Tax/Accounting
State Income Tax Withholding
In most states, 41 in fact, employers are required to withhold state personal income tax from each separate taxable wage payment made to an employee. The states of Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming do not impose a personal income tax on wages or other compensation for services earned…
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Becoming an Employer
As any business grows, it is likely to grow from being just one person to including any number of employees. There might be just one other person, or it could be many more. When it comes time to hire your first employees, it is vitally important to find the right person—but you also must make…
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Is This a Business Trip?
Was that trip really a business trip? Read the article below to learn more about what constitutes a business trip. Requirements to Substantiate a Deduction In order to substantiate the deduction, have the following on hand: All lodging expenditures require a receipt All non-lodging expenditures over $75 require a receipt Keep a contemporaneous tax diary…
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IRS Trouble? Have You Called the Taxpayer Advocate Service?
Are you and your business encountering trouble with the IRS? If you’re going through the standard IRS channels, but don’t feel like your ongoing tax problem is being resolved, you can get help from the Taxpayer Advocate Service. What is the Taxpayer Advocate Service? The Taxpayer Advocate Service is an independent program within the IRS.…
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Should I File for an Extension?
Many taxpayers pull all-nighters on April 14 and rush to the mailbox the next day to file their Form 1040 before the April 15 deadline. Many of those last minute filers believe that filing an extension will increase their risk of audit therefore, the last minute scramble. Many of those taxpayers also file those…
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How to Deal with an IRS Audit
Tax season is difficult enough in a normal year, but what are you supposed to do when the IRS comes knocking? What should you do to deal with an IRS audit? If you’re prepared and know what to expect, things will go more smoothly. Important Recommendations Above all else, there are three things you need…
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What Insurance Policies are Deductible?
As a small business entrepreneur, you probably have a variety of forms of insurance related to your business. With some of these policies, you are able to deduct the cost of the premiums you pay from your taxes, while with others you are not able to deduct the premiums. For still others, you can deduct…
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Sales Tax on Internet Transactions
Contrary to popular belief, goods that you purchase over the Internet are just as subject to tax as if you purchased them at the local mall. The confusion arises because stores in the local mall are required to collect the tax from you, the customer, while virtual stores with no physical presence in your state…
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10 Tax Planning Tips
Here are ten tax planning tips to help you make the most of your money. 1. Learn to Work With “What Ifs” The most important planning tool is the ability to project your tax bill for the year and to understand how your tax bill will change based on actions that you take. The process…
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Alternative Minimum Tax
The tax laws give preferential treatment to certain kinds of income and allow special deductions and credits for certain kinds of expenses. The alternative minimum tax attempts to ensure that anyone who benefits from these tax advantages will pay at least a minimum amount of tax. The alternative minimum tax is a separate tax computation…
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