During the ongoing Coronavirus pandemic, millions of Americans lost their jobs and are now receiving unemployment compensation, many of them for the first time. For many taxpayers, they may be unaware that their unemployment is taxable and that they will most likely need to withhold from their compensation in order to avoid owing a tax liability when it comes time to file taxes.
Optima Tax Relief helps taxpayers understand what they need to do in order to stay on the right side of the IRS.
Federal law allows recipients to choose between a flat 10% withholding from the benefits a taxpayer receives in order to cover a portion of all of their tax liability. In order for recipients to change their withholding, they must complete Form W-4V, Voluntary Withholding Request and give it to the agency paying their benefits.
For recipients who choose to be exempt from a withholding, they can make voluntary quarterly estimated tax payments. Taxpayers are advised to make estimated tax payments quarterly in order to avoid owning a tax balance when it comes time to file.
Those receiving unemployment benefits that return to work before the end of the year can use the IRS Tax Withholding Estimator to double-check that the right amount of taxes is being withheld from their paycheck.
More types of consensus mechanisms exist, including PoCo, PoB, PoDA, and PoA. Each excels in…
Adopting cloud computing, leveraging automation, robust cybersecurity, and collaboration are all critical elements of a…
Utilizing optimal ISP proxies facilitates global network reach while instilling the confidence associated with local…
Nutrition and hydration play essential roles in our work performance. We can plan balanced meals…
Sharing our gardening experiences creates bonds and enhances our well-being. We can exchange produce, recipes,…
Whether it’s increasing traffic, boosting credibility, targeting local customers, or gaining a competitive edge, the…