Overview, #101
Summary of Tax Brief
One of the biggest challenges of any business is paying taxes. Not only are taxes due, there are penalties for missed payments, or filing deadlines, or inaccurate information. Many business owners use an accountant or payroll service to reduce some of the burden. Even if you select a third party to handle these services, you still will need to stay on top of them to make sure that the work gets…
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Capital Gains and Losses, #102
Summary of Tax Brief
Just about everything you own and use for personal or investment purposes is a capital asset. Examples are household furnishings, your home and stocks or bonds you personally own. You have a capital gain or a capital loss whenever you sell a capital asset. the difference between the amounts you sell it for and your cost or basis determines whether you have a capital gain or a capital loss. You have…
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Payroll, #103
Summary of Tax Brief
If you are an employer and pay wages, you must pay and/or collect employment taxes. Employment taxes consist of the following: Federal Income, Social Security, and Medicare taxes.
Federal Income Tax
You are required to withhold federal income tax from your employee’s wages. To figure how much federal income tax to withhold from each wage payment, use the employee’s Form W-4 and the methods described in IRS Publication 15. Report taxes…
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Types of Taxes - Federal Income #104
While some states do not have an income tax, all residents and all citizens of the United States are subject to the federal income tax. Not everyone, however, must file a return. The requirements for filing are found in 26 U.S.C. 6011. The federal income tax is a tax on the taxable income of U.S. citizens and residents. It also applies to the income of corporations, partnerships, estates and...
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Types of Taxes - Social Security, #105
Social Security protects more than 150 million workers and pays benefits to more than 45 million people. You and your family are protected by Social Security and you pay taxes that help make the system work. Social Security is funded through dedicated payroll taxes called...
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Types of Taxes – Alternative Minimum Tax #106
The alternative minimum tax attempts to guarantee that all individuals pay at least a minimum amount of tax. What Is the Alternative Minimum Tax? Tax laws give favored treatment to certain kinds of income and allow special deductions and....
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Inflation-Adjusted Tax Numbers for 2009 #107
Tax numbers change frequently. This tax brief lists certain inflation-adjusted numbers for use in preparing 2008 and 2009 tax returns. Be sure to review the instructions for any tax form you are completing to confirm these numbers and to check for any other numbers that might have been adjusted...
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Tax Strategy, #108
Summary
In setting a tax strategy, keep in mind that a dollar saved on taxes is worth much more than a dollar saved on expenses. Thus, it is always a good idea to investigate whether a particular business decision or course of action can help you reduce your tax liability. …
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Estimated Tax: Computation and Payment #109
Whether you operate your business as a sole proprietorship, an S or C Corporation, a limited liability corporation, or other entity, it is important to accurately estimate your personal tax liability. Every major business and investment decision you...
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Self-Employment, #110
Summary
The self-employment tax (SE tax) is a social security and Medicare tax primarily for individuals who work for themselves. It is similar to the social security and Medicare taxes withheld from the pay of most wage earners.
To pay SE tax, you must have a social security number or an individual taxpayer identification number. The SE tax rules apply no matter how old you are and even if you are already receiving Social Security…
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Types of Taxes – Small Business Tax Credits #111
This brief provides a round-up of a wide variety of tax credits available for small businesses...
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Types of Taxes – “Green” Energy Tax Savings #112
The IRS reminds individual and business taxpayers that many energy-saving steps taken in 2009 may result in bigger tax savings next year. The recently enacted American Recovery and Reinvestment Act (ARRA) of 2009 contained a number of either new...
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Types of Taxes – Installment Sales #113
An installment sale is a sale of property where you receive at least one payment after the tax year of the sale. If you dispose of property in an installment sale, you report part of your gain when you receive each installment payment. If a sale qualifies as an...
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Types of Taxes – Fringe Benefits #114
From the point of view of the IRS, a fringe benefit is a form of pay for the performance of services, such as permitting an employee to use a business vehicle to commute to and from work. The IRS considers you the provider of a fringe benefit if it is provided...
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Type of Taxes – Accumulated Earnings #115
If you’re planning to start up a business and wondering whether to choose the structure of a limited liability corporation (LLC) or a corporation, you may want to consider the following tax treatment of accumulated earnings, which applies to corporations but not to...
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