If you are about to switch jobs or experience some sort of unemployment, there are certain tax implications you may need to consider. For instance, it is important to note that when receiving unemployment benefits, if taxes are not withheld, you may be facing a large tax bill the following year.
We pay our federal income taxes through a voluntary pay-as-you-go payroll deduction, or through a system of quarterly estimated payments to report earnings not subject to payroll deductions. The system encourages upfront payments and can add additional tax debt to the taxpayer who underpays.
Estimated taxes are commonly paid by those who are self-employed or have unconventional income, such as income from stocks and bonds. Those who are on salary and receive a check from payroll generally pay their estimated taxes through their company; their income tax is withheld from each check and then filed by the business. Those who do not receive salaried checks must complete these calculations and payments themselves.
When you sell a business, you need to pay taxes on your gains — the amount of profit that you made off of the sale your business. At its most simplistic, the amount of profit in your business is the amount that you’ve sold your business for less the amount that you invested into it.
This guide is generally oriented towards the time-honored approach of deferring income and accelerating deductions to minimize 2015 taxes. For individuals, deferring income also may help minimize or avoid AGI-based phaseouts of various tax breaks.