Category: taxable income

What to Know About the Tax Treatment of Wages and Salaries

What to Know About the Tax Treatment of Wages and Salaries

If you receive wage income at any point during the calendar year, you will likely need to include it on your federal income tax return. This is true whether you’re an employee of a company that you don’t own, an employee of a corporation that you do own, or a sole proprietor. In most cases,…
Read more

Tax Deadline Delayed 2020

Tax Filing and Payment Deadline Extended to May 17, 202

Tax Filing and Payment Deadline Extended The Treasury Department and Internal Revenue Service announced today that the federal income tax filing due date for individuals for the 2020 tax year will be automatically extended from 04/15/2021, to 05/17/2021. The IRS will be providing formal guidance in the coming days. “This continues to be a tough…
Read more

Taxable Fringe Benefits vs. Nontaxable Fringe Benefits

Taxable Fringe Benefits vs. Nontaxable Fringe Benefits

As a small-business owner, you may choose to provide yourself and your workers fringe benefits. To avoid any surprises at tax time, it’s important to understand how to treat fringe benefits. As a small-business owner, you may choose to provide your workers with fringe benefits on top of their normal pay rate. Fringe benefits are…
Read more

Do I Need an LLC to Start a Business?

Do I Need an LLC to Start a Business?

You do not need an LLC to start a business, but for many businesses the benefits of an LLC far outweigh the cost and hassle of setting an LLC up. An LLC, or limited liability company, provides personal liability protection and a formal business structure. You can also get those things by forming a corporation…
Read more

IRS COVID-19 Tax Relief

IRS COVID-19 Tax Relief

The Internal Revenue Service (IRS) has announced several changes designed to help struggling taxpayers impacted by COVID-19 more easily settle their tax debts with the IRS. The IRS reviewed its collection activities to determine how it could apply relief to taxpayers who owe but are struggling financially because of the COVID-19 pandemic. The IRS expanded…
Read more

Expense Reimbursements – Accountable Plan vs. Non-accountable Plan

Expense Reimbursements – Accountable Plan vs. Non-accountable Plan

Accountable Plans A plan under which an employee is reimbursed for expenses or receives an allowance to cover expenses is an accountable plan only if the following conditions are satisfied: there must a business condition for the expenses the expense must be in connection with performance of services as an employee the reimbursement must be…
Read more

online pod cast streaming and taxes

Are the Donations I Receive from Online Streaming Taxable?

Did you know that if you are a US citizen and you are earning any income from streaming you might be on the responsible for paying taxes on the donations you receive? Despite their misleading name, donations are not tax free like the kinds of donations you give to a charity. They are taxable income!…
Read more