Five Tax Facts for 2020

We’ve all heard the quip that only two things are certain in life: death and taxes.

 

But at a time in history when 78% of Americans live paycheck to paycheck and nearly 17 million workers in the United States have filed for unemployment within the last month, never have the two felt so comparable.

 

Here’s what we know about taxes right now:

 

1. They’ve Been Around for Over a Century and Over 50 Years in Their Current Form.

America first introduced Tax Day in 1913 when Congress passed the 16th Amendment allowing the government to collect taxes on income. They arbitrarily set the date as March 1 only to push it to March 15 a few years later with the Revenue Act of 1918. With the passing of the Internal Revenue Code of 1954, the government decided to push the deadline back once more to April 15 to allow taxpayers as well as the IRS additional time for handling the new complexities of our current tax-system.

 

A thus, a new anti-holiday was born!

 

2. This Year the Deadline has Been Pushed Back.

Let’s straighten something out, initially the deadline to file was going to remain April 15 but you could pay by July 15. This is no longer the case! Now you can wait all the way until July 15 to both file and pay.

 

3. You Can Still File a Tax Extension.

Yes. While Tax Day is now July 15, the extension deadline remains October 15. You can get an extension on your taxes provided you file it BEFORE Tax Day (July 15). I cannot suggest enough getting a professional to do this for you. My CPA very kindly handled mine a few years ago (yep, I’ve been through this mess before too) and it was accepted. The extension was initially designed to accommodate people who:

    • Hadn’t yet received all their paperwork
    • Were ill or injured and unable to complete taxes as a result
    • Were living abroad or working overseas during the due date

 

The good news is, the IRS pretty much auto-honors every on-time request they receive but, it’s not a guarantee. When I filed, it was largely due to the fact that I didn’t have the money to pay my taxes and helped by the fact that I was in the middle of breaking lease and moving out of my apartment to an at-the-time-unknown location while having also recently recovered from some health issues. It’s a true story and it sucks. Remember though, in filing an extension you are only delaying the inevitable...

 

4. Late Taxes, Extended or Otherwise, Still Have Consequences.

The Failure-To-File Penalty

You didn’t file an extension. You didn’t pay your taxes. You are now stuck with a failure-to-file penalty. This penalty is always higher than the one for extending!

 

Per month or part of a month you will now owe an additional 5% of your balance due for each month you wait. So if you owe $1,000 in unpaid taxes (back taxes) and you file your claim on August 10, you now owe an additional $50. Wait until August 20 to file? It’s now an extra $100.

 

If you file more than 60 days late, the amount you owe will either be 100% of the tax you owe ($1,000) or $210; whichever amount is less.

  

The Failure-To-Pay Penalty

You filed your request for an extension to the IRS before the July 15 deadline and it was accepted. Hurray! You still owe your taxes on July 15.

 

“Wait, what?!” You are shouting mid-victory dance. “What is the point of extending if I still owe the money?”

 

From the IRS’ perspective, the extension is designed to give you time to assemble your paperwork and file it properly. That means you are responsible for estimating what you owe and paying it. If you are a freelancer or self-employed individual, it is believed you are already estimating and paying quarterly taxes. If you are employed, it is believed you already have income tax being withheld. The IRS doesn’t understand or care why you might not have this money, or an estimate of this money so, “Pay up.” they say.

 

For usual tax years you can estimate and pay 90% of what’s due and avoid the penalty. For 2019 you can pay 80%. If you are expecting a refund, no penalties apply and you have up to three years to collect it. I wonder what that’s like…

 

The failure-to-pay penalty (even after your extension was granted) is 0.5% for each month or part of a month. Still owe that $1,000? Now your penalty is just an extra $5. The amount of this penalty will also not exceed 25% of your back taxes.

 

Additional bummer: if you haven’t paid that full balance due, even if you paid 90% of it, you owe interest. The current interest rate for underpayment of taxes in 2020 is 5%. That’s 5% interest on whatever portion of the amount due you haven’t paid by July 15.

 

Failure-To-File AND Failure-To-Pay

First of all, just get it filed! You have until July 15 to budget and prepare whether you choose to go the extension route or not.

 

Should you find yourself in this camp though your 5% failure-to-file penalty will be reduced by the 0.5% failure to pay penalty. So $1,000 times 4.5% which means you owe $45 per month or part of month in this situation.

 

Quick Summary

If you owe $1,000 of taxes due on July 15, 2020 and you:

    • Fail-to-file - You owe an additional $50 per month or part of month up to $210.
    • Fail-to-pay - You owe an additional $5 per month or part of month up to 25% of your back taxes.
    • Fail-to-do-anything - You owe an additional $45 per month or part of month up to 25% of your back taxes.
    • Fail-to-do-anything-but-get-a-tax-return - Congratulations! none of this matters to you. You have three years to file and claim your money.

 

5. Due to COVID-19 Ruining My Career, I Still Don’t Have the Money

I committed one of the exact sins the IRS and every CPA tells you not to do: I filed an extension to “avoid paying” my taxes. I did this with a plan though and we’re going to pick up here in the next blog post.

 

If you want to know when that post comes out, sign up on the email list. I believe that financial health is the ultimate tool in musician health. I’ve been through just about every financial dilemma you can imagine and am sharing the knowledge I’ve gained along the way with you.

 

If you have questions you want to see answered, send me an email and I’ll do my best to prioritize the topic it in the upcoming blog posts.

  

Be well and keep pursuing a life of less pain and more music!

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  • Apr 15, 2020
  • Category: Blog
  • Comments: 6
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FERRANTO583 January 04, 2021

Thank you!!1

Shawnnit January 07, 2021

Detail: http://zrenieblog.ru/ http://zrenieblog.ru/ http://zrenieblog.ru/
歷史
六七千年前的先民就開始釣魚。周文王曾和兒子們在靈沼釣魚取樂。戰國時范蠡也愛釣魚,常把所釣之魚供給越王勾踐食用。 二十世紀八十年代,中國大陸的各級釣魚協會成立,釣魚地點也從自然水域向養殖水域過度,所釣之魚則從粗養向細養過度。人數增多、水體污染及濫捕濫撈導致釣魚難度上升。釣魚協會開始與漁民和農民簽訂文件,使更多釣者能夠在養殖水域釣魚,達到了雙贏的目的。 二十世紀九十年代初,來自台灣的懸釣法走紅大陸,各地開始建造標準釣池。 二十世紀末,發達國家的釣者提倡回顧自然,引發新一輪野釣戰,而中國的釣者則更青睞精養魚池。<>]

工具

一种钓鱼竿机械部分示意图
最基本的钓具包括:鱼竿、鱼线、鱼钩、沉坨(又名沉子)、浮标(又名鱼漂)、鱼饵。<>]:1其他辅助钓具包括:失手绳、钓箱、线轮、抄网、鱼篓、渔具盒、钓鱼服、钓鱼鞋等。<>]:1

钓竿一般由玻璃纖維或碳纖維轻而有力的竿状物质製成,钓竿和鱼饵用丝线联接。一般的鱼饵可以是蚯蚓、米饭、蝦子、菜叶、苍蝇、蛆等,现代有专门制作好(多数由自己配置的半成品)的粉製鱼饵出售。鱼饵挂在鱼鉤上,不同的對象鱼有不同的釣組配置。在周围水面撒一些誘餌通常会有較好的集魚效果。

钓具
鱼竿
主条目:鱼竿
钓鱼的鱼竿按照材质包括:传统竹竿、玻璃纤维竿、碳素竿,按照钓法包括:手竿、矶竿、海竿(又名甩竿),按照所钓鱼类包括:溪流小继竿、日鲫竿(又名河内竿)、鲤竿、矶中小物竿。<>]:6-8

鱼钩
主条目:鱼钩
鱼钩就是垂钓用的钩,主要分为:有倒钩、无倒钩、毛钩。<>]:14

鱼线
主条目:鱼线
鱼线就是垂钓时绑接鱼竿和鱼钩的线,历史上曾使用蚕丝(远古日本)、发丝(江户时期日本)、马尾(西欧)、二枚贝(地中海)、蛛网丝(夏威夷)、琼麻(东南亚)、尼龙钓线(美国)。<>]:25

鱼漂
主条目:鱼漂
鱼漂又名浮标,垂钓时栓在鱼线上的能漂浮的东西,主要用于搜集水底情报,查看鱼汛,观察鱼饵存留状态,以及水底水流起伏变化。<>]:36

鱼饵
主条目:鱼饵
鱼饵分为诱饵和钓饵,是一种用来吸引鱼群和垂钓时使用的物品,钓饵分为荤饵、素饵、拟饵、拉饵。<>]:170

沉子
主条目:沉子
沉子又名沉坨、铅锤,是一种调节鱼漂的工具。<>]:45

卷线器
主条目:卷线器
卷线器主要安装在海竿和矶竿上的一种卷线的工具。<>]:63

连结具
主条目:连结具
连结具是连结鱼线与钓竿、母线与子线的一种连结物,使用最广泛的是连结环。<>]:55

识鱼
鱼类的视力不如人类,距离、宽度均无法和人类的视力比较,鱼类对水色、绿色比较敏感,鱼类的嗅觉非常灵敏,鱼类的听觉也非常灵敏,钓鲤鱼时,不能在岸上大声谈笑、走动不停,鱼类的思考能力非常弱,鱼类应对周边环境随着气象、水温、水色、潮流、流速、水量的变化而变化,于是便出现了在同一个池塘、水库、湖泊,往日钓鱼收获大,今日少,上午收获大,下午少,晴天大,雨天少等情况。<>]:114-117淡水钓鱼,中国大陆经常垂钓的鱼类对象是本地鲫鱼、日本鲫、非洲鲫、鲤鱼、游鱼、罗非鱼、黄刺鱼(黄鸭叫)、黄尾、鳊鱼、青鱼、草鱼、鲢鱼、鳙鱼,台湾经常垂钓的鱼类对象是本地鲫鱼、日本鲫、吴郭鱼(罗非鱼)、溪哥仔和红猫(粗首马口鱲)、斗鱼、罗汉鱼、苦花、三角姑(河鮠)、竹蒿头(密鱼)。<>]:117

影响鱼类的6大因素主要是:季节变更、气温高低、水的涨落、风的大小、水的清浊、天气阴晴

GAFFER52 January 31, 2021
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SolomonDIdowl February 08, 2021

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