Taxes Explained in 5 Minutes

taxes Jan 02, 2020
 

Taxes explained in under 5 minutes. If you get any money outside of a W2, you should know this. Even if you only get a W2, you should know this.

If you get a paycheck with taxes taken out. The employer is paying half of your social security & medicare taxes. It’s their responsibility just for having you as an employee. You work, earn your money. Your employer withholds taxes for you then you get your check to spend.

When you work for yourself, a sole proprietor, an LLC, an S-Corp, a single-member LLC, a partnership, any of those things, it’s different. You earn your money then you spend money on your business, all your business expenses. Then you pay taxes.

Your tax is based on the income you make AFTER you've invested in your business. It's a really great benefit to have for some people. But a lot of people who get a 1099 (contract workers) don’t take out expenses and don’t realize they’re responsible for these extra taxes.

It's super important,...

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Save on your Taxes

taxes Dec 21, 2019
 

Do you get a 1099? Do you have a business? Want to exclude unto 20% of your income from taxes?

You need to know this or ask your tax preparer if you qualify.

If you have any sort of online business, brick & mortar business, or you are part of the share or gig economy. If you do Uber, Airbnb, are in network marketing, all of these companies report income they paid you. If you don’t include it on your taxes, the IRS will know.

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Be Careful with Free

taxes Dec 20, 2019
 

The free tax services you see on commercials are not telling you something.

It has a little disclaimer, it says for basic services. Some may say "postcard" service.

But you don’t see the notice and think “It's totally free.” You can go to the IRS website and do your taxes for free yourself if you qualify.

A problem with going into one of the box stores is the reason it's free is because they're not filing extra forms for you. So you might be missing out on thousands of dollars in deductions to save $50 or $60 bucks through their services.

 

But they don’t tell you that. They usually ask general questions that are prompted by a computer program. An often missed question & deduction is if you have someone in your family that is a student, college or post-grad. There are education credits that can lower what you pay in taxes.

Once you add the education credit, you're no longer considered a basic tax return because there's an additional form. You may pay...

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