Mileage deductions are a valuable tax break for individuals who use their vehicles for business purposes. By understanding the rules and requirements, you can maximize your deductions and reduce your tax liability. This guide will provide a comprehensive overview of how to write off mileage on your taxes, including the different methods, eligibility criteria, and … Read more
Closing costs are unavoidable expenses associated with purchasing a home. While these costs can be substantial, there are limited opportunities to deduct them on your tax return. This guide will provide a detailed overview of which closing costs are tax deductible and how to claim these deductions. Tax Deductible Closing Costs The only closing costs … Read more
The Paycheck Protection Program (PPP) was established as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act to provide financial assistance to small businesses and non-profit organizations struggling amidst the economic fallout of the COVID-19 pandemic. The program offered forgivable loans to eligible entities, with the forgiven amount generally excluded from taxable income. … Read more
Mistakes happen, and when they do, it’s important to know how to correct them. If you’ve made a mistake on your tax return, you can amend it by filing Form 1040X. But how far back can you amend your taxes? The IRS allows you to amend your tax return for up to three years from … Read more
Pledging accounts receivable is a valuable financing strategy that enables businesses to access capital by using their outstanding invoices as collateral. This guide delves into the intricacies of pledging accounts receivable, exploring its advantages, differences from other financing options, and the crucial role of accounts receivable (AR) automation in securing financing. Understanding Pledging of Accounts … Read more
When you retire, the money you withdraw from your 401(k) will be taxed as ordinary income. This means that the amount of tax you pay will depend on your tax bracket in the year you withdraw the money. Traditional 401(k)s With a traditional 401(k), you contribute pre-tax dollars, which means that you don’t pay taxes … Read more
Self-employment tax is a combination of Social Security and Medicare taxes that self-employed individuals are responsible for paying. The self-employment tax rate is 15.3%, which is higher than the 7.65% payroll tax that employees pay. This is because self-employed individuals are responsible for paying both the employee and employer portions of Social Security and Medicare … Read more
Understanding the Tax Implications of Economic Impact Payments The third stimulus check, also known as the Economic Impact Payment, provided financial relief to millions of Americans during the COVID-19 pandemic. However, many individuals have questions about the taxability of these payments. This comprehensive guide will clarify the tax implications of the third stimulus check and … Read more
Form 1099-B is a tax document issued by brokers to report proceeds from broker transactions, such as the sale of stocks, bonds, or other securities. It provides crucial information for calculating capital gains or losses, which are taxable events. TurboTax Deluxe, a popular tax preparation software, offers features to assist users in accurately reporting Form … Read more
Individuals earning income through cash payments, such as freelancers and independent contractors, must report this income to the Internal Revenue Service (IRS) even if they do not receive a Form 1099-NEC. This guide will delve into the requirements, methods, and potential consequences of reporting cash income to the IRS. Understanding Cash Income Reporting Cash income … Read more