Most people are in the dark when it comes to how their tax returns compare with others. If you received a tax refund and want to know if you received more or less than the average American, we’ll go through all the most interesting tax filing and income tax statistics in recent years including: We’ll […]
Whenever you take a distribution from a retirement that exceeds a value of $10, you’ll get Form 1099-R, Distributions From Pensions, Annuities, Retirement, or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. The form is an information return and reports your passive income and distributions from retirement plans such as annuities, profit-sharing plans, retirement plans, individual retirement […]
Form 1099-R, Distributions From Pensions, Annuities, Retirement, or Profit-Sharing Plans, is used to report passive income and distributions from a retirement plan that exceeds $10 in value. The purpose of Form 1099-R is to report the taxable amount of the distribution and any applicable taxes withheld. The form provides information to the recipient and the […]
A partnership is a business entity formed when two or more individuals or entities come together to form a business for profit. In a partnership, the individuals or entities involved are known as partners. The partners contribute capital, skills, resources, or a combination thereof to the partnership. Partnerships are not considered separate legal entities from […]
Unlike a corporation, a sole proprietorship is not taxed separately from the business owner. Instead, the owner of the business is personally responsible for all tax liabilities and must pay those taxes on their personal tax return each year. Here’s everything you need to know about filing taxes as a sole proprietor including required tax […]
The amount of business taxes that you’ll have to pay at the end of each year largely depends on the business entity you operate under. If you’re a corporation, you’ll have to pay the corporate tax rate, which is 21% for 2023. Businesses that are not incorporated (also known as pass through entities) are taxed […]
When you’re starting a business, choosing the business structure that you’ll operate under is one of the first important decisions you’ll have to make. It’s important to choose the right entity for your situation because there are different administrative, tax, and legal ramifications for each one. There are over a dozen different types of business […]
The gift tax is a federal tax imposed on the transfer of property or assets from one person to another without receiving something of equal value in return. The person giving the gift (the donor) is usually responsible for paying the gift tax. The gift tax applies to both direct gifts (such as cash or […]
In the US, there are two methods to calculate home office expenses: the Simplified Method and the Regular Method. Each method has its own rules and calculations, and pros and cons depending on your circumstances. Let’s go through them below. The Simplified Method is the simpler and easier method of taking a home deduction because […]
