Category Archives: Income
If you are paid cash for services performed, you’ll need to complete a Schedule C, Profit and Loss from Business. This form reports earnings and expenses in relation to the work performed. Some common examples include a handyman who works multiple locations, and has expenses for tolls and mileage, or a copywriter who freelances. Schedule […]
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Businesses are responsible for recording all their income, even if it’s a cash transaction, and reporting earnings to the IRS, as taxes are required to be paid on all income. If you accept cash, you’re required to have a method of recording these transactions, such as a voucher or cash receipt pad. Many office supply […]
— Read moreThe amount of payments you receive through a year either from a single person or a entity are reported on the 1099-MISC for the year your provided them with service The IRS requires that any company or person who makes payments to report them on a Form 1099-MISC to both the IRS and the payee. […]
— Read moreSometimes, those you owe money to may consider the debt forgiven, and cancel the remaining balance. In these situations, you’ll likely still have to pay tax on the amount forgiven, as the IRS considers the balance to be a form of income. You’ll be responsible for paying income tax on the cancelled debt. Debt is […]
— Read moreSo you finally sold your home, and now it’s time to rejoice in having a large burden removed from your shoulders. It’s even better when you’ve made a profit from the sale. Capital Gain When you sell your house for more than what you originally paid, the end result is a capital gain. In most […]
— Read moreAs a service professional, sometimes there can be nothing more rewarding than a generous tip from a customer. While those tips may feel great in the moment, come tax time, you can’t forget to include them in your income. The IRS offers these tips for taxing your hard earned tips: They’re taxed. Tips are considered […]
— Read moreDid you use some of your extra cash to invest in the stock market? If so, you may have received a large tax bill that you weren’t expecting. When investing your hard earned cash, remember two things: Securities in which you receive dividends or earned interest, for example a CD, are subject to taxation as […]
— Read moreSo you’ve done some spring cleaning and found some extra items that made you some cash on one of the popular auction sites online, such as eBay. If you’ve sold anything on one of these sites, you may be curious to know how it will affect you at tax time. Let’s say you sold roughly […]
— Read moreUsing funds form your IRA, whether a traditional plan or a Roth, can be a great way to cover some major expenses that you may incur through your lifetime. Just be aware of certain terms and conditions that apply when withdrawing. Home Purchase If you chose to withdraw funds from your traditional IRA before you’ve […]
— Read moreHaving an IRA savings in place is a great way to prepare for retirement. However, sometimes situations may arise in which you will need to withdraw your funds before you’ve reached retirement age. Typically, if you take money from your individual retirement account prior to age 59 ½, you’ll be subject to a 10% early […]
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