Organizing for Tax Season
Most of the papers you need to document the income, interest and withheld taxes you report arrive in your mailbox in January, with investment-related 1099s often coming in February. Get ready for their arrival by creating print and online folders. It’s a good idea to create a paper and an email tax folder for messages […]
Inheriting Property: Will You Owe Tax When You Sell?
If you’ve inherited something and are thinking about selling it, you may be wondering what it’s worth and if any of the proceeds will be taxable. Click through for an introduction to the complicated tax rules involved. If you want to sell something you’ve inherited, the first question may concern the property’s worth. But a […]
What Is Form W-4?
On your employee’s first day on the job, you are required to ask them to complete federal Form W-4, Employee’s Withholding Certificate. (Multiple language versions are available here.) The employee enters various data onto the form — including their tax filing status, whether they have multiple jobs, any credits they have, the amount of other income they […]
How to Deduct Business Travel Expenses
Ordinary and necessary travel expenses are deductible when you travel away from home on business. You are considered to be traveling away from home if: In order to be deductible, the expense must be reasonable and not lavish under the circumstances. Determining your tax home Generally, your tax home is your regular place of business […]
Just How Does Property Tax Work?
Property taxes fund essential services such as roads, schools, public transportation, parks and emergency services in your community. Levied by city, county and school districts, these taxes combine to create a total tax rate, which is multiplied by your property’s assessed value to determine your tax bill. Your property includes the land you own and […]
Health Savings Accounts: How Do They Work?
Health savings accounts can be advantageous when your goal is to recruit new hires or improve existing employees’ job satisfaction. They are an incredible benefit that you can offer to people who work for you. Your employees will have the opportunity to save pretax dollars and put them toward qualified medical expenses, including copays, prescriptions, […]
Navigating a Business Tax Audit
If your business is being audited, take a deep breath and understand the reasons behind it. Audits may be random or triggered by issues specific to small businesses, such as excessive expenses, misclassified employees or questionable deductions. While an audit doesn’t necessarily mean you’ve done something wrong, it is the IRS’s way of verifying your […]
The Basics of Sales Tax
Sales taxes are levied by percentage on finished products at the point of sale, but the rules and rates can vary significantly by jurisdiction. Only four U.S. states — Delaware, New Hampshire, Montana and Oregon — have no sales tax. Alaska has no statewide sales tax but allows local governments to levy their own. Rates […]
Retirement Plan Options for the Self-Employed
Working for someone else will not necessarily guarantee you a retirement plan, as the financial and administrative costs of providing a retirement program can be prohibitive for smaller employers. But if you are self-employed (whether full time or part time) there is no reason you cannot fund your own retirement and reap the tax benefits […]
Tax Implications of Home Improvements
For any renovation or repair to qualify for a tax deduction, the work must qualify under IRS rules as a home (or capital) improvement. Examples of projects that may qualify include new additions, new roofs, whole room renovations, new siding, new heating or air conditioning systems and certain interior renovations such as new floors. In […]
