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Showing posts with the label tax savings

Day 7 – How to Hire Your Kid Legally — And Save Taxes

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  Day 7 – How to Hire Your Kid Legally — And Save Taxes Hiring your child might sound like a sentimental idea, but it’s actually a strategic tax-saving move —if done right. The IRS allows business owners to hire their minor children under certain conditions, offering both tax deductions for your business and income tax benefits for your child . Here's how to make it work legally and efficiently. ✅ Why Hire Your Child? 1. Your Business Gets a Deduction Wages paid to your child are a legitimate business expense. That means your business income (and tax liability) goes down. 2. Your Child May Owe Zero Taxes As of 2025, a child can earn up to $14,600 (the standard deduction) without paying any federal income tax— as long as it’s earned income (i.e., wages, not gifts or allowances). 3. No Payroll Taxes for Some Businesses If your business is a sole proprietorship or a partnership where both partners are the child’s parents , and your child is under 18 , then: No Social S...
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πŸ“… Day 2: 3 Common Tax Myths Small Business Owners Still Believe

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 πŸ“… Day 2: 3 Common Tax Myths Small Business Owners Still Believe Running a business comes with more than just offering great services or products — it also comes with figuring out what’s fact and what’s fiction when it comes to taxes. And unfortunately, there’s a lot of misinformation out there. Let’s clear up three myths I hear all the time — and what the truth actually is. πŸ’­ Myth 1: “If I use my personal credit card, I can’t deduct the expense.” Not true! You can still deduct legitimate business expenses paid with a personal card — as long as they were truly for the business . The key is documentation: save receipts and make a note of why each purchase was business-related. (Still, I always recommend separating your accounts ASAP — it makes tax time so much easier.) πŸ’­ Myth 2: “A home office deduction increases your chance of an audit.” This one is outdated. If your home office meets the IRS rules (used regularly and exclusively for business), then you’re allowed to ...
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πŸ“… Day 1: Why I Started This Blog as a CPA

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  πŸ“… Day 1: Why I Started This Blog as a CPA Hi there — and welcome! I’m a CPA with a deep love for clarity, structure, and empowering small business owners to take control of their taxes. For years, I studied, practiced, and prepared for the CPA exam, and when I finally passed, I thought the journey was over. But in truth, it had only just begun. This blog exists because I’ve seen too many creative, driven entrepreneurs feel overwhelmed or uncertain about their tax responsibilities. Not because they’re doing anything wrong — but because no one ever explained things simply, clearly, and without all the jargon. So here’s the goal: One practical, digestible tax tip each day for 30 days. Whether you're a freelancer, side hustler, online seller, or solo entrepreneur, this series will help you understand how taxes really work — and how to make smarter decisions that support your business and your peace of mind. I’ll cover deductions, business structures, recordkeeping hacks,...
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10 Tax Deductions Every Small Business Owner Should Know_Examples

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 Here are detailed examples of tax-saving strategies tailored for small business owners, categorized by entity type and tax approach. These strategies are useful for both maximizing deductions and reducing taxable income legally and effectively. 🧾 1. Deductible Business Expenses ✅ Examples Home Office Deduction : If you use a portion of your home exclusively for business, deduct a proportion of rent, mortgage interest, utilities, and property taxes. Simplified Method : $5/sq ft up to 300 sq ft = up to $1,500 deduction. Vehicle Expenses : Use mileage deduction (67 cents/mile for 2024) or actual expense method (gas, insurance, maintenance). Office Supplies and Equipment : Deduct everything from computers and printers to pens and paper. Business Travel : Airfare, hotel, 50% of meals, and even ride-shares while on business trips are deductible. πŸ’³ 2. Retirement Plan Contributions ✅ Examples Solo 401(k) : Contribute up to $23,000 (202...
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10 Tax Deductions Every Small Business Owner Should Know

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Running a small business isn’t easy—but saving on taxes can be. If you’re a freelancer, side hustler, or running your own shop, you’ve got more ways to cut your tax bill than you might think. Let’s break down 10 common tax deductions that could save you serious cash. 1. Home Office Deduction Working from home? If there’s a space you use just for work (like that corner in your guest room), you could qualify for a home office deduction. There’s a simple method based on square footage or a more detailed one where you track your actual expenses. 2. Business Use of Your Car Using your car for work errands or meetings? You can deduct either your mileage or actual costs like gas and maintenance. Pro tip: Apps like MileIQ make tracking a breeze. 3. Office Supplies & Gear Buying pens, notebooks, or even a new laptop? If it’s for your business, it likely counts. Bigger items might qualify for a full write-off in the year you buy them. 4. Internet and Phone Bills If you use your phone or ...
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6 Tax-Saving Tips You Might Be Missing

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  πŸ’°6 Tax-Saving Tips You Might Be Missing (Excluding 401(k) & IRA!) When tax season rolls around, everyone’s looking for ways to save a bit more. While most people are familiar with saving through 401(k) or IRA contributions, there are plenty of other tax-saving strategies worth exploring. Here are 6 practical tax-saving tips that don’t involve a 401(k) or IRA —perfect for employees, freelancers, or anyone looking to lower their tax bill smartly. 1. πŸ’Ό Use a Flexible Spending Account (FSA) An FSA lets you set aside pre-tax income for medical or dependent care expenses . Healthcare FSA : Covers out-of-pocket medical costs like copays, prescriptions, or medical devices. Dependent Care FSA : Helps with childcare expenses, including daycare or after-school care. Why it matters : The amount you contribute reduces your taxable income, which can lower your total tax liability. 2. 🧾 Deduct Business Expenses (Freelancers & Side Hustlers) If you freelance, run a b...
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Tax Savings Tip of the Week: Max Out Your Retirement Contributions (But Know the Limits)!

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Hey money-savvy friends! πŸ™Œ Want a simple (and totally legal) way to cut your tax bill while building your future nest egg? Let’s talk about retirement contributions . πŸ§“πŸ½πŸŒ΄ If you’ve got a 401(k) through your job, try to contribute as much as you can—especially up to the employer match. That’s free money , folks! And your contributions are made pre-tax , which reduces your taxable income . Less income = less tax. 🎯 No 401(k)? No problem. You can contribute to a Traditional IRA , and depending on your income and situation, you may be able to deduct that contribution on your taxes too. BUT here's the catch πŸ›‘—if you're already covered by a workplace retirement plan like a 401(k), you might not be able to deduct your IRA contributions, especially if your income is above certain limits. πŸ‘‰ Translation: You can technically contribute to both a 401(k) and a Traditional IRA in the same year, but you may not get a tax break on both. 2025 contribution limits: 401(k): Up to $...
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