Accountable Plans: Tax-Free Reimbursements for Business Owners
As a business owner who is also an employee, you may have to pay for business expenses out of your own pocket. If you reimburse yourself for these expenses through an accountable plan, you can avoid paying taxes on the reimbursements. Accountable plans have four...
Help I Filed My Taxes But I Can’t Pay My Tax Bill! Now What Do I Do?
There are other options if you qualify but let’s start with what you should do if at all possible when you first realize you cannot pay your full tax bill when you file your taxes. The first thing you can do right after you file is to apply for an...
3 Useful Schedule C Elections: Which One Is Best for Your Small Business?
Introduction The Small Taxpayer Safe Harbor and the De Minimis Safe Harbor are two simplified methods for accounting for business expenses that are available to small businesses. These safe harbors can help businesses to save time and money on their taxes. In this...
What the IRS Considers to be Frivolous Tax Positions and Deductions
The IRS considers a tax position or deduction to be frivolous if it is: Clearly contrary to the law. This means that the position or deduction has no legal basis whatsoever. Patently improper. This means that the position or deduction is so absurd or...
Does it really matter if I contribute too much to my 401(k) or IRA?…Short Answer… YES!
Why it matters if you contribute too much to a 401(k), IRA, or Roth IRA Contributing too much to a 401(k), IRA, or Roth IRA can have significant financial consequences. Here are some of the reasons why it matters: Taxes: You will need to pay taxes...
Claiming Dependent Children After Divorce or Separation: Everything You Need to Know
Claiming a dependent child on your tax return can provide tax benefits, such as the child tax credit, the Earned Income Tax Credit, and a more favorable filing status. However, being divorced or legally separated can make it difficult to determine who can claim...
How to Deduct Health Insurance as an S Corp Owner
Eligibility To deduct health insurance as an S corp owner, you must meet the following criteria: You must be a more-than-2% shareholder of the S corporation. You must be an employee of the S corporation and receive wages from the S corporation. The health insurance...
Your State May Have an Additional Child Care Credit
As most parents will tell you childcare is expensive and leaving your child is STRESSFUL if you cannot find or afford a caregiver or school you trust with your precious child. Unfortunately, according to care.com, “More than half — 59% — of parents say...
5 Tips for Hiring Quality Tax Resolution Services
Are you looking for reliable tax resolution services? Click here for five practical tips for hiring quality tax resolution services that you can trust.
How Long Should I Keep My Tax Records
At the end of tax season, you might be wondering what you should do with all your paperwork. If you are like most people after filing taxes, you might have tons of pay stubs, canceled checks, receipts, tax forms, and various other types of documentation. While you...
4 Reasons to Hire a Tax Resolution Specialist
Every year, American taxpayers owe out billions of dollars in tax debt. As such, it leaves many people wondering if there are ways to negotiate their tax debts with the IRS. In this guide, you will learn whether you have options to do so and what steps you need to...
IRS Tax Scams What To Watch Out For
Warning about IRS Tax Scams If there’s one thing you can count on scammers to take advantage of, it’s a global catastrophe. Any time there is an emergency, natural disaster, or common threat, scammers leap into action to attempt to rip your good intentions right out...
Can You Negotiate Your Tax Debt with the IRS?
In the event that you are unable to pay your tax debt in full, the IRS has an option called “Offer in Compromise.” Essentially, this option lets you settle the tax debt you owe for less than the full amount.
2021 Child Tax Credit Payments
Understanding the IRS Tax Debt Relief Process Part 2
Apply for Offer in Compromise Now that you understand how to prepare youself and what options are available, let's review how to present an Offer in Compromise. Remember, an Offer in Compromise is when you, the taxpayer, makes an offer to clear your debt for...