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Take Advantage of New Green Vehicle Tax Credits to Reduce Your 2023 Freelance Tax Bill

The new season of cars are starting to roll onto dealership lots, and if a new car is in your future this year you may want to consider buying a new plug-in electric vehicle (EV) or fuel cell vehicle (FCV) to qualify for a clean vehicle tax credit. Here is how to determine if your 2023 vehicle purchase will qualify and what the value of the credit may be: You may qualify for a credit up to $7,500 if you buy a new, qualified plug-in EV or fuel cell electric vehicle (FCV). The green vehicle tax credit is nonrefundable, which

The IRS Adjusts Lookback Period for Pandemic-Era Tax Refunds

Did you file a 2019 or 2020 tax return during the pandemic? If so, it’s possible that if you filed in the postponed periods between April 16, 2020, and July 15, 2020, or April 16, 2021, and May 17, 2021 that credits you claimed and refunds you filed could now fall outside of the three-year tax refund lookback period that the IRS typically allows for. To rectify this, the IRS has recently taken action by eliminating the mismatch between the time for filing a claim for credit or refund and the three-year lookback period caused by postponing certain filing deadlines

Does Your Business Qualify for the American Disability Act Tax Credit?

As a business owner, you need to be aware of The American Disability Act and its requirements specific to your operations. One important requirement is making your website accessible to all potential visitors. To be in compliance with these regulations you may need to engage additional accessibility techniques, automated tools, or other accessibility services to your website. Depending on the level of accessibility software, auditing, and additional website design you need to do to get your website into ADA compliance, your investment may be significant. If you have ADA compliance expenditures related to a website or other elements of your

Are You Eligible for the Earned Income Tax Credit (EITC)?

Are You Eligible for the Earned Income Tax Credit (EITC)? Learn if you qualify and about special provisions for New York City residents. The Earned Income Tax Credit (EITC) is a federal tax credit designed to help low and moderate-income working individuals and families. In addition to the federal credit, many states, including New York, offer their own version of the EITC. In order to qualify for the EITC, you must have earnedincome (subject to Social Security/Medicare or self-employment taxes) your Adjusted Gross Income (AGI) must fall within specific limits based on your filing status and number of qualifying children.

Self-Employed Tax Deductions 101: How to Claim the Home Office Deduction

Self-Employed Tax Deductions 101: How to Claim the Home Office Deduction Are you self-employed? If so you and you use a portion of your home regularly and exclusively for business purposes, you may be eligible to claim a home office deduction on your tax return. Section 280 of the Internal Revenue Code allows you to deduct certain expenses related to the use of your home for business, such as a portion of your mortgage or rent, utilities, insurance, and repairs. To qualify for the home office deduction, the IRS stipulates that you must use a specific area of your home

The IRS Needs to Know About Your Digital Assets

Here’s How to Report Cryptocurrency on Your 2022 Freelance Tax Return Now that it’s time to file your freelance taxes, you may have questions about how to report your cryptocurrency (now referred to as “digital assets” instead of virtual currencies by the IRS). Why is it so important to report your activity with digital assets carefully, especially this year? The penalties for failure to report cryptocurrency activity could be substantial. IRS can impose a penalty up to $250 per customer, up to a maximum $3 million penalty, for failure to timely file a correct Form 1099 with the IRS under IRC 6721

Take Advantage of New Green Vehicle and Other Tax Credits to Trim Your Freelance Tax Bill

Now that tax season is here, it’s time to take a serious look at steps you can take to trim your freelance tax bill–while still being cognizant of the fact that some tax credits and deductions are being reduced. Let’s take a look at the current rules related to tax credits you may be able to take advantage of on your 2022 tax return: The Child Tax Credit (CTC): If you received $3,600 per dependent in 2021 for the CTC will, you will at a maximum get $2,000 for the 2022 tax year. The Earned Income Tax Credit (EITC): If

Did Your Business Make Bank in 2022? Minimize Your Tax Bill with These Tips

If you are one of the lucky business owners whose business is flourishing, you may be wondering how to keep as much of your earnings as possible as tax season nears. While you definitely need to pay the tax due on your earnings from all sources, you shouldn’t set yourself up to pay more tax than is necessary. This summary of tax brackets for 2022 will help you plan your actual tax obligations based on your income so you can take informed action to reduce the amount of tax you pay as much as possible. Keep in mind that in

Breaking News on Payment Platform Tax Reporting: The IRS Delays $600 Reporting Threshold for 1099-Ks

The IRS has just announced a delay in the income reporting thresholds for third-party settlement organizations (TPSOs) such as PayPal, Venmo, and CashApp . This is a key change which may impact your 2022 tax filing. Until now, the IRS was set to start scrutinizing business-related transactions and the income derived from them on third-party payment platforms more closely in the 2022 tax year with a much lower reporting threshold of just $600 and a requirement that these companies report on a 1099-K Form. This change has been delayed until 2023. Currently, the reporting threshold applies when a taxpayer completes

Freelancer Crypto Income: Get Up to Speed on New IRS Guidance and Reporting Requirements for Digital Assets

Last year the introduction of the Infrastructure Investment and Jobs Act clarified and expanded the rules for reporting of information on digital assets by brokers. The United States Treasury Department and the Internal Revenue Service (IRS) have just announced that brokers are not required to report additional information related to the dispositions of digital assets until final regulations are issued, likely in 2023. Brokers and taxpayers are still required to comply with existing laws and regulations despite this transitional guidance. Here are some key points to keep in mind when you are completing your 2022 tax return and planning for

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