As part of the stimulus law, there was a provision added that required IRS to begin distributing the child tax credit on a monthly basis for certain taxpayers. This is nothing more than sending you a monthly check for the child tax credit you received in the past when you file your income tax return. Many people are confused and think this is another stimulus check (money they never got before). Here are a few things to consider: …
A key thing that every small business owner should do is to keep his/her personal and business expenses and all other finances separate. Who Must Keep Personal and Business Finances Separate? If a business is formed as a corporation, it is considered a separate legal entity so all finances and business expenses must be separated. If a business is formed as a sole proprietorship, there is no legal distinction between the business and its owner. Therefore, all profits,…
Everyone should want to save money on their income taxes, right? Tracking business travel miles is one of those ways. For those who qualify for a mileage deduction, a mile tracking app can be a simple and reliable solution to get the deduction credit that you deserve. Who Qualifies for a Mileage Deduction? Formerly, most businesses and many individual taxpayers were able to deduct business miles from their income tax filings. However, the Tax Cuts and Jobs Act…
So, you have filed your annual tax forms and this year you get a tax refund. Yahoo! You are one of nearly 80 percent of Americans that get a refund on their tax returns. But what does that mean? What are Tax Refunds? Tax refunds are not a “lucky strike” or a surprising bonus. They represent a payback of an excess amount that taxpayers have remitted to the government as documented on their tax returns, essentially an interest-free loan to…
Ahhh…the “side hustle,” a term popularized in the rise of the “gig economy.” This is where individuals work independently using freelance or short-term contracts. The “side hustle” (or multiple) can be done full-time or by supplementing traditional full-time employment. This phenomenon has grown over the past decade, now reaching 36 percent of all Americans, according to one survey. Its popularity has surged due to technology that facilitates online/off-site work, the American spirit of innovation and independence, and the Coronavirus…
The COVID-19 pandemic caused significant economic strain throughout the country, causing massive business restrictions, slowdowns, and many closures. In response, the federal government has taken complex actions to provide economic assistance, involving various new programs and multiple rounds of stimulus relief money. Navigating business taxes is normally challenging, but this year it makes even more sense to secure professional tax and accounting assistance so that your business doesn’t miss out on the funds owed to you. Federal Government…
It’s that important time of year—tax time. The year 2020 has seen massive health problems due to the broad impacts of the COVID-19 pandemic. To counteract the spread of COVID-19, businesses were closed and patronage restricted, events canceled, people socially distanced, and schools transitioned to online classwork. The effects on businesses included drastic reductions in revenue, layoffs, and furloughs, and remote working. Government assistance has included support programs, new regulations, and support payments of various types. Without professional assistance, tax…
Filing taxes is something that individuals and small business owners may not look forward to. However, filing taxes is inescapable and certainly essential to achieving a successful and penalty-free business operation. Why it Pays to File Taxes Early Some small business owners may be inclined to put off filing taxes due to busy schedules, worries about tax rules, or concerns about cash flow. But waiting until the last minute only adds stress and other issues to a process that can…
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