#tax savings
Little-Known Tax Tips for Small-Business Owners
Attax time, small businesses look for ways to save money and maximize credits and deductions. “One of the most overlooked ways for small businesses to save at tax time starts at the beginning of each tax year,” advises David Ayoub, CPA in Syracuse, N.Y. “It’s simple. Keep every receipt. Find a way to corral all the loose receipts lying around your desk, in your purse and in your car. They can add up to a lot of deductions.” Another easy and often overlooked deduction is the cash transactions that many small businesses do. “Keep track of everything in a log,” adds Ayoub. To find out more, see the full TurboTax article.
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The Difference Between a 1099 and a W-2 Tax Form
Both the Form W-2 and Form 1099 serve a similar purpose—to report income you earned from sources throughout the tax year—but each is issued under different circumstances and requires slightly different approaches for tax season planning. See the full TurboTax article for some tips to decode these two forms and what to expect when preparing your taxes.
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Work as a Hair Stylist? Tax Tips for Hairdressers
As a hair stylist, you’re probably more focused on giving your clients the perfectly tousled waves than thinking about your tax liability. But a bit oftax savvy can save you some serious dough at tax time—just make sure all your documentation is in line. See the full TurboTax article to learn how to get the most from your business deductions and minimize the taxes you may owe.
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Side-Giggers: Tax Tips for Side Jobs
Having a side gig can help you make ends meet or build your rainy day fund. Income from freelance work, running your own small business or working at a second job brings in extra income without requiring you to quit your day job. But, like your main source of income, a second job or side gig must be reported on Form 1040 at tax time. To learn more, see the full TurboTax article.
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Do You Have to Claim Pell Grant Money on Your Taxes?
The IRS treats a Pell grant as a scholarship, which means it’s possible that you’ll have to report the grant money on your tax return and maybe even pay income tax on the money. For details, see the complete TurboTax article.
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Cash for College: Tax-Free 529 Plans
With a 529 plan, you can stack up the books, not the debt. No matter how old your child is, it might be time to consider a qualified tuition program (QTP), also known as a 529 plan. For many families, such a plan offers a more convenient way to save money for college. To find out more, see the full TurboTax article.
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Tax Deductions for Voluntary Interest Payments on Student Loans
Most taxpayers who pay interest on student loans can take a tax deduction for the expense—and you can do this regardless of whether you itemize tax deductions on your return. The rules for claiming the deduction are the same whether the interest payments were required or voluntary. To learn more about claiming the deduction, see the full TurboTax article.
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Sending Kids to College
TurboTax can help you take advantage of tax breaks to ease the financial burden of sending kids to college, including tax credits, tuition deductions, tax-free savings and more. To learn more about what is available and who is eligible, see the full TurboTax article.
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The Musician’s Guide to Taxes: Top Tax Deductions
The chance to be creative—and the opportunity to be your own boss—makes working as a musician exciting. Launching and maintaining your music business usually involves paying some basic business expenses, and you can deduct these on your tax return. See the full TurboTax article for some of the top business deductions and expenses for self-employed musicians, as well as some tips to guide you through filing your tax return.
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Tax Tips After You Retire
Even if your current retirement income plan doesn’t provide maximum tax benefits, you can still restructure your payment strategies to optimize your tax results. For money-saving details, see the full TurboTax article.
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Tax Tips for Bloggers
Blogging is a relatively new profession, but it’s covered by the same tax laws that apply to many other occupations. The main danger from a tax perspective is that, as a self-employed blogger, your taxes won’t be automatically withheld from your earnings, as is typical with traditional employees. Additionally, you’ll owe self-employment taxes that most employees don’t pay. However, you may be able to take advantage of certain deductions to reduce your tax bill. See the full TurboTax article for details.
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Can I Deduct My Computer for School on Taxes?
If you find yourself dreading tax season after a year of pounding out college reports on your computer, take heart—you may be able to get back the cost of that computer on your income taxes. The IRS publishes specific requirements for educational expenses and a computer often qualifies. If it doesn’t qualify under the credit, you still may be able to list it as an itemized deduction on your taxes. Read the full TurboTax article to see how that’s done.
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Top Tax Deductions for Photographers
Running a photography business requires a lot of space—from the studios where you shoot to the storage space where you keep a library of props. You can deduct the cost of the venues used for your business. You can also deduct other costs associated with studio space that are used to maintain it, like electricity, phone, internet, and insurance. For more tax tips, see the full TurboTax article.
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Strategies for Managing Your Tax Bill on Deferred Compensation
Deferred compensation refers to money received in one year for work performed in a previous year—often many years earlier. Typically, you receive deferred compensation after retiring or leaving employment. If you’re receiving deferred compensation, or considering an offer than includes a deferred compensation plan, it’s important to understand what you can do to reduce your tax bill. To find out more, see the full TurboTax article.
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