Taxes
Quarterly Estimated Taxes
What are Quarterly Estimated Taxes? In a perfect world, the taxes taken out of your wages would cover your tax liability, and you would never owe more. This is not the case for most taxpayers. We’re left to wonder what changed when we received a refund in past years. To meet your tax obligations, you have to calculate and pay quarterly estimated taxes. Taxpayer’s Responsibility We make payments four times a year at the end…
Read MoreFree Filing Option: Direct File
As of January 27th, the IRS is accepting individual tax returns for processing. With many filing options (including your local CPA!), it can be hard to know where to start. A new and overlooked option is filing with the IRS through Direct File. Did we mention it’s free? Let’s take a look. The Program Direct File is in its 2nd year and available in 25 participating states (including Washington). Like popular paid DIY options, the…
Read MoreCharitable Giving + Taxes
It’s Giving Tuesday today and what better topic to explore than charitable giving! Charitable giving is a great way to alleviate some of your taxable burden while supporting organizations you’re interested in. There are several methods so let’s jump in. Let’s Make the Most of Charitable Giving The most common method of charitable giving is cash/check/card, plain and simple and straight to the point. As with all charitable gifts, make sure you retain proper documentation,…
Read MoreIs an S-Corp election right for me?
We get this question a lot. For some businesses, the S-Corp election makes sense; for others, it doesn’t, and for still others, it’s a maybe. So how do we make sense of it? Let’s skip ahead and dive right into why or why not an S-Corporation is for you. Pros of an S-Corp Cons of an S-Corp How much will an S-Corp save? This is a tricky question. The Tax Jobs and Cuts Act of…
Read MoreClarifying Confusion Around Tax Extensions
Over the years I have answered many questions about tax extensions. There is a lot of misunderstanding about them, so I want to shed some positive light on it. First off, what is an extension? It’s an extension of time (six months) to file your federal income tax return. Keep in mind that your taxes owed still need to be paid by 4/15. Why do we file tax extensions? The #1 reason we file extensions…
Read MoreAn Inaccessible IRS
With the reduced federal funding budget and threadbare Covid-related IRS staffing levels some taxpayers are experiencing the frustrating result of an inaccessible IRS. Compounding the problem of unopened mail piling up at IRS offices around the country, the postal service’s slow delivery times are causing many taxpayers grief. Even when phone lines are attended to at a reasonably helpful volume and returns have a timely postmark, tax payments and responses take several months to be…
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