💡 Why You Should Start Thinking About Taxes Now (Not Just in April) Most people only think about taxes when it’s almost time to file — usually around April 15th.But here’s the truth: by then, it’s too late to actually save on taxes. Good tax planning doesn’t start when you’re filing your return — it…
💡 Understanding Code G on Form 1099-R — What It Really Means As a tax preparer, I often notice clients getting confused about Code G on their Form 1099-R.Many assume that if a dollar amount appears on the form, it automatically means tax is due. “This is income — so I’ll have to pay tax…
💰 Understanding IRAs — Your Retirement Money’s Best Friend A lot of people hear the term “IRA” and immediately think “some complicated tax thing my accountant handles.”But really, it’s just a special account designed to help you save for retirement — with tax benefits. Let’s break it down simply 👇 🔹 What Is an IRA?…
A regular LLC is simple to operate — but here’s the catch:➡️ The entire profit is usually subject to Self-Employment (SE) tax. 💼 S-Corporation Highlights ✅ Reduces SE tax burden✅ Files Form 2553 to elect pass-through treatment✅ Avoids double taxation (no corporate-level tax) ⚖️ The Key Difference Salary (W-2): “Reasonable compensation” paid to the owner…
IRS already updated the 2025 tax deadlines for non-US LLC owners. And they aren’t what you think. Most founders are still working off 2024 calendars. That’s a four-figure mistake waiting to happen… Here are the dates that matter RIGHT NOW: → March 17, 2025: Form 1120 (if your LLC elected C-corp status) → April…
1️⃣ Match Records – Reconcile payroll register with tax deposits & general ledger (GL). 👉 Example: Payroll shows $5,000 tax withheld, but bank shows $4,800 → investigate $200 difference. 2️⃣ Fix Discrepancies – Correct missed withholdings, wrong entries, or bank mismatches right away. 3️⃣ Why It Matters – Ensures accuracy, prevents IRS notices, and keeps…
1️⃣ Form 941 (Quarterly) – Report federal income tax withheld + employer/employee FICA to IRS. (Filed every quarter (April, July, October, January)). 👉 Example: If you withhold $500 in taxes and $300 in FICA, report $800 total 2️⃣ Form 940 (Annual) – Report FUTA (Federal Unemployment Tax) to IRS. 👉 Example: For 3 employees earning…
📘 Accounting Methods When Filing Form 1040 (U.S. Individual Tax Return) When reporting income and expenses, the IRS allows individuals to use one of the following accounting methods: 1️⃣ Cash Method (Most Common) ✅ Income is reported when received ✅ Expenses are deducted when paid 🧾 Simple and ideal for employees, freelancers & small businesses…
1️⃣ Run Payroll – Calculate total pay and deductions, then process payments via ACH/direct deposit or printed checks. 👉 Example: Employee earns $2,000 gross pay – taxes & deductions ($400) = $1,600 net pay. 2️⃣ Issue Pay Stubs – Share detailed breakdowns showing: • Gross Pay • Deductions (taxes, benefits, etc.) • Employer…
📅 Due Dates for Filing IRS Form 1040 Individual Tax Returns:- 1. Form 1040 – U.S. Individual Income Tax Return 🗓️ Due Date: April 15 📌 Used by most U.S. taxpayers to report income, deductions, and credits. 2. Form 1040-SR – U.S. Tax Return for Seniors (Age 65+) 🗓️ Due Date: April 15 📌 Similar to Form…
