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...
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...
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...
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 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...
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...
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