Tax Video Library

Tax Video Library

The Tax Video Library The following is the tax video library which includes a list of videos providing quick overviews in an easy to understand format. The videos are 1 – 3 minutes in length, and they address topics in the areas of individual and business taxation. Check out the descriptions for each of item […]

Tax Terms for Business Owners

Tax terms for business owners

Tax terms can be confusing, technical and are often not intuitive. This IRS glossary is helpful for understanding basic tax terminology: Understanding Taxes. The following additional tax terms for business owners will shed some light on some common tax terms for business owners. If you are also interested in tax terms for individuals see the […]

Tax Terms for Individuals

Tax terms for individuals

Tax terms can be confusing, technical and are often not intuitive. This IRS glossary is helpful for understanding basic tax terminology: Understanding Taxes. The following additional tax terms for individuals will shed some light on some common tax terms for individuals. If you are also interested in tax terms for business owners see the article titled: […]

Business Incorporation

Business incorporation

You’re Starting a Business You’re starting a business, and this is a major life event involving lots of work and many decisions. Any phase of the process without a plan is overwhelming. Hence, following a prescribed list of steps will help new small business owners with business incorporation and starting a business correctly from day […]

Schedule C – Profit or Loss From Business

Schedule C

Profit or Loss From Business Taxpayers use Schedule C to report profit or loss from a business owned and operated as a sole proprietor or as a single-member LLC (i.e. treated as a disregarded entity). Income and expenses are combined on this form to determine the net profit or loss for the activity. Schedule C […]

The Net Investment Income Tax

The Net Investment Income Tax

What is it? The Affordable Care Act created the Net Investment Income Tax (NIIT) effective as of tax year 2013. This is a 3.8 percent tax on net investment income earned by individuals, estates, and trusts above a specific threshold of modified adjusted gross income. The portion of income above the threshold representing investment income […]

Gift Tax

The Gift Tax

What is a gift? The Gift Tax applies to the lifetime transfers of property from a donor to donees. If you are the donor of a gift over the annual exclusion, you are responsible for filing the Gift Tax Return, Form 709, and paying any applicable tax. A gift is the transfer of something of […]

Standard Deduction

The Standard Deduction

What is the standard deduction? The Internal Revenue Code allows taxpayers to take either the standard deduction, a fixed amount that is deducted from adjusted gross income, or itemized deductions when determining their taxable income. The IRS provides an Interactive Tax Assistant to help determine your deduction using their online tool. Deduction amounts by filing […]

Self-Employment Tax

Self-employment tax

How does it work? Social Security and Medicare taxes are paid to the IRS either as payroll tax or self-employment tax. Your employer withholds payroll taxes from your W-2 wages and remits both the employee and employer match to the IRS. Sole proprietors, in business for themselves, are considered self-employed and are not permitted to […]

Schedule B

Schedule B

Interest and Ordinary Dividends Taxpayers must use Form 1040, Schedule B to report income received in the form of interest and ordinary dividends. Generally, you will report the amounts reported to you on various forms including Forms 1099-INT, 1099-DIV and 1099-OID. Ordinary versus qualified dividends Ordinary dividends are the most common type of dividend, and […]