3 Common Mistakes Sole Proprietors Make On Their Taxes
Do you run your own business? There are many ways you can set up your business, but a sole proprietorship is often the simplest, especially if you don’t have employees or complicated business arrangements. As a sole proprietor, you can file your business taxes on your personal return. That can simplify the reporting process and make it easier for you to file your returns. However, even if you file as a sole proprietor, there are still a few tax complications to consider.
Family Members Living With You? 4 Reasons That Could Help Your Taxes
More and more Americans are helping provide a home and support for other family members. This often includes adult children and older relatives. And if you’re in this situation, you’re surely doing so out of love and concern. But you can get some financial help on your tax bill that you may not be aware of. Here’s how. Dependency. Many people aren’t aware that they can sometimes claim as dependents adults and minors who are not their own children.
How To Deduct Medical Insurance As An Itemized Deduction
Individuals who itemize deductions on their income tax return often maintain detailed records of their medical expenses. When the tax return is prepared, their records are reviewed to determine which expenses are deductible. In addition to the amounts paid to medical providers, the cost of certain types of medical insurance is also deductible as an itemized deduction. Unlike most other itemized deductions, medical expenses are subject to a threshold at which they become deductible.
The Three Biggest Tax Mistakes Made By Small Businesses
One of the most common mistakes that small businesses make when handling their taxes is not deducting startup costs properly. A business cannot deduct its startup costs until it has made its first sale. These startup costs are not deducted right away but are instead deducted over the course of 15 years. Check with the IRS to make sure that all of your expenses qualify for a deduction. Hiding Your Income
A Quick Guide to Understanding the Basics of a Simple Trust and Its Taxation Details
Although the use and value of a trust have been evident for years, the details associated with filing the taxes for what is known as a simple trust can still be quite complex. For instance, you might be surprised to learn that in addition to the banking information and receipts for the income and outgo of that trust you might already expect to provide, you will also need to have the tax identification number for the trust.
Lessen The Burden Of Uncle Sam's Demands With These Often Overlooked Expenses For Writers
When you imagined you wanted to be a writer, what is it that you had in mind? If you are like a lot of professional writers, you will say you envisioned sitting in your well-put-together office space, sipping coffee, and tapping out masterpieces on your computer. If there is one thing you did not anticipate along with your prose-creating profession, it was Uncle Sam constantly looming over your shoulder. The fact is, as a writer, you are a sole-proprietor business entity.
4 Reasons To Get Professional Help For Your Business Tax Needs
If you’re a small business owner, you may be stressing out about having to handle your own taxes. It can be a complicated process and the rules can be confusing, especially if you’re a brand new business. The good news is there are tax professionals who are willing and able to help you with your tax needs. They can make you feel more confident and can offer personalized advice. Keep reading to better understand the reasons as to why you should hire a tax professional for your business tax needs.
Dealing With Overdue Federal Income Tax
It is not uncommon for individuals to find themselves with an unpaid federal tax balance. Common reasons for inadequate withholding include self-employment income, dual salaries, and bonus income. Tax filers who are unable to pay their federal balance in full have options available to reduce and eliminate the balance over time. Tax returns should always be filed by their due date, even if it leaves a tax balance unpaid. The specific penalty for filing late can usually be avoided by submitting the return itself in a timely manner.
Making The Transition To Online Income Tax Filing
For several years, the number of tax filers who prepare their own return online has steadily increased. The IRS provides statistics on the number of e-filed tax returns that were self-prepared. The statistics also provide the number of e-filed returns prepared by tax professionals. Some individuals who now require professional assistance can reduce their tax preparation fees by filing online. Almost anyone who is comfortable paying bills online or banking online is likely capable of filing their taxes online.
First Year Filing Taxes As A Self-Employed Person? Tips For You
If you have recently decided to go into business for yourself, whether it is as a freelance writer or consultant, or you have opened your store or other business, one of the many challenges that you will face in the next fiscal year is filing your taxes. Filing taxes as a person that is self-employed is quite a bit different from filing taxes as a wage-earning employee of a company. The first year, these changes can throw you off if you do not know how to prepare yourself to deal with them.
3 Tax Credits That Are Helpful For Seniors
Seniors can have a hard time financially due to the fact that they are no longer bringing in the income that they used to. It can be very helpful for them to search for ways to save money and pay less taxes so that they have more resources as their health declines. Look at these three tax credits that might be helpful for seniors and see if they are right for you.