The end of the year is coming up fast, particularly for small business owners. While there are a million details to resolve in what may be your busiest time of year, it is wise to think about the fiscal health of your business. There are a several tax and financial tips that can make a big difference going into the New Year.
This year was the beginning of the new Tax Cuts and Jobs Act. This means that taxpayers will likely need to make some adjustments to help reduce the potential for underpaying or overpaying their taxes. While there are just a few pay periods left before the end of the year, there are some tips that will work in the 11th hour for reducing or addressing your tax obligation.
The $1.6 billion Mega Millions and $620 million Powerball jackpots have prompted even the most causal of lottery players to jump in and give it a shot. Regardless of who won, the fact is that the federal government is going to get a sizable chunk of the winnings.
The Tax Cuts and Jobs Act of 2017 (TCJA) is a major overhaul of our tax system that affects nearly everyone, including individuals, families and companies. While the law was signed in 2017, income earned in 2018 is when its impact will first be made on those filing taxes. This even includes some of those who receive Social Security benefits.
Every tax-paying American knows that new tax laws were passed at the end of 2017. Now businesses defined as limited liability companies (LLC), partnerships and S corporations are reportedly going to be able to pay 20 percent less taxes through a special tax break for pass through businesses (these entities don't pay taxes at a corporate level, thus owners avoid taxing your business and then you again for personal income taxes), but the actual guidelines of how it will work have yet to be announced.
Paying taxes is something we all do. While it is never fun to go through an entire year of pay stubs, receipts, bills and other financial paperwork, it is even worse when you have to do it and then unexpectedly pay a lot of money. The IRS has now sent a reminder to taxpayers to plan ahead with a “paycheck checkup” to avoid having to pay unexpected amounts again next year.
If you’re going through a divorce, you’ve probably got a lot on your plate. Between the property division, the alimony payments and the child custody issues, your taxes are probably the furthest thing from your mind.
Tax law’s new 20 percent pass-through deduction may provide a break to the estimated 40 million gig economy workers and freelancers in the U.S. who work as sole proprietorships and partnerships. However, before everyone who fits into this category starts celebrating, there are important issues that need to be considered:
The past year brought many new changes regarding taxes. In winter of 2017, Congress passed the Tax Cuts and Jobs Act, which overhauls many aspects of the American tax code. Many taxpayers have had to adjust to the myriad changes in tax laws. Another change that American taxpayers have had to adjust to this year is the extended tax deadline of April 17.
With just one more week to file annual income taxes, many Americans are rushing to prepare their returns on time. Filing taxes at the last minute is hardly ideal, it is the choice that many busy taxpayers make. What many people don’t realize is that rushing through their taxes can lead to easy-to-avoid mistakes that could end up costing you.