Best Accountants in Syracuse, NY

If you are unemployed and received unemployment benefits from your state over the past year, you must claim that as income and may have to pay taxes on those benefits. The unemployment agency should provide you with a 1099-G form, which explains the amount of benefits you received during the past year. The Internal Revenue Service (IRS) receives a copy as well and will tax you at the appropriate rate in your tax bracket. Not everyone owes. If you worked a portion of the past year, chances are you paid payroll taxes and may earn a refund if those deductions were overpaid.

If you are self-employed, you will need to file a Schedule C using IRS Form 1040. Depending on your type of business and where you conduct business, there may be other forms you will need. You may also need to make quarterly estimated payments by filing Form 1040-ES, Estimated Tax for Individuals.

For federal taxes, a foreclosure is viewed as the sale of property. Two separate matters will impact your tax liability: any gain from the sale of your property and credited income you receive from any debt forgiveness. There are ways to calculate your Gains and Cancellation of Debt. To learn the specifics on how your particular situation is impacted, visit the Home Foreclosure and Debt Cancellation section on the IRS website or contact Holloway Tax Service for guidance.

Generally, property received as an inheritance is not included in your income. However, if property you receive this way later produces income such as interest, dividends, or rents, the income is taxable to you.

Many factors can contribute to why your refund is less than you expected. You have to consider the three elements that define a refund: your taxable income, the amount withheld from your paycheck for federal and state taxes, and your tax rate. If you are not getting as much money back, there may be an error on the return, certain deductions or dependent exemptions may be disallowed or part or all of your refund may be offset for a debt such as child support, student loan, back taxes, etc.