Guides

Business Entity Basics

What Is a Tax Deduction? Unlike a tax credit, which reduces the amount of tax owed, a tax deduction reduces the amount of income subject to taxation before taxes owed are calculated. Tax deductions typically fall into three main categories: The standard deduction Itemized deductions Schedule 1 deductions (also known as above-the-line deductions).  Standard Vs.

So far, three sets of Economic Impact Payments (also known as “stimulus checks”) have been issued to eligible recipients as part of the pandemic relief from the federal government. . Each set of payments has been slightly different and is outlined below for your Federal return.   Round of Payment Legislation Projected Date Projected Payment

Installing solar panels earns you a federal tax credit. That means you’ll get a credit for your income taxes that has the potential actually to lower your tax liability or increase your refund. You can qualify for the ITC as long as your solar system is new or being used for the first time between January

“Tax Now” means you pay taxes on this item now, but you don’t have to pay the taxes on the accumulated amount when you retire. “Tax Later” means you save taxes now, but you have to pay the taxes on the accumulated amount when you retire.  IRA stands for Individual Retirement Account.                                                  NAME

What are tax Credits? Tax credits reduce your tax liability, which means they directly lower the amount of income tax you owe for the year. If you owe $6,000 in taxes for 2021 but you qualify for $2,000 in tax credits, you will only owe $4,000 in taxes for the year. Each tax credit has

In-Home Support Services (IHSS) income is given to taxpayers who are providing care to individuals who would otherwise require care in a hospital, nursing facility, or intermediate care facility. The taxpayer providing the care is caring for this individual in their home. This income is typically reported on a W2, under the state of California

If you use part of your home for business, you may be able to deduct expenses for the business use of your home. The home office deduction is available for homeowners and renters, and applies to all types of homes.  There are two methods to claim this expense on your Individual Tax Return Simplified Option

Foreign Reporting Quick Guide Our firm supports many international clients as well as clients with international activity. The guide below outlines the different form types and purposes behind each. Name Filing Form Description Deadline Foreign Bank and Financial Accounts (FBAR) 114 A United States person that has a financial interest in or signature authority over

Failure to File vs. Failure to Pay Penalties Many taxpayers assume if they file an “extension” they will not be hit with penalties from the federal or state government. This is completely misunderstood and should be clarified to the taxpayer whenever filing for an extension or filing a return past the designated deadline. What Is