taxsavings

Hiring your child isn't only a savvy tax move; it's a masterclass in real-world skills. They earn, save, spend, and most importantly, they learn. Money management, business acumen, and the value of a dollar—these are the lessons that shape a future. Whether they take over the family empire or forge their path, you give them an invaluable head start. #LifeLessons #FamilyBusiness #MoneyManagement #FinancialLiteracy

Dive deep into tailored strategies with our Tax Blueprint, discover estimated savings, and prioritize your focus. 📊 Equip yourself with extensive training modules and all the support documents you need. TaxElm's got you covered from strategy to implementation! 🔍📈 #TaxElm #Smallbusinessowner #taxseason #entreprenuer #sidehustle #startup #budgeting #personalfinance #taxplanning #taxstrategy #taxtok #tax #taxes #taxdeductions

Think your 10-year-old can't contribute to your law firm or consulting business? Think again! There's always a creative way to involve your kids, no matter your field. It's not just about hitting that maximum payment, but about finding the unique value they can add. It's time for innovation in family entrepreneurship! #FamilyBusiness #CreativeThinking #EntrepreneurLife #BusinessGrowth

When you hire your kids, those basketball camps and amusement park outings go from typical after-tax expenses to smart pre-tax investments. Your business gains a deduction, your kids may pay zero in income tax, and their fun is funded tax-efficiently! It's not just spending—it's strategic family finance. #FamilyFinance #BusinessDeductions

It’s pretty straightforward! Simply put: You just pay them for the job done. Here’s what you don’t pay independent contractors for: ❌ No withholding for taxes, social security, or Medicare. ❌ No federal or state withholdings. ❌ No FICA, social security, or Medicaid obligations. ❌ No unemployment benefits or typical labor law applicabilities. Stay informed and handle your business payments correctly!

📌 Remember: An LLC taxed as an S corp means profits flow to your personal account, and that's where taxes are paid. ✅ Quick Fix: Mistakenly used your business account? Simply label it as an owner's draw. For S corps, estimated tax payments should ideally come from personal accounts, as it's a personal, not business, tax. Stay informed and streamline your transactions! 💼🔄 #Smallbusinessowner #taxseason #entreprenuer #sidehustle #startup #budgeting #personalfinance #taxplanning #taxstrategy #taxtok #tax #taxes #taxdeductions

Do you want to hire your young ones for your S Corp? 📖 Join my Tax Minimization Program and check out the article I wrote about hiring your kids for comprehensive insights. 📝 Have an Employment Agreement in place detailing roles and pay, making the hiring authentic and official. 💼 Job Description: Clearly outline their tasks and responsibilities. ⏰ Time Sheet: Monitor their hours, tasks completed, dates, and payments. 💰 Reasonable Pay: Set a wage aligned with their roles, ensuring it's genuine and fair. Proper documentation is the key to hiring your kids 🌱🔑 #Smallbusinessowner #taxseason #entreprenuer #sidehustle #startup #budgeting #personalfinance #taxplanning #taxstrategy #taxtok #tax #taxes #taxdeductions

What’s so important about correctly classifying your workers within your business? In today's episode, Mike talks about the difference between independent contractors and employees. With the government cracking down on worker misclassification, it's more essential than ever for businesses to accurately identify their workers. Misclassifications can lead to hefty penalties, making it imperative for business owners to understand and adhere strictly to payroll guidelines. Mike stresses the importance of thorough documentation to ensure smooth 1099 NEC filings at year-end. With the filing deadline on January 31st, this episode aims to give you the knowledge and tools needed for accurate tax reporting! The Time Is NOW To Start Paying Less In Taxes. Join Our Tax Minimization Program (with Stress-Free Bookkeeping Training)! Join Our Tax Minimization Program Today! Visit: https://www.taxsavingspodcast.com/tax 00:00 - Employee or Independent Contractor: What's the Difference? 06:31 - How to Determine an Independent Contractor or Employee 14:02 - Why Is Proper Classification Important? 17:28 - How to Avoid 1099 Pitfalls: Year-End Filing Best Practices Key Quotes "The responsibility of determining an independent contractor or employee comes down to the employer." – Mike Jesowshek, CPA "If you're classified as a 1099 independent contractor, just know that you're responsible for paying the taxes on any income that you have." – Mike Jesowshek, CPA ______ Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast Join Our Tax Minimization Program: https://www.taxsavingspodcast.com/tax IncSight Packages: https://incsight.net/pricing/ Book an Initial Consultation: https://app.simplymeet.me/o/incsight/sale ------- Podcast Website: https://www.TaxSavingsPodcast.com Facebook Group: https://www.facebook.com/groups/taxsavings/ -------- To find out more on this topic and many others visit our website at www.TaxSavingsPodcast.com. You can also give us a call at 844-327-9272 or send your questions to us at: Ask@TaxSavingsPodcast.com

🏢 If you have an external business location and a home office for administrative tasks you can claim both for business expense deductions. 📑 Here’s How to Claim: Sole Proprietorship/Single Member LLC: Deduct using Schedule C on your 1040. S Corporation: Use an accountable plan for reimbursement. 🚫 The Rule: The home office area must be exclusive to the business for valid deductions. 🦷 Example: Even if you're a dentist with an external clinic, admin work done from home qualifies you for a home office deduction. 🚗 Bonus: Starting at your home office and traveling to your external office? That's a tax-deductible journey! Turn commutes into deductible automobile expenses. Double up on deductions by maximizing the power of your home office. 🚀 #Smallbusinessowner #taxseason #entreprenuer #sidehustle #startup #budgeting #personalfinance #taxplanning #taxstrategy #taxtok #tax #taxes #taxdeductions

Thinking of converting your LLC into an S Corp late in the year? 🤔 Here's your guide on making that switch! 📅 Is a late conversion possible? Yes, with a late election on an S Corp using Form 2553 and some extra documents. 💼 Catch-up Payroll: If you haven't run payroll, a catch-up can be done. For instance, if you should've taken a $75,000 salary so far, you can now adjust accordingly. 💰 Payroll Details: When doing catch-up payroll, it's about paying the taxes, not the whole sum. Use distributions already taken to balance it out. ⚠️ Sole Proprietorship Limitation: Cannot convert directly to an S Corp from sole proprietorship. Start with an LLC, then make the conversion. 🏢 LLC Benefits: Provides legal protection and flexibility to convert to S Corp when ready. Don't miss out by sticking solely with a sole proprietorship. Plan ahead, know your options, and stay informed! 🚀 #Smallbusinessowner #taxseason #entreprenuer #sidehustle #startup #budgeting #personalfinance #taxplanning #taxstrategy #taxtok #tax #taxes #taxdeductions

Understand the ins and outs of tax categorization: 💸 Pay for your client's ad spend? That's an expense for you. 📊 Categorizing ad spend: Typically, treat it as a cost of goods sold. 🔄 Reimbursements for ad spend: Record as sales, but don't forget to deduct the initial expense. ✍️ Bottom line: Accurate categorization can help you maximize your tax deductions! Stay informed and keep your financials on point! 🚀 #Smallbusinessowner #taxseason #entreprenuer #sidehustle #startup #budgeting #personalfinance #taxplanning #taxstrategy #taxtok #tax #taxes #taxdeductions

Thinking of hiring your teenager in your sole proprietorship? 🤔 Here's what you need to know about EIN numbers: 📌 EIN for sole proprietors? Not mandatory; your social security number often suffices. 🚀 When to consider an EIN: If you're bringing on employees or if clients are paying your business directly. 🆓 Cost of EIN: It's free and easy to obtain. 🛡️ Why get one? Protect your personal information and be prepared for business growth. Stay proactive and set your business up for success! ✅ #Smallbusinessowner #taxseason #entreprenuer #sidehustle #startup #budgeting #personalfinance #taxplanning #taxstrategy #taxtok #tax #taxes #taxdeductions

📌 Business owners with employees, how are you going about health insurance benefits? 🔹Group health plans? They can be costly. 🔹Paying more wages instead of health benefits? It's taxable for employees. But here's a golden middle: Consider the HRA (Health Reimbursement Arrangement). Specifically, for small businesses with 25 or fewer employees, a QSEHRA might be your best bet. 🔹With QSEHRA, reimburse your employees tax-free for medical expenses, including insurance premiums. Explore the benefits and see if it aligns with your business needs! 💼 #Smallbusinessowner #taxseason #entreprenuer #sidehustle #startup #budgeting #personalfinance #taxplanning #taxstrategy #taxtok #tax #taxes #taxdeductions

For S Corporation owners, claiming health insurance deductions comes with its unique steps. 📌 As an S Corporation, you're an employee of your business, meaning the straightforward Schedule 1 deduction isn't an option. Instead: 1️⃣ Ensure the S Corp covers the insurance costs. 2️⃣ If paid personally, use an accountable plan to get reimbursed. 3️⃣ Add those insurance costs to your W2 payroll as an S Corp owner's self-employed health insurance. Always communicate with your payroll provider, ensuring they're well-informed of your 2% ownership in the S Corp and guide them on adding these premiums to your W2. Navigating the nuances can maximize your benefits! 💼

Hey Solo business owners! Did you know there's a way to turn personal medical expenses into a business deduction? 📌 Consider the Section 105 Plan. Specifically designed for business owners with no employees other than themselves or a spouse, this medical expense reimbursement plan provides a potential avenue for relief. 🔹 Set it up right: Ensure proper paperwork and plan design. 🔹 Reimbursement: In return for services, the employee (you or your spouse) can be reimbursed for medical costs. 🔹 Detail is vital: Proper implementation with all 'I's dotted and 'T's crossed is crucial. If you anticipate regular high medical costs, this strategy might be your financial lifesaver. Dive into the specifics and see if it's right for you. 💼 #Smallbusinessowner #taxseason #entreprenuer #sidehustle #startup #budgeting #personalfinance #taxplanning #taxstrategy #taxtok #tax #taxes #taxdeductions

💡 Wondering when to use an accountable plan? 🤔 1️⃣ For business items you accidentally paid for personally. 2️⃣ For mixed business-personal use items; reimburse yourself for the business portion. 3️⃣ Items purely for business? Just use the business bank account! Learn more about when and how to use an accountable plan on this week’s episode of the podcast!

Need a seamless way to track and justify business expenses? 📊✅ 1️⃣ Use an accountable plan template or expense report, ideally in Excel. 2️⃣ Document all reimbursements, whether for home office, automobile, etc. 3️⃣ This helps break down costs, calculations, and proof if the IRS queries. Have your template ready and make reimbursements a breeze! 🏠🚗📝 Want more practicaltax saving tips? Tune in to this episode!

What are the pros and cons of having a business-owned vehicle versus a personally-owned vehicle? In this episode of the Small Business Tax Savings Podcast, Mike dives into the often confusing and overwhelming topic of business vehicles. From selecting, buying, and maintaining a car for business use to proving business use of a vehicle to the IRS. Mike offers up his expertise on how to make sure you’re getting the most out of your vehicle when it comes to tax deductions. Mike covers the pros and cons of having a business-owned versus personally-owned vehicle, as well as tips for determining the business use percentage and tracking mileage. Tune in now and listen as Mike shares his advice on how to select, buy, maintain, and write off a car for business use! 00:00 - Determining the Health Insurance Deduction Based on Your Business 06:03 - Business Owners With No Employees + High Medical Costs 09:05 - Health Benefit Options Available For Small Businesses With Employees 12:54 - What Is An HSA and How Do They Work? 18:45 - Wrapping Up! ______ Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast Join Our Tax Minimization Program: https://www.taxsavingspodcast.com/tax IncSight Packages: https://incsight.net/pricing/ Book an Initial Consultation: https://app.simplymeet.me/o/incsight/sale ------- Podcast Website: https://www.TaxSavingsPodcast.com Facebook Group: https://www.facebook.com/groups/taxsavings/ -------- To find out more on this topic and many others visit our website at www.TaxSavingsPodcast.com. You can also give us a call at 844-327-9272 or send your questions to us at: Ask@TaxSavingsPodcast.com

This will detail: 1️⃣ What qualifies for business reimbursements. 2️⃣ The documentation you need for proof. 3️⃣ How excess reimbursements become taxable wages. 4️⃣ Submission and payment timelines. A solid policy is your roadmap to compliant and effective reimbursements. Adopt one today! ✍️🛠️📊

Ensuring your expenses are legit business costs is crucial. Remember, you can't just purchase anything and expect to slot it into your accountable plan. Always maintain a direct business connection. Know the rules; stay compliant! 💡 As an S corp employee, always back up your claims. From receipts to mileage logs, your documentation is your best ally. 💡 Over-reimbursed? Remember, excess becomes taxable. Precision is key. 💡 With the IRS, punctuality counts! Process reimbursements and documentation swiftly. Stay prompt, stay compliant. Want more practicaltax saving tips? Tune in to this episode! #smallbusinessownership #taxseason #entreprenuer #sidehustle #startup #budgeting #personalfinance #taxplanning #taxstrategy #taxtok #tax #taxes #taxdeductions