts as a profit or loss statement for your business and is a [...]
This article was published by the IRS. Some businesses and other payers take backup withholding from payments they made to certain people. These entities should remember their upcoming filing deadlines. What is backup withholding? Business and other payers generally don't withhold taxes from payments reported on Forms 1099 and W-2G. There are, however, situations when a [...]
Income taxes are a pay-as-you-go system. That means you pay your taxes as you earn income during the year. Either your employer withholds taxes from your pay, or you pay quarterly estimated taxes on your own. If you have income that's not subject to withholding, you may need to make quarterly payments. This includes income such [...]
This article was published by the IRS. Many people are engaged in hobby activities that are also a source of income. For example, some people started selling handmade items during the pandemic. These people must report this income on their tax return. A hobby is any activity that a person pursues because they enjoy it and [...]
