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What are standard and Itemized deduction?
Taxpayers take the larger of their itemized deductions or their standard deduction. The standard deduction is a fixed deduction that is based on filing status and age. Itemized deductions include real estate taxes, excise tax, mortgage interest, investment interest, charitable donations, tax preparation fees, and other miscellaneous deductions.
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Do I need to pay estimated taxes?
It depends on many factors like your income and your withholdings, or tax payments. If at filing time, you have not paid enough income taxes through withholding or quarterly estimated payments, you may have to pay a penalty for an underpayment of taxes. If you are an employee and your withholdings are enough to cover […]
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What is an extension?
Individual income tax returns are due on April 15th or the first business day after if the 15th lands on a weekend or holiday. However, the IRS allows taxpayers an automatic six-month extension to file your taxes every year, as long as you complete Form 4868. The extension is guaranteed for everyone and there is no […]