Tracking your income and your expenses is the first and one of the most important steps in understanding your tax obligations. Accurately calculating your net income (earnings less deductions) will give you the clarity you need to determine whether you are required to make estimated payments and whether you will be subject to underpayment penalties, for example. Calculating annual income Whether you’re paid hourly, weekly, or receive a fixed salary for the year, knowing how m […] […]
Category: Tax Tips
Tax Planning Can Save You Thousands
Paying taxes can be a hard pill to swallow for many taxpayers, especially if their tax bill is high. Your business has had a great year, you have increased your profits, and whether you’ve noticed it or not, you’ve simultaneously increased your tax bill. It’s only natural that the IRS is going to want a […]
Mileage Reimbursement Rules for Uber Drivers and Turo Owners
As a business owner, tax deductions are your best friend. By leveraging your qualified expenses against your income, you can effectively lower your tax obligation. When it comes to qualified expenses, the IRS allows a lot of regular business expenses to be written off. One of the best deductions for business owners and independent contractors […]
How to File Taxes as an Independent Contractor
Tax season is upon us, so you should be gathering your documents and preparing to meet with your tax advisor. Independent contractor taxes are different from standard W2 taxes in a few key ways. For starters, no tax is withheld from your pay so it is your job to calculate and remit the correct amount. […]
Hobby vs Business: How to Classify Your Rental Income
Is Your Rental Activity a Business?If you plan rent out a room of your home or a second home on Airbnb to earn extra income, you need to know how to determine if what are you doing qualifies as a business or hobby in order to properly prepare your taxes. Here are the rules to help you figure out if your rental activity is a business or hobby.How the IRS Defines a Business vs. Not-for-Profit (Hobby) There are nine factors that the IRS considers in determining whether your rental activity is a bus […] […]
Lyft Taxes: Tax Tips for Rideshare Drivers
Navigating the complex nature of self-employed taxes can leave you with a lot of unanswered questions. How does the IRS tax my Lyft income? Do I have to report my income from ridesharing? Will I get a 1099 form? These are just a few examples of common questions about Lyft taxes. If you drive for […]
Who Qualifies For The Earned Income Tax Credit?
Many taxpayers save a lot of money with the Earned Income Tax Credit (EITC). This common tax credit can make your refund bigger or, if you owe, it could help you save on your year-end tax bill. While the EITC is a common tax credit, you need to meet certain criteria to qualify for it. […]
Marginal vs Effective Tax Rate: What’s The Difference?
Your tax rate determines how much you pay in taxes. There are currently 7 tax brackets, ranging from 10% to 35%, where you fit into the tax brackets will depend on your income. Sounds pretty straight forward, but there is actually a little more to it. The US has a progressive tax system, meaning the […]
The Best Tax Tips For Freelancers
With the increasing popularity of sites like Upwork, many professionals are embracing freelance work. These platforms allow professionals to build their businesses, supplement existing income, and free themselves from the 9-to-5 grind. As a freelancer, the IRS classifies you as self employed, even if you also have a W-2 job. Whether you’re fulltime or parttime, […]
Leasing vs Buying a Car: Which Offers More Tax Savings?
Rideshare business owners are facing new tax regulations following the passage of the Tax Cuts and Jobs Act (TCJA) some of which have affected leasing and depreciation tax rules. As a result, Tax Reform means that rideshare business owners now need to reassess the implications of lease vs. buy tax before deciding to lease or purchase new vehicles.Here are some important points to consider in evaluating lease vs. buy tax.Lease Tax Treatment vs. Depreciation Depreciation is a tax method tha […] […]