Baker Law Firm, P.C.
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24 Delay Street, Suite 1, Danbury, CT 06810

Income Tax Archives

Self-employment income tax -- things to know

There are quite a few Connecticut residents who are self employed. While this type of job status can grant them some freedom, when it comes to income tax, they may find that they are subject to different standards than those who work for others. Here are a few things that people should know about self-employment income tax.

Common reasons people say they don't have to pay income tax

Wouldn't it be great to not pay taxes? No one wants to pay, but it is hard to get out of it. It does not stop some people in Connecticut and elsewhere from saying that they should not have to pay income tax. Believe it or not, every year the Internal Revenue Service deals with a number of people making arguments against paying taxes. Here are some of the most commonly used arguments and the reasons why they do not work.

Better to pay income tax over time than not at all

Numerous Connecticut residents find themselves in the position of owing far more in taxes than they can actually afford. When this happens, they may feel overwhelmed and just opt to wait to pay their income tax when they have all the money on hand to do so. This is not something that will sit well with the IRS and can cause some serious legal problems for those who take this route.

Expats still owe income tax

Many U.S. citizens take job opportunities that move them and their families out of the country. While they may not be earning money on American soil, it does not mean that they are exempt from paying federal income tax. Here are some things Connecticut residents who are considering the expat lifestyle need to know.

Don't forget cryptocurrency in your 2017 income tax return

Several new tax laws have gone into effect this year, but they will not apply to one's 2017 tax return. For example, how cryptocurrency -- such as Bitcoin -- is taxed and at what rate will be changing under the new law. For the current tax season, here are some things Connecticut residents needs to know about declaring cryptocurrency on their taxes.

Income tax and the innocent spouse

It is not uncommon for spouses in Connecticut to file their taxes together in a joint return. There are a lot of benefits to doing so. The only problem one might see when filing an income tax return jointly is the liability issue. Thankfully, when one spouse makes a mistake or an issue is noted with a joint return, it may be possible for one to avoid liability by filing for innocent spouse relief.

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