Getting paid next year for this year’s could be a great benefit to you!
If you’re self-employed and pay your taxes in full up front, consider holding off on sending out invoices until close to the year’s end. And if your clients pay your invoice thirty to sixty days out, there’s a good chance you won’t receive payment until 2015. If that’s true, you can lower taxes by lowering your tax bracket.
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When it comes to making a budget, good intentions only go so far. Find out how to keep your budget realistic.
If you’re a local artist or craftsman that’s turned your passion into a business, you’re quickly finding out the reality and needs of budgeting. Here are 3 common errors you’ll want to avoid:
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Don’t wait until the last minute to itemize your deductions!
Starting to itemize now will greatly help you avoid stress when it gets to be tax season again. Here are some things to keep in mind to be prepared.
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Determining what’s a business travel expense and what’s not can be a very gray area. Find out how to clear up the confusion.
Essentially, to be considered a business travel expense, the main question to ask yourself is, “Did this expense go towards moving my business forward?” If you can answer that question with a “yes,” here’s what you need to know about what you can deduct on your taxes.
You can deduct business expenses related to travel, such as, transportation, meals, lodging and entertainment.
Common Transportation Deductions
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Roth IRAs can be mystifying with all the conflicting information out there.
Investments in Roth IRAs are quite simple to understand despite what financial ads that run during major sporting events would lead you to believe.
Roth IRAs are for people who have an income of up to $112,000 per year or married couples who earn up to $178,000. What’s great about a Roth IRA is that you do not have to pay taxes on it. No matter how much your investments accumulate, Uncle Sam doesn’t see a nickel of it.
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Saving for retirement shouldn’t be complex. Here’s how to keep it simple.
The number 1 thing to keep in mind when saving for retirement is consistency. Overthinking elaborate investment schemes is not as effective as it is to keep things simple and invest on a regular basis.
Whether you have a 401k (or 403b) and/or a Roth IRA, it’s best to put away 12 to 17 percent of your income. If you work for a company that matches your investments, but not up to the recommended percentage, invest up to what your company will match and put the rest in a Roth IRA.
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Will your itemized deductions for 2013 be right around the standard reduction amount? If so, you can bundle expenses for every other year and claim the standard deduction in the in between years. Over two years, this will significantly cut how much income you’re taxed on.
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Did you know anyone paid for babysitting has to report that income to the IRS if they made over $600? Or let’s say you and a neighbor want to trade cars, you’ll still have to pay taxes on what the fair market value of the car you bartered. But not all income is taxable. Here are some examples of income you don’t have to pay taxes on:
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Living abroad for work can be a tricky tax situation. In many cases both countries want to tax your income that you’re making while working and living overseas. While many countries have different requirements, here’s what you need to know about the IRS’s requirements.
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Looking for work costs money. Things like resume paper and printing, a new suit, and paying for premium online job search services can add up. This can be a little tough on job seekers who are likely unemployed. Sometimes these job seekers even have to take a class or two to be more marketable. The government tries to mitigate these expenses by allowing these folks searching for work deductions on their tax returns.
Here’s a list of common deductions you can take:
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Starting a new business is exciting! At least until you get the paperwork part. It’s important that you first identify just what type of business you in regards to the IRS.
If you’re starting a new business here’s what you need to know about filing statuses for businesses:
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The most affordable city to go to this summer is the one you live in.
If it’s a lean year or you have some financial goals you are working towards and looking to cut back on spending for a while, a staycation may be a great option.
Most people can live somewhere for such a long time and rarely or never see some of what makes their city great. Sometimes people never go to these places unless someone comes to visit from out of town. So take some time and find what makes your city amazing. And save lots of dough by doing so.
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For some, just what number to write on each line, seems to get more confusing every time it needs to be filled out.
A W-4 is a form an employer gives you to fill out as a part of new hire paperwork. This form decides how much money gets taken out of each paycheck for taxes. But as hard as the IRS tries, the instructions on how to fill it out and what each line means is a bit confusing.
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When you need some hired help around the house, you’ll need to know how to handle your tax obligations. This post will tell you how.
It may seem ok to hire a family friend just graduating high school for the summer to take care of the kids and pay some cash to her every week. Or perhaps have one of the guys from church do the lawn every week. You know, “under the table.” It’s normal to feel this way when you’re part of a close community. But the consequences can be dire if you didn’t do your part to meet tax requirements.
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While the IRS considers rent paid to you as income, there is one way to make some extra cash and keep it all.
No, unfortunately you can’t just rent out your properties tax-free indefinitely, but you can for up to fourteen days. This is an exemption called the “Masters Exemption.” Under the Masters Exemption, you are allowed to rent out your property for up to 14 days and not have to pay taxes on the income.
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There are simple tax strategies and there are complex strategies. At the end of the day, these fundamental goals should still be reached.
There are many tax strategies out there to help you. It can be a little overwhelming determining which ones can help. As you examine each one, measure the strategy against these 5 goals.
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Why is it some businesses seem to simply “go out of business” and some have a liquidation? Find out what liquidation really means.
Essentially, liquidation means that a company’s assets are worth more than the value of the business’s ability to generate income. So when you see a furniture store having an “Everything Must Go” sale, they mean it. They are selling everything! So it’s interesting to note that liquidation is also referred to as “winding-up.”
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Avoid IRS hassles by starting off on the right foot.
You start your own business because you found you have something valuable to give the world and you’re good at it. But like most entrepreneurs starting out, you learn there’s a bunch of red tape that has to be handled in order for you to get to the business you set out to start. Following these tips will get you on your way:
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The IRS can’t audit everybody but just how many taxpayers are being audited? Find out the percentage by income.
There are over 200 million tax returns filed every year. There’s no way the IRS could audit all of them. So just how many of these returns are being audited? Out of all of those filings, the IRS audits just a little over 1%.
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When it comes divorce or being an unmarried parent, who gets to claim your dependents can be a bit tricky. Here’s what you need to know.
Many times, divorced or unmarried parents can cause headaches because both parents attempt to claim their son or daughter as a dependent. The headache comes when the parent to claim the child second gets their claim rejected.
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Ever wonder about what the Earned Income Tax Credit is? You just might qualify!
Essentially, the Earned Income Tax Credit, also known as the EITC, is way to help US citizens that work hard but still have lower income. What’s great about this credit is that it is a refundable credit. That means that even if you don’t owe taxes, you can get a refund of the credit.
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Putting off your taxes until it’s too late can be damaging.
Filing your taxes late can mean that you’ll owe even more money. Or, if you have a refund due, it can lessen how much you get back. Either way, you’re losing money.
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If you bought a house or owned in house in 2013, there may be more deductions than you knew about.
For itemized deductions, most people know that you can deduct the interest you pay on your mortgage. Here’s a list more deductions you may be able to take as well.
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Sure getting married means you’ll more than likely change your filing status, but there are also some other administrative things that need to happen as well.
Congrats on getting married! And now there’s some paperwork that needs to get done. Here’s a list of some steps you need to make before filing your taxes with your new spouse.
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The first thing you’ll want to do is update your information with the USPS so any tax information will be sent to the right address.
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Not sending out 1099s can be costly. Here’s what business owners are responsible for.
If you used independent contractors such as graphic designers, consultants, and attorneys, you are required by the IRS to send a 1099 if you paid them more than 600 dollars in the tax year at hand. Not doing so can result in a penalty of 250 dollars; that can really rack up quick if you used several contractors throughout the year.
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The distinction between capital expenditures and expenses may seem obvious. But the IRS may see it differently.
There are capital expenditures and there are expenses. And most of the time, the line between them seems pretty clear to business owners come tax season. But there can be some gray areas.
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If you incurred a significant amount of healthcare and dental cost costs last year, you may be eligible for a deduction when making your itemized deductions.
There are several things that you can deduct provided your healthcare costs were over at least ten percent of your yearly gross income:
- Surgeries
- Hospital Stays
- Prescriptive Eyewear
- Prescription Drugs
- Doctor Visits (including therapists and medical counsellors)
- Travel Costs (if you had to travel for a specific treatment)
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If you’re taking care of a parent in their sunset years, you may be able to claim them as a dependent.
It doesn’t have to be a parent per se, it can be a family member that you are giving care to. It can be a family member such as an aunt or uncle.
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Did you invest in making your home more energy efficient last year? If so, you may qualify for a tax credit.
If you bought new insulation, doors, windows and/or roofing that improved the efficiency of your home, you may be able to get a credit of up to 10% of your costs. If you went really green and installed some serious energy savers such as solar panels or installed a wind turbine, you may get a credit for up to 30% of the installation costs.
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If you’re self-employed, there’s a treasure trove of expenses you can deduct.
There are all sorts of expenses you can deduct as a result of being self-employed. It’s important to note that even if you’re a full-time employee at a company but have a business on the side you can still deduct those expenses.
Here’s a list of expenses you can deduct:
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