Now that the April 15 tax return filing and tax payment deadline is nearing, the Internal Revenue Service offers the following last-minute tips for those taxpayers who haven’t yet filed, paid what they owe or taken the necessary steps to ensure they receive the economic stimulus payment.
The Taxpayer Relief Act of 1997 created the ROTH IRA effective January 1, 1998. Although ROTH IRA’S are not tax deductible, if certain requirements are met, the earnings can be withdrawn tax free. Furthermore, the so-called “minimum distribution rules” that apply to Traditional IRA’S do not apply to ROTH IRA’S. Traditional IRA’S require withdrawals no later than April 1 following the Calendar Year in which the owner reaches age 70 ½ . Earnings in a ROTH IRA can accumulate tax-free during the owner’s lifetime.
Food service employees generally rely on tips to earn a reasonable wage. They and their employers have special withholding and reporting requirements. Internal Revenue Code(IRC) Section 3121(q) requires that “tips received by an employee in the course of his employment shall be considered remuneration” and “deemed to have been paid by the employer” for purposes of FICA (social security retirement and medicare) withholding and reporting.
For those Seniors who have been told that they don’t have to file their tax because of their income could very well be missing out on the Senior Circuit Breaker Credit.
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