Barrows Greenfield & Co., Inc.

Unlike employee wages, earnings from self-employment typically do not have taxes withheld. As a result, many self-employed people face IRS penalties for not paying enough estimated tax throughout the year.

If you have dependent children, then you likely know that you need to list them on your annual tax return. However, your children may also need to file their own tax returns if they earned income above certain thresholds.

Tax credits reduce your tax bill on a dollar-for-dollar basis, but many people misunderstand how they work. Common myths include misconceptions about eligibility, limits, and the impact on refunds.

Deductions can significantly lower a person's tax bill, but there are widespread misunderstandings about how deductions work, including eligibility criteria and their interaction with other tax provisions.

Federal capital gains taxes are frequently discussed, yet many people hold misconceptions about how they are calculated, the tax rates applied, and the treatment of short-term versus long-term gains.

The IRS enforces a pay-as-you-go rule for federal taxes, meaning taxpayers must make regular tax payments throughout the year. Common mistakes include under-withholding, failing to account for additional income, and not adjusting withholding for life changes.

Offshore bank accounts have been central to illegal activities, including money laundering and tax evasion. Common mistakes include failing to report foreign accounts, underpaying taxes on foreign income, and not complying with FBAR and FATCA requirements.

Fostering opportunities for your children to earn their own money helps them chart a course toward a prosperous, secure future. However, your children's income may require them to file their own tax returns if it exceeds certain thresholds.