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FAQ

1. When are taxes due?

Each tax return has its own due date on when the return should be filed and when the taxes are paid. Generally, individuals must file by April 15th, following the end of the calendar year (see table below). Any tax owed must also be paid at that time. Taxpayers may file for an extension to give them additional time to prepare the return. The extension does not extend the requirement to pay the taxes owed. Should the tax be paid later, interest and failure to pay penalties may apply.

Tax Return
Due Date
Extended Due Date
Individuals - 1040
April 15
October 15
Corporations - 1120
April 15
October 15
Partnerships and LLCs - 1065
March 15
September 15
Trusts - 1041
April 15
September 30
Nonprofits - 990
May 15
November 15

2. Can taxes be paid in installments?

Taxpayers can pay tax at any time. However, the IRS requires that tax owed is submitted in a timely manner throughout the tax year. For taxpayers that end up owing over $1,000, the IRS requires that estimated payments be made going forward. Estimated payments are submitted quarterly. For irregular or large taxable transactions, it is recommended to submit payment to the IRS after the transaction takes place.

If the taxpayer is unable to make the full payment of the tax owed, a payment plan may be set up with the IRS to submit the tax over an extended time frame. Payment plan options can be setup at https://www.irs.gov/payments/payment-plans-installment-agreements.

3. How are taxes calculated?

The United States uses a progressive tax system where different portions of your income are taxed at different rates. These rates are termed as tax brackets. There are currently seven tax brackets of 10%, 12%, 22%, 24%, 32%, 35%, and 37%. The amount of income that can be taxed within the brackets can be affected by your filing status.

For a single taxpayer in 2024, the first $11,600 of income will be taxed at the 10% rate. Then the next $35,500 will be taxed at 12%, and so on until you reach the top of your taxable income.

Income is classified into different types which can have their own associated tax brackets. For example, capital gains are generally associated with three tax brackets, 0%, 15%, and 20%.

4. What taxes are deducted from a paycheck?

There can be several types of taxes that are deducted from your paycheck. The more common ones are FICA taxes, federal taxes, and state taxes. Federal and state tax withholdings are included when you file your tax returns. FICA taxes include Social Security and Medicare which are savings for retirement.

Each tax can be affected by your filing status, amount of income, number of dependents claimed, and additional withholding claimed on your W-4.

5. Why taxes should be lowered?

Supporters of lowering taxes reason that Power taxes will boost national GDP, spur economic activity, and help make costs more manageable for lower income families.

Opponents of lowering taxes claim that it hurts lower income families as less government services are available to them, and lower taxes only benefit wealthy individuals.

In our opinion, a combination of adjustments to the current tax system while seeking to lower taxes for middle and lower-class families could provide the balance necessary to continue the economic success of the United States.

6. Where do taxes go?

Federal taxes are used to support the United States Government budget. The Federal Government estimates it will spend about $6.8 trillion during the 2024 tax year. Below are the four highest areas on where spending will be applied.

  • Health Insurance 24%
  • Social Security 21%
  • Defense 13%
  • Interest on debt 10%

7. Which taxes do you get back?

Taxpayers often receive refunds on their tax returns. These refunds come primarily from two places, refundable credits, and payments. When the sum of payments and credits is greater than your tax liability, a refund will be generated and sent back to you.

Payments consist of withholdings on your income and estimated tax payments. For those that receive a W-2 from an employer, you are prepaying your annual tax liability throughout the year as withholdings. These withholdings can be seen on your W-2 in box 2. Estimated payments are made quarterly to offset any potential tax liability.

There are several refundable credits that can be applicable to your return. Common ones included the Earned Income Credit, Child Tax Credit, and American Opportunity Credit. Your tax advisor will be on the lookout to determine if any of these credits apply to your situation.

8. Are taxes higher this year?

The Federal Government has not announced any changes to the tax brackets for 2024. The tax brackets are adjusted each year by an inflationary index. If a taxpayer remains at the same income level year-over-year that could mean that more of their income is being taxed at a lower rate. Historically, the government has implemented new tax policies or adjusted tax brackets about once every 10 to 20 years.

9. Will taxes go up in the future?

Currently, the United States national debt sits at about $33 trillion or 97% of the national GDP. With annual budgets showing increased amounts of additional debt being added each year, experts forecast that the national debt could ballon to 166% of the national GDP by 2054. It is speculated that due to problematic spending, a combination of spending cuts or tax increases will be implemented.

10. Are Utah Taxes high?

Of the 41 states that have an individual income tax rate, Utah ranks 8th for the lowest tax rate (17th overall when including all 50 states). The 2024 tax rate for Utah is 4.55%. Historically, Utah has hovered around a 5% tax rate.