Beauticians Beauticians can be employees or self-employed (just not at the same time). If self-employed, the beautician would either own the shop or work as a contract employee of the salon owner and receive a Form 1099-NEC. In each of these self-employed situations the beautician must keep accurate records of supplies purchased, supplies used and… read more
Tax Service Blog
Landlords
Landlord Landlords operate in a unique business environment and need to be aware of all allowable business expenses available to them. Leasing expenses paid out of pocket would include advertising, maintenance such as painting, inspections and physical visits to the property. The actual rental property is recovered through annual depreciation expense over a 29.5 year… read more
Realtors
Realtor Realtors operate in a unique business environment and as a result have unique expenses associated with listing and closing properties. In addition to advertising, auto mileage and association dues, open house expenses, lock boxes, internet and fax fees should also be considered. Maher’s Tax Service has the experience to help you identify all of… read more
Medical Expenses as Itemized Deductions
The IRS has changed the calculation for Itemized Medical Expenses on Schedule A of Form 1040. All unreimbursed medical expenses that exceed 7.5% of the taxpayer’s adjusted gross income are deductible.
Quarterly Estimated Income Tax Payments
Income subject to this requirement includes self-employment income, interest, dividends, gains on stock and crypto currencies. Taxpayers are required to pay their income tax on a quarterly estimated tax basis. The Due Dates are April 15; June 16; September 15 and January 15. Quarterly estimated payments represent not only federal income tax but also your… read more
Schedule C – Profit or Loss From Business (Sole Proprietorship)
The Schedule C is used to report income or loss from a business you operated or a profession you practiced as a sole proprietor when your primary purpose is to generate income for profit and are involved in this activity with continuity and regularity. Some of the activities falling within this group would be tradesmen… read more
Personal Fitness Trainers
If you are a Self Employed Personal Fitness Trainer you need to file Federal Form 1040 Schedule C, state and local income tax returns and are required to make quarterly estimated payments to these taxing authorities. Don’t spend your valuable time trying to prepare your own tax returns and at the end wonder if you… read more
Tax Brackets for Married Filing Jointly and Surviving Spouses
Regular Tax Rates on Ordinary Income. For Married Filing Jointly and Surviving Spouses the taxable income and applicable rates are: from $0 to $19,750 10% from $19,751 to $80,250 12% from $80,251 to $171,050 22% from $171,050 to $326,600 24% from $326,601 to $414,700 … read more
Fees Paid to Reduce Credit Card Debt
If you paid a Debt Resolution Fee to successfully have your credit card debt reduced, all of the cancelled debt is income and the Debt Resolution Fee may be used as an itemized deduction subject to the 2% of your Adjusted Gross Income (AGI). For example, if your AGI is $10,000, fore the Debt Resolution Fee… read more
Retirement Savings
If you contribute to a 401(k) type retirement account there is a limit on the amount you may add to your nest egg. If you are not yet fifty years old you may contribute up to $6,000. If you have attained age fifty you may contribute up to $7,000. The other type of retirement account… read more