Canadian Common Problems Related To Income Tax and Its Solution

Common Problems Related To Income Tax and Its Solution

BOMCAS LTD. ACCOUNTING & TAX SERVICES

Business Accounting, Bookkeeping, Payroll, Farming, Personal Tax & Corporate Tax Accountants

Income tax paying has always been a huge problem that usually hangs in the mind of people from the stipulated period of January to April. Most of the people fail to display the proof of expense via the bank statement or paycheck. State tax authorities are responsible for the conducting the affairs concerned with income taxes, who by the arrival of the January month are sitting on the head for revenue collection. In case your business is exploring in different states then, the circumstances arise that the payer is bounded to file income taxes for multiple states. Below, there are few of the issue related to income tax that is generally faced by people and can be easily resolved under the supervision of Edmonton Corporation tax services.

Angry Senior Woman Paying Bills And Filing Federal Tax Return

CASE 1: Underpaid the estimated tax payment

It is the most common case handled by professionals of the accounting firm offering their dedicated Edmonton Corporation tax Accountant services. In case, the taxes get withheld from your paycheck then, for sure it is a get shock, if you have to pay the tax yourself. And with this, the payer can end up with a large amount of employment, income taxes, and penalties that are imposed due to late payment for taxes. The estimated amount can be paid quarterly or the payer may fall under the penalty category of underpayment option.

If the total tax due lies under $1000 then, the taxpayer does not need to worry that he/she will come under the penalty option. Edmonton Alberta Accounting Services suggest a good idea to save at least 25% – 30% of your income to pay the tax at the committed time so that figure of the tax does not get complicated.

In case, the taxpayer is a freelancer or earn through rental income even if they are employed, the situation may get critical and lead to shortage at the tax time. Keep yourself prepared with the extra taxes that should be withheld from the paycheck to not panic at the time of shortage of estimate payments. State payment is a thing that cannot be neglected otherwise the payer will be liable to pay a huge amount as the penalty count.

CASE 2: Did not file the state tax correctly after moving:

Moving from one state to another with little or no income is surely going to be a difficult period. Few of the people divide their time between multiple states for work or personal reasons. The taxes become difficult to be determined in case it is a 2 or 3-week corporate assignment or retreat.  If your desire to enjoy the privilege of a lower tax burden then, it is a better option to migrate to the state acknowledged as a tax-haven state. It has been recorded by the Edmonton Corporation tax Accountant services that even if, the payer files the entire document with the new state such as new voter registration, change of postal address, get citizenship of the new state. But, then also he/she is going to be treated by the high tax state.

To earn the tag of primary residency in other states, a tax-payer needs to live there for approximately 183 days of a year. Just having a property does not make you the citizen of the new state until and unless you have your family with you living in the same property. Moving for a vacation or spending time out of work even count in the tax list as you are going to spend a complete night outside.

If you have migrated permanently then your residency is valid and finally, as a time of settlement, you need to file a part-year resident tax return in favor of the last stay in the old state. Howsoever, you do not need to worry but keep the record of the stay you have made in different states.

Get in touch of Edmonton Alberta Accounting Services

Negligence of filing state income tax return results in failure of payment that leads to the income tax problem which cannot be neglected. Instead, with the support of professional Edmonton Corporation tax services, these issues can be avoided and quickly comes into control. So, quickly get in touch with the reputed accounting firm that would help in providing complete assistance related to the taxation nexus. Visit https://bomcas.ca to get better result quickly.

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