Did you know that you can create an IRS.gov account to view information for your current and past federal income tax returns? To create an account, go to IRS.gov and click Sign in to your account on the home page. Select Individual to view information for your personal income tax returns. You can log in […]
Author: John Sutton, CPA
Estimated Tax Payments Due Jan 15
As a reminder, estimated tax payments for the 4th quarter of 2024 are due January 15, 2025. Set Up Annual Recurring Calendar Reminders in Advance of these Federal Due Dates: April 15 – First quarter estimated tax payments are due June 15 – Second quarter estimated tax payments are due September 15 – Third quarter […]
1099-NEC Forms Due Jan 31
Businesses and self-employed individuals that pay individuals and businesses $600 or more for services are required to issue 1099-NEC forms. Formerly, these payments were reported for form 1099-MISC; however, the IRS created a new form solely for Non-Employee Compensation (form 1099-NEC). Generally, two copies of 1099 forms are issued. One copy is filed with the […]
Starting a Business
The following are general recommendations when starting a small business or becoming self-employed: Use a separate bank account (and optionally a business credit card). The stricter you are with separating business from personal transactions at the time of paying for something, the easier it makes record keeping and bookkeeping. Everything will be in one central […]
Backdoor Roth IRA Contributions
There are income limits on contributing to a Roth IRA. Taxpayers whose incomes are above these limits can get around these limits with the backdoor Roth IRA strategy. Using this strategy, a taxpayer contributes to their traditional IRA account and converts the amount to their Roth IRA account. There are no income limits on contributing […]
Beneficial Ownership Information (BOI) Report
There is a new information report required for businesses called the Beneficial Ownership Information (BOI) Report. This post contains general information applicable to small business owners to notify them and help them understand this new reporting requirement. Filing the report online on the US Treasury’s website is free, easy, and straightforward (it should take less […]
IRA Contributions
Traditional IRA: Tax Deductible (subject to income limitations if you or your spouse are covered by a retirement plan at work see table below) No income limits on contributions (though your contribution may not be tax deductible) Ideal for taxpayers above the Roth IRA income limits, older taxpayers (fewer years for earnings growth), taxpayers with […]
Attention Business Owners – Don’t Fall for Scams
Unscrupulous individuals search public business listings to find business owners to scam. They will send you letters that, at first glance, appear to be official forms from your state, but are actually solicitations. Often these scams include offering state issued documents you may not need, including various certificates, for fees that are marked up significantly […]
Review your Pay Stubs
Before the end of the year, it’s a good idea to review your pay stubs to make sure everything appears to be accurate. It’s always easier to fix things before year-end payroll reports are filed and W-2 forms are issued. There’s still time left in the year to make changes and avoid issues. Some common […]
Avoiding Penalties for Underpayment of Taxes
All taxpayers are required to pay taxes throughout the calendar year to avoid paying Underpayment Penalties. Most employees have income taxes withheld from their wages to help pay in these taxes throughout the year, but depending on your overall tax situation, these payments may not be sufficient to avoid the underpayment penalty. For self-employed individuals, […]