
Missed the tax deadline? Here’s what you should do
If you haven’t filed your taxes yet, don’t panic — but act fast.
Adjustments to income can reduce the amount of tax owe. Bankrate explains.
Adjustments to income are tax deductions someone can take for income she earned that can’t be taxed. Considered “above-the-line” deductions because they’re calculated before the adjusted gross income line on the tax form, adjustments to income determine a taxpayer’s actual gross income before applying standard, “below-the-line” deductions and help her reduce the amount of income she can be taxed on.
On the Internal Revenue Service’s Form 1040, there are two pages to list deductions. Those “above the line,” on page one, calculate the taxpayer’s adjusted gross income (AGI).
Taxpayers have to list all their income on their tax forms, but they can adjust the gross amount by subtracting certain types of tax-deductible deposits and expenses.
Those permitted deposits and expenses include the following categories:
Deductions made against the AGI are called standard, or “below-the-line,” deductions.
Let Bankrate help you prepare your new checking account for the tax refund you’ll get from these deductions.
Stacey graduated college last year and has $30,000 in student loan debt. This year, her loan accrues interest at the fixed-rate amount of 6.8 percent. Her monthly payments are about $354, including interest of about $24. At the end of the year, she’s paid $288 in interest, which she subtracts from her income to calculate her adjusted gross income.
If you haven’t filed your taxes yet, don’t panic — but act fast.
Typically, taxpayers have two options: Take the itemized deductions or take the standard deduction.
Regardless of what may cause a person to miss the tax-filing deadline, there are potential consequences.
Applying for more time to file your taxes is easy. Just don’t put off paying your tax bill.
The fast-approaching deadline for filing your 2021 taxes is April 18, 2022.
There are seven tax brackets for most ordinary income: 10%, 12%, 22%, 24%, 32%, 35% and 37%.
The credit was confusing even before Congress revamped it for 2021.
Here’s how to use a Roth IRA to pay for your child’s college tuition.
This popular tax break can be one of the trickiest.