- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Did the Treasury post a remedy for the FIT withholding holiday? I have client who is a federal employee and it was mandatory that they participate in the tax holiday and now they owe on their 2020 tax return. I see where once it's paid back the employer can issues a W2-c and then the client can file an amended return but that does them no good for the tax bill that's due April 15th. What are you all doing for your clients who have this issue?
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
There was no Federal Income Tax withholding holiday. There was a FICA tax holiday, which was supposed to be paid back in 2021 with increased FICA withholding from paychecks. Something else happened, to cause him to owe money.
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
That was only for SS not fed taxes....should not have any tax effect on the return.
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
The remedy is that they are repaying it over all of 2021 and not just in the first 4 months of 2021.
Perhaps they need to file for an extension, and that gives them time to find that income tax amount they owe for 2020.
Don't yell at us; we're volunteers