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Our Blogs
On our blogs you will find our Tax Sherpa Stories series as well as additional posts covering all manner of tax topics. Some items are timely as there are multiple tax filing dates throughout the year and some items are important larger concepts.
The Hidden Tax: Navigating Inflation and Federal Deficit Impact on Your Finances
Explore strategies to combat inflation and the federal deficit's impact on your finances with Tax Sherpa's expert guidance. ...more
tax concepts
February 19, 2024•15 min read
The Tax Relief for American Families and Workers Act of 2024 - What We Know So Far
Explore the Tax Relief for American Families and Workers Act of 2024 in our latest blog. Understand its impact on small businesses and families, covering tax credits, deductions, and key legislative c... ...more
tax concepts
January 17, 2024•1 min read
Navigating Complex Tax Waters: Insights from Office Hours Q&A 2024-01-16
Discover expert advice on rental property taxes, navigating the Corporate Transparency Act, the tax implications of life insurance, and more. Ideal for small business owners and solopreneurs, this pos... ...more
Tax Sherpa Stories
January 17, 2024•2 min read
Navigating the Corporate Transparency Act: A Comprehensive Guide by Tax Sherpa
The Tax Sherpa Guide to the Beneficial Owners Information Report required by the Corporate Transparency Act. This new reporting requirement went into effect Jan 1, 2024. ...more
tax concepts
January 03, 2024•22 min read
Office Hours Q&A 2023-12-19
Explore key tax insights in our Tax Sherpa Office Hours video from December 19th, 2023. Neal and Serena address critical topics like cryptocurrency taxation and small business strategies. This concise... ...more
Tax Sherpa Stories
December 19, 2023•53 min read
Mastering Expense Management: Navigating Accountable Plans for Small Business Success
Dive into our comprehensive guide on Accountable Plans, tailored for solopreneurs and small business owners. Learn how to optimize your tax strategy, ensure IRS compliance, and effectively manage busi... ...more
tax concepts
December 18, 2023•20 min read
Senator's Bold Tax Play: A Wake-Up Call for Entrepreneurs?
Senator J.D. Vance has introduced a special tax of 35% on large endowments. What does this mean for solopreneurs, freelancers, and small business owners? ...more
tax concepts
December 15, 2023•5 min read
Understanding Self Employment Tax: A Comprehensive Guide for Freelancers and Independent Contractors
Solopreneurs and independent contractors, take charge of your taxes! Our guide, 'Understanding Self Employment Tax,' simplifies the essentials of SE tax, including deductions, credits, and smart strat... ...more
tax concepts
December 12, 2023•19 min read
Mastering Tax Complexities: Key Insights from Our Expert Webinar
Unlock tax-saving strategies with Neal McSpadden in our latest Tax Sherpa blog. Dive into practical tips for small businesses, from cost segregation to foreign income management. Transform your tax ap... ...more
Tax Sherpa Stories
December 06, 2023•6 min read
Navigating Partnership Issues: What They Are and What to Do About Them
Join us as we review Partnership Issues in our latest Tax Sherpa Stories Live Event. We go over conflicts, flow through issues, minority interest problems, and the 5 D's: disinterest, death, divorce, ... ...more
Tax Sherpa Stories
December 02, 2023•10 min read
Navigating the Tricky Waters of Investment and Tax Planning: Real Stories, Real Lessons
Dive into real-life stories of investment & tax planning. Learn from Bob's risky bet, Alice's tax woes, & key strategies for smart, safe investing. ...more
Tax Sherpa Stories
November 11, 2023•3 min read
The Truth About the New Clean Vehicle Tax Credit
Is the sales pitch that new cars will get you $7,500 in tax credits? Surprise, it's more complicated than that. Read on to find out how... ...more
Tax Sherpa Stories
October 26, 2023•8 min read
Frequently Asked Questions
Q:
What's the difference between tax advisory and just filing my taxes?
Filing your taxes each year is a necessary task, but it is always backwards looking. Tax advisory works with you throughout the year to make sure that you are on the right track when it comes to your taxes and have strategies in place to save money now.
Q:
I've heard about tax write-offs for small businesses. What exactly can I write off, and how does it benefit my business?
Tax write-offs, also known as tax deductions, are expenses that a business incurs that can be subtracted from its revenue to reduce the amount of taxable income. Common write-offs include office supplies, mileage, rent for a business location, and advertising expenses, among many others. By writing off legitimate business expenses, you can significantly reduce your taxable income, which can lead to a lower tax bill. It's essential, however, to maintain proper records and ensure that the expenses are truly business-related.
Q:
What's the difference between a tax deduction and a tax credit?
A tax deduction reduces the amount of your income that is subject to taxation, which in turn can lower your tax liability. Common deductions include expenses like mortgage interest, student loan interest, and business expenses. A tax credit, on the other hand, is a direct reduction of your tax bill. This means if you owe $1,000 in taxes and have a $200 tax credit, your tax due would be reduced to $800. Some popular credits include the Child Tax Credit, the Earned Income Tax Credit, and credits for energy-efficient home improvements.
Q:
I'm thinking of hiring an independent contractor instead of an employee. Are there different tax implications for each?
Yes, there are significant tax differences between hiring an employee and an independent contractor. When you hire an employee, you're responsible for withholding federal and possibly state income taxes, Social Security, and Medicare taxes from their paychecks. You also typically pay unemployment taxes on wages paid to employees. Independent contractors, on the other hand, are responsible for their own taxes. As a business owner, you'd provide them with a Form 1099-NEC (if you pay them $600 or more during the year) instead of a W-2, and they would be responsible for their own self-employment taxes. It's important to correctly classify your workers, as misclassifying can lead to penalties.
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office@taxsherpa.com
(678) 944-8367
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