Business owners can find themselves in a pickle once profits start turning. It’s called double taxation and occurs when a business is not structured correctly during set up. The federal government can collect taxes both from corporate and personal income. Double payment can be easily be avoided when considering the following: Should your business be…
Category Archives: Self employment Tax
Red Flags That Could Trigger an Audit of S-Corps
Although chances to be selected for audit of your small S-corporation is close to none, the S-corporations with Red Flags have much better chance of meeting with the IRS agent. There can be over twenty reasons IRS looks for in audit. Let us review the top four Red Flags typically reviewed by the IRS. The first…
Health Insurance Can Reduce Self Employment Tax
For years, self-employed taxpayers who pay for their own health insurance were only allowed to take the deduction on their 1040s for income tax purposes without effecting self-employment taxes. The Small Business Jobs Act of 2010 now allows the self-employed to reduce net earnings by the amount of the health insurance deduction claimed on their…
