Small Business Financials

Did your New Year’s resolution involve saving more money? If so, you’re not alone. Here are some tips for spending less in 2023 and the little things you can do to stick to your financial goals as we head into February and beyond. According to a WalletHub ® survey , one in three Americans planned to make finance-related resolutions for the 2023 New Year. The same survey also found that 31 percent of Americans who made a financial resolution want to save more, and 60 percent of people are anxious about their financial situation coming into the new year. With the inflation rate so high, this is hardly surprising. So, what can you do to ensure you achieve your personal finance goals in 2023? Here are our top tips for some popular New Year’s resolutions. Resolution 1: Saving more money We all want to save more money, right? Unfortunately, this is often easier said than done. One of the best steps you can take to start saving money or building an emergency fund is to know where you

Updated for tax year 2022 If you frequently drive your car for business purposes, you know how car expenses can quickly add up. And it’s not just the cost of gas, which fortunately has gone down from its high a few years ago. Every time you drive your car, you use oil, weaken your brake pads, clog up your air filter and wear down your tires – the list goes on and on. All of this wear and tear on your vehicle for business purposes ultimately requires more servicing, plus your car depreciates in value. You may even pay more in car insurance when you drive your car more miles. Fortunately, there is a silver lining. When it comes time to file your taxes, your car expenses can also help lower your tax bill if you can deduct them as a business expense. Here’s how to make sure you get the deductions you deserve. 1. Understand the standard mileage rate vs. actual expenses You can deduct your vehicle expenses in one of two ways. You can track all your car expenses, including gas, oil,

Our Mileage Reimbursement Calculator helps to determine the compensation of travel while you are on official business. This amount is calculated as a baseline or minimum by IRS to ensure employees are fairly compensated for their travel expenses. Mileage Reimbursement Basics If you frequently drive your car for work, you can deduct vehicle expenses on your tax return in one of two ways. The first and most comprehensive method is to document all of your car expenses, including gas, maintenance, insurance, and depreciation. Then deduct the portion of those total costs that apply to your business miles. If that sounds too daunting, you can choose the second method, which allows you to deduct a flat rate for every business mile you drive. That is known as the standard mileage deduction,   and the rate varies from year to year. You can also write off car expenses related to charity work or moving purposes. But, you still must choose between one of the two methods to calculate the deduc

You may have heard about new tax reporting rules for businesses using third-party payment apps such as PayPal, Cash App, Venmo, etc. This has caused some confusion for app users, but we’re here to help you understand how it will (or won’t) affect your taxes next year. These changes were originally supposed to go into effect for tax year 2022, but the IRS recently delayed these changes by one year. Now, the $600 threshold mentioned below will not officially go into effect until tax year 2023. Form 1099-K frequently asked questions What’s changed? Previously, payment platforms were not required to report business transactions to the IRS unless you made at least 200 separate transactions totaling at least $20,000 in a calendar year. After the IRS delay, this still holds true for tax year 2022. Beginning Jan. 1, 2023, these thresholds dropped drastically — as a new rule, payment apps now must report business transactions totaling $600 or more in a year, regardless of the number of

Iowa State Tax Filing Deadlines 2023 The State of Iowa government has issued the following guidance concerning income tax filing deadlines and extensions: The tax filing due date for 2022 Iowa income tax returns is May 1, 2023. Qualifying taxpayers who file and pay by this date will not be subject to late-filing or underpayment penalties. Interest on unpaid taxes, however, will accrue starting May 1st, 2023. Iowa residents are not required to file for a personal extension as it is automatic. To avoid penalties, it is advised that at least 90% of the individual’s Iowa tax liability is paid by May 1st, 2023. By fulfilling this requirement, the individual’s filing deadline will be extended to October 31st, 2023. You can also look at Iowa tax brackets or check your Iowa state tax refund status . The post Iowa State Tax Due Date for 2023 appeared first on TaxAct Blog . from TaxAct Blog https://ift.tt/Sk4bDHE via CFO Blog

Iowa State Tax Brackets 2023 The state of Iowa collects income tax from its residents at the same rate regardless of filing status. Here’s a breakdown of those rates for tax year 2022. Iowa state taxes are due May 1, 2023. For married taxpayers filing jointly Taxable Income     Tax       Over But Not Over Tax Rate Of Excess Over $0 $12,000 $0.00 + (4.40% x $0) $12,000 $60,000 $528.00 + (4.82% x $12,000 $60,000 $150,000 $2,841.60 + (5.70% x $60,000) $150,000 ------ $7,971.60 + (6.00% x $150,000) For all taxpayers other than married taxpayers filing jointly Taxable Income     Tax       Over But Not Over Tax Rate Of Excess Over $0 $6,000 $0.00 + (4.40% x $0) $6,000 $30,000 $264.00 + (4.82% x $6,000 $30,000 $75,000 $1,420.80 + (5.70% x $30,000) $75,000 ------ $3,985.80 + (6.00% x $75,000) Iowa Standard Tax Deductions Iowa residents filing single or married filing sep

One of the hardest parts about doing your taxes? Waiting for that refund to hit your bank account. If you’re expecting a tax refund this year, here’s how you can check your tax refund status — and when you can expect to have that cash in hand. Ways to check the status of your tax refund There are three different ways to easily track the status of your refund. Where’s My Refund? – This is the IRS’s official online tool for tracking the status of your refund. IRS2Go mobile app – This IRS app is an easy way to check the status of your refund from any mobile device. IRS TeleTax System – You can also call the IRS TeleTax System at 1-800-829-4477 and use their automated telephone system to check the status of your refund. For all methods listed above, taxpayers will need to input their Social Security number, filing status, and exact refund amount. All methods are available in both English and Spanish. How soon can I track my tax refund status? How quickly you can track the st

You can receive Form 1099-K for a variety of reasons. How you report the income listed on your 1099-K depends on how you made that income, which can be confusing if you’ve never seen this form before. In late December 2022, the IRS delayed an anticipated change in 1099-K reporting thresholds that would have resulted in many more taxpayers receiving Form 1099-K. Due to these delayed changes, you actually may not receive a 1099-K this year — unless you were subject to backup withholding or live in a state with a lower reporting threshold. Still, it’s good to start preparing now for next tax season! You might get a 1099-K next year if you do any of the following during the 2023 calendar year: ·      Had friends or family reimburse you through a payment processor such as Venmo or PayPal ·      Sold items online through sites like eBay or Facebook Marketplace ·      Made hobby income from selling your creations on apps such as Etsy ·      Rented out a room in your house through an

If you engaged in crypto trading in 2022, it’s possible you could receive Form 1099-K this year. But what is this form telling you, and what should you do with it? Let’s break it down together. To make virtual currency trading more user-friendly, crypto exchanges (like Coinbase, Gemini, Kraken, etc.) have enabled their users to make transactions through third-party payment networks. What are third-party payment networks? Third-party payment networks are companies that process credit card and other online payment transactions for online retailers (or crypto exchanges, in this instance). Some examples are Paypal, Venmo, Google Pay, and Apple Pay. Why did I receive a 1099-K from my cryptocurrency exchange for crypto trading? Third-party payment networks and online retailers use Form 1099-K to report the transactions from your processed payments. Not all crypto exchanges utilize Form 1099-K (they may instead issue other 1099 forms), but some do. In the past, the IRS only required t

Start a side gig in 2022? Whether you lost your traditional job or you simply wanted to earn some extra cash, side gigs tend to complicate your tax filing a bit. Over the years, the IRS refined its rules for gig workers. But obviously, the IRS still wants you to pay taxes on any income, whether it is your primary income source or profits earned from your side gig. Whether you drive for a ride-sharing service, deliver groceries, or run a virtual business, you need to report your new side hustle income on your tax return. But before getting started, it’s important to understand all the possible implications so you aren’t hit with a surprise tax bill or tax penalty come tax time. The IRS definition of gig work With the rise of the gig economy, the IRS worked to clearly define what constitutes a “gig.” According to the IRS, the gig economy —also called sharing economy or access economy—is an activity where people earn income providing on-demand work, services or goods. Often, it’s th

People often talk about the tax breaks that come with getting married — but that doesn’t mean unmarried people are out of luck when it comes to getting the most back on their taxes. In fact, there are several reasons why a single filing status may come in handy during tax refund season. To celebrate Singles Awareness Day, we’ve put together four useful tax benefits for single taxpayers to look forward to in tax year 2022. 1. You have less paperwork to file Since your marital status often correlates with your tax filing status, marking yourself as “single” on your dating apps and tax forms usually means your life is less complicated — in more ways than one. You only need to worry about your own tax preparation as a single filer. There’s no waiting around for your spouse’s employer to finally mail their W-2 or the chance of your partner accidentally tossing a vital tax form in the garbage (let’s face it, this happens to the best of us!). Once you have all your necessary forms, you

You may have heard about new tax reporting rules for businesses using third-party payment apps such as PayPal, Cash App, Venmo, etc. This has caused some confusion for app users, but we’re here to help you understand how it will (or won’t) affect your taxes next year. These changes were originally supposed to go into effect for tax year 2022, but the IRS recently delayed these changes by one year. Now, the $600 threshold mentioned below will not officially go into effect until tax year 2023. Form 1099-K frequently asked questions What’s changed? Previously, payment platforms were not required to report business transactions to the IRS unless you made at least 200 separate transactions totaling at least $20,000 in a calendar year. After the IRS delay, this still holds true for tax year 2022. Beginning Jan. 1, 2023, these thresholds dropped drastically — as a new rule, payment apps now must report business transactions totaling $600 or more in a year, regardless of the number of

Updated for tax year 2022. No matter what self-employment looks like for you, you’re responsible for ensuring the taxes on your net earnings are paid to the Internal Revenue Service (IRS). And the self-employment tax (SE tax) is part of that. Officially known as the Self-Employment Contributions Act tax, the SE tax is the self-employed community’s version of the taxes paid by employers and their employees for Social Security and Medicare. Whether you run a bakeshop on the weekends, author blog posts as a freelance writer, or design logos for local businesses, you should know how the  SE tax  impacts your money. Let’s go over how to calculate the tax on your self-employment income. Self-employment tax breakdown Self-employment tax is split between two parts: Social Security and Medicare. It equals 15.3% of your self-employment earnings. Social Security The Social Security tax rate is 12.4 percent of your self-employment earnings. For 2022, Social Security taxes must be paid on