With tax season now in the rear view mirror for most of us, it’s time to start thinking about how to minimize your taxes on next year’s tax return.
In this month’s newsletter, get a start on your tax planning by learning about the tax consequences of different types of virtual transactions, from cryptocurrency and non-fungible tokens to internet marketplaces and online courses.
Also read about maximizing your working-from-home opportunity, avoiding surprising fees while on vacation, and a great article explaining how taxes work for those picking up a summer job.
Please feel free to forward the information to someone who may be interested in a topic and call with any questions you may have.
As social distancing turns convenience into necessity, the number and types of activities moving to the internet is exploding. It’s important to remember that these virtual events often trigger real-world tax implications.
Here are some things to keep in mind:
Please call if you need help sorting out the tax implications of any virtual activity or transaction.
Flexible working arrangements appear to be here to stay. But the benefits of working from home also come with the challenge of maintaining an appropriate work-life balance and a high level of productivity. Here are several ideas to consider if you’ll be continuing to work from home, either full-time or occasionally:
Working from home is part of the new norm. Be sure to work closely with your employer to make sure this arrangement remains a win-win opportunity for both of you.
Going on vacation is a time to get away, relax and enjoy new experiences. But if you don’t pay close attention, extra costs can sneak up on you like tiny money-stealing ninjas. Here are eight sneaky vacation costs.
Everyone expects to pay for their vacation, but with a little planning you can avoid dealing with unpleasant surprises during your vacation!
The tax man wants their share!
Now is the time to prepare for the not-so-pleasant part of having a summer job – paying taxes! Here’s what you can expect depending on what type of job you have this summer.
Here are some suggestions for understanding how taxes will affect your summer job:
Explain how taxes are withheld. If you are an employee, take one of your paychecks and review how each dollar amount is calculated. This will also help you understand the different types of taxes, including federal and state income taxes, Social Security taxes and Medicare taxes.
Set up a savings account. If you have your own business, you’ll need to set aside a certain percentage of the money you earn to pay the IRS. An easy way to do this is by transferring a certain portion of the money into a savings account. Pay attention to the quarterly estimated due dates throughout the year – April 15th, June 15th, September 15th and January 15th. These are the deadlines for you to send tax payments to the IRS.
Lower your tax bill. Consider opening an IRA that can help you start saving for the future while potentially lowering your taxes. This helps establish a healthy savings habit while understanding it is possible to pay less in taxes!
Please call if you have questions about taxes and how they apply to your summer job.