If you own a business and your children are off from school this summer, it may make sense to employ your kids at your business. Take advantage of summer employment tax benefits! Doing this can allow you to benefit from a tax deduction for paying your kids wages. This can be a far better way to give your kids money for their summer activities than simply giving them an allowance, since you can reduce your taxable income. When you are thinking about hiring your kids this summer at your business, you should talk to a tax professional at Brennan & Company CPA, PC. The implications of this choice and questions about your obligations as an employer are both issues we can address. Brennan & Company CPA, PC.can help you to make sure that hiring your kids over the summer is a smart choice based on your tax situation. and can help you to take care of everything you need so you act in accordance with the IRS rules. Call us at 215.951.5585 or “like” us on FaceBook.
Tax season may seem like a long ways away, but you need to be thinking about your tax obligations over the summer. Some of the things that you do over the course of the summer months can impact your taxes, and you should consider talking to a tax professional at Brennan & Company CPA, PC.about what you should be doing now so you are ready when April comes. We can offer summer tax tips so you are not caught off guard in tax season. One thing to be aware of is that summer camp expenses may be deductible expenses. It is possible to claim expenses for summer camp if you are working. This is because the summer camp can be considered child care, and child care expenses may entitle you to a tax credit. You should also be aware that if you have a garage sale or a yard sale, you may need to declare income that you make. This depends upon what the cost of goods sold was and whether or not you make a profit. If you are one of those lucky “trash pickers” and find a valuable or rare object among the junk at a garage sale, such rare finds are referred to as a “treasure trove” and are immediately taxable to the recipient. Brennan & Company CPA, PC summer tax tips can help you to be prepared for tax season or any season. Call us at 215.951.5585 or “like” us on FaceBook .
Individuals receiving 1099’s and businesses operating as independent contractors must pay in estimated taxes four times per year. The next upcoming payment of estimated taxes must be made by September 15, 2014. The estimated taxes must be paid at this time for anyone who has earned income that is not paying taxes on this income through payroll withholding. September 15th is the third of four 2014 estimated tax installment dates. Individuals can use Form 1040-ES when paying their September estimated quarterly tax payment. If you are a corporation or a partnership and you filed an extension in March or April for 2013, you will need to submit your 2013 tax returns and payments by September 15 (the last day to file with extension). Corporations will need to complete Form 1120 or Form 1120S, depending upon whether they are an S-corporation or a C-corporation. Partnerships must file Form 1065. If you need assistance determining whether you must pay estimated taxes or if you need help calculating the amount due, contact Brennan & Company CPA, PC. Follow us on FaceBook.