It may be too late for many Pennsylvania taxpayers to make a difference in their taxes for 2017, but this is the perfect time to prepare for next tax season. In light of the many new tax rules the federal government enacted last year, many are seeking advice about the best ways to avoid tax issues on their returns for the 2018 tax year. Of course, the point is to keep one's tax bill low and to take advantage of every opportunity to save money.
It seems that very few windfalls come without strings attached. Those in Pennsylvania hoping to win the Mega Millions Jackpot or any other substantial lottery prize would be wise to take heed of this. Just like any payday, the winner of this massive prize will have to deal with tax issues.
Many Pennsylvania residents were shocked this spring when they completed their tax returns and discovered they owed money to the IRS. Others may have filled out their forms fully aware that they would be paying taxes since they owe money every year. Some may have tax debt on which they are paying installments with no end in sight. However, the Government Accountability Office recently released a report that includes advice for those with these tax issues.
For some, tax preparation is on their minds all year long. A Pennsylvania worker may have numerous sources of income, run a business or simply fear that again this year, he or she will owe hundreds or thousands more than anticipated. When these tax issues arise, it may help to seek professional guidance. A solution to the issue may begin with understanding which sources of income are taxable and which are not.
With the federal income tax filing deadline coming this week, there are a number of people who lament the reality that they will have to owe Uncle Sam money. For those in this unenviable situation, they might not just have the IRS to deal with in the event they don't pay their tax bill. Instead, they may have to answer to private collectors.