Home Office Tax Deduction

Home Office Tax Deduction

Can You Claim the Home Office Tax Deduction?

Not long after Covid-19 began to spread wildly, companies that were able, changed their operation by having most employees work from their homes. During the month of May, 2020, over 35% of employees were working from home, according to a report published by the Federal Reserve Bank of Dallas.

This was about a 27% increase over the prior month of February, and it appears that the percentage will continue to rise over the coming months. If you are now classified as a full-time remote employee, you may be wondering if you’ll be able to qualify for the home office tax deduction on your 2020 tax return. View full post…

Read More... Please comment

Taxpayers Should Review Your Tax Withholding Mid-Year

Taxpayers Should Review Your Tax Withholding Mid-Year

Avoid Having Too Much or Too Little Federal Income Tax Withheld if You Review Your Tax Withholding

The Internal Revenue Service today encouraged taxpayers to consider that they review your tax withholding, keeping in mind several factors that could affect potential refunds or taxes they may owe in 2018.

Reviewing the amount of taxes withheld can help taxpayers avoid having too much or too little federal income tax taken from their paychecks. Having the correct amount taken out helps to move taxpayers closer to a zero balance at the end of the year when they file their tax return, which means no taxes owed or refund due.

During the year, changes sometimes View full post…

Read More... Please comment

Blogging and Taxes

Are Taxes Due on Blogging Income?

Taxes are due on blogging incomeA fairly new profession, blogging is becoming more and more popular. So much so, that many individuals are making a full time living at it, while others earn minimal amounts. And there are some who just blog because they like to.

Those who have been in the business for a while know that the same tax laws that apply to other occupations apply here also. The purpose of this article is to inform those who are new to blogging and not familiar with the requirements of the tax code.

What form of organization to use for blogging

One of the first decisions to be made is the type of business formation. View full post…

Read More... 4 Comments

Self Employed Freelancer | A Sole Proprietor

Self Employed Freelancer – The Simplest Way to Organize

A self-employed freelancer pays taxes on what is earnedSo you want to be a self employed freelancer? Are you familiar with the various expenses that you are able to deduct as a cost of doing business?

Most freelancers operate as a sole proprietorship and file their business operations on a Schedule C on their Form 1040 personal tax return.

Some who are going into business with other freelancers, may form a partnership, a corporation, or an LLC. Each form of organization may have certain benefits over the other, so you need to review that carefully.

The sole proprietorship is usually the easiest to organize, but at tax time it can present some unusual and potential tax issues. As a sole proprietor, you don’t pay yourself a salary. View full post…

Read More... Please comment