self-emplyment Archives - Blau Company Accounting & Tax Preparation

Time to Start Organizing Your Deductions

A deduction is an expenditure that will reduce your taxable income. There are two kinds of deductions: adjustments to income and itemized deductions. The adjustments to income are the better of the two, as they reduce adjusted gross income, or “AGI.” Itemized deductions reduce your taxable income. First, we will look at some adjustments to income. Educator expenses apply to K – 12th grade educators, and are limited to $250 of documented supplies per qualified taxpayer. Expenses exceeding $250 can be taken as a miscellaneous itemized deduction. A health savings account is an account set up exclusively for paying the [...]

August 22nd, 2014|Business Tax, Personal Tax|Comments Off

New Medicare Tax on High Earners

The Patient Protection and Affordable Care Act, popularly known as ObamaCare, began its implementation of a new Medicare surtax on high earners on January 1, 2013. The tax will be assessed for individuals and married taxpayers who have modified adjusted gross income in excess of $200,000 and $250,000 respectively. Employers will withhold an additional amount from wages for those earning more than $200,000 from any one employer. This amount, unlike most Social Security and Medicare Tax, is not required to be matched by the employer. As we review the new regulations pertaining to the tax, we note that families with [...]

July 31st, 2013|Business Tax, Personal Tax|Comments Off

Tax Aspects of the Self Employed

As a sole proprietor, you would report net income or loss from your business on your personal income tax return. However, there are several important rules that you should be aware of: […]

June 27th, 2013|Business Tax|1 Comment