Being an independent contractor brings many benefits, from setting your own schedule to selecting your clientele. However, it also brings unique tax obligations. Understanding and effectively managing your taxes can have a significant impact on your financial health as an independent contractor. Understanding Your Tax Status Independent contractors are classified as self-employed by the IRS. This means they are responsible for their own income taxes, including the federal and state taxes, along with self-employment tax, which covers Social Security and Medicare taxes.

If you are facing an IRS lien, it can be a stressful and overwhelming experience. However, there are steps you can take to address the situation and protect your assets.  What is an IRS Lien?  An IRS lien is a legal claim against your property, including real estate, personal property, and financial assets, for unpaid taxes. When the IRS places a lien on your property, it means they have a legal right to seize your assets to satisfy your tax debt.

After the loss of a spouse or partner, the surviving spouse faces many challenges. And although the most important ones to overcome are usually emotional and psychological, financial challenges must also be dealt with. And one of these is tax planning and preparation.  To help you reduce your tax burden in the immediate aftermath of your spouse's passing, here's what every survivor needs to know about their tax filing status this year and moving forward.

No matter how young or new your small business is, it's important to understand and follow the rules of separation of business and personal expenses. Why? How can failure to separate hurt you and your enterprise? And where can you get help improving in this area? Here's what every entrepreneur and business owner needs to know to avoid problems. Why Separate Business and Personal? Small business owners routinely find their personal and business life overlapping.

Between the Great Recession in 2008 and the COVID-19 pandemic in the past couple of years, taxpayers have really been put through the financial wringer. And that financial pain has spread to the IRS as people find they are unable to pay the taxes they owe. Maybe they miscalculated what they owed, or maybe they had a real drop in income that made them choose between food and estimated taxes. Whatever the cause, now they owe money to the IRS.

Owning a business comes with the obligation of paying taxes. This is because taxes enable the government to provide citizens with essential services and infrastructure. Even so, taxes can sometimes feel like a liability, more so if you are not sure whether you are paying more than you should. Therefore, it is advisable to work with a tax consultant. As the name suggests, a tax consultant is well-versed in tax return matters.

One of the secrets to ensuring that your business succeeds is by first understanding all its financial aspects. As such, you need to know the amount of money the business makes and the total expenditure. With such information, you can make key decisions aimed at expanding the enterprise and increasing profit.  Bookkeeping is one of the key decisions that can propel your business to prosperity. And with the help of an expert, bookkeeping will make help you manage your business professionally.

While you may enjoy handling your own money, it is advisable to hire a rental tax professional to manage your rental property income. Tax professionals can correctly prepare your taxes and can detect a problem early in the process. In today's digital world, there are many guides on how to file your rental income on your own. These methods are not advisable as they can result in errors that will cost you more money.

Many business owners find that their tax situation is much more complex once they own their own company. It can get very confusing when trying to handle all of your tax needs on your own. If you want to make sure that you're doing things correctly and want to make your life easier, it's a smart idea to hire a small business accounting firm. Here are some ways a small business accounting firm can help you with your business tax needs:

If you've fallen behind on your taxes, you may feel as if you're facing the end of the world. After all, no one wants to be out of compliance with federal tax laws. Unfortunately, many people choose to simply ignore their tax problems; often in the hope that the issues will go away on their own. However, ignoring tax problems can leave you in even worse shape, especially where the amount you owe is concerned.