Tips to Take Advantage of the Bill This Article is an Update From Previous Guidance: https://abacuspro.com/10-ways-the-proposed-new-tax-cuts-could-affect-your-taxes-this-year/ The "One Big Beautiful Bill Act" (OBBBA) is a sweeping tax and economic package that seeks to extend or make permanent many provisions of the 2017 Tax Cuts and Jobs Act, while introducing a host of new tax rules and [...]
Great question, and one that trips up a lot of people. Let’s break it down. If you’re making child support payments, those payments are not tax-deductible. The IRS considers child support a personal expense. So, even if you pay a significant amount each month, you won’t be able to claim any of it on your tax [...]
If you own a business, managing taxes can be difficult. The 2025 deadlines for 1st and 2nd quarter were April 15, 2025 and June 16, 2025. Now that we’ve passed those estimate deadlines, you may be thinking, “I haven’t paid anything for 1st or 2nd quarter” or, “I think I made a 1st quarter payment, but [...]
Hey Abe! I am a lease operator, and I know that I’m required to pay my taxes in quarterly estimates. Do I have to file anything for this? Great question! Here’s the good news: While you are required to pay these quarterly estimates, you do not need to file any quarterly state or federal tax returns. [...]
If you’re self-employed, there’s a valuable tax deduction that you might be overlooking: the self-employed health insurance deduction. This allows you deduct the cost of health insurance premiums paid for yourself, your spouse, and your dependents, including your children under the age of 27, even if they aren’t claimed as dependents on your tax return. Why [...]
Great question! Filing a tax extension refers to a process by which taxpayers can request additional time beyond the original tax filing deadline to submit their tax returns to the Internal Revenue Service (IRS). In the United States, the standard tax filing deadline for most individuals is typically April 15th each year, unless that date falls [...]
As we move past the April 15 deadline, it's crucial for individual taxpayers to understand the potential penalties and interest that may accrue if taxes remain unpaid after April 15th. The IRS imposes three distinct penalties for failing to pay taxes and file tax returns by the deadline: the failure-to-file penalty, the failure-to-pay penalty, and interest [...]
What are estimated tax payments? Estimated tax payments are required for individuals who expect to owe at least $1,000 in tax after subtracting tax withholding and refundable credits. These payments are generally due on a quarterly basis. These due dates are listed below: Q1 - April 15 Q2 - June 15 Q3 - September 15 Q4 [...]
Hey Abe! I am a lease/owner operator, and I paid my co-driver $1,200 in 2024. Do I have to file anything for this? Great question! This is a common scenario we see in the trucking industry. If you paid your co-driver more than $600 in 2024, you may need to issue that co-driver a 1099-NEC. A [...]
As Tax Season 2025 quickly approaches, it’s time to get organized and prepared to file your 2024 taxes. Over the years, we’ve noticed that taxpayers tend to fall into four main categories: The Early Filers: Those who file quickly, often because they’re expecting a refund. The On-Time Filers: Motivated by the April 15th deadline, they ensure [...]
