The number of years you can go without filing taxes depends on various factors, including your individual tax situation, the amount of income you earned, and whether you are owed a refund or owe taxes. Here are some key points to consider… Filing Requirements – If you meet certain income thresholds, you are required to file a tax return each year. The income thresholds vary depending on your filing status, age, and other factors. For example, for tax year 2023, single taxpay

Yes, a business can have no income, especially during certain periods or under specific circumstances. Here are some scenarios in which a business might have no income… Start-Up Phase –  Many businesses experience a period of time at the beginning of their operations where they have not yet generated any income. This is common during the start-up phase when the business is being established, developing products or services, and acquiring customers. Seasonal Businesses –  Some

Self-employed individuals can receive tax refunds in the same way as employed individuals, but the process may be slightly different. Here’s how self-employed individuals can get a tax refund… Overpayment of Estimated Taxes –  Self-employed individuals are generally required to make estimated tax payments throughout the year to cover their income and self-employment taxes. If you overestimate your tax liability and make larger estimated tax payments than necessary, you may be

The hobby income limit refers to the threshold at which hobby income becomes taxable and must be reported on your tax return. According to the Internal Revenue Service (IRS) guidelines, if you earn income from a hobby, you must report that income on your tax return if it exceeds certain limits. For most taxpayers, hobby income is reported as “Other Income” on line 8 of Form 1040, Schedule 1. However, if your hobby generates income but does not meet the threshold for being con

As a self-employed individual, there are several strategies you can use to minimize your tax liability legally. Here are some effective ways to reduce your taxes when you’re self-employed… Maximize Business Deductions –  Take advantage of all eligible business deductions to reduce your taxable income. This includes deductions for expenses directly related to your business, such as home office expenses, supplies, equipment, travel, marketing, utilities, insurance, and professi

An LLC (Limited Liability Company) can take several steps to minimize its tax liability and avoid paying too much in taxes. Here are some strategies that LLCs can consider… Maximize Deductions –  LLCs can deduct ordinary and necessary business expenses from their taxable income. It’s essential to keep detailed records of all business-related expenses and take advantage of all available deductions, including expenses such as rent, utilities, supplies, salaries, advertising, tr

The maximum tax write-off for an LLC (Limited Liability Company) depends on several factors, including the type of expenses incurred, the business’s income, and applicable tax laws. Here are some key considerations regarding tax write-offs for LLCs… Business Expenses –  LLCs can typically deduct ordinary and necessary business expenses from their taxable income. These expenses may include rent, utilities, office supplies, salaries, wages, advertising, travel, insurance, profe

Doing your own business taxes can be challenging, especially if you’re unfamiliar with tax laws and regulations or if your business has complex financial transactions. Here are some factors to consider when deciding whether to do your own business taxes… Knowledge of Tax Laws –  Understanding tax laws and regulations is crucial for accurately reporting business income, deductions, and credits. Tax laws can be complex and subject to frequent changes, so staying informed about

Yes, you can use TurboTax to file taxes for your LLC. TurboTax offers options specifically designed for small businesses, including those structured as LLCs. Here’s how you can use TurboTax for your LLC… Select the Right Version –  TurboTax offers different versions tailored to various tax situations, including self-employed individuals, small businesses, and business owners with complex tax needs. When using TurboTax, make sure to choose the version that best fits your busin

Taxes can pose challenges for small businesses, but whether they “hurt” them depends on various factors, including the business’s financial situation, tax planning strategies, and compliance efforts. Here’s a nuanced perspective on how taxes can impact small businesses… Financial Burden –  Taxes represent an additional expense for businesses, reducing their net income. Small businesses, particularly those with limited resources, may find tax obligations burdensome, especially