Contact Us

office@taxsherpa.com

(678) 944-8367

Follow Us:

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.

Hiring Your Kids | Tax Sherpa Routes

Hiring Your Kids | Tax Sherpa Routes

Learn how hiring your children can save you on taxes while teaching them valuable financial skills. This strategy can reduce your tax burden, boost retirement savings, and provide essential financial ... ...more

tax concepts

May 25, 202420 min read

The Hidden Tax: Navigating Inflation and Federal Deficit Impact on Your Finances

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, 202415 min read

The Tax Relief for American Families and Workers Act of 2024 - What We Know So Far

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, 20241 min read

Navigating the Corporate Transparency Act: A Comprehensive Guide by Tax Sherpa

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, 202422 min read

Mastering Expense Management: Navigating Accountable Plans for Small Business Success

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, 202320 min read

Senator's Bold Tax Play: A Wake-Up Call for Entrepreneurs?

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, 20235 min read

Understanding Self Employment Tax: A Comprehensive Guide for Freelancers and Independent Contractors

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, 202319 min read

Navigating the Clean Vehicle Credit for 2023 and Beyond

Navigating the Clean Vehicle Credit for 2023 and Beyond

Your resource for the new Clean Vehicle Credits worth up to $7,500 in tax credits. ...more

tax concepts

October 24, 20232 min read

Taxes and Dividends - A Case Study

Taxes and Dividends - A Case Study

Decoding Dividend Taxation: Dive into the distinctions between regular & qualified dividends and the unique taxation of REIT 'return of capital' payouts. Equip yourself for smarter investing and optim... ...more

tax concepts

May 14, 202311 min read

Back to Home

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.

Get in touch with us

Have questions? Use the form here and one of our knowledgable staff will get back to you as soon as possible.

  • (678) 944-8367

  • office@taxsherpa.com

  • 3900 CROWN RD SW STE 16709

  • Monday - Friday, 10:00 am - 5:00 pm

Send us a message

Follow Us

Follow Us

Disclaimer: The content presented on this website is intended for informational purposes only and is not tailored to the needs of any specific individual or entity. It should not be considered as financial, investment, or tax advice. The information provided is general in nature and does not account for individual circumstances or financial positions. Before making any financial or tax-related decisions, we strongly advise consulting with a qualified professional who can provide guidance tailored to your individual situation. All information on this site is provided in good faith, but we make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability, or completeness of any information on the site. Use of this site and reliance on its content is solely at your own risk.

Services

More

Contact Us

  • office@taxsherpa.com

  • (678) 944-8367

  • 3900 CROWN RD SW STE 16709

  • Monday - Friday, 10:00 am - 5:00 pm

© Copyright 2024. Online Tax Solutions Group LLC dba Tax Sherpa. All rights reserved.