Being self-employed comes with plenty of perks, but it can also make tax time a bit of a nightmare. Depending on how you’re paid, you might get 1099-MISC, 1099-NEC or 1099-K forms in Union City, NJ. What’s the difference between these forms? Read on to learn more about which tax forms are used for which types of compensation. Do you get 1099-MISC, 1099-NEC or 1099-K forms? Tax forms have changed a little for tax year 2020. If you’re a freelancer or consultant who has earned over $600, you can expect to see your earnings on a 1099-NEC (non-employee compensation) form,... View Article
If you did your taxes this year only to find out that you owe money, don’t panic—this is a very common situation. Although it can be intimidating to owe a large chunk of money, the IRS is more than happy to make tax payment arrangements for Union City, NJ taxpayers. There are four options to pay what you owe—read on to find out which choice is the best for your situation. Short-term payment plan If you owe less than $100,000 in taxes, penalties and interest, you can apply for a short-term payment plan online. This is best for people who... View Article
If you’re new to homeschooling, you might not realize that there are tax deductions available in Union City, NJ. While you should always consult a certified accountant before claiming any new deductions, you can take advantage of federal tax credits to cut down on your tax bill. They’re not specifically labeled as “homeschool tax deductions,” so you might miss out if you’re not looking closely. Here are some of the tax credits your family may be eligible for: Federal tax credits: Federal tax law allows you to deduct certain expenses from your tax bill. First, if you hire a tutor... View Article
After a natural disaster occurs, your top priorities are going to be making repairs to your home and staying safe. Once you’ve gone through the process of getting your home repaired and filing all the necessary insurance claims, though, it’s important that you start considering the potential tax impacts. Specifically, you can get tax help for hurricanes, floods, wildfires and other types of disasters. Here are a few examples of some of the types of tax help for floods available to disaster victims in Union City, NJ. Obtaining deductions for lost or damaged property Perhaps the most important tax break... View Article
Tax season will be here before you know it—do you know how your stocks are taxed, and how to maximize your credits and deductions to offset them? Profits and dividends are both taxable, so it’s important that you know what to expect from the IRS when you buy and sell shares. Here’s what you need to know about investment taxes in Union City, NJ. Taxes on dividends Dividends are usually taxable, and they are categorized as either qualified or non-qualified. If you have non-qualified dividends, they’ll be taxed at the same rate as your ordinary tax bracket, while qualified ones... View Article
