The key to fixing your tax withholding is having the right information on file with your employer. The way that you set up your tax withholding at work is by using an IRS form called the Employee’s Withholding Allowance Certificate. Numbered Form W-4 by the IRS, this form looks deceptively simple, with just a handful of lines that seemingly includes mostly basic information about yourself and your personal and financial situation.
The IRS will work with filers who find themselves unduly burdened by taxes. It’s a concept known as an offer in compromise, and it effectively entails you offering — and potentially paying — a portion of your outstanding tax bill, as opposed to the entire sum you’re on the hook for.
However, many self-employment deductions remain in place.Assuming you reviewed IRS Publication 587, “Business Use of Your Home,” and determined that you qualify, what are the home office expenses you can write off? They are covered in IRS Form 8829, “Expenses for Business Use of Your Home”, and the corresponding instructions. You will need to file Form 8829 with your taxes to claim your deduction.Expenses can be divided into two categories: direct and indirect expenses.
However, there’s a more favorable filing status known as head of household, which some unmarried people are allowed to choose. There are restrictions on who qualifies to be a head of household, but the tax benefits if you do are substantial.
Got W-2s and 1099s? Now it is time to start getting taxes ready. Check out this article about the new tax brackets for 2018.
When I taught a class about bookkeeping for creative entrepreneurs, my first rule was this-> -> Keep Them Separated. Keep your business income and expenses separate from your personal income/expenses. If you do this, filing taxes will be less of a headache.
Your business’s income is your income. This is completely counter-intuitive because when you start filing all of your LLC paperwork and setting up your business bank accounts and all of that, everyone will tell you to keep your business income/expenses separate from your personal income/expenses. Don’t let clients deposit paychecks into your personal bank account. Don’t put business expenses on your personal credit card; if you need to fund your business with personal income (and many new businesses do), transfer the money to your business bank account and record it as a capital contribution.
Among them are rules on donations, moving expenses and theft losses.
“Readers may be surprised by a few tax-law changes enacted late last year that have received relatively little attention. Tax advisers say the new law is packed with so many important and often complex changes that many people would be well-advised to take a fresh look at their withholdings, estimated taxes or both before 2019 arrives in less than four months.”
Nearly 40 million low-income families will have their tax refunds delayed this year as a result of the International Revenue Service’s effort to combat fraud and identity theft. Families who have claimed child tax credits and income tax credits will be affected by the measure. The tax filing season kicks off on January 23, however, individuals who are filing for those specific claims will have to wait until February 15 for their returns to be processed. The delay is being put into place so that the IRS has more time to vet the returns for fraudulent activity. According to the IRS, in 2014, nearly $3.1 billion in fraudulent tax refunds was distributed to identity thieves. “For most of these people it’s the biggest check they are going to get all year,” IRS Commissioner John Koskinen told the Associated Press. Read More