When you owe back taxes to the IRS, penalties are assessed for payments that are overdue. Naturally, the IRS is very hesitant to reduce or waive these penalties because they want taxpayers to learn a lesson for failing to pay on time. That said; there are several “reasonable causes” in which they may consider penalty […]
Archive | Taxes
7 of the Most Overlooked Tax Deductions
Throughout the complexities of the Internal Revenue Code, there are deductions available for many individuals. Most people are aware of the common deductions; such as home mortgage interest, property taxes, charitable donations, etc. There are other deductions, however, that could be applicable to many taxpayers but few people are aware even exist. Here 7 deductions […]
How a Subchapter “S” Corporation Can Minimize your Tax Burden
Owning and operating a small business can be a challenge. Often, you need to wear a number of hats including the sales person, customer fulfillment, and bookkeeper, among others. The work sometimes seems endless but if you have the right business model and stick with it long enough, success eventually comes. The problem is that […]
Can You Claim the Home Office Deduction?
A growing number of Americans are working at home these days. In our increasingly digitized society, it is far easier to conduct business without the need for a central meeting place. For this reason, those who are employees use home offices as well as start-up entrepreneurs. In the past, it was widely believed that claiming […]
How Owning a Home Can Lower Your Tax Burden
All things being equal, owning a house is generally preferable to renting. If your monthly mortgage payment is about the same as the rent payment for a similar property, then you are building up equity with each mortgage payment you make. In addition, if the housing market in your area appreciates over time (which it […]
Should I Pay My Self-Employed Taxes Quarterly or Annually?
Most U.S. taxpayers only need to worry about filing a return once a year. However, if you are self-employed or have a regular job with a small business on the side, you may be required to pay your self-employment taxes quarterly. Who needs to file a quarterly tax return: Generally, employers that withhold income, Social […]
What is Tax Deductible When I Own a Home?
Home ownership is a big step that comes with many changes and new responsibilities. While there is nothing better than having a home, some adjustments need to be made in order to manage your new home properly. Perhaps the biggest change is you are now paying a monthly payment to a mortgage company rather than […]
Important Tax Deductions for the Self-Employed
November is National Entrepreneur’s Month, and a good time to look at some of the tax implications of being self-employed. There are actually quite a few ways that an entrepreneur can legally reduce their tax burden and this applies both to those that own and operate a full time business and those that do it […]