Understanding self-employed tax rules can feel like a minefield. When you’re already spending large amounts of time running a business, keeping the books and producing a great service or product, taxes are probably the last thing you want to tackle. Unfortunately, the IRS is adamant about everyone paying their fair share—and it’s always best when you get it done right the first time. Here’s what you need to know about taxes if you’re self-employed. Who qualifies as self-employed? The IRS has three major categories of self-employed people: sole proprietors and independent contractors, being a member of a business or trade... View Article
Summer’s over, but we hope you kept your receipts! Summer camps can be expensive. The average nationwide cost hovers around $200 per week. Now that the kids are back in school, your childcare expenses have probably gone down a bit. What, if anything, can be deducted from your 2021 tax bill? Can you write off summer camp fees and other childcare-related expenses? Read on to learn what you need to know about deducting summer childcare expenses. Introducing the Child and Dependent Care Tax Credit If you want to deduct summer camp and childcare expenses from your 2021 tax bill, the... View Article
As if IRS policies weren’t confusing enough, we now have “virtual currency” to contend with as well as traditional cold hard cash. If you’ve entered the arena of cryptocurrency, you may be asking, “How does investing in virtual currency affect my taxes?” We have answers. Here’s what to know about taxes for cryptocurrency: Capital assets: If you hold Bitcoin as a capital asset, it is treated as property for tax considerations. That means tax principles for property transactions apply. Gains and losses: If you have any gains or losses from exchanges or sales, you will be taxed on these transactions... View Article
New tax policies can seem overwhelming or confusing. Since the new child tax credit is a significant change, parents must educate themselves on how to take advantage of this new policy. Understanding the new child tax credit in 2021 can make a significant impact on your income this year. Here’s what to know about the 2021 child tax credit. What it is A tax credit is an amount subtracted from the total income taxes you must pay to the IRS. As of July 15, parents may be eligible to receive an advance tax credit for each of their children. This... View Article
Tax season is the most dreaded time of year for many Americans. Not only is the process confusing, but it can also result in owing the government a significant amount of money. The tax deadline was extended by about a month in 2021, but we’ve encountered some folks who still neglected to file their taxes. If a missed deadline applies to you, keep reading. This post will cover the different penalties the IRS can impose if you fail to file your taxes or pay your tax bill on time: Fines: The first action the IRS takes is imposing some fines.... View Article
