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Requirements to Claim the Home Office Deduction
Regardless of the method chosen, there are two basic requirements for your home to qualify as a deduction: Regular and exclusive use. Principal place of your business. Regular and Exclusive Use You must regularly use part of your home exclusively for conducting business. For example, if you use an extra room to run your business,…
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Home Office Deduction
Simplified Option For taxable years starting on, or after, January 1, 2013 (filed beginning in 2014), you now have a simplified option for computing the home office deduction (IRS Revenue Procedure 2013-13, January 15, 2013). The standard method has some calculation, allocation, and substantiation requirements that are complex and burdensome for small business owners. This…
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Self-Employment Tax
Self-employment tax (SE tax) is a social security and Medicare tax primarily for individuals who work for themselves. Your payments of SE tax contribute to your coverage under the social security system. Social security coverage provides you with retirement benefits, disability benefits, survivor benefits, and hospital insurance (Medicare) benefits. Generally, you must pay SE tax and…
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It’s March!
When will I get my Alabama Tax Refund? The Alabama Department of Revenue will not start approving refunds until March 1st of each year. That’s today! The speed in which you receive your refund depends on several things. For a faster refund you should both file your return early and file your return electronically. To…
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Business Taxes
The form of business you operate determines what taxes you must pay and how you pay them. The following are the five general types of business taxes. Income Tax Estimated Taxes Self-Employment Tax Employment Taxes Excise Tax
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IRS waives estimated tax penalty for farmers, fishermen who file returns and pay tax by April 15
The Internal Revenue Service will waive the estimated tax penalty for any qualifying farmer or fisherman who files his or her 2018 federal income tax return and pays any tax due by Monday, April 15, 2019. The deadline is Wednesday, April 17, 2019, for taxpayers residing in Maine or Massachusetts. The IRS is providing this…
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Starting a New Business
When beginning a business, you must decide what form of business entity to establish. Your form of business determines which income tax return form you have to file. The most common forms of business are the sole proprietorship, partnership, corporation, and S corporation. A Limited Liability Company (LLC) is a business structure allowed by state…
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Alabama Rules for Head of Family Filing Status
Head of Family You can use the filing status of “Head of Family” only if all of the following requirements are met: You were unmarried or legally separated on December 31 You are not a surviving spouse The qualifying dependent is not a foster child You meet either Test 1 or Test 2 below: Test…
