Partnerships are considered pass-through entities by the IRS — they are not separate from their owners. All profits and losses pass through the business to the partners; each pays taxes on his or her share of the profits or deducts his or her share of the losses on individual income tax returns.
Form W-4 helps employers determine how much federal income tax to take out of their employees' wages. On the form, employees state their withholding conditions, such as filing status, number of allowances and any additional amount they want withheld.
The IRS is encouraging taxpayers to make sure they're well-informed about their tax situation as the filing deadline approaches. The key topics include special steps related to charitable contributions, economic impact payments and advance child tax credit payments.