How To File S-Corporation Election The election of S corporation status is made by filing a form called “Election by a Small Business Corporation” with the IRS Service Center, where the corporation files its corporate federal income tax return. The election of the S corporation status must be unanimously approved by all of the shareholders…
📘 Form 1099-K – Payment Card & Third-Party Network Transactions:- 🔹 Purpose Reports payments you received through credit/debit cards or third-party payment networks (e.g., PayPal, Venmo, Square, Stripe, Amazon). 🔹 When You Receive It *If you have over $600 in payments (as per IRS rules, effective from 2023 tax year; phased-in in some cases). *Applies…
🧾 Standard Deduction vs. Itemized Deduction – Which One Should You Choose? When filing IRS Form 1040, you have two ways to reduce your taxable income: ✅ Standard Deduction ✅ Itemized Deductions (Schedule A) But you can claim only ONE. So, which is better for you? Let’s break it down: 🔹 Standard Deduction Fixed amount…
💼US Payroll – Payroll Tax Deposits :- 1️⃣ Federal Taxes (IRS): *Who: Internal Revenue Service (IRS) *What: Federal income tax withholding, Social Security, Medicare, FUTA *How: Electronically via EFTPS (Electronic Federal Tax Payment System) or through payroll service 2️⃣ State Taxes (State Agencies): *Who: Your state’s Department of Revenue or equivalent *What: State income tax…
Topic: Taxability – Flow Through Entities Flow Through Entities play a unique role in taxation. ✅ Entities like Partnerships (Form 1065) and S-Corporations (Form 1120S) file returns at the corporate level. ✅ However, the taxes are paid at the individual level by shareholders or partners. ✅ Income passes through to individuals via Schedule K-1, and…
US taxation occurs at three levels (Taxation Levels in the US) 1. Federal Taxation (Central Government) o Applies to all individuals and businesses in the US. o Types: Income Tax, Corporate Tax, Payroll Tax, Excise Tax. o Example: IRS collects income tax based on earnings. 2. State Taxation o Applied by individual states. o Types: State Income Tax, Sales Tax, State Corporate…
💡 Notable Changes for Tax Year 2025 (Income tax returns to be filed starting tax season 2026) Standard deductions AND Marginal Tax rates:- These updates apply to income tax returns filed in 2026 (for the 2025 tax year) 🧾 Standard Deductions: *Single / Married Filing Separately: $15,000 (increase of $400 from 2024) *Married Filing Jointly:…
📋 Form 3520 – Transactions with Foreign Trusts :- Annual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts. 📘 Purpose:- Used by U.S. persons (citizens, residents, or entities) to report certain transactions with foreign trusts or receipt of large gifts or inheritances from foreign individuals or entities. 📋 You must…
5 Major Elements of Accounting Accounting is the language of business, and its foundation rests on five key elements. Mastering these is essential for anyone in finance, management, or entrepreneurship. 1. #Assets Resources owned by a business that provide future economic benefits. Examples: Cash, Inventory, Equipment, Investments 2. #Liabilities Obligations a business owes to outsiders….
Income-related forms (flow into 1040 Income section) :- 1099 series → 🧾 1099-NEC → Freelance / Contractor Income 🏠 1099-MISC → Rent, Royalties, Other Income 🏦 1099-INT → Interest 📈 1099-DIV → Dividends 💹 1099-B → Stock / Brokerage Transactions 👵 SSA-1099 → Social Security Benefits 📂 1099-R → Retirement / Pension Distributions ✔️ These…
