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

To be qualified for deduction, business meal and entertainment expenses must be directly associated with the active conduct of a trade or business, the production or collection of income. People must be able to prove: The amount of the expenditure The time, date, and place of the expense The purpose of the business discussion The identification of the people who participated It can be challenging; however, to understand which meals and entertainment are a valid deduction

The IRS issued (Rev. Proc. 2019-25) with the calendar-year 2020 inflation-adjusted figures for the annual HSA contribution limits. It includes the minimum deductible amounts and maximum out-of-pocket expense amounts for high-deductible health plans. For 2019, Maximum HSA Contribution Self-only: $3,500, Family: $7,000. Minimum HDHP Deductible Self-only: $1,350, Family: $2,700. HDHP Out-of-Pocket Maximum Self-only: $6,750, Family: $13,500. For 2020, Maximum HSA Contrib

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

Franchise Tax Board Extends Filing and Payment Deadlines to June 15, 2020 The CA FTB has issued a press release extending tax filing and payment deadlines that occur between March 15, 2020 and June 15, 2020. The new filing and payment deadline is June 15, 2020 for taxpayers affected by the COVID-19 pandemic. Partnerships and LLCs ----------------> Now due June 15 2020 (Originally due March 15 2020) S Corps and C Corps -------------------> Now due June 15 2020 (Originall

If you are in business, whether self-employed or running a company, you must send a 1099 form (with copies to the IRS) to anyone that you pay money to, unless the payments meet one or more of the following exceptions: - The recipient is a corporation. - You included the payment in a W-2 form (to an employee). - The payment is for a tangible product (office supplies, computers, etc). - The total payments during the calendar year were less than $600. To make sure that you are

Even though you already passed the tax season, every company and employee should also be aware of the upcoming tax deadline in June. 6/10 - Employees Who Work for Tips – If you received $20 or more in tips during May, report them to your employer. You can use Form 4070 . 6/17 - Individuals If you’re a U.S. citizen or resident alien living and working (or on military duty) outside the United States and Puerto Rico, file Form 1040 and pay any tax, interest, and penalties

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