With nearly one-third of the American workforce currently classified as "self-employed," many newly independent contractors find themselves feeling stressed about the upcoming tax season. If this is your first time filing taxes as a self-employed individual, you might be wondering where to begin. Fortunately, there are some steps you can start taking now to make tax preparation a lot easier down the road. Keep a Running Spreadsheet When you're self-employed, you're also responsible for calculating your own tax responsibilities because you don't technically have an employer to automatically deduct your taxes from your paycheck.
10 December 2020
Are you considering retirement but still have outstanding tax debt? Then now is the time to resolve it. Why is this so important now? Here are five of the most compelling reasons. 1. Retirement Withdrawals May Be Seized Generally, retirement accounts are not subject to seizure by the IRS or during bankruptcy. But once you begin to withdraw from these accounts, they become your income rather than a protected asset. This opens them to use by the IRS to pay outstanding debts, depending on your particular circumstances.
3 November 2020
Wealth management is about more than just making additional money. It's also about preserving it for the future. And one of the most important ways you can do this is to understand how timing affects your finances. Not sure what timing has to do with good management? Here are four key areas where it matters. 1. Tax Strategies Timing is a big deal for your income tax bill. Accelerating or deferring income and deductions allows you to spread these out for maximum savings.
28 September 2020
More homeowners are converting their single-family homes into multi-family homes to increase their value. With tax-advantaged vehicles like multi-family and single-family 1031 tax-delayed exchanges, you can increase your returns in both residential real estate markets. But which one is best differs among investors. Residential Real Estate Returns Whether you invest in a single-family or multi-family home, you first need to establish what sort of return you expect to realize. Real estate investors use a passive investment in the S&P 500 stock index as a benchmark.
8 September 2020
If you know that you need more time to handle a unique tax situation, you may be hoping to file for a tax extension. A tax extension gives you more time to file your taxes. Oftentimes, people use an extension to give themselves more time to locate important paperwork or to make sure that they've handled their taxes correctly before they file. Keep reading to better understand how tax extensions work so that you can decide if this is right for you.
16 July 2020
Unfiled tax returns that are now past-due are a serious matter and must be taken care of, but the consequences aren't insurmountable if you deal with the tax returns promptly. If you have one or more unfiled tax returns, here's how to take care of them. Step 1: Contact a Tax Services Professional Before you panic about your unfiled returns and the consequences that they might bring, first get in touch with a tax service professional to discuss your situation.
28 April 2020
If your business financials are a mess and you're looking to get back on track, you may be thinking of hiring a bookkeeper. A great bookkeeper can help you make better financial choices and they can save you a lot of time and cut down on stress, too. However, you don't want to hire the first bookkeeper that you see. Instead, you want to make sure that they're a great choice for your needs.
16 April 2020
Running a small business comes with a variety of unique tax benefits, and many freelance writers are considered small business owners. If you write on a contract basis, use these tax planning tips to reduce your overall tax burden. Claim the Self-Employed Health Insurance Deduction As a self-employed writer, you're entitled to the health insurance tax deduction. Distinct from the health care premium tax credit, which is a credit that helps individuals and families reduce health insurance premiums, this deduction is claimed against a business' revenue.
23 March 2020