How to Get Independent Contractor Quarterly Taxes Right and Avoid Penalties

Independent contractors have it rough when it comes to handling taxes. While the rest of the working world has income deducted from each paycheck to cover taxes, the independent contractor is forced to figure everything out on their own.

Calculating tax benefits

Figuring out your own taxes can feel like working on a complicated math problem. When you get the problem right, you have the pleasure of forking over your money. When you get the math problem wrong, it means penalties, or worse.

In this article, we take a look at how independent contractors can get their quarterly taxes right.

The Situation

Independent contractors are disadvantaged from a tax perspective in several ways.…

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Should Your Small Business Hire a Tax Preparer?

The tax filing deadline is fast approaching, but you are yet to finalize your paperwork. What do you do? Will you go into panic mode and make things even worse?

Tax preparation

One of the reasons some small business owners get into trouble with the taxman is the tendency to do everything independently. Although you can collect and piece together a few pieces of information, this process is too complicated for you. That is why you have to hire a tax preparer to take you through the process.

Before choosing to do it yourself or hire a tax preparation professional, you need to know what each option offers.…

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Why File Form 2290 Online?

If you are into the trucking business, you must be aware of form 2290 and Heavy Vehicle Use Tax (HVUT). The IRS mandates that every person who owns a heavy highway motor vehicle weighing 55,000 pounds or more and covered 5,000 miles or above in the odometer file form 2290 and make the HVUT payment.

Fleet of trucks

You can file form 2290 online or manually. Manual filing of form 2290 can be time-consuming and tedious, whereas e-filing allows you to file much faster, and with ease. When you e-file, you will receive your stamped Schedule 1 copy within minutes compared to paper-filing, which takes up to 6 weeks.…

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ITR Filing: 7 Reasons Why You Should File Income Tax Returns

Your tax return is your sole responsibility. So if you generate income in Australia, you have to have a tax file number (TFN) and pay taxes using your earned money. You can compute the amount you need to pay for taxes in a specific year based on your annual tax return.

ITR - income tax returns filing

photo credit: Karolina Grabowska / Pexels

Filing your income tax return may be a burdensome activity for you. Still, you must understand that this is your moral and social duty as a responsible citizen of your country. Learn more about how to lodge your income tax return and the reasons why you need to below:

Lodging Your Income Tax Return

If you are making a stable income, you need to pay taxes on that income.…

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Guide for Software Companies When Claiming R&D Tax Credits

Maybe you’ve heard that somehow a variety of practices associated with the implementation of updated or upgraded software might be considered for the R&D Tax Credits. Needless to say, the benefit is aimed at promoting the advancement of novel and advanced processes and technologies. The credit will help to reduce the uncertainties associated with creativity and recognize foresight.

R&D tax credits

When analyzing the seven major stages of the Software Development Lifecycle (SDLC), it’s the fourth stage which development and coding entail operations that qualify for special tax credits.

Thus, while the new rules favored commercial software providers, you do not preclude your business solely just because you do not sell software to external parties.…

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The Steps to Take if Your Business Can’t Pay Its Taxes

When it comes to business taxes, it doesn’t pay to mess around with what’s due to the IRS. They don’t have a sense of humor about getting payments in on time and can take steps against the business, including charging interest, adding penalties or even freezing accounts if it comes to it.

Tax season stress

In this article, we cover the steps to take when a business is struggling to pay its taxes.

1. Confirm the Due Dates for Federal Income Taxes

There’s a tax return date based on the type of business structure.

For federal taxes (state ones may be different), the tax return data for filing is also the payment date for the taxes too.…

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Surprised By The New 2018 Tax Laws? 4 Strategies To Handle The Changes

Once you get the hang of preparing taxes for your small business, April doesn’t seem so challenging. That is, until tax laws change and suddenly you don’t know if you can still claim your small office deduction. When this happens, the need to hire a tax professional to prepare your return becomes a necessity, not just a convenience.

2018 Tax Law Changes

Not sure what to do about the tax changes that went into effect for 2018? The changes will remain in effect at least until 2025, so there’s no time like now to get acquainted with what’s new.

1. Hire a tax professional to do your taxes at least once

Hire a tax professional to do your taxes at least for the first year.…

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7 Little-Known Tax Deductions for Small Businesses

Many small businesses dread filing their quarterly taxes, but deductions help owners lower their tax burden. In addition to the standard deductions that most businesses take, there are lesser-known write-offs that can reduce tax bills even further.

Small business tax deductions

1. Home Office

If you run your business out of a dedicated home office, you may be able to take the home office deduction. The catch with this deduction is that the space must be used exclusively for business purposes.

There are two ways to deduct a home office:

  • Deduct actual expenses. You’ll need to have records for the cost of painting, repairs, utilities, rent, insurance and other expenses you want to write-off.
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Business Taxes That Small E-Commerce Businesses Should Be Aware Of

Managing taxes for your business is, well, taxing. It involves a lot of paperwork and several receipts, all of which you need to properly sort out and file. Even if you’re running a small business, taxes are still part of your responsibility, and this same goes for small e-commerce businesses.

Calculating taxes

Are Online Businesses Required To Pay Taxes?

One common misconception is that selling online does not involve paying taxes. Some e-commerce store owners may not know this, but paying taxes may be required in the area where your business market is operating.

In some places, taxation includes Internet marketplaces – that is, e-commerce websites like Amazon and eBay whose products are sold by individuals and not by the websites themselves.…

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3 Accounting Tools to Drive Your Small Business

Small business owners often scramble come tax season. There is a lot to worry about as a business owner, and the last thing most businesses want to think about is paying their taxes. Keeping the lights on is far more important to a business owner.

Using online accounting software

But you don’t have to scramble last minute to figure out your taxes.

There are tools that can help make tax season a little less taxing on a small business owner.

1. QuickBooks Online

Quickbooks website screenshot

Quickbooks offers an online version that is ideal for small businesses. The “standard” for small businesses, this software makes bookkeeping systematic. The good news is that you can use QuickBooks and then allow access to the account to your accountant.…

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