The tax season is here again! This year, the IRS announced 4 recent changes in tax laws that can save you a lot. 1. Individual Income Tax The IRS has increased the standard deduction, which can increase your taxable income. New tax brackets in 2020: The current standard deduction is $12,400 for singles , up from $12,200 in the prior year, and $24,800 for married joint filers , up from $24,400 in 2019. 2. Retirement savings contribution limits The IRS has raised the emplo

The Electoral College has confirmed new president-elect making great changes next year. For now, we still need to keep track of the routine things involved in bookkeeping and tax. Here are some quick steps: 1. Make charitable contributions before year-end This is an exceptional way to reduce your tax burden for the year as well. Remember to look up the charity to see what they do with your donations. Also, the IRS imposes several rules for claiming a deduction for donation:

Business filing deadlines depend on a number of variables including the business structure the company uses. A non-calendar year fiscal year also impacts the due date. Therefore, business tax filings due dates can vary widely. However, the initial due date for most business tax returns is March 15 or April 15. Sole Proprietors and Single Member LLCs Sole proprietors and single member LLCs that use the default disregarded entity status must complete Schedule C or Schedule E

With the extended 2017 tax filing season drawing to a close, now is the time to act promptly if you still need to claim a tax refund. Your preparer may take information directly from you or ask you to complete a questionnaire. Either way, you’ll need time to collect and organize the information. Here are 10 steps to take before meeting for your tax prep. 1. Choose a preparer Hiring a professional – trustworthy tax preparer is actually important. Be sure that the person you

It is essential that business owners correctly determine whether the individuals providing services are employees or independent contractors. Basically, you must withhold income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment tax on wages paid to an employee. You do not generally have to withhold or pay any taxes on payments to independent contractors. Before you can determine how to treat payments you make for services, you must first know

Not everyone is required to file an income tax return each year. Generally, if your total income for the year doesn't exceed certain thresholds, then you don't need to file a federal tax return. Consider your gross income thresholds Most taxpayers are eligible to take the standard deduction. The standard tax deduction amounts that you're eligible for are primarily determined by your age and filing status. The standard deduction, along with other available deductions, reduce

Taxes are a necessary evil - the price we pay for roads, bridges, schools and law enforcement. Audits, on the other hand, feel just plain evil. In an effort to thwart fraud, the Internal Revenue Service audits about one percent of U.S. taxpayers every year. IRS computers are programmed to catch outliers and oddities on returns; any item that falls outside the norm may be flagged so that an IRS employee can review it to see if there's actually a need for an audit. Common red

IRS has published “ Notice 2014-21 ” describing how existing general tax principles apply to transactions using virtual currency. Here are a handful of primary contents of this notice. 1. For federal tax purposes, virtual currency is treated as property. General tax principles applicable to property transactions apply to transactions using virtual currency. 2. Under currently applicable law, virtual currency is NOT treated as currency that could generate foreign currency g

Knowing where you fall matters a lot when it comes to filing your taxes. Specifically, if you’re an employee , the company you’re working for is responsible for withholding taxes throughout the year, as well as costs like the employer’s share of Social Security and unemployment taxes. If you’re an independent contractor , you’ll need to be paying quarterly taxes and will be fully responsible for those additional tax costs. It's not as easy as just looking at how many hours y

Normally, taxes are due by April 15 every year, unless that date falls out on a weekend or holiday, in which case it's pushed back a number of days. However, due to the impact of COVID-19, the White House declared to change the tax deadline and announced some changes based on this global-illness disaster. Your payment to the IRS can defer If you owe a payment to the IRS, you can defer up to $1 million as an individual. adding that the payments would be interest free and pen