Third Hand Bookkeeping Service

By Ken Berry, J.D. – Tax CorrespondentReposted from CPA Practice Advisor Many self-employed taxpayers are booking trips now in an effort to reenergize their business opportunities. Good news: If you meet certain requirements, you can write off the bulk of your travel costs, even if you “mix in a little pleasure” with your … Many self-employed […]

Reposted from CPA Practice Advisor An employee is generally considered to be anyone who performs services, if the business can control what will be done and how it will be done. What matters is that the business has the right to control the details of how the worker’s services are … Correctly classifying whether workers […]

By Ken Berry, J.D. – Tax Correspondent (Sept. 20, 2021)Reposted from CPA Practice Advisor For a long time, self-employed taxpayers had to take a backseat to corporations when it came to qualified retirement plans. Not anymore. Now you have options that are virtually the same as bigger companies with corresponding tax breaks. Here are four possibilities […]

A checking account at one bank is the same as a checking account at another bank, right? Well, maybe not. In fact, according to the J.D. Power 2021 U.S. Retail Banking Satisfaction Study, now 41% of people do all their banking online. This is a pretty big shift from traditional banking. After reviewing the financial […]

Tracking your miles whenever you drive somewhere for your business can get pretty tedious, but remember that properly tracking your vehicle expenses and miles driven can lead to a significant reduction in your taxes. Here are some tips to make the most of your vehicle expense deduction. Keep track of both mileage and actual expenses. The […]

Summertime means the 2020 tax filing season is firmly in the rearview mirror for millions of Americans. But summertime is also the season when the IRS sends letters to unlucky taxpayers demanding more money! If you receive a notice from the IRS, do not automatically assume it is correct and submit payment to make it […]

The first advance payment from the newly expanded child tax credit was recently sent out by the IRS. Payments are scheduled to be made on the 15th of each month through December. Here’s what you need to know about the child tax credit and the advance payments. Background For the 2021 tax year, an expanded […]

Now is the time to begin tax planning for your 2021 return. Here are some ideas: Contribute to retirement accounts. Tally up all your 2021 contributions to retirement accounts so far. Estimate how much more you can stash away between now and December 31. So consider investing in an IRA or increase your contributions to your […]

As a business owner, you’re required to pay three different types of payroll taxes. 1. FICA (Federal Insurance Contributions Act) is the tax used to fund Social Security and Medicare programs. 2. FUTA (Federal Unemployment Tax Act). Employers pay this federal tax to provide unemployment benefits to laid-off workers. 3. SUTA (State Unemployment Tax Act). […]

Tax challenges can be VERY expensive As a small business owner, you may face the issue of whether to classify workers as employees or as independent contractors. Classifying your workers as independent contractors generally saves you money. That’s because you avoid paying employment taxes and benefits on their behalf. If the IRS determines that you […]