by Leif Jensen | Dec 9, 2024 | Taxes |
The IRS is closely scrutinizing taxpayers who report large, recurring losses from hobby-like activities on their Schedule C forms to offset wages, business earnings, or other income. Reporting these “hobby losses” is considered a red flag that can trigger...
by Leif Jensen | Nov 13, 2024 | Taxes |
The upcoming November election will have high stakes when it comes to taxes. Many of the tax provisions in the 2017 reform law are set to expire in 2025, reverting to the pre-2017 rules unless Congress acts. This means the next president will have to confront this...
by Leif Jensen | Oct 16, 2024 | Taxes |
The primary purpose of estimated taxes is to provide the government with a steady stream of revenue throughout the year. This system helps taxpayers avoid large bills at the end of the year by requiring them to contribute as they earn income. By making regular...
by Leif Jensen | Oct 14, 2024 | Taxes |
To calculate estimated taxes, individuals must estimate their total tax liability for the year, including self-employment tax and individual income tax. They then divide this amount by four to determine the quarterly payment amounts. The IRS provides Form 1040-ES for...
by Leif Jensen | Oct 9, 2024 | Taxes |
The U.S. tax system operates on a pay-as-you-earn basis, requiring taxes to be paid as income is received. For employees, employers typically manage this through withholding. However, for those without automatic withholding, such as the self-employed, estimated tax...
by Leif Jensen | Sep 23, 2024 | Taxes |
If you file your U.S. tax return late, you may face two primary penalties: the late filing penalty and the late payment penalty. The late filing penalty is 5% of the unpaid taxes for each month or part of a month that your return is late, up to a maximum of 25%. If...
