Tag: expense

  • Do You Have a Side Gig? Make Sure You Understand Your Tax Obligations

    Do You Have a Side Gig? Make Sure You Understand Your Tax Obligations

    The number of people engaged in the “gig” or sharing economy has grown in recent years, according to a 2019 IRS report. And there are tax consequences for the people who perform these jobs, such as providing car rides, renting spare bedrooms, delivering food, walking dogs, or providing other services. Basically, if you receive income…

  • Medical Expenses: What It Takes to Qualify for a Tax Deduction

    Medical Expenses: What It Takes to Qualify for a Tax Deduction

    As we all know, medical services and prescription drugs are expensive. You may be able to deduct some of your expenses on your tax return but the rules make it difficult for many people to qualify. However, with proper planning, you may be able to time discretionary medical expenses to your advantage for tax purposes.…

  • Expenses that Teachers Can and Can’t Deduct on Their Tax Returns

    Expenses that Teachers Can and Can’t Deduct on Their Tax Returns

    As teachers head back for a new school year, they often pay for various expenses for which they don’t receive reimbursement. Fortunately, they may be able to deduct them on their tax returns. However, there are limits on this special deduction, and some expenses can’t be written off. For 2019, qualifying educators can deduct some…

  • Volunteering for Charity: Do You Get a Tax Break?

    Volunteering for Charity: Do You Get a Tax Break?

    If you’re a volunteer who works for charity, you may be entitled to some tax breaks if you itemize deductions on your tax return. Unfortunately, they may not amount to as much as you think your generosity is worth. Because donations to charity of cash or property generally are tax deductible for itemizers, it may…

  • How Entrepreneurs Must Treat Expenses on Their Tax Returns

    How Entrepreneurs Must Treat Expenses on Their Tax Returns

    Have you recently started a new business? Or are you contemplating starting one? Launching a new venture is a hectic, exciting time. And as you know, before you even open the doors, you generally have to spend a lot of money. You may have to train workers and pay for rent, utilities, marketing, and more.…

  • Seniors: Medicare Premiums Could Lower Your Tax Bill

    Seniors: Medicare Premiums Could Lower Your Tax Bill

    Americans who are 65 and older qualify for basic Medicare insurance, and they may need to pay additional premiums to get the level of coverage they desire. The premiums can be expensive, especially if you’re married and both you and your spouse are paying them. But one aspect of paying premiums might be positive: If…

  • Best Practices When Filing a Business Interruption Claim

    Best Practices When Filing a Business Interruption Claim

    Many companies, especially those that operate in areas prone to natural disasters, should consider business interruption insurance. Unlike a commercial property policy, which may cover certain repairs of damaged property, this coverage generally provides the cash flow to cover revenues lost and expenses incurred while normal operations are suspended because of an applicable event. But…

  • Deduction of Vehicle Expenses for Individual Taxpayers

    Deduction of Vehicle Expenses for Individual Taxpayers

    It’s not just businesses that can deduct vehicle-related expenses. Individuals also can deduct them in certain circumstances. Unfortunately, the Tax Cuts and Jobs Act (TCJA) might reduce your deduction compared to what you claimed on your 2017 return. For 2017, miles driven for business, moving, medical and charitable purposes were potentially deductible. For 2018 through…

  • Financial Statements Tell Your Business’s Story, Inside and Out

    Financial Statements Tell Your Business’s Story, Inside and Out

    Ask many entrepreneurs and small business owners to show you their financial statements and they’ll likely open a laptop and show you their bookkeeping software. Although tracking financial transactions is critical, spreadsheets aren’t financial statements. In short, financial statements are detailed and carefully organized reports about the financial activities and overall position of a business.…