Some tax rules affect every person who may have to file a federal income tax return; these rules include dependents and exemptions. Here are some important facts you need to know that are related to dependents and to claiming exemptions on your tax return. Exemptions reduce your taxable income – There are two types of exemptions: personal exemptions (one for the filer or … [Read more...] about Important Facts about Dependents and Exemptions
Small Business Expenses 101
For small business owners, tax breaks often come in the form of tax deductions – which can offer a nice little instant cash savings – if you know how to navigate tax law and claim the deductions you deserve (not what you believe you are entitled to). Large tax deductions are a notorious red flag for the IRS, with home-based businesses, in particular, facing an increase in tax … [Read more...] about Small Business Expenses 101
Are You Supporting Your Parents?
If you are helping support your parents, you may qualify to claim a tax benefit if you are providing over half of your parents’ support. But you may be having difficulty showing over half of the support for both parents, thus failing to qualify for the dependency exemptions (and for the beneficial head of household filing status if you are a single taxpayer). You may overcome … [Read more...] about Are You Supporting Your Parents?
Do You Have to File a Tax Return?
Not all individuals are required to file tax returns. If your income is less than the sum of your standard deduction and personal exemptions, you are generally not required to file a tax return. There are, however, circumstances where you may have to file anyway based on certain types of income or special circumstances. Even if you are not required to file, it may be in your … [Read more...] about Do You Have to File a Tax Return?
Do Not Mix Your Business & Personal Bank Accounts!
Whether you are working on your business part-time, operating as a sole proprietor, or starting a business with a more formal structure (such as a partnership or corporation) – it’s vital that you keep your business banking separate from your personal finances. Keeping the two separate not only provides your business with credibility, it reduces your personal liability (a must … [Read more...] about Do Not Mix Your Business & Personal Bank Accounts!