Canyon Creek Accounting

Just a short answer to a question I get alot from clients.
Why do I have to pay taxes on my Social Security. The reason is when you figure 1/2 of the Social security depending on your other income you are actually paying tax on the portion that your employer paid in. You were not taxed on that amount therefore it is considered income. For self employed people it is the portion that you deduct on the front of your tax return . So you pay your portion and one half is deducted. Then when you draw Social Security if your income exceeds the base amount you will be taxed on one half of it.

This is for the people who employee their family members and do their own payroll. If your accountant or bookkeeper doesn't prepare your payroll and know the payroll laws this a good read for them.

Tax Tip 2022-151:Understanding taxes when a family member signs the paycheck Tax Tip 2022-151:Understanding taxes when a family member signs the paycheck Internal Revenue Service (IRS) sent this bulletin at 10/03/2022 10:27 AM EDT IRS Tax Tips October 3, 2022 Useful Links: IRS.gov Help For Hurricane Victims News Essentials What's Hot News Releases IRS - The Basics IRS Guidan...

Mileage Rate Changes Purposed Rates 1/1 through 6/30/2022 Rates 7/1 through 12/31/2022
Business for the first 6 months: 58.5 cents
Business for the last 6 months: 62.5 cents
Medical/Moving 18cents 22 cents
Charitable 11 cents

These are the rates the IRS came out with this morning for the next tax year. So ,you may want to break down the first 6mos of mileage and keep from July to December separate so you can use the higher rate on your tax returns.

This is why it is important to keep track of the information the IRS sends regarding the Tax Credits that you received through last year.

IR-2022-65: Reasons why some tax refunds filed electronically take longer than 21 days IR-2022-65: Reasons why some tax refunds filed electronically take longer than 21 days Internal Revenue Service (IRS) sent this bulletin at 03/23/2022 01:05 PM EDT IRS Newswire March 23, 2022 News Essentials What's Hot News Releases IRS - The Basics IRS Guidance Media Contacts Facts & Figures Around...

These are some things to remember when you are getting ready to file your taxes. Carefully choose your preparer, not all look for every deduction especially for businesses. Everyone uses different software, All preparers are not created equal, so to speak. The IRS has a web page that you can go to to check out if they keep up on continuing education or not. And if in fact they are registered with the IRS. Be sure that if you pay them they sign your returns. If they are doing it for free they are not obligated to sign which says you are on your own if selected for an audit.

IR-2022-16: Top 5 things to remember when filing income tax returns in 2022 IR-2022-16: Top 5 things to remember when filing income tax returns in 2022 Internal Revenue Service (IRS) sent this bulletin at 01/20/2022 12:22 PM EST IRS Newswire January 20, 2022 News Essentials What's Hot News Releases IRS - The Basics IRS Guidance Media Contacts Facts & Figures Around The Nati...

This is for all small business people that run their businesses out of their homes. It is important to note that if your business shows a loss and no profit, this deduction is not allowed. If you rent space you are able to deduct it off the top.

Tax Tip 2022-10: How small business owners can deduct their home office from their taxes Tax Tip 2022-10: How small business owners can deduct their home office from their taxes Internal Revenue Service (IRS) sent this bulletin at 01/19/2022 09:47 AM EST IRS Tax Tips January 19, 2022 Useful Links: IRS.gov Help For Hurricane Victims News Essentials What's Hot News Releases IRS - The Basi...

According to the IRS Web Page E-filing can begin on
Jan 24,2022. Please be aware that the W2's, 1099's and Interest statements etc. are not even suppose to be out until Jan 31,2022. So some may need to wait on all their documents to file. Also, the IRS is supposed to be sending letter for the Child Tax Credit you received and also the amount of Stimulus you received last year. It is important to keep these with you tax information as you also need them to file taxes. If the amounts are incorrect on the tax return, then it will hold up any refund you have coming. 🙂

Watch your mail for these letters and keep them to file your taxes with. Make sure the amounts on them match what you received.

COVID Tax Tip 2022-03: IRS sending information letters to recipients of advance child tax credit payments and third Economic Impact Payments COVID Tax Tip 2022-03: IRS sending information letters to recipients of advance child tax credit payments and third Economic Impact Payments Internal Revenue Service (IRS) sent this bulletin at 01/05/2022 09:02 AM EST IRS Tax Tips January 5, 2022 Useful Links: IRS.gov Help For Hurricane Victims News...

Here are a few tips to file your taxes that help remind us of everything we need. Be sure to keep the letter from the IRS regarding any Child Tax Credits you received and also the Stimus payments you received. If these figures are not correct on your tax returns it will hold up any refunds you may have coming as it takes time to check the figures and send out their letters to you.

COVID Tax Tip 2022-04: Tax filing step 1: Gather all year-end income documents COVID Tax Tip 2022-04: Tax filing step 1: Gather all year-end income documents Internal Revenue Service (IRS) sent this bulletin at 01/06/2022 10:03 AM EST IRS Tax Tips January 6, 2022 Useful Links: IRS.gov Help For Hurricane Victims News Essentials What's Hot News Releases IRS - The Basics IRS Guid...