Archive for June 2022

The IRS “What Ifs” for Struggling Taxpayers – Job Related (A-4) What if I withdraw money from my IRA?Generally, early withdrawal from an Individual Retirement Account (IRA) prior to age59½ is subject to being included in gross income plus a 10 percent additional tax penalty.There are exceptions to the 10 percent penalty, such as using IRA funds…

The IRS “What Ifs” for Struggling Taxpayers – Job Related (A-3) What if my employer goes out of business or into bankruptcy?Your employer must provide you with a Form W-2 showing your wages and withholdingsfor the year by January 31 of the following year.  You should keep up-to-date records orpay stubs until you receive your Form W-2.…

The IRS “What Ifs” for Struggling Taxpayers – Job Related (A-2)What if my income declines?There are many tax credits that are subject to income limitations. If you had a reductionin income this year you may be eligible for some credits or deductions. For example,the  Earned Income Tax Credit  is available for working families and individuals.Eligibility…

The IRS “What Ifs” for Struggling Taxpayers – Job Related (A-1)What if I lose my job?The loss of a job may create new tax issues. Severance pay and unemploymentcompensation are taxable. Payments for any accumulated vacation or sick time also aretaxable. You should ensure that enough taxes are withheld from these payments or makeestimated tax…