Accessing Your Small Business Success
A couple of years ago, I decided to abandon a long, unsuccessful job search. After many months of desperately looking for the perfect job, I chose to start a home based business. Because I’d never been an entrepreneur before, I was more than a little anxious. I was excited as well. Thankfully, I’ve enjoyed success in my new business venture. At the end of every month and year, I carefully analyze my revenues. Because I have a background in accounting, I know how to calculate various financial statement ratios that help me determine how my business is doing on many different levels. If you’re a struggling small business owner, consider hiring an accountant to help you access the success of your business. On this blog, you will learn the types of consulting services an accountant can offer a small business owner.
If you, like many American parents, have adult chi …
When you decide to strike out on your own and star …
If you have no dependents and are single, then fil …
Members of the military sometimes have unique inco …
Contributions to a traditional IRA are not always …
If you, like many American parents, have adult children living at home, you probably wonder if their presence could benefit your taxes. And there may be good news: sometimes, they can.
Here's the lowdown on when and how.
Claiming Adult Dependents. If you are providing the home while your child is in school for at least 5 months of the calendar year (not necessarily consecutive months, either), you can claim him or her as a dependent child until they turn 24… as long as they earn less than $4,050 (in 2016).
When you decide to strike out on your own and start working freelance rather than working as an employee of a company, you have a great deal of freedom as well as increased opportunities for finding work that you love and connect with. However, at the same time, you will also likely find yourself faced with an unfamiliar situation. You will need to keep track of and manage the full extent of your federal and state taxes.
If you have no dependents and are single, then filing your taxes is pretty straightforward, especially if you take the standard deduction. When you receive income from a side business too, that complicates matters because you have to pay business taxes. If this is the first year you've added business income to your return, then you may want to let an accountant figure your taxes for you so you don't make any mistakes that get you in trouble with the IRS.
Members of the military sometimes have unique income tax situations. Service members can use nontaxable pay earned in a war zone to qualify for certain tax benefits.
Most forms of regular military pay are taxable. However, allowance payments received for housing or subsistence are not taxable. Military pay earned in an area officially designated as a war zone is also excluded from taxable income. That nontaxable form of military pay is referred to as combat pay.
Contributions to a traditional IRA are not always fully tax-deductible. The deduction is phased out for some individuals at certain income levels, resulting in a partial deduction or no deduction. Tax filers who make nondeductible IRA contributions must file an additional tax form to determine how their IRA activity is to be treated for tax purposes.
There is an annual limit on how much someone can contribute to an IRA. However, tax filers who participate in an employer-sponsored retirement plan may have a reduced IRA deduction if their income is at or above certain threshold levels.