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5 Tax Tips for the Self-Employed

Freelancers and independent contractors face unique challenges during tax season. Here are some quick tips to better manage the process and maximize your deductions. Ever feel a little lost during tax season as a self-employed taxpayer? Whether you did a few extra freelance gigs on the side or manage your own business, income tax filing can be overwhelming, especially if you haven’t done it before. Here are some quick tips to help you understand and better manage the process. The more [...]

What is the Earned Income Tax Credit? Do I Qualify?

What is the Earned Income Tax Credit? Do I Qualify? The Earned Income Tax Credit (EIC or EITC) is a refundable credit for workers who earn low or moderate incomes. This credit is meant to supplement the income you have earned through working, whether for yourself or for someone else. As a result, if you qualify for the Earned Income Tax Credit, you can reduce your taxes and increase your tax refund. The EITC allows more working people and their families [...]

Tax Breaks for the Military Family

Tax Breaks for the Military Family There are certain tax breaks available to members of the U.S. military and their dependents: Sale of principal residence A taxpayer on qualified official extended duty in the U.S. Armed Services or the Foreign Service may suspend for up to 10 years of such duty time the running of the 5-year ownership-and-use period before the sale of a residence. This election applies to one property at a time. To qualify, a taxpayer must meet the following criteria [...]

Are you an Employee or Independent Contractor? Here’s Why You Need to Know

Oftentimes, businesses are hiring employees and handing them 1099 Forms to save themselves money. They don’t have to pay their share of the taxpayer’s social security, nor do they have to pay their Medicare (7.65% of the gross pay) or federal unemployment tax ($42 per person). They also get to skip out on the state “re-employment” tax (as much as $189 per person). The independent contractor then has to get their own liability insurance and the employer does not [...]

Homeowner Alert! Review Your Tax Forms

Homeowner Alert! Review Your Tax Forms New Tax Rules are Creating Confusion Tax laws are constantly changing. Many home-related tax rules have changed and now require you to prove how funds are used to qualify for a deduction. This is catching many taxpayers by surprise. So when your mortgage company reports tax-related information to you and the IRS using Form 1098, it no longer means all the interest and points reported on these statements are tax-deductible. Mortgage interest deductions have new [...]

How to Organize Your Business Documents

How to Organize Your Business Documents For even the smallest of businesses, getting organized involves a lot more than just tidying up papers and the clutter you have on your desk. You have to have structure for all the different parts of your business. Taking care of your business documents will help you become more productive and profitable. The ideas below are some of the best ways you can become more organized in your small business. Use this to help you make [...]

Reasons Why You Should Hire an EA

Reasons Why You Should Hire an EA Every year, millions of taxpayers decide to perform complex tax preparation by themselves and, while it is possible, it is a perilous task. For taxpayers with the simplest income tax returns, do-it-yourself online tax systems will likely suffice. These people often have only one source of income coming from a traditional employer, may have a home mortgage with interest (and even this can become complicated under the new law), student loan debt and perhaps [...]

Do I Qualify as Head of Household?

Do I Qualify as Head of Household? We know that selecting the correct status can get confusing. The Internal Revenue Code offers five different filing status options, and you’re required to pick one of them. It’s pretty well-known that the “head of household” status carries a lot of advantages:  Taxpayers who qualify get a higher standard deduction Qualified taxpayers have wider tax brackets than the single-filing status. However, there are specific rules to qualify for this option. What IS Head of Household? The Head of [...]