Martin Cantu, EA - Tax Consultant - Tax Relief Services Blog

Tax Tips for the Self-employed  There are many benefits that come from being your own boss. If you work for yourself, as an independent contractor, or you carry on a trade or business as a sole proprietor, you are generally considered to be self-employed. Here are six key points the IRS would like you to know about self-employment and self- employment taxes: 1. Self-employment can include work in addition to your regular full-time business activities, such as part-time work you do at home or in addition to your regular job. 2. If you are self-employed you generally have to pay self-employment tax as well as income tax. Self-employment tax is a Social Security and Medicare tax primarily for individuals who work for themselves. It is similar to the Social Security and Medicare taxes withheld from the pay of most wage earners. You figure self-employment tax using a Form 1040 Schedule SE. Also, you can deduct half of your self-employment tax in figuring your adjusted gross in

Here is some information on how to determine your tax filing status. For more information or other tax related questions, place contact the Law Office of Martin Cantu or sataxhelp.com. Determining your filing status is one of the first steps to filing your federal income tax return. There are five filing statuses: Single, Married Filing Jointly, Married Filing Separately, Head of Household and Qualifying Widow(er) with Dependent Child. Your filing status is used to determine your filing requirements, standard deduction, eligibility for certain credits and deductions, and your correct tax. Some people may qualify for more than one filing status. Here are eight facts about filing status you'll need to know so you can choose the best option for your situation. 1. Your marital status on the last day of the year determines your marital status for the entire year. 2. If more than one filing status applies to you, choose the one that gives you the lowest tax obligatio

The IRS announced a new “Fresh Start” program, designed to allow taxpayers to regroup financially, getting a new start on their finances. This program provides taxpayers an opportunity to limit the damage IRS tax collection activity may have had on their credit report and credit score, thus impairing their ability to obtain new credit, or credit at a fair market rate. Among the highlights of the program are the following: Tax Liens The IRS increased the dollar threshold for filing notice of tax lien. The new threshold amount is $10,000, up from $5,000. There is an exception in the case of a taxpayer bankruptcy or other similar action. Keep in mind that a Federal Tax lien is an IRS demand for payment from the taxpayer, within 10 days of the letter delivering a copy of the lien. This is a statutory process which the IRS must follow. A Notice of Federal Tax lien is a formal filing in the public records of the county of residence of the taxpayer and allows IRS to establish