Reporting your tax ID number correctly is crucial to ensure smooth processing of tax refunds and payments from your employer. This article provides a step-by-step guide on how to report …
Total Revenue and its Impact on Financial Statements
Calculating total revenue is an essential part of preparing an income statement. It involves determining the total income before deducting expenses, which can include sales, interest, and dividends. This article …
LLC Without Employees or Earnings: IRS Forms Required
When it comes to tax purposes, the IRS does not recognize a limited liability company (LLC) as a separate entity. Instead, it considers LLCs as disregarded entities. This means that …
Profit and Loss Deductions for Small Businesses
Small businesses are required to report their profit and loss deductions to the IRS, regardless of their success or failure. This article will explain what profit and loss deductions are …
Calculating Taxable Income & Tax Liability: A Step-by-Step Guide
Calculating your taxable income and tax liability for your business may seem daunting, but with proper record-keeping and understanding of the process, it can be manageable. By keeping track of …
Essential Documents for Preparing a Corporate Tax Return
When it comes to preparing a corporate tax return, having the right documents is crucial. Whether you have a corporation or a limited liability company (LLC), understanding the necessary paperwork …
Writing Off Taxes on Small Business Rental Property
When it comes to owning a small business and renting the space to conduct business, it’s important to understand how to write off the expenses on your taxes. This article …
Filing Odd Job Income for Taxes Step-by-Step
Filing taxes can be a daunting task, especially when it comes to reporting income from odd jobs. However, it is essential to accurately report your earnings to avoid any legal …
Form 8919: Uncollected Social Security and Medicare Tax on Wages
If you performed services for an employer as an employee, but were treated as an independent contractor, use Form 8919 to figure and report your share of uncollected social security …
Form 5308: Request for Change in Plan/Trust Year
Request approval to change the plan/trust year of certain employee retirement plans: except for certain plans, employers or plan administrators must file Form 5308 with the IRS to receive approval. …
Form 673: Statement for Claiming Exemption from Withholding on Foreign Earned Income Eligible for the Exclusion(s) Provided by Section 911
Form 673 is used to report contributions of property with a value of $500 or more to qualified organizations, as well as to claim exemption from U.S. income tax withholding …
Form 8846: Credit for Employer Social Security and Medicare Taxes Paid on Certain Employee Tips
Form 8846 is an important tax document used to claim the credit for increasing research activities for the current tax year and carryforward of any unused credits from prior years. …
Form 8859: Carryforward of the District of Columbia First-Time Homebuyer Credit
Claim up to $5,000 in credit with Form 8859 for the District of Columbia First-Time Homebuyer Credit from 2021, which is available to taxpayers with modified adjusted gross income of …
Form 1098-MA: MA, Mortgage Assistance Payments
Form 1098-MA is a tax document used to report mortgage assistance payments made by a governmental unit or nonprofit organization. This form is used to report payments made to a …
Form 6118: Claim for Refund of Income Tax Return Preparer and Promoter Penalties
Form 6118 is an Internal Revenue Service form used by return preparers to make a claim for refund of any overpaid penalty amount. This form outlines penalties A, B, I, …
Form 5558: Application for Extension of Time to File Certain Employee Plan Returns
Form 5558 is an IRS form used to apply for an extension of time to file employee benefit plan returns, or Form 5500 series returns. All filed forms must include …
Applying Deferred Compensation to Your Taxes
Deferred compensation is a valuable employer-sponsored benefit plan that allows employees to receive their compensation at a later date. By understanding how to apply deferred compensation to your taxes, you …
How to Report a Business Investment Loss for Tax Purposes
Discovering that your business investment has resulted in a loss can be disheartening. However, the Internal Revenue Service (IRS) offers a silver lining by allowing you to write off this …
Form 2438: Undistributed Capital Gains Tax Return
Form 2438 is used by Regulated Investment Companies (RICs) and Real Estate Investment Trusts (REITs) to figure income tax on undistributed capital gains designated under sections 852(b)(3)(D) or 857(b)(3)(C). This …
Form 8830: Enhanced Oil Recovery Credit
Form 8830 can help businesses claim a tax credit for increasing their research activities. This form can be used to figure out this credit for the tax year and can …