Now more than ever before, more Connecticut residents are gig workers. Gig workers are considered small business owners. They work for themselves by taking on business opportunities offered through larger companies -- such as Uber and Airbnb, among a number of others. Being a gig worker can be a good deal and offer good money, but it can also cause some income tax problems.
When tax season rolls around, most people in Connecticut and elsewhere try to file their taxes themselves or turn to accountants for assistance. There are some tax situations, though, that may require one to seek out a tax attorney for help. What situations would be best handled by an attorney rather than an accountant?
With the year quickly coming to a close, most Connecticut residents probably feel it is too late to adjust things that will minimize their tax liability. The simple truth is, that is not true. There is still time to take action and make a few changes that will help one's income tax situation.
When going through the divorce process, taxes are probably the last thing on a person's mind, but they should not be. Divorce, and all that it entails, can cause some serious income tax issues for Connecticut residents. Take selling the marital home, for example.
When you think about your taxes, you probably think a tax preparer or an accountant is the person you need to talk to about any concerns you may have. While these individuals can offer some great guidance to Connecticut residents, they may not be able to address all of your concerns. A tax attorney, however, may be able to.
Divorce is a complex process of dividing assets. Whether you reside in Connecticut or elsewhere, the problem with dividing certain assets is the income tax issues that are likely to follow if they are not divided the right way. A tax attorney may be able to assist you in decreasing your tax burden by helping you properly structure your divorce settlement.
Connecticut residents who receive income throughout the year, regardless of its source, have to pay taxes on that income. In some instances, taxes are withheld before money is deposited into one's bank account, but there are individuals who do not have taxes withheld. These individuals may have to pay an estimated income tax at various times throughout the year or possibly face penalties.
There a number of organizations in Connecticut and elsewhere that are considered tax-exempt. This means they do not have to meet the same tax standards as everyone else. While they may not have to pay income tax, this does not mean that they do not have to submit a tax filing every year. They do and failing to declare and disclose tax information can have significant consequences.
In 2017, Congress promised a simplified tax-filing process. Instead of multiple pages to fill out, the average person -- whether he or she lives in Connecticut or elsewhere -- would have one small form to complete and send to the Internal Revenue Service. Well, the new income tax forms do not appear to be any easier than the previous ones.
Connecticut residents who owe a substantial amount in taxes for either the current tax year or as a result of owning back taxes may feel overwhelmed at the thought of trying pay the IRS. If one lacks the funds to pay everything off all at once, it is easy to feel somewhat trapped and defeated. Thankfully, there are options out there to help individuals in just this kind of income tax situation. One great example is an offer in compromise.