If you earned more than $400 during 2012 from work as a sole proprietor or independent contractor, you may owe self-employment tax. That’s true no matter what your age – even if you’re receiving social security benefits. The tax is assessed on your earnings from self-employment, which can include income from qualified joint ventures and partnerships, as well as fees...
Tags: self employment taxes
Category: Taxes
March 1 – Farmers and fishermen who did not make 2012 estimated tax payments would normally be required to file 2012 tax returns and pay taxes in full. However, the IRS had to delay the start of this year’s tax filing season until it completed programming changes made necessary by the late passage of the “American Taxpayer Relief Act of...
They say there are only two certainties in life; death and taxes. Tax freedom day however is another certainty to celebrate. Although not actually celebrated, Tax Freedom Day is the first day of the year at which, theoretically at least, the nation as a whole has earned enough income to pay the sum of all its annual taxes. Tax Freedom...
Tags: tax freedom day
Category: Taxes
Did you know that by selecting the wrong form of organization for your business you could be paying up to 15% higher in taxes to Uncle Sam? Not only will you get to pay more but you could also be increasing your odds of an IRS audit. Selection of the right form of organization (Sub S, LLC, Ptrship, Reg Corp)...
Tags: Form of Organization
Category: Taxes
In this economy it is important that companies are cost conscious and squeeze the maximum amount of profits from their company. Sometimes this is as simple as switching suppliers, changing how things are done, or possibly changing their form of organization. We help our clients with this by analyzing how they do business, making suggestions for changes and periodically monitoring...
Tags: ProfitLeaks
Category: Business
The recently enacted fiscal cliff legislation (the American Taxpayer Relief Act of 2012) removes many of the limitations on making a qualified rollover from a pre-tax account held within a qualified deferral plan to a Roth account within th…e same plan. Under prior law, qualified deferral plans could allow participants to convert their pretax accounts to Roth accounts within the...
Tags: Roth IRAs new law
Category: Taxes
On a more serious note, the IRS has changed the regulations for claiming a deduction when you donate a car to charity. If you donated a car last year, you need to understand the new donate car charity rules. The new IRS regulations are pr…etty simple to understand. For non cash donations exceeding $500, if you donated a vehicle to...
Tags: Car Donations
Category: Taxes
The annual employee performance review — usually it’s dreaded by both supervisor and employee. The employee knows he’ll have to hear about those mistakes from months ago, and the supervisor will finally have to discuss those issues he’s been avoiding all year. Too often, the result is discomfort and embarrassment all round. Usually both parties fudge a little and are...
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Category: Business
There is a great deal of confusion about gifting and gift taxes. The federal gift tax law is completely apart from the income tax law. Neither party to a gift should include the gift information on their income tax return. The gift is not tax-deductible by the one giving the gift, and it is not taxable income to the one...
Tags: Gift Taxes
Category: Taxes
As the politicians in Washington start once again to tackle the same old problems, you’re likely to hear more about a new way of measuring inflation called the “chained CPI.” The standard way to measure inflation has been with the consumer price index (CPI). The CPI has been used to calculate annual adjustments to social security benefits, federal pensions, military...
Tags: Chained CPI
Category: Taxes