What is the qualified business income deduction? The qualified business income (QBI) deduction is a tax deduction for individuals who own and operate certain types of pass-through businesses, such as sole proprietorships, partnerships, S corporations, and limited liability companies (LLCs). The QBI deduction allows taxpayers to deduct up to 20% of their QBI, the net…
Are you feeling anxious about not filing your taxes on time this year? You are not alone. Despite this being an annual occurrence, many people must prepare to request an extension. If you are facing unique circumstances, have experienced unexpected events, or are extremely busy during this time, you may qualify for an extension on…
Starting a small business can be an exhilarating endeavor with opportunities and challenges. As you navigate the world of entrepreneurship, one crucial aspect you’ll encounter is taxes. Understanding the tax requirements for your business is essential to ensure compliance and maximize your financial success. One critical document that comes into play for self-employed individuals and…
What is backup withholding tax? Backup withholding is tax withholding that requires a payer to withhold a certain percentage of payment to a recipient and remit it to the IRS. Backup withholding typically applies to certain types of income, such as interest, dividends, and other reportable payments. The backup withholding rate is currently set at…
Employer tax liability refers to the legal responsibility of an employer to pay various taxes on behalf of their employees to the government. These taxes are generally calculated as a percentage of the employee’s salary or wages and are deducted from their paychecks before the funds are disbursed to the employees. The primary types of…
Taxation without representation is when a government imposes taxes on its citizens without their consent or input. The term is often used to describe the situation in colonial America before the American Revolution when the British government taxed British colonies without representation in the British Parliament. The idea of taxation without representation has since become…
Tax season is a time of year that many people dread, but it’s also a necessary part of life. Whether you’re a freelancer, a small business owner, or a regular employee, you must file your taxes yearly to comply with federal and state tax laws. In this blog post, we’ll look at tax season 2023…
What is the IRS 941 Form? 941 form is a quarterly tax form used by employers in the USA to report withholding taxes from employees’ wages, tips, and other compensations. The form also calculates and pays the employer’s share of Social Security and Medicare taxes. Employers must file a 941 tax form each quarter to…
Taxpayers can maximize their returns in multiple ways. There are numerous tax credits and deductions, like the IRS Mileage Rate 2023, to help ease the tax burden on self-employed and business individuals. However, most seldom capitalize upon these opportunities and pay more than they should. In particular, the IRS Mileage Rate is a deduction that…
A W-9 tax form, in a nutshell, is a form that is used by a person to report a certain kind of taxable income. This form help businesses obtain important information regarding the payees to prepare the information returns for the IRS. Let’s have a look at this W-9 form in detail. What Is A…
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