(MoneyWatch) Whether you electronically file your tax returns, file paper returns or need to pay a tax bill for a prior year, the IRS will allow you to do so using a debit or credit card. But if you have the cash on hand in your bank account, why would you pay your taxes using a debit card? Paying taxes by debit card is available through IRS approved providers such as Official Payments Corporation, ChoicePay and Pay1040. When you do this, you will also pay a debit card fee of at least $3 and an additional amount of approximately 2.35 percent or more of the amount debited. But if you instead authorize the IRS to debit the amount owed directly from your checking or savings account the fee is zero. Six Things to Check Before Filing The Tax-Man Will Wait if You Ask What Happens if You Owe Tax and Can't Pay? So your choices are: Pay your tax owed using a debit card and pay fees or pay your taxes by having the IRS directly debit your bank account and pay no fee. You don't have to be a … [Read more...] about Why you shouldn’t pay your taxes with a debit card
Paying corporation tax
Some utility rates could go down after U.S. corporate tax cuts
OKLAHOMA CITY — Public utility regulators from Oklahoma to Massachusetts are considering lowering the rates that homeowners and businesses pay for electricity and natural gas after a federal tax overhaul signed into law by President Donald Trump reduced the corporate income tax rate by 14 percentage points. The tax overhaul that went into effect Jan. 1 lowers the highest corporate income tax rate from 35 percent to 21 percent. Now, regulators and consumer groups such as AARP are demanding that the rates consumers pay be rolled back. Utilities are allowed to incorporate federal income tax obligations into the rates they charge customers. Exactly when and where consumers might see savings remains to be seen as regulators look into the matter. Oklahoma Attorney General Mike Hunter estimates five public utilities operating in the state will save at least $100 million a year. In Montana, regulators estimate utilities will save tens of millions of dollars a year in taxes. In Maryland, … [Read more...] about Some utility rates could go down after U.S. corporate tax cuts
Apple, Ireland, and the corporate tax rate problem
When Apple's Tim Cook appeared before the Senate this week, many observers were expecting the CEO to be grilled by outraged senators about how his company has avoided paying billions in U.S. taxes by moving parts of his business to Ireland. That's not how it went down. A day after a congressional panel released a scathing report, accusing Apple of a massive tax-dodging scheme, the Apple CEO vigorously defended Apple's tax structure, testifying that he not only followed tax laws, he also followed "the spirit" of tax laws. Cook then managed to turn the discussion on its head by scolding the U.S. government for its outdated tax system with an outrageously high corporate tax rate. Cook also pointed out that the U.S. government could learn a thing or two from Apple's philosophy: "Apple has always believed in the simple, not the complex," testified Cook. "In this spirit, Apple...suggests to the Subcommittee today to pass legislation that dramatically simplifies the U.S. corporate tax … [Read more...] about Apple, Ireland, and the corporate tax rate problem
Local companies see varied results from slashed corporate tax rate
Share Tweet Share Email Comments Print Amid fanfare, President Trump signed his name in December to what has become the signature legislation thus far of his presidency, the U.S. Tax Cuts and Jobs Act. Right out of the gate, a few companies boasted of how the tax cuts would allow them to offer bonuses to employees. And it is true that by cutting the corporate income tax rate to 21 percent from a previous 35 percent, the law turned out to be an immediate shot in the arm for some companies, while offering a promise of more cash for investment — and more jobs — in the future. President Donald Trump shows off the tax bill after signing it in the Oval Office of the White House, Friday, Dec. 22, 2017. ASSOCIATED PRESS Enlarge But the change in the corporate tax rate, which took effect Jan. 1, wasn’t an immediate boon for every company. “It really depended on (a company’s) tax position coming into this change. Did you have deferred … [Read more...] about Local companies see varied results from slashed corporate tax rate
Panel: Cut Income Tax, Raise Sales and Corporate Taxes
An advisory committee established to help steer Connecticut out of its fiscal troubles recommended Thursday a new approach to the state’s finances that would cut the personal income tax while simultaneously raising the sales and corporate taxes.The wide-ranging recommendations by the bipartisan Commission on Fiscal Stability and Economic Growth also urged a slimmed-down state government, proposing to strip employee fringe benefits from collective bargaining by handing the task to lawmakers and urging the governor and lawmakers to find $1 billion in cuts. The commission also recommended the controversial idea of establishing electronic highway tolls — an idea that has caused clashes in the legislature for years.The panel, which was formed as part of the state’s budget approved last year, included enough to appease and anger both business and labor.For example, it proposes that Connecticut immediately repeal the estate tax, which currently applies only to … [Read more...] about Panel: Cut Income Tax, Raise Sales and Corporate Taxes