Tax Season with Jade

"Know your worth & then add tax "

 Income tax

An income tax is a tax based on a taxpayer’s income after any exemptions, deductions, or adjustments allowed by the tax-imposing jurisdiction’s laws. Tax laws vary by jurisdiction, but they generally inform taxpayers of which income is taxable versus non-taxable, any deductions or other benefits, and the income tax rates. Whether you need to pay income tax or not depends on your individual situation and the income tax laws where you live or are otherwise required to file a tax return.

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Business Taxes

Most business taxes are based on gross receipts. For those Business Tax Classifications, the tax rate is a specified amount per $1,000 of taxable gross receipts for each tax classification. Some business taxes are based on a flat rate per tax period and others are based on the number of vehicles, machines, devices or equipment used, the number of employees, square footage of the area, seating capacity, or the scale of fees collected.

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International Fuel Tax Agreement (IFTA)

Qualifying commercial motor vehicles traveling in more than one U.S. state or Canadian province are required to file a consolidated report of motor fuels taxes (e.g., gasoline, diesel fuel, liquefied gas, compressed natural gas and liquefied natural gas taxes) under the International Fuel Tax Agreement (IFTA).

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Payroll Taxes

A payroll tax includes the taxes employees and employers pay on wages, tips, and salaries. For employees, taxes are withheld from their paychecks and paid to the government by the employer. These taxes include federal, state, and local income taxes, and the employee's share of Social Security and Medicare taxes (FICA). Taxes that employers must pay include their share of FICA as well as federal and state unemployment taxes.

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Quarterly Sales Taxes 

The quarterly filing system requires people and businesses to pay an estimate of the amount they will owe in taxes for that period. They also file annual tax returns that determine their exact total taxes due. Quarterly filing is required of those who do not have taxes withheld from their incomes automatically.

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Self- Employment Taxes 

If you’re self-employed, it’s important to review what you are allowed to deduct each year to make your business as profitable as possible. There are two ways of calculating a deduction for a home office and a vehicle used for business purposes. It pays to do calculations for both methods to see which is more financially beneficial. Meals with clients and business travel are deductible, but meals that are included with entertainment may not be. Premiums for insurance that you buy to protect your business and for health insurance are legitimate deductions. And don’t forget startup, advertising, and retirement plan costs.

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