Although there are many benefits for of being self-employed, tax time is rarely one of them. Since you are solely responsible for the cost of your social security, which is lumped together with your self-employment taxes and you do not have an employer who automatically takes deductions from your pay, the middle of April can be a very challenging time. Fortunately, with the tips listed below, it can be a lot less stressful when it's time to deal with your tax preparation.
8 July 2016
As someone who enjoys writing short stories and selling them to magazines and various websites, you might not consider yourself to be a small business owner. However, any money made from your writing is generally considered self-employment; when you make more than $400 in a year from selling your stories, you are likely to need to pay self-employment taxes. That's why you should keep the following accounting tips in mind so that you can make things easier for yourself when it's time to file your taxes for the year.
20 May 2016
If you own a small business, then you're well aware of all the work that's involved with it. It's ideal to rely on assistance in some areas if at all possible. One way that you can get additional help with your company is by hiring a certified public accountant (CPA) to assist you. This can take the financial work off of your shoulders and give you time to focus on other things.
29 January 2016
Going through a divorce is a difficult, stressful experience and its after-effects can last for years to come. One area many divorcees have trouble getting under control is the finances of living on their own after a divorce. If you were the lower-earning spouse, have custody of kids or ended up with a change in assets, your finances can easily be thrown for a loop. Here is how you can get back on track in 5 steps.
4 January 2016
If you'll be filing taxes as a self-employed worker or independent contractor for the first time this year, you might be feeling a little overwhelmed by the process--especially if you've been used to filing a simple 1040 with your employer-issued W-2s in prior years. As you prepare to file for the first time as a self-employed worker, then there are some common myths you'll want to be aware of so you can file accurately and correctly.
30 December 2015
With the U.S. tax code being over 700 pages in length, nobody is expecting you to be an expert on doing your taxes. Furthermore, with all the complexities and exceptions to loopholes that are within the tax code, it can seem like an unsolvable equation to determine whether you can include certain deductions. That's why tax preparers and accountants are there for you. Here are some little-known tax deductions that you want to bring up and discuss the next time you're preparing to file taxes.
23 December 2015
Businesses must provide most employees with a Form W-2 after the end of each calendar year. For every Form W-2 issued, employers must also send a copy of the form to the Social Security Administration. IRS Form W-2 is a form that is used to summarize wages and benefits paid to an employee. The form consists of six nearly identical copies, with each copy intended for a specific use. Each employee typically receives three copies for their own tax filing.
21 December 2015