Taxes on Lottery Winnings Explained

Mega Millions lottery

It’s a quip you hear often when the lottery jackpot creeps upward: “Sure the jackpot is $40 million, but what do they leave you after taxes?” Honestly, on a jackpot this high, the answer is more than enough. But the exact amount depends on several factors, including your tax bracket. Before you start daydreaming about … Read more

Best Way to File Taxes for the Self Employed

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It’s common knowledge that self employed people must pay income tax like everyone else, but sometimes it can be tricky to know what exactly qualifies as self-employment. The taxpaying community also seems well aware of self employment tax, as well, but again the specifics get a little hazy. Today we’re going to clear the air … Read more

Penalty for Underpayment of Estimated Tax & How To Avoid It

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If you earned money through self-employment but didn’t pay estimated taxes, you may find yourself looking at an IRS penalty for underpayment. Here’s what causes a tax underpayment penalty and what you can do to avoid penalties in the future. What is the IRS Underpayment Penalty? Although you file only one tax return each year, … Read more

Tax Planning for Startup Employees

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Working for a startup can be an exciting prospect that gives you an opportunity to make a significant impact on a company’s culture as well as the products and services they bring to market. Compensation can get tricky, however, as cash-strapped new companies look for creative ways to compensate employees. Stock options and incentives can … Read more

2021 Federal & State Tax Deadline Extension Update

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Slowly but surely, America is starting to reopen after the pandemic, and we’re finding ourselves a little bit busier each day. Life is still taking a bit longer than usual, however, as we deal with everything from mail delays to shortened business hours. You may find that your W-2 was late because someone in the … Read more

Small Business Tax Guide: Tax Rates and Filing Tips

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People who own small businesses often juggle many different jobs, but the role of accountant is rarely a favorite. We won’t lie: business taxes can be daunting and get a bit complicated. Things do get a lot easier, however, once you understand a few basics. Here’s a plain English breakdown of the business tax basics … Read more

Why is my tax return so low? 2020 Tax Year Edition

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So you went the DIY route and your tax refund is lower than you expected. Your first step is likely to verify that the information you entered into your tax software is correct. If it is, you may have fallen victim to one of several common scenarios that lead to tax refund surprises.  Reasons Why … Read more

How to Calculate Quarterly Estimated Taxes for 2021-2022

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You may have heard us mention before that the federal income tax is a pay-as-you-go tax. As the name implies, this means that you pay your taxes as you earn income. This is why your employer withholds federal taxes from your paycheck every week. Self-employed people, however, don’t have an employer to withhold taxes for … Read more