Alternative Minimum Tax
Alternative Minimum Tax Alternative minimum tax ensures that those with high income by ensuring they pay at least a minimum amount of tax. It prevents high net worth tax payers from over utilizing certain tax benefits to greatly limit their tax liability. In this article, we will go over the alternative minimum tax. How AMT is Calculated You must calculate tax liability twice. Once under the ordinary income tax and once under alternative minimum [...]
What to do if You Get a Letter From the IRS
What to do if You Get a Letter From the IRS Everyone’s worst fear is getting correspondence from the IRS. It sends most people into emergency mode, but it does not have to. In this article, we will go over what to do if you get a letter from the IRS. 1. Do Not Ignore the Letter The worst thing you can do is ignore the letter, it will not make things go away. [...]
10 Ways to Identify IRS Scams
10 Ways to Identify IRS Scams There are many IRS scams that are out there. Learning red flags can help you spot scams and avoid them. In this article, we will go over 10 ways to identify IRS scams. 1. They’re Calling You First First contact from the IRS will always be through the mail. They will never initiate contact with a phone call. If you are getting calls from people claiming to be [...]
Business Tax Classifications
Business Tax Classifications There are several different types of business tax classifications that you can choose from with the IRS. Which one you decide to implement will have a large effect on your taxes, so it is important that you understand how they all work. In this article, we will go over the four business classifications. These include sole proprietorship, partnership, S corporation, and C corporation. Sole Proprietorship A sole proprietorship is owned and [...]
Taxes for Freelancers-Made Simple
Taxes for Freelancers-Made Simple Taxes for freelancers can seem foreign and overwhelming. There are many moving parts that need to come together. In this article, we will go over the basics of taxes for freelancers. The Basics If you earn more than $400 in freelance/self-employment income you must report this on your taxes as income. The tax rate you will pay will depend on your total income for the year. However, freelancers, as self-employed [...]
Filing Taxes as an American Expat
Filing Taxes as an American Expat Filing taxes as an American expat can feel very confusing and overwhelming. If you are a United States citizen, you have a tax obligation to the United States. In this article, we will go over the basics of filing taxes as an American expat. Paying Taxes When You Live Abroad If you make foreign income and meet certain income thresholds you could be subject to paying U.S. taxes. [...]