Thank you! The taxpayer is to file CT part year/nonresident tax return and the spouse is a full year resident. Should I make a copy of their file and do the MFS from that file? I guess I would have ...
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Thank you! The taxpayer is to file CT part year/nonresident tax return and the spouse is a full year resident. Should I make a copy of their file and do the MFS from that file? I guess I would have to make two copies so I can input the spouse's information from the second copy, the husband's and file the two state returns from those files. File the federal from the original. I am guessing this cannot be done electronically.
The severance occured in 2021 and the taxpayer was unaware that the ex employer was withholding on his wages at one rate and his severance at 22%. He is underpaid by a substantial amount of money an...
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The severance occured in 2021 and the taxpayer was unaware that the ex employer was withholding on his wages at one rate and his severance at 22%. He is underpaid by a substantial amount of money and he contacted his employer to understand what I just described. The employer told him that a) 22% is what they are required to withhold b) led him to believe that by attaching his paystubs to the tax return his severance would only be taxed at 22% regardless of his tax bracket. I cannot find anything in a Publication or elsewhere supporting the latter.
I know the employer is only required to withhold at the 22% rate federally. The taxpayer is in the highest tax bracket and stands to owe a lot in April.