Why Do We Owe Tax When Taxes Are Withheld From Our Paychecks?

Have you filed a joint return with your spouse where you both work and receive W-2s and, when the return is filed, you owe taxes? You ask, “Why would we owe when our employers are both withholding taxes?” It is not uncommon and happens often in this situation. The biggest reason is the way payroll […]

How to Handle Employee Bonuses for Employers

Boulder Tax Preparation

Are you thinking of giving an employee bonus such as a Christmas bonus, holiday bonus, or year-end bonus? What’s the best way to handle these year-end bonuses? Can they be handled ‘under the table’? Do you have to include them as wages on their W-2 The answer to this question is quite simple. Any additional […]