Investopedia

Continue to Site »

IRS Publication 505

Filed Under » , ,
Dictionary Says

Definition of 'IRS Publication 505 '

A document published by the Internal Revenue Service that outlines the process for withholding and estimated tax that individuals must follow in order to pay their taxes. Typically, workers have taxes withheld from their paychecks. Workers who do not have taxes withheld from their income – whether due to employment status or for another reason – will have to pay estimated taxes over the course of the year.
Investopedia Says

Investopedia explains 'IRS Publication 505 '

Income tax is not paid like a typical bill for a good or service. Instead of money coming due once a service is performed or good purchased, it is due when income is earned. Taxpayers who do not pay enough tax during the course of the year may wind up paying a penalty for each payment period.

Articles Of Interest

  1.

    Surviving The IRS Audit

    Keeping thorough records and knowing the penalties make this experience easier than you'd expect.

  2. How To Cut Your Alternative Minimum Tax

    Save yourself money by lowering the amount of tax you owe.

  3. 10 Money-Saving Year-End Tax Tips

    Getting organized well before the deadline will curb your frustration and your tax liability.

  4. 10 Steps To Tax Preparation

    Follow these simple steps to get you ready for April 15.

  5. 3 Common Tax Questions Answered

    We clarify some rules that often puzzle taxpayers.

  6. 7 Ways To Avoid Self-Employed Tax Penalties

    If you follow these methods for calculating estimated tax payments, you could minimize your chances of incurring penalties.

  7. How To Appeal Your IRS Audit

    The auditor's review isn't always the last word. Many taxpayers who are audited can successfully appeal their audits and save thousands of dollars.

  8. Has Income Tax Become A Class Tax On The Poor?

    With more than 33% of American families falling close to the poverty line despite their adult members holding full-time employment, a rising number of citizens are being forced to pay a rate ...

  9. How The 2014 Obama Budget Could Affect Your Finances

    Depending on which estimate you believe, Obama's proposed budget would raise the tax bill of a household with a yearly income of $50,000 to $75,000 between $63 and $100 per year. However, that’s ...

  10. Austerity: When The Government Tightens Its Belt

    When a government tightens its belt in tough economic times the entire nation feels the squeeze.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Validation Period

    The amount of time necessary for the premium on an insurance policy to cover the commissions, the cost of investigation, medical exams and other expenses associated with the issuance of the policy.

  2. Winner's Curse

    Because of incomplete information, emotions or any other number of factors regarding the item being auctioned, bidders can have a difficult time determining the item's intrinsic value. As a result, the largest overestimation of an item's value ends up winning the auction.

  3. Glocalization

    A combination of the words "globalization" and "localization" used to describe a product or service that is developed and distributed globally, but is also fashioned to accommodate the user or consumer in a local market.

  4. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.

  5. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  6. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.
Trading Center