As a small business owner, it is important to be proactive about your taxes. There are many tax planning strategies that you can use to reduce your taxes and keep more money in your pocket. Nowadays, business executives face a number of tax planning issues, including choosing the right business structure, deducting expenses, taking advantage […]
Tax and Accounting
A Small Business Guide to Filing 1099 Series Forms in 2022
As a small business owner, there is an endless list of tasks at any given time. Running your own business often means wearing many different hats and playing many different roles. One of the most important, but intimidating of these tasks can be your IRS tax filing requirements. The end of the year is a […]
Inflation Reduction Act 2022: Winners And Losers
MYTH vs FACT: Tax Title of the “Inflation Reduction Act of 2022” Democrats claim their tax-and-spend bill, the mislabeled “Inflation Reduction Act of 2022,” will ensure the wealthiest Americans and corporations pay their “fair share” by closing tax loopholes and boosting IRS funding, all without raising taxes on anyone making less than $400,000 per year. However, […]
IRS Fact Sheet Causes Reporting Confusion
Congress created pandemic-related sick and family leave refundable credits for eligible employers. The rules apply slightly differently for leave taken 1) before April 1, 2021 (“Initial Period”) and 2) from April 1, 2021 through September 30, 2021 (“Voluntary Period”). In each period, the IRS allowed eligible employers to retain an amount of the payroll taxes […]
What is Effectively Connected Income?
Unlike FDAP income, the United States taxes effectively connected income (“ECI”) on a net basis. Effectively connected income is income that is effectively connected with the conduct of a U.S. trade or business. It also includes gains from the disposition of U.S. real property under FIRPTA, which are treated as ECI. Generally, when determining whether income constitutes effectively […]
Understanding the Foreign Earned Income Exclusion
U.S. citizens and resident aliens who live abroad are taxed on their worldwide income. But such taxpayers may qualify for the foreign earned income exclusion, which allows certain taxpayers to exclude up to $112,000 (in 2022) of their foreign earnings from income, as well as to exclude or deduct certain foreign housing costs. Note, however, […]
Employers: What is Form 940 and Do I Need to FiLe it?
Did you employ workers at your small business this year? If yes, you need to deal with employment taxes, like federal unemployment (“FUTA”) taxes. For each employee, you must pay a percentage of his or her wages for federal unemployment taxes, deposit the tax with the IRS, and report your tax liability on Form 940. […]
How Will My Side Hustle Affect My Taxes?
It’s the age of the gig economy. It’s not unusual for people to work multiple jobs and have a variety of income streams. Perhaps you spend most of your time working with an employer, but you’ve got a side hustle to generate more income. There’s nothing wrong with working on a side hustle to augment […]
How Taxation Works In Forex Trading
For forex traders, the main aim is to gain money by trading successfully and seeing their forex account rise in value over time. Given the volatility of today’s market, many investors are focused only on making a profit today without considering the long-term implications. Individuals in higher tax brackets may benefit from a 60/40 split […]
How to Classify Workers: Employee or Contractor?
Every small business begins with just one person or a small team creating a plan and developing a vision. If the company is going to keep growing, however, you eventually need to start expanding your team and invite someone new to join you in your work. Once your company starts to grow, you won’t be […]
