Are you a small business owner with tax questions? The IRS offers a great resource to answer all of your inquires and help take the confusion out of starting a business, filing your taxes, adding employees, and much more. They even offer webinars on a variety of business related topics. Check it out today here: Small Business and Self-Employed Tax Center
Tag: taxes
Gig Economy Tax Need to Know
What is the definition of gig economy work?
“The term “gig” is a slang word for a job that lasts a specified period of time.” Even though your income is from many smaller jobs, this work is taxable and you should be aware of what you owe at tax time. For more information, reference this article from the IRS website, Gig Economy Tax Center.
Tax Planning Year Round
In this blog post, the IRS recommends ways to keep up with your taxes throughout the year so that when tax time approaches you’ll be prepared and not stressed. A few of the suggestions include, organizing tax records, adjusting check withholding, and saving for retirement. Read more here and start planning for next year’s tax season today. Tax planning doesn’t stop after a taxpayer files a tax return
Financial Challenges of Unmarried Couples
Unmarried and living together? Erik Carter for Forbes walks through the various financial realities of residing with a partner vs. a spouse. From basic money management to estate planning, employee benefits, and tax implications for unmarried couples living in the same home. He compares the monetary pros and cons of domestic partnership and marriage. Unmarried And Living Together? Be Aware Of These Financial Challenges.
Another Look at the IRS
Tax season is fast approaching and tax payers are finding that the IRS customer service is lacking. Michael Hiltzik for the Los Angeles Times suggests that the blame may not be on the organization itself but on the federal government who has repeatedly cut funding for the agency. In the last thirty years the tax payer base has grown from 254 million people, collecting $1.1 trillion in revenue to 330 million people now dealing with over $3.5 trillion. During this time, the staff at the IRS has been cut by almost 30,000 and over the last decade, “the agency’s budget has declined by 20% in inflation-adjusted terms.” According to statistics published by the IRS National Taxpayer Advocate, last year only 11% of calls to the agency were answered. What does this mean for the IRS and the general taxpayer? Read more here: Don’t blame the IRS for its lousy service. Blame Congress
Handling Tax Season Stress
Start Early
Break It Up
Know Your Options
Think Ahead
Sounds simple, right? A large percentage of tax payers wait until the last minute which leads to increased stress and lack of time to adequately review tax documents. If you need help, you should always ask a professional. We are here for you at Newby CPA. Call us today! 512 484 8016
Checkout more tips for a smooth tax season here:
Tips to Tackle Tax Season Costs and Stress
Tax Return Questions? We’ve Got Answers!
2020 was a wild year. Many collected unemployment, received government stimulus checks, and worked from home, which brings a multitude of questions as tax filing season approaches. Tara Siegel Barnard for the New York Times offers answers to the most pressing tax inquiries and shares tips on how to save money. From teachers to retirees to charitable giving and student loans, she covers the bulk of current issues when filing your return. How the Pandemic Has Changed Your Taxes Need more help? Contact Debra at 512 484 8016.
Tax Time is Coming Soon!
It’s time to start gathering forms and data for your 2020 tax returns, if you haven’t already. This time of year you may have many questions about your taxes, but one of the most important things to monitor is your withholding. Ever had a surprise tax bill that caused you financial hardship? The best way to avoid this is by checking your withholding every year. For more information on the right amount for you based on various factors, visit https://www.irs.gov/pub/irs-pdf/p5349.pdf and try their Withholding Estimator today! For all your other tax questions contact me, Debra Newby Watkins, CPA, 512 484 8016.
Selling Marijuana, Don’t Forget to Pay Your Taxes
The IRS has dedicated a page on its website to Marijuana sales. Many states have approved the drug for medical uses and some for recreational use, but banks are still discouraged from doing business with these dispensaries and transactions are often made in cash. Even though, just as other consumables, marijuana is subject to taxation and the IRS wants to make it clear to businesses what is expected for paying taxes.
From the site: “The IRS understands this is a new and growing industry and provided frequently asked questions about record keeping, cash payment options, large cash amounts, and other related topics to help promote voluntary compliance in the industry,” said the IRS. “In addition to this page, the IRS also offers a wealth of general small business guidance and resources on IRS.gov.” Want to know more? Visit https://www.accountingtoday.com/news/irs-adds-marijuana-industry-page-to-website
Paying Taxes on Crypto Currency?
Do you owe taxes on crypto currency? Chances are you’re safe if you have no idea what that is, although some parents were unaware that their high-school and college aged children were trading in Bitcoin. The IRS is currently cracking down on tax evaders with digital holdings through two versions of a warning letter. The first implying the tax payer may have no knowledge of these accounts, and the second enforcing a deadline for recipients to disclose all of their crypto transactions or risk legal recourse. Accounting Today suggests the best ways to handle these tax situations based on the type of letter received in the article, Crypto tax avoiders face IRS roulette: Fess up or try to hide .