Tag: credit report

Business Strategies, business taxes, General Information, notary, RUNNING YOUR BUSINESS, Self Employed, signing agent, TAX DEBT RELIEF, Tax Reduction, TAXES

HUGE WIN FOR NOTARY SIGNING AGENTS

Howard Tax Prep LLC

women s in gray turtleneck sweater pointing white contract paper

Author Trudy M. Howard

In our South Loop Chicago Tax Preparation office, Howard Tax Prep LLC works with entrepreneurs from various industries; however, there are 2 industries that give entrepreneurs a built in self-employment tax deduction. To take advantage of built in self employment tax reductions, one must be employed as a minister, or a notary. While this article will deal with notary signing agents, the same concept can also be applied to ministers.

Per IRS publication 17: “Notary public. Report payments for these services on Schedule C (Form 1040) or Schedule C-EZ (Form 1040). These payments aren’t subject to self-employment tax.” ees received for services performed as a notary public. Also, the instructions for IRS schedule SE reads: “if you had no other income subject to SE tax, enter “Exempt—Notary” on Schedule 4 (Form 1040), line 57. Don’t file Schedule SE.”

So how do you know what part of your loan signing agent payments are for notary services only? It’s simple, you count the # of stamps that you made, and exclude your travel, printing, and shipping/faxing cost. For example, let’s say that you have a 30 page loan document, and you charge $80 for the the total signing, $30 of which is strictly for the notary stamps. Using the above example, if you properly DOCUMENT your job, you can exclude the $30 (the charge for each stamp) from self-employment taxes (the 15.3% Medicare & Social Security taxes aka FICA).

newsletter
Although I’m pretty sure that you probably don’t want to do anymore documentation, the IRS requires documentation for deductions, and this is a HUGE deduction! Don’t let the lack of documentation, or lack of tax preparers knowledge keep you from taking advantage of the self employment tax reduction for notaries/signing agents (& ministers). While most tax reduction strategies require the use entities, retirement vehicles, and state laws, this simple yet effective tax deduction only requires you to itemize your notary fees, & document your work. Below, please find a basic example of the potential savings.

$80,000 Signing agent income.
-$20,000 expenses
$60,000 in taxable income.
$60,000 in taxable for self-employment taxes.
Self-employment taxes on $60,00=$8,478
Income taxes assuming single person no children=$4,013 TOTAL TAX BILL=$12,491

$80,000 Signing agent income.
-$20,000 expenses
$60,000 in taxable income.
$30,000 taxable income for self-employment taxes
Self-employment taxes on $30,000=$4,239 EASY TAX SAVINGS OF $4,239.
Income taxes assuming single person no children=$4,013. TOTAL TAX BILL=$8,252

Although we’ve given you the basics, this is not an all-inclusive article. Should you have tax debt help questions, need Chicago business tax preparation, business entity creation, business insurance, or business compliance assistance please contact us online, or call our office toll free at 1-855-743-5765 or locally in Chicago or Indiana at 1-708-529-6604. Make sure to join our newsletter for more tips on reducing taxes, and increasing your wealth.

Schedule-button-nb

Never miss another tip again! Join our newsletter, to receive tax reduction/wealth building tips delivered right to your inbox!

newsletter

Business Strategies, business taxes, Family Tax Issues, General Information, RUNNING YOUR BUSINESS, Self Employed, TAX DEBT RELIEF, Tax Reduction, TAXES

HOW TO WRITE OFF YOUR 4TH OF JULY PARTY.

Howard Tax Prep LLC
Author: Trudy M. Howard

In our Chicago South Loop Tax preparation office, everyone enjoys a BBQ, and a good party. While we enjoy having a good time, we LOVE saving clients money through effective tax planning. Below are a few tips on how you can reduce your taxable income with your 4th of July party.

INVITE ALL STAFF & FEW FRIENDS: Invite your ENTIRE STAFF to the 4th of July BBQ to get a tax deduction. NON EMPLOYEES WILL NOT give you a tax deduction. For example, if you invite 15 employees & their family to a 4th of July picnic, and you invite 5 of your friends & family members you have a total of 20 guest.If your party cost $2,500 you can write off 3/4 or 75% (20 guest total, 1/4 friends 5/20) of the expense at 100%. $2,500 x .75= $1,875 tax deduction.

Per IRS PUBLICATION 15-B: “Food or beverage expenses related to employee recreation, such as holiday parties or annual picnics, aren’t subject to the 50% limit on deductions when made primarily for the benefit of your employees other than employees who are officers, shareholders or other owners who own a 10% or greater interest in your business, or other highly compensated employees.”

Schedule-button-nb INVITE POTENTIAL BUSINESS PROSPECTS: 1/2 of something is better than 0 of something. You can deduct 50% of the FOOD COST ONLY if you invite current or potential business customer, client, consultant, or similar business contact. Your food cost must be on SEPARATE RECEIPT to be tax deductible. You cannot deduct the cost of the fireworks display, chairs, DJ, etc.

Per IRS PUBLICATION 463: “As discussed above, entertainment expenses are generally nondeductible. However, you may continue to deduct 50% of the cost of business meals if you (or an employee) is present and the food or beverages are not considered lavish or extravagant. The meals may be provided to a current or potential business customer, client, consultant, or similar business contact.

Food and beverages that are provided during entertainment events are not considered entertainment if purchased separately from the entertainment, or if the cost of the food and beverages is stated separately from the cost of the entertainment on one or more bills, invoices, or receipts.”

Although we’ve given you the basics, this is not an all-inclusive article. Should you have tax debt help questions, need Chicago business tax preparation, business entity creation, business insurance, or business compliance assistance please contact us online, or call our office toll free at 1-855-743-5765 or locally in Chicago or Indiana at 1-708-529-6604. Make sure to join our newsletter for more tips on reducing taxes, and increasing your wealth.

Schedule-button-nb

Never miss another tip again! Join our newsletter, to receive tax reduction/wealth building tips delivered right to your inbox!

newsletter

BUSINESS CREDIT, Business Strategies, business taxes, Family Tax Issues, General Information, Self Employed, TAX DEBT RELIEF, Tax Reduction, TAXES

Owe the IRS? Find out what your credit report tells them.

Howard Tax Prep LLC

man in white shirt using macbook pro

Author: Trudy M. Howard

In our Chicago tax debt office you’ll often hear me say “the IRS is worse than the FBI.” Of course this is simply my opinion (based upon years of research, tax debt cases, education, and government documents), but if the IRS isn’t worse than the FBI, they surely are a close 2nd!

When I tell you that the IRS can find out anything,  I mean they can find out anything (except for your blood type, but I’m sure that’s pending)! The IRS has access to systems that you wouldn’t believe existed. For example, did you know that the IRS receives a weekly file of new movers? It’s true. “The United States Postal Service (USPS) provides an address update product — the National Change of Address Linkage (NCOALink), and the IRS receives a weekly NCOALink file from USPS. The file contains all of the reported changes of address in the United States for the week.” Not only does the IRS use this system, along with several others, the IRS also has the authority to pull a debtor’s credit report! Keep reading to see what your credit report tells the IRS.

Schedule-button-nbor click here to call us 1-855-743-5765.

There are 6 key things that an IRS collections representative is looking for when they access your credit report.

  • Previous residences along with old/current employers.
  • Other lien holders to see how much you owe, and how much you’ve paid.
  • Property that may not have been disclosed during your collections interview.
  • Leads to hidden assets by identifying other creditors.
  • Financial institutions that you have done business with in the past and currently.
  • Entities and associations with foreign banks and corporations.

Hopefully, by viewing this list you see that it is important to disclose all financial information when dealing with the IRS. Once you submit all of your financial information,  Howard Tax Prep LLC, located in the South Loop of Chicago, can help you with an IRS tax debt settlement, a tax debt payment plan, removal of tax lien, and IRS wage garnishments in Chicago, and all 50 states.

Although we’ve given you the basics, this is not an all-inclusive article. Should you have tax debt help questions, need Chicago business tax preparation, business entity creation, business insurance, or business compliance assistance please contact us online, or call our office toll free at 1-855-743-5765 or locally in Chicago or Indiana at 1-708-529-6604. Make sure to join our newsletter for more tips on reducing taxes, and increasing your wealth.

Schedule-button-nb

Never miss another tip again! Join our newsletter, to receive tax reduction/wealth building tips delivered right to your inbox!

newsletter