If making money with minimal effort is a financial goal of yours, passive income just might be the answer. But what exactly counts as a passive activity from a tax standpoint? Let’s look at the different ways the IRS says you can earn passive activity income and how it affects your taxes. What is passive activity income and why does […]
You’ve heard the term capital gains tax. But what is that exactly? Is that something you pay? If so, when? Whenever you sell something — a house, car, company stock, or even gold or silver coins — you typically either make or lose money on the investment. That’s also referred to as a gain or loss. In many circumstances, the […]
Mistakes happen Once you realize you made a mistake or forgot to include an important piece of information on your tax return, how you handle it depends on the situation. For instance, if you entered an incorrect Social Security Number (SSN) for yourself, your spouse, or a dependent, you need to fix it. If you missed an income item that […]
Want to spruce up your home? You’re not alone. More than one-third of Americans are planning to remodel their homes within the next five years. If you’re like most Americans, your house is one of your biggest expenses, and it’s important to keep it up to date and in good condition. But not all home improvement projects add significant value […]
If you’re like most Americans, you’ve changed employers a few times throughout your working career. In fact, the average person switches jobs 12 times during his or her lifetime! While job-hopping can get you a variety of experience, it can also create some complexity managing your finances – specifically when it comes to the money you’ve saved in employer-sponsored retirement […]
Updated for tax year 2022. You own a thriving graphic design business. Perhaps you create eye-catching logos or comprehensive commercial websites. What you may not spend too much time on is thinking about filing your taxes as a freelance graphic designer. As an independent contractor or freelancer, you might be able to lower your income (and consequently pay less tax) by […]
What can you do to avoid paying higher tax rates when you have a year with more income? If your income level fluctuates from year to year, you may find yourself paying more than you expect at tax time. That’s because when you have higher income, your income may be bumped into another tax bracket, causing you to pay higher […]
It doesn’t matter if you’re just starting out as a small business owner or you’ve been doing it for a while now — we all know mixing business with pleasure can be a slippery slope. Some businesses, such as LLCs and corporations, are required to keep their business and personal finances separate. When you are your business, such as a […]
If you are one of the many Americans who got a significant refund after filing this year, you might be wondering how you should invest your tax refund. 1. Stash it in a savings account or emergency fund. While saving may not be the most exciting option, it’s always good to have some cash on hand in case you need […]
Hey, you. Did you know you don’t have to be a tax genius to file your own taxes? How to DIY your tax return We get it — filing your own tax return can be intimidating if you’ve never done it before. But once you get started, you might realize it’s much easier than you thought it would be. And […]
Let’s all breathe a collective sigh of relief — this year’s filing season is finally over. Now that tax filing is behind you, what could you have done differently? One common mistake taxpayers often make is waiting until tax time to think about their taxes. But by thinking ahead and making some financial tweaks now, you’ll be better equipped to […]
There’s no need to pretend. We know tax planning wasn’t exactly at the top of your summer to-do list. But hear us out … as you’re cooking up exciting summer plans, it’s good to remember how your tax filing could be affected. Tax tips to keep in mind this summer Here are five situations where your summer fun could score […]
Updated for tax year 2020. When you start a new job as an employee, your new employer typically asks you to fill out Form W-4, Employee Withholding Certificate. This document is a one-page Internal Revenue Service (IRS) form. It tells your employer how much money to take out of your paycheck to cover federal and state income taxes. The IRS […]
The April 18 tax deadline is quickly approaching. If you haven’t filed your taxes yet and are starting to feel the pressure, you’re not alone. According to a recent IPX 1031 survey, one-third of Americans say they wait until the last minute to file their taxes. But if tax season snuck up on you this year, there’s no need to […]
Do you need more time to file your business return this year? No sweat — that’s what tax extensions are for. Read on to learn more about filing for a business return extension this year. What is a business tax extension? Sole proprietorships, partnerships, LLCs, and corporations can file a six-month extension request with the IRS to receive extra time […]
As a tax prep service, we know financial literacy is an invaluable skill to have, no matter your goals or occupation. But finances tend to be a touchy subject for many Americans. A Global Financial Literacy survey back in 2018 found that 60 percent of U.S. adults classified themselves as financially anxious. This was even before the coronavirus pandemic and […]
One of the most important decisions you’ll make as a small business owner is choosing your legal business structure. As with most business decisions, there is no one-size-fits-all for selecting the best option. Which classification you choose ultimately depends on your business goals, ownership structure, and more. But how do entrepreneurs determine if a limited liability company (LLC) or a […]
Nobody likes unpleasant surprises when it comes to taxes. And if you unexpectedly find yourself owing the IRS hundreds or thousands of dollars that you don’t have, it’s normal to feel the panic start to set in. But we can help. If you can’t afford to pay your entire tax bill upfront, you aren’t alone. And you have options! Read […]
Should I Itemize or Take the Standard Deduction? To itemize or not to itemize? This is a question many taxpayers find themselves asking when tax season rolls around. Thankfully, deciding whether you should itemize your deductions or take the standard deduction is usually straightforward. The main question you need to answer is: “Which method leads to a greater deduction for […]
Let’s set the stage: You’ve been self-employed for a while, and you’re a pro at doing your small business taxes by now. You hustled and worked hard last year — business has been booming. As you fill out your tax return for the year, you start to realize that Schedule C is looking a bit more crowded than you’re used […]