Reduce Taxable Income as a Small Business Owner
Small business owners can employ various strategies to reduce taxable income, ensuring they retain more of their earnings. Explore these tips to lower your tax bill and optimize your financial management: 1. Employee Classification: Consider paying employees as contractors instead of full-time employees to save on payroll taxes and qualify for certain expense deductions. However, […]
Popular Tax Deductions and Tax Credits
Understanding available deductions and credits is crucial for maximizing tax savings. Explore some of the most popular ones to lower your tax bill and potentially increase your refund: 1. Mortgage Interest Deduction: Homeowners can deduct mortgage interest payments, offering significant savings, especially for those with substantial mortgages. 2. State and Local Tax Deduction (SALT): Taxpayers […]
Accountant vs. Bookkeeper: Understanding the Key Differences
When it comes to financial management and maintaining business records, understanding whether you require an accountant or a bookkeeper is crucial. While both roles are integral to organizing financial records, there are distinct variances between the two that merit consideration. Accountant: An accountant typically holds a professional license and possesses a college degree in accounting […]
9 Essential Tax Deductions for Self-Employed Individuals
Self-employment brings not only freedom but also the responsibility to accurately file taxes and leverage available deductions. Here are nine essential tax deductions for self-employed individuals to consider: 1. Phone and Internet Costs: Deduct a portion of your personal phone and internet expenses if used for business purposes. Keep track of usage percentages for accurate […]
Understanding Tax Returns vs. Tax Refunds
When it comes to taxes, it’s essential to grasp key terms like “tax return” and “tax refund.” While often used interchangeably, they carry distinct meanings. 1. Tax Return: A tax return is the annual document filed with the Internal Revenue Service (IRS) by individuals and businesses. It details income, deductions, and credits, aiming to determine […]
Freelancer Taxes: Key Considerations for Self-Employed Professionals
If you’re a freelancer or self-employed professional, your tax situation may be more intricate than that of a traditional employee. Here’s a breakdown of essential tax considerations for freelancers and self-employed individuals: Self-Employment Tax: As a self-employed individual, you’re responsible for paying both the employer and employee portions of Social Security and Medicare taxes, collectively […]