Latest Posts on USATaxAid's Blogs

How to Calculate Federal Income Tax

September 9, 2010 | Posted in Megan Hughes, USATaxAid's Blogs

When you hear people say things like “I’m in the 35% income tax bracket,” what are they really saying? Are they truly paying out 35 cents on ever dollar they earn just in federal income tax? And what do people mean by the “marriage penalty?” When you’re looking at how to calculate income tax, it’s important to remember that we have several tax brackets in the U.S. Here’s how they break down for single people: From $0... Read More »

EA, CPA or Tax Attorney?

September 8, 2010 | Posted in Diane's Blog, USATaxAid's Blogs

Every so often I read an article making some outrageous claim about Enrolled Agents (EAs) being better than CPAs, or vice versa. And then someone will quote a tax attorney who knows the theory but not application and it gets really convoluted. When do you use an EA or a CPA or a Tax Attorney? Right now, and for just a few more months, anyone can prepare a federal tax return and charge you for it.... Read More »

Now is the Time to Use an Income Tax Estimator

September 7, 2010 | Posted in Diane's Blog, USATaxAid's Blogs

It’s September. So what am I doing talking about estimating your income tax? This is the time to calculate what you’re going to owe and make adjustments in your payroll withholding and estimated tax payments. You know you’ve estimated right when you don’t pay much or get much back in a refund. So I spent a little bit of time looking at income tax estimators online. I like the one here... Read More »

Your Tax Return is Due but You Forgot to Make Your S or C Corp Election. Now What?

September 3, 2010 | Posted in Megan Hughes, USATaxAid's Blogs, Uncategorized

The tax return doors have burst wide open, with folks rushing to catch the Sept 15th deadline for partnerships and S Corp returns (and C Corp returns, if you have a 3/15 year-end). This is also the time of year that many new business owners start to get letters from the IRS saying (more or less) “We’ve received your return, but have no record of your company making an S Corporation or a C Corporation... Read More »

The Two Taxes That You Don’t Want to Miss Paying EVER

September 2, 2010 | Posted in Diane's Blog, USATaxAid's Blogs | 1 Comment

As much as we talk about income taxes at USTaxAid, there are actually two taxes that might end up being more important to your business. That’s because if you miss these taxes, you’ll get shut down faster than you can even imagine. Those two taxes are:

• Payroll tax
• Sales tax

Payroll tax here refers to the Social Security and Medicare tax that is withheld form employee’s checks and then matched by you. The IRS views these as... Read More »

New Penalties This Year For Late Returns

September 1, 2010 | Posted in Diane's Blog, USATaxAid's Blogs | 3 Comments

If you’ve got a partnership or S Corporation return and haven’t yet filed your return for 2009, pay attention to today’s blog! These returns are due 9/15, not 10/15 as some have been in the past. Here’s how it works: If you have a corporation with a 12/31/09 year end, your return will be due 3/15, or 2 ½ months after the year-end. You can file a Form 7004 and request an extension for 6 months, which... Read More »

S Corp Mistakes that Can Trigger an Audit

August 31, 2010 | Posted in Diane's Blog, USATaxAid's Blogs

If you haven’t yet filed your S Corporation return, or even if you have and you’re thinking ahead, then you don’t want to miss today’s blog. The way you file your return can determine whether you get an audit or not. Here are three mistakes that can land you in hot water with the IRS. Mistake #1: Not reporting/paying officer salary. This is at the top of the IRS hit list – S Corporations that have... Read More »

A Scary Look at Possible Tax Law Changes

August 29, 2010 | Posted in Diane's Blog, USATaxAid's Blogs | 3 Comments

The President’s hand picked “Economic Recovery Advisory Board (PERAB)” has issued their findings. Wait until you read what they think will help the economy. Guess who gets the target squarely on their back….again. Small business. There were some real shockers in the report, at least for me. I’ve outlined a few of the items I’m most concerned about. You can go to this Government siteto read the entire... Read More »

The Internet is the Best, and Worst, Thing That Happened to Tax Planning and Preparation

August 27, 2010 | Posted in Diane's Blog, USATaxAid's Blogs | 2 Comments

The access that the Internet provides has given all of us more information that we can possibly look at. That’s Information Overload. It’s also made it much cheaper to get information, but you’re not sure if it’s accurate or timely. Anything you get from the Internet should come with the warning that it’s reader beware. Today’s blog post is a bit of a soap box from me as I’ve just spent interesting... Read More »

Stupid Business Stories

August 26, 2010 | Posted in Megan Hughes, USATaxAid's Blogs

One of the things I really enjoy over at the Smart Business Stupid Business website is something we call “Stupid Business Stories.” We ‘fess up to some of our own mistakes, and also invite people to tell us about what happened, why, and the lessons they learned. Here’s just a quick sampling of what we’ve received from readers: When I was 22 I started a telecommunications company. Turn it into a million dollar business in 9... Read More »