Taxes

Tax Planning - Pat Flynn Case Study No one can deny the importance of tax planning when it comes to wealth management. Taxes are the greatest consumer of wealth. Take for instance Pat Flynn. Pat Flynn is a well-known internet entrepreneur who posts his income report every month.  In 2009 Pat Flynn had a net income of $178,649. If Pat did no tax planning he would have paid approximately $48,250 in federal taxes. &

Do you have children or help take care of a relative? If you do you will happy to know that you can have a reduction in taxes as a result. There are 3 ways having children can help reduce your taxes namely: By claiming them as a dependent Claiming the child tax credit Claiming the earned income credit. Claiming your child as a dependent Your children can help you reduce your

Do I have to file a tax return? Whether or not you file a tax return depends on these 3 factors: 1)  Gross Income. What is included in gross income? Goods, property and services that is not exempt from tax. Income made outside the U.S. Self-employed income includes: Any trade or business as a sole proprietor Independent contractor Member of a partnership Any form of business for yourself Gross Income test

Accounting for income taxes simply means the system of organizing financial data for tax purposes within a tax year. A tax year is the period for which you keep your books and report your income and expenses. Most tax returns cover a calendar year (January 1st-December 31). You choose your accounting period when you file your first income tax return. You must file a form 1128 to request the IRS approval to

Every year, Americans file taxes in hopes of getting money back from Uncle Sam. One area that affects all tax payers is whether to take the standard or itemized deduction. Standard deduction Standard deduction is pre-determined amount that is deducted from your adjusted gross income. The amount you are eligible to take is largely dependent on your filing status. In 2013, the standard deduction was as follows: Single or married filing