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Tag Archives: income taxes

Why You Should Begin Working on Your Taxes in the Fall

Why You Should Begin Working on Your Taxes in the Fall

Fall brings with it cooler weather, football, and warm, spiced foods and drinks. For many, it is also the time to start thinking about upcoming holiday purchases and activities. But these are not the only thing you should be doing as the season changes and the leaves start falling. There are also reasons you should begin working on your taxes in the fall. 1. File Taxes Earlier Spending time preparing for tax season throughout the year, and particularly in the fall, allows you to file your taxes earlier come January. Instead of rushing around trying to make sense of unfiled papers and receipts you will already have much of the work done. One way to do this is to stay organized. File your receipts, bills, and other important documents as you get them. If you haven’t been doing that, take the time this fall to catch up before the New Year arrives. Another thing that can help is to stay in touch with your tax preparer or accountant. Take time now to set up an appointment with them for late January or early February. You will be able to go over your taxes then and get them filed early. 2. ...

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11 Tax Deductions You Might Be Overlooking

11 Tax Deductions You Might Be Overlooking

Tax time is right around the corner whether or not you are prepared for it. We all know a few people who are never prepared for tax time. But even if you feel like you have prepared for tax season, you might not be as ready as you think. The truth is that there are tons of tax deductions you might qualify for. With so many, it can be hard to keep track of all of them. To help you out and make sure you save as much money as possible, here are at 11 tax deductions you might be overlooking. 1. Moving Expenses When you relocate because of your job, you might be able to claim those costs as a deduction when you file your taxes. Of course, you must meet certain qualifications. 2. Student Loan Interest You can deduct the interest you paid for your student loans, or the interest student loans of any dependents. There is a cap of $2,500 and you have to have an adjusted gross income of $80,000 or less to qualify for some of this tax deduction. 3. Membership Dues If you pay membership dues that help you conduct your business, you might be ...

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5 Tips to Prevent Tax Identity Theft

It’s March, the days are flying by, and already we are over one sixth of the way through the year. For those who don’t already know, the income tax return deadline for this year is the eighteenth of April, and estimates show it is expected that over 240 million tax returns will be filed. Of those, approximately 20% could be fraudulently filed using someone else’s information. Sound a little scary? It should. But there are ways to prevent you from becoming one of the victims. Here are five tips to help you prevent tax identity theft from happening to you. 1 Shred Your documents Before you throw away any personal or household documents, including invoices and tax returns, stop. Instead of trashing it, shred it. If you don’t own a shredder, you can invest in one for a reasonable price, usually around $35.00, at any discount store. It’s worth the investment and a small price to pay compared to the high cost of cleaning up your credit after you’ve been targeted by a thief. However, if you can’t afford to buy a shredder, maybe you could simply use scissors to cut up those identifying documents, if you don’t have too ...

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Friday Rant: Taxes Suck

rant about paying taxes

I confess that I was really nervous about our taxes this year. I think I’m pretty smart. I went to school for a long time and have lots of diplomas and certificates hanging on my wall, but I honestly never have a clue about our taxes. Added to that is another of my irrational fears (along with birds and foods that turn from liquids to solids at room temperature) of being the subject of an IRS audit. I’m not being lazy about learning to use do it yourself software like Turbo Tax. Our taxes are really hard! We have income and expenses from all sorts of things, especially this year. Normal W2 income 1099 income Stocks and dividends Business income and expenses for an 8 employee business that also gets extra credits for certain health care and ADA laws Commercial and residential rentals Selling a satellite office as an asset sale and then my main practice as a stock sale Non 1099 or W2 income from online ventures Selling our flip house Taxes suck. I’d rather eat gravy in a bird cage than read IRS regulations. It would take me 5,000 hours to try and understand it all, so that’s ...

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What if I Can’t Pay My Income Taxes?

We are just over a month away from April 15th, when income taxes are due in the US. I have perhaps an unfounded fear of the Internal Revenue Service. I’ve never actually met anyone who worked there, and I have no reason to believe they are bad people, but they did get Al Capone. There has to be some merit to my fears. While thankfully I’ve never had to deal with this reality, I’ve often wondered, what happens if you can’t pay your income taxes? I think my fear started the first year I owned a business. Before that, I got paychecks. Taxes were withheld. I filed returns, and usually got a tax refund. Buying a business flipped that all upside down. I did know that I needed to pay quarterly returns, but with everything else going on, I didn’t. The business also made a profit, which is wonderful, but it caused me to owe $20,000 in taxes that first year. After some careful repurposing of funds, we were able to pay the bill. That has been several years ago, but I still experience a weird state of mind during tax season. I always have a bit of panic until ...

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