Rather than simply taxing your gross income, the Internal Revenue Service collects taxes based on a net taxable income calculated as your income after you have subtracted a surprisingly large variety of exemptions and deductions. The benefits to taking advantage of deductions are twofold: first, they reduce the amount of income on which you are taxed and second, your deductions may result in your ending up in a lower tax bracket, reducing your tax rate (the percentage of your income that you pay in taxes).

In practical terms, this means that if you were a single person with a gross income (wages, tips, interest income, etc.) of $100,000, and you used no deductions or exemptions at all, you would … Read more →

The soothsayer famously warned William Shakespeare’s Julius Caesar to “Beware the Ides (fifteenth day) of March.”

Most United States taxpayers, though, fear the Ides of April, the day on which annual tax returns are due. For businesses, there are several other important tax dates as well.



If a tax date falls on a weekend in a given year, it is moved to the next business day.

Recurring Monthly Dates

Employees should report to employers tip income over $20 for a month by the eleventh of the following month. Payroll taxes are deposited according to either monthly or semi-weekly rules. Monthly deposits are due on the 15th day of each month and semi-weekly ones every Wednesday and Friday. On … Read more →

Q:   Considering the separation of write off expenses, is there a threshold or dollar amount when it becomes necessary or prudent to maintain a separate business credit or debit business account? Will the IRS look closer if you use a personal credit card for business expenses?

A: Business expenses are a gold mine for tax savings! The trick is using a system to maintain the necessary records. The centerpiece of your system is your appointment book. That’s where you document the business purpose of each activity and where the receipts can go until you get to the office. A separate credit or debit card account for business expenses will make your recordkeeping life easier. It’s not the IRS that’s your … Read more →

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