Mom's Gone Virtual's Telecommuting Taxes

Get Your Tax Questions Answered for Free - Tomorrow Only

2008-02-13T16:03:00.002-05:00

Kristine McKinley is at it again, but this time she wants to help you with your taxes! :)

Tomorrow, February 14th at 1pm EST, she's holding a teleseminar where she's going to answer tax questions from callers, but you have to go here and fill in your name, email and your top tax questions to get the call in number and have your question answered during the call.

Just click on the image below to get more information and the call in details! :)

Stimulus Payments Set to Go Out in May - BUT You Have to File 2007 Taxes

2008-02-13T16:01:00.002-05:00

Here's the email I received from the IRS today and thought I'd pass along for those who are curious about the stimulus plan.

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WASHINGTON — The Internal Revenue Service today advised taxpayers that in most cases they will not have to do anything extra this year to get the economic stimulus payments beginning in May.

“If you are eligible for a payment, all you have to do is file a 2007 tax return and the IRS will do the rest,” said Acting IRS Commissioner Linda Stiff.

The IRS will use information on the 2007 tax return filed by the taxpayer to determine eligibility and calculate the amount of the stimulus payments.

The IRS will begin sending taxpayers their payments in early May after the current tax season concludes. Payments to more than 130 million taxpayers will continue over several weeks during the spring and summer. A payment schedule for taxpayers will be announced in the near future.

Stimulus payments will be direct deposited for taxpayers selecting that option when filing their 2007 tax returns. Taxpayers who have already filed with direct deposit won't need to do anything else to receive the stimulus payment. For taxpayers who haven't filed their 2007 returns yet, the IRS reminds them that direct deposit is the fastest way to get both regular refunds and stimulus payments.

Most taxpayers just need to file a 2007 tax return as usual. No other action, extra form or call is necessary. This Web site will be the best information source for all updates and taxpayer questions.

In most cases, the payment will equal the amount of tax liability on the tax return, with a maximum amount of $600 for individuals ($1,200 for taxpayers who file a joint return).

The law also allows for payments for select taxpayers who have no tax liability, such as low-income workers or those who receive Social Security benefits or veterans’ disability compensation, pension or survivors’ benefits received from the Department of Veterans Affairs in 2007. These taxpayers will be eligible to receive a payment of $300 ($600 on a joint return) if they had at least $3,000 of qualifying income.

Qualifying income includes Social Security benefits, certain Railroad Retirement benefits, certain veterans’ benefits and earned income, such as income from wages, salaries, tips and self-employment. While these people may not be normally required to file a tax return because they do not meet the filing requirement, the IRS emphasizes they must file a 2007 return in order to receive a payment.

Recipients of Social Security, certain Railroad Retirement and certain veterans’ benefits should report their 2007 benefits on Line 14a of Form 1040A or Line 20a of Form 1040. Taxpayers who already have filed but failed to report these benefits can file an amended return by using Form 1040X. The IRS is working with the Social Security Administration and Department of Veterans Affairs to ensure that recipients are aware of this issue.

“Some people receiving Social Security and veterans’ benefits may not realize they will need to file a tax return to get the stimulus payment,” Stiff said. “To reach these people, the IRS and Treasury will work closely with the Department of Veterans Affairs, the Social Security Administration and key beneficiary groups on outreach efforts.”

Eligible taxpayers who qualify for a payment will receive an additional $300 for each child who qualifies for the child tax credit.

Payments to higher income taxpayers will be reduced by 5 percent of the amount of adjusted gross income above $75,000 for individuals and $150,000 for those filing jointly.

Taxpayers must have valid Social Security Numbers to qualify for the stimulus payment. If married filing jointly, both taxpayers must have a valid Social Security Number. And, children must have valid Social Security Numbers to be eligible as qualifying children.

Taxpayers who file their tax returns using an Individual Taxpayer Identification Number issued by the IRS or any number issued by the IRS are ineligible. Also ineligible are individuals who can be claimed as dependents on someone else’s return, or taxpayers who file Form 1040-NR, 1040-PR or 1040-SS.

To accommodate taxpayers who file tax returns later in the year, the IRS will continue sending payments until December 31, 2008. The IRS also cautions taxpayers that if they file their 2007 tax return and then move their residence that they should file a change of address card with the U.S. Postal Service.

The IRS will mail two informational notices to taxpayers advising them of the stimulus payments. However, taxpayers should be alert for tax rebate scams such as telephone calls or e-mails claiming to be from the IRS and asking for sensitive financial information. The IRS will not call or e-mail taxpayers about these payments nor will it ask for financial information. Scam e-mails and information about scam calls should be forwarded to phishing@irs.gov.

Related Items:

FS-2008-15, Facts about the 2008 Stimulus Payments
FS-2008-16, Stimulus Payments: Instructions for Low-Income Workers and Recipients of Social Security and Certain Veterans’ Benefits
Tax forms and instructions

Got Debt? She's Got Answers

2008-01-04T12:28:00.000-05:00

With the first of the year here now is a great time to work on that debt. There is nothing like the feeling of being debt free and if you're like many, myself included, you've got tons of questions about how to get there.

Well, Kristine McKinley of Financial Tips for Wahms is conducting a free teleseminar to do answer your top get out of debt questions.

You can find more details, submit your questions for Kristine to answer on the call and get the call in information by clicking here.

I'll absolutely be there - maybe even with bells on!

Save on Payroll Taxes - Hire Your Children in Your Small Business

2007-12-12T07:20:00.000-05:00

Hiring your children in your business can be a great tax savings strategy, as well as a way to teach your children about business and money.

Wages paid to your children (between the ages 7 and 17) are a valid business deduction, as long as they do bona fide work, and they are compensated fairly.

Your children can earn up to the standard deduction amount before they will owe any income tax. Because you are getting a business deduction for the wages paid to your child, this is income that you also will not pay taxes on.

In addition, if your children are under age 18, you don't have to pay payroll taxes on them. This is a huge tax savings since you would have to pay these taxes on any other employee you hired.

Hiring your children does not raise a red flag with the IRS, but you should document your children's salary and services provided to audit-proof your tax return. To do this, keep a time sheet showing the date, hours and services provided by your children, and write them a check for their wages.

In addition, you will need to prepare and file a W-2 for your child at the end of the year. Your child may need to file a tax return as well.

You can learn more about hiring your children in your business by reading IRS Publication 15, Chapter 3, Family Employees.

Click here to learn more about how hiring your children in your own business can help minimize your tax bill.

Friday Funny for You!

2007-11-30T11:19:00.001-05:00

Looking for Outsourcing Help?

2007-11-02T16:28:00.000-04:00

I missed the chance to tell you last week about Alice Seba’s highly-informative training interview designed to help you reduce your business stress and to easily leverage the work of others in order to achieve more profit for yourself.

After the release of the interview, Alice received a number of questions and she’s graciously taken the time to answer them. I urge you to get a copy of that Q & A report now at:

Follow Up Outsourcing Q&A & Interview

And don’t worry, if you missed last week’s interview (sorry about that), you can still get access to it at the same link. There's no charge, no sign up required, nothing to obligate yourself to at all.

In the follow up Q&A she even addresses some questions regarding tax treatment of your assistants, so you'll definitely want to check those parts out.

One last thing, I highly recommend you save both the interview and questions to your computer, including the transcripts to the audio from last week. I'm learning so much from these freebies that Alice has been sweetie enough to create and I know you will too!

New Email Scam Alert From the IRS

2007-11-02T14:16:00.000-04:00

Just got this in my email from the IRS and thought I'd pass it on.

BEGIN EMAIL
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IRS Warns of E-mail Scam Soliciting Donations to California Wildfire Victims

WASHINGTON — The Internal Revenue Service today warned taxpayers to be on the lookout for a new e-mail scam that appears to be a solicitation from the IRS and the U.S. government for charitable contributions to victims of the recent Southern California wildfires.

In an effort to appear legitimate, the bogus e-mails include text from an actual speech about the wildfires by a member of the California Assembly.

The scam e-mail urges recipients to click on a link, which then opens what appears to be the IRS Web site but which is, in fact, a fake. An item on the phony Web site urges donations and includes a link that opens a donation form which requests the recipient’s personal and financial information.

“People should exercise caution when they receive unsolicited e-mail or e-mail from senders they don’t know,” said Richard Spires, IRS Deputy Commissioner for Operations Support. “They should avoid opening any attachments or clicking on any links until they can verify the e-mail’s legitimacy.”

The bogus e-mails appear to be a “phishing” scheme, in which recipients are tricked into providing personal and financial information that can be used to gain access to and steal the e-mail recipient’s assets.

The IRS also believes that clicking on the link downloads malware, or malicious software, onto the recipient’s computer. The malware will steal passwords and other account information it finds on the victim's computer system and send them to the scamster.

Generally, scamsters use the data they fraudulently obtain to empty the recipient’s bank accounts, run up charges on the victim’s existing credit cards, apply for new loans, credit cards, services or benefits in the victim’s name or even file fraudulent tax returns to obtain refunds rightfully belonging to the victim.

The IRS does not send e-mails soliciting charitable donations. As a rule, the IRS does not send unsolicited e-mails or ask for personal and financial information via e-mail. The IRS never asks people for the PIN numbers, passwords or similar secret access information for their credit card, bank or other financial accounts.

Recipients of the scam e-mail who clicked on any of the links should have their computers checked for malicious software and should monitor their financial accounts for suspicious activity, taking measures to prevent unauthorized access as necessary. Any unauthorized activity should be reported to law enforcement authorities and to the three major credit companies. More information on how to handle actual or potential identity theft may be found in IRS Publication 4535, Identity Theft Protection and Victim Assistance, available on the IRS Web site. Information is also available on the Federal Trade Commission’s identity theft Web site.

Recipients of the scam e-mail can help the IRS shut down this scheme by forwarding the e-mail to an electronic mail box, phishing@irs.gov, using instructions found in “How to Protect Yourself from Suspicious E-Mails or Phishing Schemes” on this site. This mail box was established to receive copies of possibly fraudulent e-mails involving misuse of the IRS name, logo or Web site for investigation.

The IRS and the Treasury Inspector General for Tax Administration (TIGTA) work with the U.S. Computer Emergency Readiness Team (US-CERT) and various Internet service providers and international CERT teams to have the phishing sites taken offline as soon as they are reported.

Since the establishment of the mail box last year, the IRS has received more than 30,000 e-mails from taxpayers reporting almost 600 separate phishing incidents. To date, investigations by TIGTA have identified almost 900 host sites in at least 55 different countries, as well as in the United States.

Recipients of questionable e-mails claiming to come from the IRS may also call TIGTA’s toll-free hotline at 1-800-366-4484.

The IRS has come across numerous schemes in which e-mails claim to come from the IRS. More information on these schemes may be found on the genuine IRS Web site, IRS.gov, by entering the term phishing in the search box.

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END EMAIL

Making It a Bit Easier for Direct Sellers Tax Issues

2007-11-02T05:47:00.000-04:00

I just received notice that the IRS has issued this tips sheet for direct sellers in an effort to make it easier for them to understand some of the tax rules that affect their business.

If you're a direct seller, check out the Fact Sheet for Direct Sellers to help minimize the gap a bit.

As always, if you have any questions you'd like me to answer further regarding your direct selling business, be sure to leave them in the comments section of this post.

Are They Employees or Independent Contractors?

2007-10-29T17:33:00.000-04:00

Many work at home individuals hire help in their business. I myself outsource work to people as well as have work from other work at home business owners outsourced to me.

Because of this, the question is raised (quite often) as to whether someone who does work for someone else is considered an employee or an independent contractor (IC). The IRS has very strict guidelines as to what each category includes and doesn't include.

If you're wondering whether you are an employee or IC for someone you work for.

OR...

If you outsource work to others or are thinking about starting, you'll need to know which is the correct classification for those who work for you.

Whether you fall into one, or both, of these categories you'll want to check out Tax Talk Today's webcast on November 6th from 2pm to 3pm EST. A panel of experts will be discussing the issue of proper classification of employees and independent contractors.

The webcast is free as are all the Tax Talk episodes. To register for this and future as well as archived webcasts, click here.

Why Do I Blog? Guess I Need To Start Hu?

2007-02-23T15:58:00.000-05:00

Nicole Dean must think I'm a bit of a slacker on my blog because she tagged me and wants to know Why I Blog? Considering I haven't blogged in awhile here you guys just might be saying "Why ask her, she doesn't!" :)

But, here is the main reason I blog (on this one anyway).

I blog to help other self employed/work at home parents with the one area of their business that seems to be the hardest and most frustrating for them. If I can make it easier for atleast one person, then my blogging is worth it.

Now, it's my turn to tag a few people.

Darina Loakman
Mila Sidman
Aurelia Williams
Kristine McKinley

Accounting Web Article: Work/Life Balance

2007-01-17T08:52:00.000-05:00

I received this article today that I couldn't help but read. Being a work at home mom, I understand the work/family balancing act. It's a tough one and I definitely DO NOT miss doing it when I worked outside the home.

After reading the article, I couldn't help but say to myself (and my 16 month old sitting next to me playing)those companies should allow their workers to telecommute! ;)

Check out the article here -->
Happy With Your Work/Life Balance?

How do you deal with the juggling act?

E-file Available for Partnerships

2007-01-10T06:21:00.000-05:00

The IRS announced Monday that partnerships can now file their tax returns electronically! Here's the release from the IRS with a link to more information for those wishing to e-file their partnership tax returns this year.

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Modernized e-File Available for Partnership Returns

IR-2007-02, Jan. 8, 2007

WASHINGTON — Beginning today, partnership taxpayers can electronically file tax year 2006 Form 1065, U.S. Return of Partnership Income, and Form 1065-B, U.S. Return of Income for Electing Large Partnerships, using the Modernized e-File platform.

“Electronic filing is a key component to modernizing our tax system,” IRS Commissioner Mark W. Everson said. “E-File improves the speed and accuracy of tax return filing, and we encourage partnership taxpayers to take advantage of this enhanced system.”

Since tax year 1986, the IRS has offered electronic filing of Form 1065. The existing 1065 e-File platform uses a proprietary data transmission format. However, the Modernized e-File platform uses the Extensible Markup Language (XML) format, which is an industry-standard method of identifying, storing and transmitting data. Both e-File platforms offer improved speed and accuracy of tax return filing. But Modernized e-File offers additional benefits, including transactional processing instead of batch processing, allowance for binary file attachments, elimination of the duplicate filing of International returns and a federal/state partnership program.

The IRS anticipates more than 400,000 partnerships will e-File in 2007. Most of those partnerships are not mandated to e-File but are encouraged to do so for the e-Filing benefits.

For tax year 2006, partnerships have the option to e-File Form 1065 through the Modernized e-File system or the existing 1065 e-File system. However, e-File for Form 1065-B is available solely through Modernized e-File. Partnership taxpayers should talk with their software provider or transmitter to determine which e-File platform to use. Beginning in January 2008, Modernized e-File will be the only e-File platform available to e-File partnership returns. At that time, the IRS will also require e-File for all 1065-B returns.

Partnership taxpayers can access detailed information about the Form 1065 e-File process by clicking on the "Modernized e-File for Partnerships" link below.

For more information regarding e-filing for partnerships click here.

Teaching Your Children the Value of a Dollar

2007-01-05T07:20:00.000-05:00

Many work at home parents have dreams of their children one day knowing the freedom of owning their own business. I myself have them. I would love to teach my boys the benefits of controlling their own financial future.

One of the best things we can do for our children is teaching them to be financially aware and I've found an article for you that talks about just that. Teaching our children the value of a buck can only help them and I say the sooner you teach them the better.

Check out the article here: http://www.internetbasedkids.com/financially-aware-kids.html

WAHMs Belting Carols for a Cause

2006-12-17T18:42:00.000-05:00

Christmas is the season for carols, fun and giving. How would you like to hear your fellow work at home moms sing your favorite Christmas carol?

This is a UNIQUE Christmas Fundraiser inspired by the 12 Days of Christmas. This fundraiser will run only for 12 days beginning on December 13 and ending on December 25, 2006. All proceeds of this fundraiser will be donated to the Susan Komen Breast Cancer Foundation.

To listen to the carols and to donate - please visit Carol for a Cause 2006

Once your donation is received, you will be directed to a page where you can access the "carols". As a Thank You for your donation, you will also have access to awesome resources and e-books like:

- Traditional Christmas Carols
- Holiday Stress Ebook
- Creating a Magical Family Christmas
and some business resource ebooks too like Viral Marketing Values, Computer Basics for Beginners and Word Processing Basics ...

Carol for a Cause 2006 can be found here ->
http://www.mommycommunity.com/go/CarolforaCause

Best States for Business

2006-12-07T10:58:00.000-05:00

Forbes.com conducted a poll to find out how the 50 states ranked as far as business is concerned. The Best States for Business 2006 lists each state based on the following categories:

* Business costs
* Economic climate
* Growth prospects
* Labor
* Quality of life
* Regulatory environment

Here are the top 3 for 2006:
1. Virginia (I must agree it is a wonderful state to operate a business in)
2. Texas
3. North Carolina

Find out where your state ranks on the Best for Business list.

More Information on the Telephone Tax Refund

2006-12-02T15:34:00.000-05:00

Back in May, the IRS announced that individuals, businesses and tax-exempt organizations who paid the long-distance telephone excise tax after February 28, 2003 can receive a refund on their 2006 federal income tax returns.

Businesses (yes, sole proprietorships are included) and Tax Exempt Organizations now have an easier way to figure their long distance tax amounts. Rather than gathering and going through over 3 years of telephone bills, the IRS has decided to allow businesses and tax exempt organizations to estimate their refund amount.

Businesses & tax exempts can find the formula to use, as well as complete details regarding the refund here:
Telephone Tax Refund: Q&A for Businesses & Tax Exempts

In case there are individuals reading who do not own a business, you can find more information here for your refund:
Individual Telephone Tax Refund Information

Blog Party: I've been tagged

2006-12-01T06:44:00.000-05:00

Mila Sidman has invited me to paaartay!

There's a blog party going around and she got me and here are the rules:

It's the Come As You Are Blog Party. You have to take a picture of yourself AS YOU ARE RIGHT NOW, at this very moment. Put that picture on your blog and explain why you look the way you do in the picture. Then, tag 4 others to come join the fun! ;)

I was in the middle of working my tail off when I took this picture so I'm surprised I could even form a smile! You guys are lucky, Mila tagged me yesterday and I thought I looked bad then, well Jen Houck tagged me this morning on my VA Blog and I look worse this morning! LOL Atleast in this picture I got dressed and had brushed my teeth! :)

Ok, here's the lucky 4 I'm tagging:

Aurelia Williams
Rona Berry-Morin
Jenn Anthony
Melissa Baughman

Important Information for Homeschoolers Re: Educator's Expense Deduction

2006-11-27T16:16:00.000-05:00

If you are a homeschooling parent and are considering taking the Educator's Deduction on your income taxes this year you need to read this.
Do homeschool teachers get the Educators Expense deduction?

Thanks to the Homeschool CPA for posting about this and clearing some things up.

Filing a Tax Return for Deceased Relative

2006-11-20T21:16:00.000-05:00

Here's what the IRS has to say about filing a final tax return for an individual who has passed on. I'm searching for some more specific information and will post it as soon as I have some.

Topic 356 - Decedents

A personal representative (fiduciary) is responsible for filing certain tax returns for a person who has died, and for the decedent's estate. The personal representative may be required to file the final income tax return of the decedent and any returns not filed for preceding years, the income tax return for the estate, and the estate tax return.

The filing requirements that apply to individuals will determine if a final income tax return is required for the decedent. Refer to Topic 351, Who Must File?, for additional information.

Whether income must be included or deductions may be taken on the final return is determined by the method of accounting used by the decedent. Most individuals use the cash method. Under this method, the final return should show only the items of income the decedent actually received, that were credited to his account, or that were made available to him without restriction before death. Generally, expenses the decedent paid before death should be deducted on the final return. If the decedent used the accrual method, refer to Publication 559, Survivors, Executors, and Administrators, and Publication 538, Accounting Periods and Methods, for further information.

The final return should have the word "Deceased," the decedent's name, and the date of death written across the top of the return. Generally, the person who is filing a return for a decedent and claiming a refund must file Form 1310 (PDF) , Statement of Person Claiming Refund Due a Deceased Taxpayer, with the return. However, if you are a surviving spouse filing a joint return, or a court appointed or certified personal representative filing an original return for the decedent, you do not have to file Form 1310. Personal representatives must attach to the return a copy of the court certificate showing the appointment.

If a personal representative has been appointed, that person must sign the return. If it is a joint return, the surviving spouse also must sign it. If you are a surviving spouse filing a joint return and no personal representative has been appointed, you should sign the return and write in the signature area, "Filing as surviving spouse." If no personal representative has been appointed and there is no surviving spouse, the person in charge of the decedent's property must file and sign the return as "personal representative."

Please refer to the Form 1041 Instructions to determine if a Form 1041 (PDF), U.S. Income Tax Return for Estates and Trusts, is required to be filed.

You may have to file Form 706 (PDF), United States Estate (and Generation Skipping Transfer) Tax Return. Please refer to the Form 706 Instructions to determine if a Form 706 is required to be filed.

Know What Your Tax Preparer is Really Doing?

2006-10-20T06:38:00.000-04:00

When you hire someone to prepare your taxes, how much do you know about what they are doing with it? Do you review your return with them before they file it? Do you receive some sort of confirmation that your return was actually submitted to the IRS by them?

All too often people despise doing their taxes so much, they just hand over everything to a tax preparer and leave it at that. I don't recommend you do it that way. Yes, once you find a honest and credible preparer that has been doing your returns correctly for a few years, it may be possible to let the reins go a bit, but never to the point that they do it all. It's just smart business to know what's going on with your income tax returns, not to mention, it could keep you out of some very HOT water.

I always suggest that you prepare your taxes atleast once. One of the reasons, is because you are ultimately responsible for them. If you have no idea how or what is supposed to be done, how are you going to know if your tax preparer is doing it right, or at all for that matter?

I received this article from accountingweb.com this morning in my inbox. 3 tax preparers have been sentenced to jail time for evading not only their own taxes, but a client's as well.

Dishonest Tax Preparers Get Jail Time

Taxes Affected by Another Natural Disaster.

2006-10-18T16:52:00.000-04:00

I just received this bulletin in my email and wanted to pass it on for those of you who were affected by the recent hurricane in Hawaii!

Here's the link: Limited Tax Relief for Victims of Hawaii Hurricane

Where you affected by the snow storms in New York?

2006-10-17T16:35:00.000-04:00

If you were affected by the sudden (and quite early) snowstorms in New York last week, you may want to read this.

Do you live in Erie, Genesee, Niagara or Orleans county, New York? If so and you were supposed to file your individual tax return extension, excise or employment taxes last week but couldn't due to the snowstorm, this affects you.
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Issue Number: IR-2006-160

IRS Grants Limited Tax Relief for Victims of Snowstorm in New York

WASHINGTON — The Internal Revenue Service today announced limited tax relief for taxpayers in four New York counties that were struck by snowstorms beginning Oct. 12, 2006.

Because of the suddenness of the storm, the resulting power outages and the fact that the storm is impacting these counties at a crucial filing deadline when individual income tax returns on extension are due, the IRS is granted certain limited tax relief.

The four New York counties are: Erie, Genesee, Niagara and Orleans.

Deadlines for affected taxpayers to file returns, pay taxes and perform other time-sensitive acts falling on or after Oct. 12, 2006, and on or before Oct. 23, 2006, have been postponed to Oct. 23, 2006.

In addition, the IRS will waive the failure to deposit penalty for employment and excise deposits due on or after Oct. 12, 2006, and on or before Oct. 23, 2006, as long as the deposits were made by Oct. 23, 2006. If any affected taxpayer receives a penalty notice from the IRS, the taxpayer should call the number on the notice to have the IRS abate any interest and any late filing or late payment penalties that would otherwise apply during the period from Oct. 12, 2006 to Oct. 23, 2006. No penalty or interest will be abated for taxpayers that do not have a filing, payment or deposit due date (including an extended filing or payment due date) during this period.

Affected taxpayers will need to identify themselves to the IRS as victims by writing (“Snow Storms -- NY”) in red ink at the top of their tax forms or any other documents filed with the IRS. Taxpayers who file electronic returns may use this disaster designation if the tax preparation software contains a “disaster feature”.

Additional Details

The New York counties listed above constitute a covered disaster area for purposes of Treas. Reg. § 301.7508A-1(d)(2) and are entitled to the relief detailed below.

Affected Taxpayers

Taxpayers considered to be affected taxpayers eligible for the postponement of time to file returns, pay taxes, and perform other time-sensitive acts are those taxpayers listed in Treas. Reg. § 301.7508A-1(d)(1), and include individuals who live, and businesses whose principal place of business is located, in the covered disaster area. Taxpayers not in the covered disaster area, but whose books, records, or tax professionals’ offices are in the covered disaster area, are also entitled to relief. In addition, all relief workers affiliated with a recognized government or philanthropic organization assisting in the relief activities in the covered disaster area are eligible for relief.

Grant of Relief

Under sections 6081, 6161, and 7508A, the IRS gives affected taxpayers until Oct. 23, 2006, to file most tax returns (including individual, corporate, and estate and trust income tax returns; partnership returns, S corporation returns, and trust returns; estate, gift, and generation-skipping transfer tax returns; and employment and certain excise tax returns), or to make tax payments, including estimated tax payments, that have either an original or extended due date falling on or after Oct. 12, 2006, and on or before Oct. 23, 2006.

The IRS also gives affected taxpayers until Oct. 23, 2006, to perform other time-sensitive actions described in Treas. Reg. § 301.7508A-1(c)(1) and Rev. Proc. 2005-27, 2005-20 I.R.B. 1050, that are due to be performed on or after Oct. 12, 2006, and on or before Oct. 23, 2006. This relief includes the filing of Form 5500 series returns, in the manner described in section 8 of Rev. Proc. 2005-27. The relief described in section 17 of Rev. Proc. 2005-27, pertaining to like-kind exchanges of property, also applies to certain taxpayers who are not otherwise affected taxpayers and may include acts required to be performed before or after the period above.

The postponement of time to file and pay does not apply to information returns in the W-2, 1098, 1099 or 5498 series, or to Forms 1042-S or 8027. Penalties for failure to timely file information returns can be waived under existing procedures for reasonable cause. Likewise, the postponement does not apply to employment and excise tax deposits. The IRS, however, will abate penalties for failure to make timely employment and excise deposits, due on or after Oct. 12, 2006, and on or before Oct. 23, 2006, provided the taxpayer made these deposits by Oct. 23, 2006.

To qualify for this relief, affected taxpayers should put the assigned Disaster Designation in red ink at the top of the return, except for Form 5500, where filers should check Box D in Part 1 and attach a statement, following the form’s instructions. Individuals or businesses located in the disaster area — or taxpayers outside the area that were directly affected by this disaster — should contact the IRS if they receive penalties for filing returns or paying taxes late.

Casualty Losses

Affected taxpayers in a Presidential Disaster Area have the option of claiming disaster-related casualty losses on their federal income tax return for either this year or last year. Claiming the loss on an original or amended return for last year will get the taxpayer an earlier refund, but waiting to claim the loss on this year’s return could result in a greater tax saving, depending on other income factors.

Individuals may deduct personal property losses that are not covered by insurance or other reimbursements, but they must first subtract $100 for each casualty event and then subtract ten percent of their adjusted gross income from their total casualty losses for the year. For details on figuring a casualty loss deduction, see IRS Publication 547, Casualties, Disasters and Thefts.

Affected taxpayers claiming the disaster loss on last year’s return should put the Disaster Designation in red ink at the top of the form so that the IRS can expedite the processing of the refund.

Other Relief

The IRS will waive the usual fees and expedite requests for copies of previously filed tax returns for affected taxpayers who need them to apply for benefits or to file amended returns claiming casualty losses. Such taxpayers should put the assigned Disaster Designation in red ink at the top of Form 4506, Request for Copy of Tax Return, or Form 4506-T, Request for Transcript of Tax Return, as appropriate, and submit it to the IRS.

Affected taxpayers who are contacted by the IRS on a collection or examination matter should explain how the disaster impacts them so that the IRS can provide appropriate consideration to their case.

Taxpayers may download forms and publications from this Web site or may order them by calling 1-800-TAX-FORM (1-800-829-3676). The IRS toll-free number for general tax questions is 1-800-829-1040.

Related Item:

Tax Relief in Disaster Situations

Bookkeeping Software Review

2006-09-19T10:28:00.000-04:00

I've had many people ask me to recommend a good, low cost alternative to the 'big dog' bookkeeping software. I've found the one I think is perfect for work at home moms and dads and did a review of it.

It's the most user friendly bookkeeping software I've seen in a while and even better, it's FREE!

Have a look at the review HERE for more information and then check it out.

If you try it out, let me know what you think. I would love to hear some feedback from other work at home parents who don't work with numbers as a career!

Long Distance Tax Refund May Be Yours

2006-09-06T06:21:00.000-04:00

If you paid the long distance telephone tax on your home, cell, or VoIP telephone between February 28, 2003 and August 1, 2006 you may be eligible for a refund on your income taxes this year.

The refund is based on the number of exemptions and actual phone usage and ranges from $30-$60. The best part, it's only one extra line to fill out on your tax return and you don't have to dig through your 3+ years of phone bills to figure the amount!

Click here for an article with more information. You can also visit the IRS website for more details.

IRS Outlines Taxpayer Protections in Private Debt Collection Program

2006-08-23T15:41:00.000-04:00

The Internal Revenue Service released legal guidance today outlining the protections in place for the new private debt collection program.

http://www.irs.gov/newsroom/article/0,,id=161300,00.html

Paying Quarterly Income Taxes

2006-08-22T08:51:00.000-04:00

Here in the last few weeks I have been asked about paying quarterly taxes on your work at home income quite a bit. So, I thought I would throw together a quick tidbit of information regarding this.

Hope it helps and as always, let me know if you have any questions!

The Low Down on Self Employed Quaterly Taxes

Do I Have to Pay My Taxes Quarterly?

If you had a tax liability for the prior year, you may have to pay estimated tax for 2006. The general rule is that you are required to pay your income taxes quarterly if both of these apply.

1. You expect to owe at least $1000 in tax; after subtracting your withholding and credits.
2. You expect your withholding and credits to be less than the smaller of;
o 90% of the tax to be shown on your current tax return, or
o 100% of the taxes shown on your previous year’s tax return. Your previous year tax return must cover all 12 months.

If you are employed in a job that pays you a salary or wages (you have taxes taken out of this pay), you can avoid having to pay estimated tax by asking your employer to take more tax out of your earnings. To do this, file a new Form W-4 with your employer. You must be sure that you are taking enough out to cover your estimated tax amount each quarter.

You are not required to pay estimated tax if you meet all of the following conditions.
1. You have no tax liability for the previous year
2. You were a US citizen or resident for the whole year
3. Your previous tax year covered a 12 month period

So, how do you know if you have tax liability or not? If you had zero tax due or did not need to file a tax return then last year, then you do not have tax liability.

How Do I Determine How Much I Owe?

To figure the amount of your estimated tax, you must figure your expected adjusted gross income, taxable income, taxes, deductions, and credits for the year.
When figuring your estimated tax, you will find it helpful to use your income, deductions, and credits for the previous year as a starting point. Use last year’s tax return as a guide. Use Form 1040-ES to figure your actual estimated tax based on the .

Remember to take into consideration any changes in your own situation. Here are a few things that could affect your estimated tax amounts:

1. Income Increase or Decrease
2. The addition or subtraction of dependents. Did you give birth to a child this year?
3. Marriage or Divorce

Also, don’t forget to check any tax law changes that may have occurred since last year.

I suggest that everyone file the old fashioned way, by hand, the first time so that you get the feel of what the amounts are and how the tax is calculated. After that, you can use your choice of software that computes your tax amount for you.

When Do I Make Payments?

The year is divided into four payment periods for estimated taxes. Keep in mind that if you do not pay enough tax by the due date, you may be charged a penalty. This is the case even if you are due a refund when you file your income tax return. The list below shows the periods and the due dates for income received during that specific period. These dates are for the tax year 2006!

For the months of: Jan 1- March 31
Pay Taxes Due by: April 17

For the months of: April 1-May 31
Pay Taxes Due by: June 15

For the months of:June 1-August 31
Pay Taxes Due by: September 15

For the months of: September 1-December 31
Pay Taxes Due by: January 16 the next year

Telecommuting: On the Road

2006-08-07T11:12:00.000-04:00

Ever wonder how traveling and a job could work? Check this out!

http://www.telecommutingmoms.com/bb/viewtopic.php?t=1332

Cross-Border Tax Scheme

2006-08-03T13:39:00.000-04:00

Uh Oh!

IRS newsletter just released this:

IRS, Canada Revenue Agency Unravel Cross-Border Tax Scheme

Record Retention

2006-07-05T09:13:00.000-04:00

Ever wonder how long you should keep your records for your business/work at home job? This article gives you a few ideas.

How Long Should I Keep It?

Do you have a question about a specific document that you aren't sure how long you need to keep it in the filing cabinet? Ask in the comments section and I will let you know.

OMG It's been that long?

2006-07-04T23:14:00.000-04:00

I haven't posted in over a month to this blog. OH MY!! I need to put this back up on my priority list. BAD BAD Arika!

I promise to do better everyone...starting tomorrow I will post at a minimum of once per week!

Give me my lashings in the comments section. ;)

Want help with those gas prices?

2006-05-30T15:19:00.000-04:00

Then telecommute!

Check out this article from Pamela! http://www.teleworkrecruiting.com/gas.html

Just one more reason it's good to be a telecommuting mom!

Save the Internet

2006-05-30T12:31:00.000-04:00

The whole internet is at stake. The big communication companies are wanting to restrict and/or block access to websites depending on what the website owners can afford to pay them. Therefore, we may no longer be able to control what we see on the internet.

That means that small businesses like mine and even telecommuters could be bye bye because we won't be able to pay the "toll" like the big corporations therefore our business will be gone! This is absolutely awful for economy and in the long run for the technology advances we have worked so hard for. This will, in my opinion, knock us back so many years it's not even funny!

Please Save the Internet by clicking the link and signing the petition. If you work at home, own a small business, or know someone who does this could be passed and in affect by the end of this year if we don't do something about it, so please help those of us who don't have big money backing us up and are just wanting to stay home and take care of our families without giving up the income we need!

Go here to see what this is all about more indepth as well as sign the petition to stop this from happening. The cool thing about this petition is that the site sends your letter right to your states lawmakers.

Please, I'm begging you to get involved and help me and so many others keep our businesses and stay home with our families that need us. Don't let the internet become someone else's property. When you go online you want what YOU want, not what the big C wants you to see! Keep the internet OURS!!

Enter to Win an HP Computer System plus $500 at ClubMom.

Telecommuting Home Office Setup Tips

2006-05-04T13:38:00.000-04:00

Are you new to telecommuting and just getting your home office set up and ready to go? The following article will give you tips on how to pinch the pennies to get started without breaking your bank!

10 Ways to Set Up a Home Office without Blowing your Budget

1. Look for rebates on basic office supplies. Check sales circulars for special offers and rebates on items you will use all the time.

2. Sign up for customer loyalty programs at office supply stores. Many offer bonus points for initial purchases, and you will receive specials and coupons because you are a member.

3. Ask friends and family if they have any desks, chairs, bookcases, etc. they are replacing- tell them you will be glad to take any items they don’t want. This can get your office furnished as you are starting out.

4. Garage sales can yield very inexpensive items such as bulletin boards, file boxes, desk organizers, and storage crates.

5. Search the internet for low cost business cards and promotional items. Vista Print is a popular choice offering free business cards- you pay only shipping. www.vistaprint.com

6. Online auction sites are great resources for deals on items such as shipping supplies and ink cartridges.

7. Sign up for a 6 month no interest credit card to get you started with inventory and supplies- just make sure you have a plan in place to pay off the balance in full before the no interest period ends.

8. Check with different banks and credit unions to see which offers the best deal for checking accounts and various banking services.

9. Don’t overlook the obvious- dollar stores are great resources for pens, pencils, notepads and calendars.

10. Search for websites offering free or low cost advertising to get your company name out there.

Remember, as your business grows, so will your budget! You can always upgrade furnishings later. Focus first on keeping your space functional and organized so that looking for things doesn't take time away from the most important task in building your business- working on income producing activities.

Paige Pate Hall is an Independent Consultant for Azante Jewelry.

Handcrafted Jewelry Made with Gifts from the Earth!

Telecommuting Tax Twist

2006-04-11T14:22:00.000-04:00

Hello Everyone!

Just a quick note to alert everyone to the new title of my blog: Mom's Gone Virtual's Telecommuting Taxes. I am in the process of re-working a few things and this is the first step...to dedicate this site to telecommuting tax tips and resources.

The web address hasn't changed, it's still www.momsgonevirtual.blogspot.com. The content will now be specifically geared toward the telecommuter and work at home individuals.

Until next time....leave me a comment and let me know what you think!

Later Days!

A Reader Article Link

2006-04-08T09:12:00.000-04:00

One of my readers posted a link in a comment regarding the Home Office Deduction that may be of interest to some of you! Since I know that not all my readers look at the comments I will post the link here for you.
Home Office Deduction Link

Thank you Sarah for helping to make things a bit easier on everyone and for being a devoted reader!

Have a great weekend everyone!

Form 1099-MISC Information

2006-04-07T12:27:00.000-04:00

Tax season is in full swing so I thought I would take the time to answer some common questions concerning independent contractors, telecommuters and 1099 forms. Here are a few that I have received in the past concerning what these forms are and what to do with them.

I am an independent contractor who works from home (telecommuter). The company I contract with sent me Form 1099-MISC. What is this and what do I do with it?

Similar to the W-2 form employees receive, the 1099-MISC is an informational form that a company sends to the IRS to report the payments they have made to their independent contractors in the last year. As an IC, you do not have taxes taken out of your payments like an employee would, therefore requiring a different form than a normal employee.

You use this form to report income on your tax returns. You should receive a 1099-MISC from each company you contracted with and received more than $600 in payments.

I was an IC for a company and made $400 this year. Will I receive a 1099?

You may or may not receive a 1099 from a company if you made less than $600. Some companies will send all of their independent contractors a 1099, no matter what amount of money they are paid. However, they are not required to send one unless the person made $600 or more.

I made $1,000 with a company that I was an independent contractor for but have not received a 1099 from them? What should I do?

Companies have until January 31st to have their tax forms postmarked. If it nears the 31st, be patient. Chances are they are on their way to your mailbox. Keep in mind that this is the date which they need to be postmarked by, not received by. If the middle of February arrives and you still have not received the form give the company a call and inquire about if and when they mailed the form. If you have no luck with the company you can always contact the IRS for further help.

You can go ahead and file your return without the forms, but you must report the income you received from the company.

Where do I report the income on my 1099-MISC forms on my tax return?

You should figure your total earnings, before expenses, as an independent contractor and report it on Schedule C: Profit or Loss from Business, line 1 (gross receipts or sales).

I am a Virtual Assistant and have contracted a few projects out to someone. Do I need to report these payments to the IRS? Is there anything that I need to send to the IC regarding these payments?

If you have paid $600 or more to one IC, then you must send them a form 1099-MISC stating the amount you paid them for the year. You also need to send a copy to the IRS.

If you paid the IC less than $600, you can write the amount off as an expense and do not have to send a 1099.

All telecommuters should keep in mind that even if a company does not send you a 1099, you are still responsible for reporting all income you received throughout the year. Detailed records of income received will make this process much easier if you do not receive a 1099 and it is always good to have a double check of your records too! I cannot stress enough just how important it is to keep accurate records as a telecommuter.

Document Security? Why?

2006-04-03T08:19:00.000-04:00

By D. David Dugan

Why should document security be so important to me? What exactly is it anyway? These are just a couple of questions you might have when someone mentions document security to you. With today’s technology, thieves are getting smarter and attacking both large and small businesses.

Where it used to only be financial institutions, security firms, and those working on government contracts that had to worry about document security, now it involves everyone. Even if you don’t own a company, document security is important to you as an individual.
Ever hear the phrase, “One man’s trash is another man’s treasure”? Well in today’s world, your trash is treasure to identity thieves, con men, corporate spies, forgers, blackmailers, and others. What you throw in the trash can get you ripped off.

Identity thieves today can find information on documents, bills, canceled checks, and other items that you throw away. Sometimes they use that information to apply for credit cards in your name and other times they can simply use technology to make a duplicate of the credit card you already have. Most stores don’t even check ID when taking a credit card, so once a duplicate is made, they are in business.

Con men need only to learn a little bit about you in order to cook up some scheme involving you. The personal information in your letters, bills, and other documents can give them all they need to con you into believing they are someone other than who they really are. The personal information they obtained from your documents enhances their story to make it believable.
Forgers enjoy the documents you throw away even more, since you probably signed some of them and they now have a copy of your signature. However, copying your signature is not the only definition of forgery. They can take canceled checks and make a new checkbook with all the proper numbers. They can forge other documents and do a lot more damage than you might think.

Corporations make big money. Not everyone who works for or runs a corporation can be trusted to be ethical, as we have seen with all the recent scandals involving big corporations. Some corporations use spies to learn what their competitors are up to. This is so common today, that some don’t even think it is unethical. They see it as a business necessity.

That means document security for your corporation is now a business necessity you have to take very seriously, if you haven’t already done so. Your competitors may not hesitate to obtain documents from your company in any way possible. They may use bribes, go through the trash, have the trash hauled to them directly, or simply sneak in and take them.

This is not just some stuff from a spy novel. Corporate spies get paid big money for the information they can get from the documents they can steal or “find”. You have to take document security seriously, especially where your plans will only be successful if kept secret until you can legally protect them. If it involves intellectual property, document security is even more important.

Don’t think this leaves you out if you only own a small business. If your ideas are patentable, copyrightable, or trademarkable, then your document security is important as well.
Even if you don’t plan to patent, copyright, or trademark anything, your financial document security is still very important. A thief knows as a small business owner, you probably don’t have very good security for your documents. Some thieves especially target small businesses because they are much easier targets.

Well, now that you know document security is important for various reasons, what do you do about it. How can you be sure you have a good plan for document security and document disposal?

There are several options for you, each depends on your specific circumstances. There are companies that are specifically in the business of document security for large and small businesses. They actually come to your business and do all the shredding and document disposal. This is one of the most convenient ways of being sure your documents are destroyed properly.

Is document disposal all I need to know about document security? The answer is no that is only the beginning. It all depends on what type of company you run.

Do you allow your employees to take sensitive documents home with them? Do you allow them to photocopy anything they want with no record of what they copied? If you are a financial institution, do you use new Pantograph methods for your documents? Many of the old Pantograph methods no longer stop today’s thieves from copying your sensitive financial documents.

There is a lot more to document security than just shredding documents and disposing of the material securely. I plan to address more of those methods in future articles about document security. In this article I just wanted you to see that everyone needs to take document security seriously.

D. David Dugan helps maintain a Spyware Security site at http://spyware.dugancom.com and recommends using All Star Shredding http://www.allstarshredding.com for your paper shredding, document destruction and on site document security needs.

Article Source: http://EzineArticles.com/?expert=D._David_Dugan

The Next Revolution in the Accounting Industry

2006-04-01T23:09:00.000-05:00

By Amir Morani

Every industry goes through its natural phases of transformation. As time goes, new technology becomes available, and new processes are developed. Internal and external factors contribute to the transformation process of all industries. Accounting industry is not an exception.

Only a few years ago very few accountants used software to prepare tax returns for their clients. Some even considered it a pride that they were smart enough to prepare tax returns without using software. Within a few short years, almost every accountant in the country uses some kind of tax preparation software to prepare tax returns. Now it is not a question of whether an accountant uses software to prepare tax returns, but of which software the accountant is using. Times have changed significantly in the accounting industry. Observant accountants may notice how fast things changed in their industry.

Unlike only a few years ago, it is almost unimaginable how any accounting practice could function and survive without computers and accounting software. There is probably not a single accounting practice in the country that operates without computers and software for tax and accounting. Only a few years ago, a large number of accountants did not consider computers or software as something that would be able to enter their industry. They thought nothing would replace their ability to prepare a tax return. They thought nothing could replace their ability to balance a trial balance and prepare financial statements out of it. Their denial has turned into widespread acceptance within a short time.

Accountants are now in a new phase of denial. This time they deny that it is ever possible for an accounting practice to operate without papers. They deny that it is ever going to be possible for accountants to operate without papers, period. There has been a lot of talk about paperless offices coming for years. Numerous articles have described how the world will change with paperless business operations. However, the predictions have not come true at the speed people were expecting. The topic lost its attraction over time. Thus, the denial of accountants that there could ever be a paperless office for them is justified.

The fact is that the paperless office is sneaking up on us. The technology that is required to convert business operations into paperless operations has become remarkably affordable. Small CPA practices can now go paperless with an investment of as little as $2,000, on their own. Times have changed significantly in this area but unfortunately, accountants are not noticing this trend.

The technology is available, affordable and quick. Yet there are thousands of accountants in the country, who are not even aware of this change coming in their industry. Just like it is unimaginable that an accounting practice could operate without computers and software today, within a few short years, it will be unimaginable that an accounting practice operates WITH PAPER.

The nature of this change is such that it could be devastating for many accounting practices. When accounting and tax software came about the process of adopting the change was not that difficult. You could go forward with a new way to operate very easily. You would purchase the software, train yourself and start using it, going forward.

Going paperless, however, is a culture change of a great magnitude. It brings about major changes in the way the offices work. It requires a major change in work flow processes. The conversion process also requires good planning and implementation. Conversion is not difficult but it does require special planning and attention. There is a significant revolution brewing in the accounting industry, unnoticed by many, which could damage and kill many small accounting practices, while make fortunes for others. It is the paperless revolution that could bury a few accountants under their own papers.

Amir Morani CPA CMA CFM MBA is the author of 10 Steps to A Paperless CPA Office – The Simplest Guide to Make Your Practice Paperless. Visit the blog at http://paperlessofficeforcpa.blogspot.com/
Article Source: http://EzineArticles.com/?expert=Amir_Morani

Home Office Deduction Information from the IRS

2006-03-28T10:16:00.000-05:00

I subscribe to the IRS Tax Tips and today they sent me this one about the Home Office Deduction.

Here's the link! If you are wondering whether you are eligible or just need more information take a look-see! Click Here

Just Do It...

2006-03-25T08:35:00.000-05:00

"Or atleast try!" That's what my son says about flips and jumps.

My son was jumping on his bed doing flips this afternoon while I was in the bathroom brushing my teeth. (Yes, every now and then I do let him jump on his bed! He's a boy and they will do it anyway, so why not!) His bedroom being right across the hallway from the bathroom he and I were talking back and forth. Here's part of the dialogue, without the gargling and spitting! LOL

Zach: "Moommy, come watch my new flip, the Triple X."
Mom: "Ok, just one second."
Zach (after doing his flip about 4 times): "Isn't that awesome mom? You know how I finally got it right?
Mom: "Yea that's great Zach, pretty cool. How did you get it right?"
Zach: "Well it's like anything else you want to do. You just do it....or atleast try. That's what everybody should do. If you want to do something like that or well, anything really, you just do it or atleast try! If you don't atleast try then you will never learn how to do anything. Who knows you just might like it and be good at it!"
Mom: "You are absolutely right!"

Isn't it funny how an 8 year old, without even knowing it, knows a secret to so many different things in life? I can immediately think of a 100 things that statement could apply to in life.

Taking the advice of my child, I finally Just Did It! I joined a wonderful group called Mom Masterminds. I've only just begun and there are so many resources for women entreprenuers there. The encouragement and helpfulness of all the other women in the group is awesome. Many of them have been there, done that and don't mind helping you along the way. The best part is, they don't just hand everything to you...they make you work for what you want.

If you are a woman in business you owe it to yourself to take a look and see if this is something for you. However, let me tell you this much, if you think it's sounds good don't put off joining! JUST DO IT! It's so worth it, I promise. Take the first step by checking out the Mom Masterminds 9 Day Free eCourse

Ok, off to work I go!

Work at Home Trend Growing

2006-03-14T07:18:00.000-05:00

Check out this article in the USA Today about work at home call center reps!
It rocks and it's true!

Cost-effective 'homesourcing' trend grows

Me Time...OH MY!

2006-03-11T20:31:00.000-05:00

Wow...I've got me time tonight! Jerry's playing cards, Zach is staying at a friends house and Hunter is sleeping!

Now, the question of the hour is...what am I to do with this free time? I could read, watch television, sleep, take a bubble bath, paint my toenails, oh the list goes on and on. What would you do if you were me? Any suggestions are welcome, because I would love to hear what other moms do with their free time. Leave me a comment or drop me an email...I wanna hear from you!

Now, to answer the question you are all dying to ask. Well, Arika, just what ARE you going to do?

I'm going to work on my VA business that's what. To start off I'm gathering all the questions I have received over the past few weeks and organizing them in a Word document and post to my site and if I still have time I am going to write my next article.

Speaking of articles: Have you checked out my articles at LadyPens? If not click on the pretty pink button to the left that says: FREE REPRINT ARTICLES BY ME! You will also find more articles by other awesome women. This is a wonderful resource that any female writer should consider using...and best of all...it's free and great publicity.

Ok, off to work. Yes, I really am excited about this evening!

Oh yeah, by the way...you can use my articles there if you would like as long as you keep the article completely in tact, including the resource box at the end and also keep all links active. Just send me an email to let me know you have used it and where so I can take a peak. Thanks ahead of time!

Arika out! :) Yep it's American Idol time again, can you tell? heeheehee

Child/Dependent Care Credit Question

2006-03-09T09:18:00.000-05:00

Don't have much time this morning, as my six month old woke up sooner than normal from his nap. I wanted to post a question I received yesterday regarding the Child Care Credit real quick though.

I opened an e-mail from a fellow WAHM with the following scenario wanting to know if she was eligible to claim the dependent care credit.

Kate is a work at home mom who runs a daycare in her home. Her husband works outside the home as an electrician. They pay for their child to attend preschool and Kate was curious if she was able to take the credit since she worked out of her home.

The answer is YES! As long as both parents have earned income, receipts for the payments, and the preschool setting was younger than kindergarten, she is eligible to claim the Dependent Care Credit for her preschool aged child.

Unfortunately, not all taxpayers' situation may not be as cut and dry as this one. As always check with the IRS for more detailed information. Information regarding the Child/Dependent Care Credit can be found here.

Tax Credits...You just might be eligible!

2006-03-06T07:41:00.000-05:00

Heylo everyone! Sorry about the absence. I've been a busy little bee with tax season and raising the boys! No place I'd rather be than busy with work and my babies!

Here's a link to some information regarding the Tax Credits available this year!
http://www.irs.gov/newsroom/article/0,,id=120665,00.html

Best of luck to everyone and please keep the questions coming! I'll post them here as well as respond to your email!

Until next time....Arika out! ;)

The IRS may have money for you!

2006-02-23T08:34:00.000-05:00

If you haven't filed a return for 2002, you may be due a refund and only have until April 17, 2006 to claim it.

Here's the link for more info: http://www.irs.gov/newsroom/article/0,,id=154625,00.html

I received my first question! YAY!

2006-02-16T09:04:00.000-05:00

I received my first question and compliment on my Arika Answers Post!

Before I answer I would like to thank the anonymous comment poster: Thank you for your question and especially the compliment.

Question: If you buy equipment such as a new computer (the old one wasn't fast enough) and fax machine for the sole purpose of being able to telecommute and/or keep your telecommuting position are those tax deductible? I don't plan on deducting my office on my taxes because it isn't used solely for business, so I'm wondering if I will be able to deduct the other items. Thanks, and keep up the good work!

Answer:

If you purchase the equipment and use it only for the purpose of your work as a telecommuter then yes, you can deduct 100% of the cost on your taxes.

If a percentage of its use is for personal purposes then only the percentage that is used for your telecommuting position/business is deductible as a business expense.

You would deduct these costs on Schedule C. Check with the IRS because you may have to depreciate some of the items, which means that you would take a certain amount of the total cost as a deduction over more than one year until the total cost is recouped.

Tax Tips for Home Buyers and Sellers in 2005

2006-02-02T14:54:00.000-05:00

By Mark Nash

Primary residence buyers and sellers understand the fundamental tax benefits of owning a home. Many though aren’t aware beyond the typical deductions of mortgage interest and real estate taxes what and when other home buying or selling expenses can be deducted. The second step in determining the timeline for claiming an expense is separating deductions that can be taken now or costs that must be deferred that are considered part of the basis of owning a home.

-Basis is the starting cost for figuring a gain or loss when you sell your home. This starting cost is also used to determine depreciation if you use part of your home for business. Basis must be fair market value. Certain costs can be added to your basis or subtracted, which are called adjustments. Increases to adjustments are: putting an addition on your home, paving a driveway or installing central air-conditioning. Decreases to adjustments are: Casualty loss not covered by insurance, payments received for an easement granted, or depreciation if home is used for business or rental.

If you sold a home in 2005 the first step in deciding which column a home buying or selling expense goes under is to take a good look at the RESPA or Real Estate Settlement Proceedures Act form you received at closing or escrow. Take your RESPA and other home buying or selling expenses that you feel might apply to an experienced tax accountant, so they can organize and separate deductions from costs and eliminate non-deductible items. Deferred costs that figure into the basis of a home benefit sellers in the tax year they sold. Some of the out of pocket costs incurred by buyers in the purchase of a home might have to be delayed, which can come as a surprise to buyers.

To claim deductions you must itemize on Schedule A form 1040 and under IRS rules if you itemize you can’t claim the standard deduction. To see more tax information for first-time homeowners pick up Internal Revenue Form 530 for 2005. Many deductions or costs have exceptions that you must meet to claim a deduction or cost basis expense. Here are some basic guidelines that buyers and sellers should be familiar with before entering a contract to purchase or sell a home.

Deductions
-Mortgage interest. Your main or a second home must secure mortgages.
-Late payment charges on a mortgage. Only deductible if it wasn’t for a specific service in connection with your loan.
-Mortgage prepayment penalties. Only deductible if it wasn’t for a specific service in connection with your loan.
-Real estate taxes. Property taxes actually paid in the tax year.
-Home improvement, mortgage and refinancing loan origination points. You must meet set guidelines or spread costs over life of the mortgage.

Costs
-Transfer taxes. State, county or local. Charges you paid charged by governments when a home is bought or sold.
-Owner’s title insurance.
-Recording fees. Fees charge by governments to have mortgages, satisfactions, deeds and other legal documents registered into databases.
-Legal and Abstract fees.
-Property surveys.
-Real estate brokerage commissions.
-Local assessments that increase the value of your property. New sidewalks, streets, sewer and water systems are costs.
-Special homeowners association condominium assessments that cover capital improvements such as a new roof, not roof repairs.
-Charges for installing utility services for new construction.

Don’t plan on taking as a cost or deduction.
-Mortgage principal payments.
-Mortgage insurance premiums.
-FHA and VA funding fees.
-Credit report fees.
-Loan application fees.
-Loan assumption fees.
-Notary fees.
-Mortgage note preparation costs.
-Appraisal fees by mortgage lender.
-Home inspections.
-Moving costs. Unless you relocated to a new job, restrictions apply.
-Cleaning costs when moving in or out of a home.
-Condominium homeowner association assessments.
-Condominium homeowner association application, move-in and move-out fees.
-Rent for occupancy before closing.
-Homeowner’s insurance premiums.
-Wages for household help.
-Depreciation.
-Contributions to a tax escrow accounts that were not paid to a taxing authority.
-The cost of cable-TV, electricity, gas, telephone or water.
-Charges for services such as trash collection or periodic service charges for lawn mowing or snow shoveling when in violation of local ordinances.
-Repairs. An expense that keeps your home in ordinary and efficient operating condition such as fixing gutters leaks, broken windows and cracked drywall.
-Gifts to buyers or sellers such as flowers, gift baskets or entertainment.
-Your own labor for an improvement. An improvement is based on the actual costs of material labor except your own.

Cooperatives offer many tax benefits for homeowners, but they do have special tax rules. Consult a qualified tax accountant who specializes in cooperatives.

The IRS requires that you keep records that affect the basis cost and deductions until the limitations for income tax returns expires, typically a set period of time after you sell your home.

Mark Nash's fourth real estate book, "1001 Tips for Buying and Selling a Home" (2005), and working as a real estate broker in Chicago are the foundation for his consumer-centric real estate perspective which has been featured on ABC-TV,CBS The Early Show, Bloomberg TV, CNN-TV, Chicago Sun Times & Tribune, Fidelity Investor’s Weekly, Dow Jones Market Watch, MSNBC.com, The New York Times, Realty Times, Universal Press Syndicate and USA Today.
Article Source: http://EzineArticles.com/?expert=Mark_Nash

Arika Answers

2006-01-28T09:00:00.000-05:00

I know they are out there. What am I talking about you ask?

Income Tax Questions!

Please E-mail me or post a comment with any questions you may have and I will do my best to respond here and via email. If you would like an email response, please be sure to send me your email address.

If you don't hear from me in a day or two..don't fret...that just means that I had to research the answers you need and I am working hard to give you the correct answer. You will hear back from me with your answer, you have my word!

This is something that I get paid to do, but I'm doing it free for a limited time only! To quote those TV infomercials: "Act Now, before it's too late!" Get your questions together and send them over. I want a full comments list and inbox...the more the merrier!

Telecommuter Tax Fairness Act Petition

2006-01-27T07:13:00.000-05:00

As I stated in an earlier post, this is something I am behind with all my heart and soul! To me this is double taxation and is wrong! Please support this act for me and my fellow telecommuters by signing the petition. If you do sign let me say thank you ahead of time for your support.

I have sent this link to everyone I know so far and I hope that you will atleast view the petition. Once you see the petition and read the article I posted a link to on January 23rd, I think you will agree that this needs to be addressed in Congress and quickly!

Thank you to a fellow Telecommuting Moms forum member for finding this link. ;)

http://www.petitiononline.com/totp02/petition.html

Thanks again to everyone and hopefully we will get this Act passed!

Publication Makes Sense of Hurricane Tax Changes

2006-01-25T12:05:00.000-05:00

Publication 4492 was issued yesterday by the Internal Revenue Service. This new publication explains the changes to tax laws concerning taxpayers affected by the three major hurricanes of 2005 (Katrina, Rita and Wilma).

Tax breaks, a list of disaster areas for each hurricane, administrative relief, how to claim losses, and new charity laws are just some of the items that are discussed in the publication.

Publication 4492: Information for Taxpayers Affected by Hurricanes Katrina, Rita and Wilma is available at the IRS Website. In approximately two weeks the publication will be available in print as well.

The Telecommuter Tax Fairness Act

2006-01-23T11:06:00.000-05:00

I am so behind this act and hope that it passes and soon!

Check out how it's supporter list is growing! http://www.prweb.com/releases/2006/1/prweb335338.htm

Maybe we should start a petition! If anyone knows of one please post a comment or email me with the link and I'll post it here, until then I'll see what I can come up with.

Notice: If you mail your tax return to the IRS please read!

2006-01-19T09:41:00.000-05:00

Taxpayers in Washington D.C. and 11 states who file paper returns will have a new place to send their returns this year. The IRS has made changes to where individual tax returns should be mailed for the 2005 tax year in these areas.

If you receive a tax booklet in the mail, the label will have the correct address for you to send your return to. For those who don't receive the packet and are sending their tax returns via regular mail, the addresses for the tax centers are on the back of the instruction booklets for your particular tax form. Taxpayers who are filing electronically will not be affected by this change!

The following is a list of the affected states and the IRS Center where the returns should be sent.

Delaware & Virginia Atlanta, Georgia
D.C. & Maryland Andover, Massachusetts
Ohio Kansas City, Missouri
Kansas, Mississippi, & West Virginia Austin, Texas
Colorado, Nebraska, New Mexico, & South Dakota Fresno, California

Mileage Rates to Use for 2005 Income Tax Returns

2006-01-18T11:15:00.000-05:00

On an earlier post I said I would post the mileage rates to use when filing your 2005 Federal Income Tax Returns. As promised here they are! Please take note that there are special rates for Hurricane Katrina charitable miles.

Business Miles
January-August 2005 (first 8 months): 40.5 cents per mile
September-December 2005 (last 4 months): 48.5 cents per mile

Medical or Moving Miles
January-August 2005 (first 8 months): 15 cents per mile
September-December 2005 (last 4 months): 22 cents per mile

Charitable Miles
14 cents per mile, with the exception of charitable miles relating to Hurricane Katrina.

Special rates were approved by Congress for charitable miles driven for charities providing relief efforts to Hurricane Katrina victims as follows.

From August 25 - August 31, 2005: 29 cents for deduction purposes and 40.5 cents for reimbursement purposes.

For September-December 2005, the rates are: 34 cents for deductions and 48.5 cents for reimbursements.

As always, if you have any questions regarding these rates or when to use them, please feel free to contact us or check with the IRS.

A Few Forms Not Yet Ready for 2005 E-File Users

2006-01-18T07:22:00.000-05:00

Those wishing to use E-File to file their 2005 income tax returns may need to hold off a few more weeks, according to a newswire sent out by the IRS yesterday.

Due to a few tax law changes that happened late last year, 13 forms are not ready for the e-file format at this time. The IRS says that none of the commonly used forms are a part of this bunch and that the affected forms, listed below, should be available by the end of this month.

Forms affected by Tax law changes:
Form 982: Reduction of Tax Attributes Due to Discharge of Indebredness (and Section 1082 Basis Adjustments)
Form 8606: Nondedcutible IRAs
Form 8863: Education Credits
Form 8915: Qualified Hurricane Retirement Plan Distributions & Repayments
Form 3468: Investment Credit
Form 3800: General Business Credit
Form 5884-A: Credits for Employers Affected by Hurricane Katrina, Rita, or Wilma
Form 8379: Injured Spouse Allocation
Form 8611: Recapture of Low Income Housing Credit
Form 8864: Biodiesel & Renewable Diesel Fuels Credit
Form 8896: Low Sulfur Diesel Fuel Production Credit
Form 8271: Investor Reporting of Tax Shelter Registration Number
Form 8886: Reportable Transaction Disclosure Statement

For the majority of taxpayers, this will not be a problem due to the fact that W-2 and 1099 forms are not received until late January. However, paper returns can still be filed with the correct forms if one wishes. The IRS suggests that those wishing to file electronically wait the few extra weeks to do so because it will still result in a faster refund than if they mailed a paper return.

For more information on this and other 2005 tax issues, click here to visit the IRS website.

Is Your Business Legally Prepared?

2006-01-17T07:44:00.000-05:00

By: Sonia Colon
It is imperative to have your business legally prepared. How you ask? You need to have a business license, a home occupation license, if running your business from home, a city or county license, (depending on what state you live) plus you need to register your business as fictious if you are not using your name as a business. For instance, If John Doe has a business name as John Doe's Grooming Parlor, a fictious name isn't necessary.

When opening a business in your residence, additional information is required. Some businesses require more than a city license to be fully licensed. Please check with your local city & state office for detailed information.

While it is my understanding that there are many businesses who are operating "under the table", so to speak, I highly advise against this practice. If you are just interested in selling a few things out of your home, don't worry about this section, as you should not have any form of tax liability for selling your own belongings. However, if you start a business to make some money, you need to look at the legal aspects of running a business. Eventually, those who operate under the table will be caught.

If you are running an internet business it is not as anonymous as some people may believe. Keep in mind, the government designed the Internet in the first place! They know how it works! Legalize it and you will sleep better at night!

It really is simple. This is not as complicated as you think, so don't worry! I know I fussed and fretted over this for a good while and when I actually went "legal", I kicked myself because the process was so simple.

Follow the steps below to get you started:

1. Determine the type of home business you want to start. Sole Proprietorship, Partnership or Corporation.

* A Sole Proprietorship is the least costly and least complicated way to set up your business. Remember that a Sole Proprietorship is totally dependent upon your ability to work and have good ideas for growth. There is no other person in the business to rely on.

* A Partnership happens when two or more entrepreneurs form a company. Legal fees for setting up such an arrangement are usually more costly than those required for a Sole Proprietorship and less costly than a Corporation. The up side of a partnership is more capital for growth and more ideas for how to grow the business. The downside is getting rid of a bad partner.

* A Corporation is the most complicated and most costly of the three options. The ongoing accounting, legal, and tax reporting obligations of a Corporation are much more complicated than for the other two options. Corporations have boards, shareholders, and shared responsibility for the business. It is necessary to keep everyone informed of decisions, the company's financial status, and a host of other actions.

It is wise to seek the advise of an attorney in the beginning of your work-from-home situation in order to avoid serious problems later on. An attorney will guide your decision about what legal form your company should take.

2. If using a fictious name for the business, it must be registered first with the state. Call your city & state office. Usually, you can do this online. Visit their site and fill out a fictious name form. A fee may or may not apply.

3. Is your home located in the city? Some states like Florida require a county license if your busines isn't located in the city. If not sure, contact your local jurisdiction office for licensinig information.

4. Complete the home occupation application and the business license application. You may download the forms from your city hall website. Call your city hall office to find out their website address and fees.

5. Forward your applications and fees to your city hall office either by mail or by visiting the office. They will usually accept cash, checks, debit cards, VISA, MasterCard or American Express credit cards. Again, check with your local city hall office.

If you visit in person with your applications and appropriate fees, you will get your business licenses the same day. However, if you do all of this by mail, you would need to wait at least 2 to 3 weeks to receive your licenses. Either way, you are on the right track. Congratulations!!

Article by:
About the Author: Sonia Colon is owner of a successful online specialty giftstore "Jimson Products" visit: www.jimsonproducts.com for a wonderful display. Get Your Own FREE Mall: www.telebay.com/shopping1/mallopp.html

E-File Begins Friday

2006-01-09T15:15:00.000-05:00

The Internal Revenue Service will begin accepting electronically filed tax returns on January 13th, 2006. In 2005, more than 68 million Americans filed their 2004 income tax returns electronically and that number is sure to grow this year.

With the end of Telefile and the continuation of Free File people are finding that electronically filed returns and payments yeild a quicker and more accurate return and refund. Using E-file and having your refund deposited directly into your bank account taxpayers can receive their refund in as little as two weeks time.

For more information on Electronic Filing and Free File with the IRS CLICK HERE.

Life Gets a Little Easier for Small Biz Employers

2006-01-06T11:22:00.000-05:00

On January 1, 2006, the IRS made filing employment tax form 941 each quarter a thing of the past for certain small business owners!

In past years, all small business owners with employees were required to file Form 941 quarterly, regardless of the amount of tax due. For those employers with an annual employment tax liability of $1,00 or less this process has been greatly reduced. The IRS is now only requiring these employers to file once a year with a new form. Form 944 (Employer's Annual Federal Tax Return)and the instructions will be available online by January 31, 2006.

Notifications will be sent to qualifying employers between February 1 and February 15, 2006. If employers do not receive a letter and feel they are eligible, they can call the IRS at 1-800-829-0115.

Check out www.irs.gov for more details.

IRS Website Improvements & Changes

2006-01-04T16:27:00.000-05:00

Happy New Year to everyone!
Mom's Gone Virtual wishes you and yours great happiness and success in 2006!

This New Year brings changes to the Internal Revenue Services' Website. The entire site has been redesigned. Just a few of the updates/changes include:

1. 1040 Central: Here you can find forms, new tax codes and a FAQ section.

2. Free File: Various tax software/companies have paired with the IRS to provide this service. Eligibility based on your income: approximately $50,000 or less, differs for each tax company. You must go through www.irs.gov in order to qualify!

3. Earned Income Tax Credit Assistant: This tool will help you find out if you are eligible for the EITC and gives you an estimate of the amount you are eligible for.

4. Alternative Minimum Tax Assistant: Gives a simple test for taxpayers who don't use software to complete their tax returns to help figure out if they owe the Alternative Minimum Tax.

5. Hurricane Assistance: There are many tax changes for victims of, donators to victims and businesses located in the areas of 2005 Hurricanes Katrina, Rita, & Wilma. You can check the website for information concerning these changes or call a special toll-free number set up by the IRS for victims: 1-866-562-5227.

Also, note that the due date for returns to be filed is April 17, due to the 15th being on a weekend. A few states (Maine, Maryland, Massachusetts, New Hampshire, New York, Vermont and the District of Columbia) will also get an extra day on top of that due to a state holiday in Massachusetts, which is where the processing office for those states is located.

If you plan to file an extension (Form 4868, Application for Automatic Extension) this year you will be pleased to know that you will automatically get an extension to October 16. This gives those taxpayers who file this form an automatic 6 month extension versus the old 4 month one. Please note you must file the form by April 17 in order to receive this extension.

These are just some of the changes 2006 brings to taxpayers. Keep your eye out here and on the IRS website for more!

As always, this is just information and is not to be construed as legal or tax advice, please check with your tax professional for information regarding your specific situation.

Cleanup and Planning: Year-End Checklist for The Self Employed

2005-12-30T08:02:00.000-05:00

By Karyn Greenstreet

copyright © 2003, by Karyn Greenstreet. All rights reserved.

As the end of the year approaches, it’s important to both close-out the old year properly as well as plan for the new year. I recommend you do this process throughout the year so that there isn’t a last-minute rush to complete your year-end closing tasks. Here are some idea that you might want to add to your checklist:

Cleanup and Closing Tasks

*Enter all revenue and expenses into your recordkeeping system.

*Send final invoices for current year.

*Reconcile your bank account records with bank statements.

*Estimate your last tax payment for the current year (many self-employed people make quarterly estimated tax payments…the final payment is usually due on January 15)

*Mail holiday cards and gifts to clients/customers

*Make holiday offers to clients/customers

*Clean out old files/emails

*Create year-end accounting reports and compare to goals for year

*Tally business-related mileage for year

*Tally expenses by vendor and prepare 1099’s if needed

*Contact your accountant and discuss year-end tax planning

Planning Tasks for the New Year

*Write a list of goals

*Write a list of tasks that need to be accomplished in order to make those goals

*Write a list of projects you’d like to start or complete

*Create an updated marketing plan

*Create an updated budget

*List the topics you’d like to study, the classes you’d like to take, or the books you’d like to read, to keep you up-to-date with your industry and business skills

*Schedule upcoming classes you’ll teach and distribute that Calendar of Events to clients and staff

Cleanup and planning tasks don’t just happen in December and January. If you review these tasks quarterly, they won’t sneak up on you at the end of the year.

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Karyn Greenstreet is a Self-Employment expert and small business coach. She shares tips, techniques and strategies with self-employed people to boost clarity and focus, create sustainable motivation, and increase sales and profits. Visit her website at www.PassionForBusiness.com

It's Official...I've missed the Mom Masterminds Bus!

2005-12-12T11:49:00.000-05:00

I knew it was coming, I just hoped it wouldn't be this soon. I received an email today that this coming Sunday they are closing the doors to Mom Masterminds. Talk about making for a bad day! I just want to cry!

For those of you who don't know what Mom Masterminds is..it is only the best resource for work at home mom's like myself who have, or want to have, their own business. To quote the website: "Mom Masterminds™ is a hands-on mentoring community for mothers who are ready to work past the fluff and re-focus on making real money from their online businesses." However, I have not been able to afford the monthly fee so I haven't joined yet. Looks like I won't be joining now hu? :(

It's not that I don't want to pay the fee, because from all of my great online friends who are already members I definitely know it is well worth the cost, I have just had some 'out of my control' events in my life that have made it impossible for me to do so.

I want to congratulate Alice and Kelly on a job well done! And to those ladies that have joined I wish you the best of luck with your businesses! I know a lot of you who are doing very, very well and you say you owe it to this wonderful group and I for one believe you!

Here's to keeping my fingers crossed and my positive vibes flowing that one day the doors will reopen and I will have the funds to join!

IRS Consumer Alert: Tax Refund Email Scam

2005-12-10T08:08:00.000-05:00

The IRS has issued a consumer alert regarding a tax refund email scam.

The email claims to be from the IRS (tax refunds @irs.gov) and informs people of a supposed tax refund. There is a link in the email that if clicked requests personal information from the recipient. However, it does NOT go to the IRS website. Once the spammers get ahold of your bank/credit card, social security number, etc. information they use it to make illegal purchases. Another form of "phishing" and identity theft.

The Internal Revenue Service will not ask for personally identifiable information via email. They also do not request that you fill out a special form to receive a refund.

If you receive this email there are a few things that you need to do:

1. Do not open any attachments contained in it.
2. Call the IRS at 1-800-829-1040 to determine if you do have a refund due to you or if the IRS is trying to reach you concerning a refund.
3. Never give out any personal information via email if you are not sure who it is from, even if it looks real. Call the IRS and conduct your business with them either over the telephone or via snail mail.

For more information concerning this and other attempts to defraud the public check out the Criminal Enforcement Page at the IRS website: IRS.GOV.

Standard Mileage Rates to Increase in 2006

2005-12-07T15:01:00.000-05:00

On December 2, 2005, the Internal Revenue Service announced that the optional standard mileage rates would increase for next year.

Effective January 1, 2006 the mileage rates for the use of an automobile will be deductible as follows:

Business Miles: 44.5 cents per mile
Medical or Moving Miles: 18 cents per mileMiles driven in service of a charitable organization (not including miles related to Hurricane Katrina Relief): 14 cents per mile
Hurricane Katrina Related Miles: 32 cents per mile for deduction purposes & 44.5 cents per mile for reimbursement purposes.

CLICK HERE for more information on the use of the mileage rates!

Stayed tuned for the rates that you should use when filing your 2005 income taxes!

Self Employment Tax

2005-12-02T19:11:00.000-05:00

U.S. Federal Income Tax

Self Employment & Paying Self Employment Tax

As a regular employee of a company you are required by the Internal Revenue Service to have withheld from you earnings FICA (Federal Insurance Contributions Act) and Medicare taxes. FICA is also known as the Social Security tax. You pay these taxes into the government and they are used for retired, unemployed, and disabled Americans and their dependants in the form of Social Security payments and Medicare benefits.

The Self Employment (SE) Tax is similar to these aforementioned taxes except that they are for self employed individuals and are imposed on self employed earnings. It allows those who are self employed to be eligible for these benefits later in life, just as an employee is.

The current rate for self employment tax is 15.3%. That percentage is broken down into two (2) parts: 12.4% is for Social Security and 2.9% is for Medicare. Even if you are receiving Social Security or Medicare benefits and no matter your age you are still responsible for the self employment tax.

In order to determine if you are responsible for this tax you must first know if you are considered self employed by the IRS. What exactly qualifies a person as self employed to the IRS you may ask?

According to the IRS you are self-employed if any of these apply to you:
- You carry on a trade or business as a sole proprietor;
- You are a member of a partnership or limited liability company that files a Form 1065, U.S. Return of Partnership, that carries on a trade or business; or
- You are otherwise in business for yourself. i.e. Independent Contractor, Direct Sales, etc.
- You have a part-time business, in addition to your regular job.

For more information on whether or not you are considered self employed, click here.

Ok, you have determined that you are in fact considered self employed by the IRS. Now, how do you know if you are required to pay the Self Employment Tax?

If you had net earnings of $400 or more in the year, or if you had church employee income of $108.28 or more, you are required to pay the self employment tax on those earnings.

How to pay the tax is the next thing you should know. In order to pay self employment taxes you must have one (1) of the following:
- A social security number or
- An Individual Taxpayer Identification Number (ITIN)

Since income tax is a pay as you go tax you have to pay the tax as you earn your income during the year. If your expected tax liability is more than $1,000, including the self employment tax, and you have no taxes withheld, you must make estimated tax payments. Click here for more information on estimated taxes.

The following forms are a few that may be needed when dealing with the self employment tax: (Please note this is not an all inclusive list and other forms may be required by the IRS.)

- Form 1040 US Individual Tax Return

- Schedule SE Self Employment Tax: Figure your self employment net earnings. Be sure you figure your total earnings that are included in the self employment tax.

- Short Schedule SE: Some can file the shortened version of Schedule SE. Follow the guide to determine if this is possible in your situation.

- Schedule C Profit or Loss from Business: Enter your business income and expenses, cost of goods sold, and/or vehicle and mileage information.

- Form 8829 Expenses for Business Use of Your Home: Figure the area used for your business and any allowable expenses that may pertain to your home.

A listing of available forms and instructions can be found here.

Kiss a Vet & Tax Topics

2005-11-11T13:20:00.000-05:00

Elections are complete and Veteran's Day is here. I don't have a veteran to kiss this year, but I do want everyone that has served, or is currently serving, our country to know that I appreciate the selfless acts they have performed. I can not seem to find the words to express just how deeply I thank you for allowing my family and I to live in FREEDOM. God Bless You and God Bless America!

Entering the 3rd week of November, the time has come to start focusing on income taxes. Therefore, over the next few weeks I will be posting information on topics that I feel are of importance at this time of year. If you find there is something specific you would like discussed or researched feel free to leave me a comment with your question and I will find the information and post it in a later post.

Until next time... Happy Veterans Day. Be sure to Kiss a Vet!

Federal Income Tax Deductions for the Self Employed

2005-11-07T08:13:00.000-05:00

Taxes, just the thought of the word makes many self employed individuals want to run and hide, but it doesn’t have to be that way if you start out on the right foot. When working for yourself, remembering two simple rules will keep your relationship with Uncle Sam much friendlier. Both of which, will save you precious time in the end.

First and foremost, from day one keep diligent records of everything! If you have records then you have proof in the event that you are chosen for an audit.

Secondly, be honest. If you are honest, not trying to take credits or deductions that you are not eligible for, you will save yourself headaches that could have been easily avoided.

New doors open to possible deductions and credits for your income taxes once you become self employed. There are many more out there but here are a few of the most common write offs for Work at Home Moms.

Licenses & Permits: If you are required by your city, county, or state to hold a license or permit to do business from your home you can write the fees paid for them off as an expense.
Meals & Entertainment: If you have a business meeting over lunch, guess what? You can write part of the cost off as a business expense. Keep in mind that only 50% of your meals and entertainment can be claimed.

Office Supplies: This includes things such as furniture for your office, pens, paper, computer hardware and software. You need to use them solely for the purpose of your work. If, for example, your children use the computer for school work or to play games you can’t write the whole cost of the computer off, just a percentage of it.

Mileage: If a trip is business related you can write the mileage off as an expense on your return. There are two different ways you can deduct this: standard mileage rate or actual expense. Check with the IRS to determine which to use. Keep a small notebook in your vehicle and every time you take a business trip write down the date, place you went, mileage, and how it relates to your business.

Subscription/Membership Fees: Do you receive a magazine/newspaper subscription that you only get because of your job? Do you belong to an organization for your work? If so, you can write these off too!

Professional Fees: Did you pay a resume writer to do your resume for you? That amount, along with any fees paid to an accountant or lawyer, can also be taken as a deduction.

Utilities: Certain utilities may be taken as long as they are for your business. A good example of this is a telephone line that is solely for work purposes.

Advertising: Do you have business cards or flyers? The cost of these items qualifies as a business expense. Don’t forget about car decals or yard signs too!

Business Use of Your Home: This one can be tricky and is different for different types of jobs/businesses. You may be able to write off a portion of your mortgage payment as a business expense if you qualify. See IRS Publication 587: Business Use of Home for further details.

All income and expenses for self employed individuals should be reported on Schedule C Profit & Loss from Business as an attachment to Form 1040. Please keep in mind that not every self employed individual has the right to claim every deduction. This article is not meant to take the place of professional advice. Each job/business is different and you should contact your tax advisor, accountant, or the IRS for further information in regards to your individual situation.

Could Your Income Survive a Hurricane?

2005-10-19T12:50:00.000-04:00

Could Your Income Survive a Hurricane?
by Nicole Dean

As you know, Hurricane Katrina has caused destruction and devastation across several states. Hundreds of thousands of people have been displaced and are unable to work since the storm. Businesses have been closed for weeks. The economical impact is unimaginable. No one knows what the effects will be — weeks, months, even years from now.

How would weeks, or months, of lost income affect your family? This event is another solid reminder of how important it is to develop passive income — the kind of income where you keep making money whether you are working or not. If and when events happen to keep you from work – whether they are wonderful interruptions, such as the birth of a new baby, or tragic events like a hurricane, you’ll continue to have money coming in.

There are several ways to set up passive income streams.

Start a website (or several websites)
Set up your own money-maker. Whether your interest is in selling a product, providing information, or a service, every business needs an online presence. If you’re uncomfortable with technology, there are site builders available that will walk you through every step of the way. Or, if you want to avoid maintaining a website, many people are making decent money from blogs.

Join Affiliate Programs
Research and join any of the wonderful affiliate programs selling anything from books to bras. If you’re unfamiliar with affiliate programs, it’s really quite a simple concept. Thousands of companies will pay you to refer customers to them. Whether your interest is sports or doilies, you can make money by linking to products from your website or blog.

Make your own info products and get affiliates to sell for you
Create an electronic product (write an ebook, design software, or record an audio product). Once you’ve created your product, recruit affiliates to sell for you!

And, of course, Direct Sales
If you are in a Direct Sales business, build your customer base and your team and you’ll have residual income, too. Build your team both wide and deep for the most security.

Once you know which path you’re going to follow, then it’s critical that you automate your Business. Set up an autoresponder, so your messages are being sent whether you are home or not. You can automate e-courses and newsletters - all running at the same time, automatically.

Your autoresponder can be your best customer service rep. Make sure your autoresponder sends clients a thank you email as soon as they place an order – and another email a week after placing their order – just to check in. You’ll be providing excellent customer service, and your customer won’t know that their thoughtful customer service response is really an automated reply.

Are you making money when you are not working? Is your income protected, for the times when “life happens”? If not, my challenge to you is to do one thing to get on the road to making passive income today!
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Nicole Dean is the mostly-sane Mom behind http://www.showmomthemoney.com/free-tutorial.htm - helping WAHMs Succeed. Are you looking for some great affiliate programs to join? Check out our Free Affiliate Program Directory (link to http://www.showmomthemoney.com/affiliates.asp ) Copyright 2005 - Nicole Dean

Find more free reprint articles by this author at http://www.ladypens.com/topauthors.php
www.showmomthemoney.com - I can bring home the bacon & fry it up in a pan, while spending as much time my kids as I CAN!
www.free-ebooksonline.com - yep, they're really free! Now, you don't have to spend hours searching for articles just for women. Written by women, just for women at http://www.ladypens.com/

Effective Business Planning for Starting Your Business

2005-09-30T08:18:00.000-04:00

There is no way to eliminate all the risks associated with starting a small business. However, you can improve your chances of success with good planning and preparation. A good starting place is to evaluate your strengths and weaknesses. The first thing you need to do is ask yourself is -- Is Entrepreneurship for You? It helps to carefully consider each of the following questions:

Are you a self-starter? It will be up to you – not someone else telling you – to develop projects, organize your team, and follow through on details.

How well do you get along with different personalities? Business owners need to develop working relationships with a variety of people including customers, vendors, staff, banks and professionals such as lawyers, accountants or consultants. Can you deal with a demanding client, an unreliable vendor, or cranky staff person in the best interest of your business?

How good are you at making decisions? Small business owners are required to make decisions constantly, often quickly under pressure and independently.

Do you have the physical and emotional stamina to run a business? Business ownership can be challenging, fun, and exciting. But it is also a lot of work. Can you face 12-hour workdays, six or seven days a week?

How well do you plan and organize? Research indicates that many business failures could have been avoided through BETTER PLANNING. Good organization of financials, inventory, schedules, and production can help avoid many pitfalls.

There are three types of people who want to start their own business:
(1) Those who have an idea and never put their ideas into action;
(2) Those who have ideas and say “Let me do this and see what happens;”
(3) Those who have ideas, plan how they are going to transform their ideas into a vision, and implement their vision.

Of the three kinds of people mentioned above, more than likely, the only type of person who will be successful is number three (3) because he/she has engaged in PLANNING – the key ingredient of success. As a matter of fact, the Small Business Association (SBA) estimates that 80% of start-up businesses fail in the first three (3) years of operation due to the lack of planning. Therefore, it is crucial to convert your ideas into a Business Plan (action plan) in order for them to produce fruit.

The Business Plan is the foundation of the long-term success of any business venture. It must be * Realistic * Well-Conceived and Researched *Communicated to All Levels of the Organization
* Followed * Measured * Reviewed *

Refined Benefits of an Effective Business Plan are:
• Clear direction for the organization
• A focused organization working together
• Prioritization of needs
• Participation of all levels in developing the plan
• Improved communication
• Ongoing analysis and improvement
• A benchmark for evaluation
• Forum for idea generation and sharing
• Higher expectations
• Higher performance

Five Basic Components Discussed in the Business Plan are:

THE COMPANY
A. Business Description
B. Short Term and Long Term Objectives
C. Management and Ownership

MARKET ENVIRONMENT
A. Industry Analysis
B. Market Overview Analysis

MARKETING STRATEGY
A. Discuss the products/services offered.
B. Identify the customer demand for your product/service.
C. Identify your market, its size, and locations.
D. Explain how your product/service will be advertised and marketed.
E. Explain the pricing strategy.

MANAGEMENT/OPERATIONS
A. Explain how the business will be managed on a day-to-day basis.
B. Discuss hiring and personnel procedures.
C. Discuss insurance, lease or rental agreements, and issues pertinent to your business.
D. Account for the equipment necessary to produce your products or services.
E. Account for production and delivery of products and services.

FINANCIAL ANALYSIS
A. Explain your source and the amount of initial equity capital.
B. Develop a monthly operating budget for the first year.
C. Develop an expected return on investment and monthly cash flow for the first year.
D. Provide projected income statements and balance sheets for a two-year period.
E. Explain your personal balance sheet and method of compensation.
F. Discuss who will maintain your accounting records and how they will be kept.

START PLANNING TODAY, DON’T DELAY – You will be on your way to operating a efficient business that’s well planned, and destined for success.

Karmen A. Booker is an Attorney, Business Consultant and owner of Compu-Perfect Professional Services, a business consulting firm specializing in business incorporation, establishing limited liability companies and contract drafting & reviews. www.compuperfect.net, or kbooker@victorypress.net She’s also the author of Biblical Entrepreneurship; Operate Your Business God’s Way. This book includes seven vital steps to starting your business and detailed information on the legal requirements involved based on her experience as an attorney. This book is available at Virtual Word Publishing, Inc. -- www.virtualwordpublishing.com

Automating Your Home Based Business - Saving You Time

2005-08-23T07:33:00.000-04:00

First of all, what is automating a business? Simply put, it’s having today’s technology do the tedious and time consuming tasks that you currently have to do manually. This in turns frees up time that you can work on other business building aspects or spend it with loved ones.

Today’s technology gives you a multitude of programs to smooth your way to owning a highly successful business. Using automation programs are a necessity for every business. It can give you back hundreds of hours a year for the more important things in life. It’s like having a personal assistant at your fingertips 24/7.

Why do some businesses struggle year after year and others seem to take off like a rocket right from the start? Well, if you were able to see “behind the scenes” of those highly successful businesses, you would find that one of their secrets to their success is using technology to automate as much of their business as possible so that they can continue to grow their business in other areas.

Automating Your Business Will

Increase traffic to your site or store - Did you know there are ways to automatically send your articles and messages to all forums that you are a member of? Automating your submissions increases your link exposure, which will build your search engine rankings and traffic to your site. Learn more about this at Forum Fortunes

Streamline your website administration - One of the most time consuming tasks is replying to individual emails. By automating your email program to respond to every inquiry immediately, create mailing lists for your newsletters and sending out your Ezine, you will save countless hours that you can use for other business growing projects. Learn more about this at AWeber

Improve customer satisfaction and make your life a lot less stressful - Offering a good shopping cart to keep track of items your visitors choose to purchase from your site until they are ready to “check out” will assure that your customers are getting exactly what they want. Many shopping carts come with special features to calculate discounts and coupons as well as offer secure payment transactions instantly. Learn more about this at Store Front Ecommerce

Increase profits - Again, by building traffic and improving customer satisfaction, your sales will increase and you will see more repeat customers.

Protect your computer and your business - By filtering and deleting all spam and dealing with suspicious email before it reaches your in-box, you can prevent viruses and other malicious content from being downloaded to your computer which will save you time and money. Read more about this at Mail Washer Pro

Allow you to run your business from virtually anywhere - Wouldn’t it be nice to take that much needed vacation yet still be able to run your business? If you are like many business owners, it seems that every time you go out of town for an extended weekend or vacation, your business has some sort of meltdown.

Though most times they are minor problems that can be fixed fairly quickly once you get home, they still cost you time and quite possible customers, both of which equal money. By automating much of your business, you will decrease the amount of problems while allowing you to fix any others even if you are in Cancun or Paris! Now that has to give you some peace of mind.

With all of these benefits, why wait another minute to find out how you can start to improve your business and gain much needed time?

Nell Taliercio is the owner of a leading work at home mom resource website packed full of fresh content for the telecommuter, business owner and virtual assistant. Visit http://www.mommysplace.net today!

Tax Tips--Car Donations

2005-06-28T09:19:00.000-04:00

Do you have a car that you just can't seem to sell or isn't worth much?? Donate it and receive a deduction on your income taxes! Read the following article from the IRS to find out how. Don't forget to check the Internal Revenue Service Websaite at http://irs.gov for more info or other deductions! Until Next Time....

Car Donations
Tax Tip 2005-59, March 24, 2005

The IRS reminds taxpayers that the rules for taking a tax deduction for donating cars to charities have changed for 2005. The American Jobs Creation Act of 2004 has altered the rules for the contribution of used motor vehicles, boats and planes after Dec. 31, 2004. Starting then, if the claimed value of the donated motor vehicle, boat or plane exceeds $500 and the item is sold by the charitable organization, the taxpayer is limited to the gross proceeds from the sale.

In 2004, however, the new rules did not apply. Under the rules in effect for 2004, taxpayers are able to deduct the fair market value of the contributed property.

People who want to take a deduction for the donation of their vehicle on their 2004 tax return should take the following steps:

Check that the Organization is Qualified. Taxpayers must make certain that they contribute their car to an eligible organization; otherwise, their donation will not be tax deductible. Taxpayers can search Publication 78 online to check that an organization is qualified. Publication 78 is an annual, cumulative list of most organizations that are qualified to receive deductible contributions. Publication 78 is also available in many public libraries. In addition, taxpayers can call IRS Tax Exempt/Government Entities Customer Service at 1-877-829-5500. Be sure to have the organization’s correct name and its headquarters location, if possible. Churches, synagogues, temples, mosques and governments are not required to apply for this exemption in order to be qualified. They frequently are not listed in Publication 78. Donations to these institutions are tax deductible.

Itemize in Order to Benefit. Many taxpayers can’t take a deduction for car donations because they don’t itemize deductions on their personal tax return. For taxpayers, the decision to itemize is determined by whether their total itemized deductions are greater than the standard deduction (for 2004, the standard deduction is $4,850 for single filers and $9,700 for married filing jointly). Just under one-third of the nearly 129 million individual taxpayers itemized in 2000, the last year for which complete data is available.

Calculate the Fair Market Value. The donor must take many factors into consideration to establish the value of the car. Many used-car buying guides contain step-by-step instructions so that readers can make adjustments to the value of a car for accessories, mileage and other indicators of its general condition. Publication 526, Charitable Deductions, and Publication 561, Determining the Value of Donated Property, provide detailed instructions.

Deduct Only the Car’s Fair Market Value. Some car donation program operators have mistakenly claimed that donors can take the full value of their car as listed in a used-car buyer’s guide for a deduction. The IRS, however, only allows a deduction for the fair market value of the car. Fair market value takes into account many factors, including the vehicle’s condition. The fair market value of the taxpayer’s car may be substantially different than the full used-car buyer’s guide.

Document the Charitable Contribution Deduction. For vehicle donations, taxpayers must document the car donation and its fair market value. Recordkeeping requirements are comprehensive and vary depending on the amount of the contribution and the total amount of the charitable deduction. Publication 526 details requirements for the types of receipts taxpayers must obtain and the forms they must file.

Contact State Charity and IRS Officials When in Doubt. Donors with questions about whether a contribution is deductible should call the IRS at 1-800-829-1040 or for TTY/TDD help, call 1-800-829-4059. Donors concerned that contributions are being solicited for fraudulent purposes should contact the appropriate state charity official, who is often located in the state attorney general's office. A list of state charity official offices can be found online at the National Association of State Charity Officials, and a list of state attorneys general can be found at the National Association of Attorneys General.

7 Money Saving Tips to Decrease Home Business Expenses

2005-05-05T17:08:00.000-04:00

We all know that running a home business is highly satisfying, and at times downright liberating! No clock to punch, no dress code, and best of all, no boss to answer to. But there are also many facets of business ownership that entrepreneurs must stay on top of. One of those is keeping the expense to income ratio in balance. Below are seven painless ways to do just that.

1. To save on costly ink cartridges, print in draft mode, unless the printout is for a client or will be reproduced.

2. After spending your hard earned money on those ink cartridges, turn them into a free ream of paper! Many office supply stores offer a free ream of copy paper when you recycle a used ink cartridge at their store. Ask your local office supply store if they offer this service to their customers.

3. Make that free paper last twice as long. How many times have you printed something without spell checking it first? Use the back of those misprints for making lists and jotting down ideas. Another way to keep paper use down is to utilize the annoying sheets that often print out last with just a small ad or footer on them. Turn them over and print on the blank side.

4. Apply for a cash back/rewards credit card. Using one credit card for all of your business purchases simplifies bookkeeping and makes categorizing expenses at tax time a lot easier. Why not earn rewards such as airline miles or restaurant gift certificates, or even better- cash, on purchases you have to make anyway? Just be sure to fully read the fine print concerning interest charges and late fees. Or pay off the balance each month and avoid both!

5. Compare prices on internet service providers. Some companies offer a discount when internet access is bundled with cable or phone service. If you are really happy with your current ISP, call and ask if they are offering any promotions that you can take advantage of.

6. Network with other home business owners and offer to barter goods or services. If you own a gift basket business, assemble baskets featuring a direct sales consultant’s products, and customers are purchasing from both of you at once. A bookkeeper can trade services with a web page designer. The possibilities are endless. You just have to ask.

7. For low cost advertising, contact organizations holding charity auctions or raffles. You supply the prize, whether it’s jewelry or web hosting, and in return you receive exposure for your business and pleasure in donating to a worthy cause.

Paige Pate Hall is a work from home mom and Independent Consultant for Azante Jewelry, a company specializing in handcrafted sterling silver and beaded jewelry.
http://www.myazante.com/paige
Article Source: http://EzineArticles.com/

Setting up Your Accounting System w/o Accounting Software

2005-05-02T15:41:00.000-04:00

The set up of your business accounting system does not have to be as hard as it may seem. There really is more leeway here than most think. Although an automated accounting system does make life easier for a lot of business owners, there are some who can’t afford hundreds of dollars on software, don’t have the time to learn that software, or those who don’t know (or care to know) the detailed difference between a debit and a credit. Rest assured there are other options available to you.

You can easily set up an Excel spreadsheet that keeps track of the basics you need. Something as simple as the date, expense or income amount, and description of the payment or receipt will suffice. You can re-create this sheet for each month of the year. You can either put the information into your spreadsheet via the computer or by hand, whatever works best for you. Just be sure that you are including ONLY BUSINESS related items on this sheet. You’ll be glad you did when it comes time to do your taxes. There are some people who don’t even want to fool with the computer if they can keep from it and there are systems that will work for them as well.

One way, is to get a small file organizer and file folders. If you spend a lot of time in your vehicle you can put it there and just put receipts, deposit slips, etc. in the organizer as you receive them. There are a few options on how to organize this. I have found organizing it by month is the best way, especially if you have an accountant or bookkeeper who does all the work for you. You could even go further by separating each month into expense and income folders. This will help the process stay more organized and save you time, because now you can enter your transactions in a ledger or your computer once a month instead of daily or weekly.

Some people have found that a notebook/checkbook will work for them just as well. I would not recommend either of these if you have a lot of transactions (payments, receipts), but for someone just starting out this would be another way to keep everything together in the beginning. You must be diligent about recording in either one of these items. If using a notebook or checkbook, I would suggest daily recording of items because if you are not extremely diligent with your recording this way, you will inevitably have an important transaction slip through the cracks.

No matter which method you use: Keep your receipts, etc. in a file cabinet or a small organizer like the one mentioned above so you will always have supporting documents. There are various ways that you can create an accounting system that works for you. That’s the key, finding something that works for you, doesn’t take up so much time that you are not able to concentrate on the business itself and is accurate. As long as you stay organized and on top of things, you’ll find that your system can help you instead of hurting you. Wouldn’t you rather have all your records right there together when you need that loan or at tax time, instead of hunting your desk, car floorboards, day planner, filing cabinets, and kitchen table for hours on end and still missing that one important write off? I know I would.

Moms, Could you use $100 for your business???

2005-04-28T06:14:00.000-04:00

Ok, I know you are thinking, "Of course I could use $100 for my business." Who couldn't right, especially if you are just starting out. Well, I had to ask cause my Gran Gran always told me "The only stupid question is the one never asked." ;) (Luv Ya Gran Gran!)

Every Monday morning, after putting my son on the bus and grabbing my cup of coffee and a snack, I faithfully tune into WAHM Talk Radio. This show and the site have been extremely helpful in my work at home beginnings. The founder of the site, Kelly McCausey is great and her shows are always informative and inspiring!

To help Kelly and other WAHP out I am posting her latest contest on my blogs! Kelly is giving away $100 to be used by a work at home mom for their business. Her way of saying Happy Mother's Day!

There are only 3 requirements:

1. Have a Paypal account.
If you don't have one you can get one free here: PayPal

2. Use the money for your business.

3. Send Kelly an email at chris@wahmtalkradio.com telling her how you would use the money for your business. Be specific.

At the end of the month (not but a few days left) Kelly will choose a winner and deposit 100 buckaroos into their Paypal account. That easy! So what are you waiting for??? You have nothing to lose and $100 to gain, so go help fill her inbox! The more people to fill her inbox the happier she will be and may even do this more often according to her post on the site this week.Until next time...Good Luck! Hey, while you're at it...check out her website and the show: WAHM Talk Radio

Home Business: First & Foremost

2005-04-25T08:29:00.000-04:00

Home Business: First & Foremost
Checklist for New Home Businesses

THE #1 MOST IMPORTANT THING TO REMEMBER FROM DAY 1:
Keep track of EVERY SINGLE expense and ALL income received on at least a weekly basis.

1. Check with your state and local agencies regarding licensing, zoning laws, trade names and taxes you may be responsible for. Small Business Administration . Remember to save any receipts for licenses, etc. as you can write some of this off as business expenses.

2. This one is not a necessity if you are a sole proprietor, but is worth it if you don't want to use your Social Security Number for everything! Apply for a Federal Employer Identification Number (EIN), even if you do not have employees. This is free and you can now apply online (Federal EIN) and receive your number immediately. In the event your business ever expands to include employees or you incorporate, you will not have to worry about it later.

3. Open a business checking account. I cannot stress enough how important this step is. KEEP YOUR BUSINESS & PERSONAL ACCOUNTS SEPARATE. This will make your life and your accountant’s (if you choose to hire one) life easier in the long run.

Welcome to the Accounting for WAHP Blog

2005-04-21T09:56:00.000-04:00

One of the biggest mistakes anyone can make when running their own business is inaccurate bookkeeping/accounting. One small mishap can quickly turn into a mountain of trouble. It can take what otherwise would be a wonderful business and doom it if not done correctly from the beginning! That's where Mom's Gone Virtual comes into play, taking the confusion out of accounting for your business.

Coming Soon:
Bookkeeping/Accounting Basics for ANY small business
Recommended Accounting Software/Websites
Tax Tips for Work at Home Parents, Independent Contractors, Small Business Owners
Budgeting for your WAH business
Changes to Tax Laws