The question has probably crossed your mind this tax season. What’s the reality? Unless you filed an extension, it’s likely that your annual tax preparation marathon is over. Whether you did your taxes yourself or had a professional complete your return, you probably breathed a sigh of relief as they were filed. At the same […]
Paying Estimated Taxes? When You Should
It’s not just the self-employed who must submit estimated taxes. IRS obligations are pay-as-you-go. Much as we may grumble about them, estimated taxes and payroll withholding are good things. Imagine preparing your taxes in April having not paid in anything through the 12-month tax period. Chances are, a large percentage of taxpayers would be filing […]
When a Hobby Becomes a Business
A few dollars here, a few dollars there. What do you do when the money from a hobby starts to add up? Maybe you didn’t consider it a real business when you first started working on friends’ computers or building birdhouses or designing logos and other graphics for people. At first, you just charged for […]
Are Your Social Security Payments Taxable?
They may be. The IRS’s rules for taxing Social Security benefits could require some studying on your part. If you’ve received Social Security benefits for more than a year, you probably already know the answer to this question. But if you started receiving those government-issued checks or direct deposits in 2016, now’s the time to […]
Last-Minute 2016 Tax Tips
April 17, 2017, sounds like it’s a long way off. But December 31, 2016, isn’t. If you haven’t given much thought to your 2016 income tax obligation, it’s time. The holiday season has begun, and the end of the year is approaching. You probably have personal and business to-do lists a mile long. Gifts to […]
Tax Planning, 12 Months a Year
We’re halfway through 2016. What do you know about this year’s income tax obligation? Your 2016 income taxes are probably not at the top of your mind in the middle of summer. After all, it seems like you just filed your 2015 taxes (or you put in for an extension). Maybe you made your two […]
Using a Vehicle for Business: Q&A
IRS rules and exceptions abound, but there are some questions we can answer simply. Next to your home, your car is probably the most expensive investment you make. And the costs of paying for and maintaining it can be considerable. Can you recoup some of your investment by claiming vehicle expenses on your tax return? […]
All About the Earned Income Tax Credit
Individuals who are working and who have low-to-moderate taxable income may qualify for this income tax credit. When you think about ways to offset your income as you’re preparing for income tax time, do you primarily consider the deductions you can take? Things like home mortgage interest, charitable donations, and taxes you paid that can […]
5 IRS Audit Red Flags
You may have done nothing wrong. But the prospect of an IRS audit makes everyone sweat. Many things probably go through your mind as you’re preparing a tax return or looking at one that’s been completed for you. Did I declare all of my income? Are all of the deductions I claimed legitimate? Do I […]
Retirement Plans for Sole Proprietors
Granted, retirement plans are usually easier if you’re a full-time employee. But if you’re self-employed, you can still contribute to a retirement plan. It’s expensive to be a sole proprietor. If you’ve been one for any length of time, you already know that. There’s the self-employment tax. Business insurance. Computers and mobile devices and applications. […]