Understanding Tax Credits Versus Deductions

Tax credits are some of the most valuable tools around to help cut your tax bill. But figuring out how to use these credits on your tax return can get complicated very quickly. Here’s what you need to know. Understanding the difference To help illustrate the difference between a credit and a deduction, here is…

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Make Payroll Taxes Easy in 2022

Handling employment taxes can be complicated, especially when you’re required to file important tax documents throughout the year. Here’s a quick recap of the most vital payroll tax forms and what you can do to make your payroll life easier heading into 2022.   Important Payroll Tax Forms Form 941 — Employer’s quarterly federal tax…

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JUST THE FACTS: Borrowed Money Must Be Paid Back

In the back of every Form 1040 instruction booklet there’s a section that shows where our federal government gets its money and where it is spent. As taxpayers, it makes sense to know this information. Here is the data for the government’s fiscal year ending September 30, 2019, as reported by the IRS in the…

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Manage Your Business’s Unemployment Taxes

  As a business owner, you’re required to pay three different types of payroll taxes. 1. FICA (Federal Insurance Contributions Act) is the tax used to fund Social Security and Medicare programs. 2. FUTA (Federal Unemployment Tax Act). Employers pay this federal tax to provide unemployment benefits to laid-off workers. 3. SUTA (State Unemployment Tax…

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Taxes: These Basics are for Everyone

  Understanding how our tax system works can be tricky for anyone. Whether you’re an adult who never paid much attention to the taxes being withheld from your paycheck or a kid who just got his or her first job, understanding the basics can help refine and define questions you may have. Many schools don’t…

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You Know You Need Tax Planning If…

Effective tax planning helps you make smart decisions now to get the future outcome you desire – but you need to make sure you don’t miss anything. Forget to account for one of these situations and your tax plans will go off the rails in a hurry: Getting married or divorced. One plus one does…

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Don’t Let Disaster Befall Your Favorite Non Profit

The filing deadline for most non-profit organizations is May 15. Missing this deadline results in penalties that can devastate the organization’s budget, or worse, strip them of their non-profit status and make your donations non-tax deductible! Here’s what you can do to help them: Check the charitable status online. The IRS has a master list…

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Major Life Changes Ahead? Read This!

Too often major life decisions have tax implications attached to them. For the unwary, this can create a fairly large and unexpected tax bill. Here are four examples of major life changes that can have complicated tax implications: Changing jobs. Whether it’s a new, exciting opportunity or a result of being laid off, a job…

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IRS Announces 2019 Mileage Rates

Mileage rates for travel are now set for 2019. The standard business mileage rate increases by 3.5 cents to 58 cents per mile. The medical and moving mileage rates also increase by 2 cents to 20 cents per mile. Charitable mileage rates remain unchanged at 14 cents per mile. 2019 Standard Mileage Rates Standard Mileage…

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Taking a Home Office Deduction: A Great Tax Reduction Idea, If Done Right!

Cloud-based applications, extensive communication channels, and other new technologies make it easier to run your business out of your home. If you qualify, many home business expenses are deductible. Think you might qualify? You must first pass these tests. Trade or business use test. To qualify for business use of your home you must use…

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