Self employed individuals—including freelancers, independent contractors, and small business owners—can deduct a wide range of business related expenses. Eligible deductions may include startup costs, home office expenses, vehicle and rent expenses, health insurance premiums, retirement plan contributions, and business travel. In addition, certain types of capital equipment used in the business may qualify for special […]
Past due taxes can accumulate significant penalties and interest. The IRS may impose a failure to pay penalty of 0.5% of the unpaid balance per month, up to a maximum of 25%. If you also fail to file on time, an additional 5% per month failure to file penalty applies, likewise capped at 25%. Combined, […]
According to the IRS, a digital asset is property, not currency. Therefore, a digital asset is a capital asset. Furthermore, the IRS defines a digital asset as any digital representation of value recorded on a cryptographically secured, distributed ledger (blockchain) or similar technology. Examples of digital assets are Bitcoin, Dogecoin, Ether, Tether, and Non-fungible tokens […]
The IRS requires the fiduciary of a domestic decedent’s estate, trust, or bankruptcy estate file Form 1041 to report: The income, deductions, gains, losses of the estate or trust. The income that is either accumulated or held for future distribution or distributed currently to the beneficiaries. Any income tax liability of the estate or trust. […]
Arizona State offers several income tax exclusions for income received that is not subject to state tax. The following are a few of the exclusions: Exclusion of $2,500 per receiving taxpayer for U.S. Government, Arizona State or local government pensions. Exclusion for active-duty military pay, pay received for active service as a reservist for a […]