Tax season can be a stressful time for many, especially if you’re navigating the process on your own. Whether you’re an employee with a W-2 or self-employed, understanding the intricacies of tax laws and regulations is challenging. However, there’s no need to fret because we’ve got your taxes covered.
If you are employed and receive a W-2 form from your employer, it shows your annual earnings and the amount of taxes withheld from your paycheck throughout the year. This information is crucial as it helps determine whether you will get a tax refund or owe money to the IRS. It’s essential to understand how to read this form correctly and input its data into your tax return accurately.
On the other hand, if you’re self-employed or operate a small business, managing taxes becomes more complex. You may have multiple streams of income that need reporting differently on various schedules and forms. Plus, there are deductions specific to self-employment that can significantly reduce taxable income if properly claimed.
Self-employed individuals must pay both income tax and self-employment tax (Medicare and Social Security). They often make estimated quarterly payments throughout the year based on their projected earnings rather than having taxes withheld from each paycheck like traditional employees.
The good news is that being self-employed also allows for several potential deductions not available to typical wage earners. These include home office expenses, vehicle use related to business operations, supplies purchased for business use, professional development costs such as training or certifications needed in one’s field of work among others.
Moreover, changes in recent years have introduced new considerations for both W-2 workers and those who are self-employed. For instance, under certain circumstances brought about by COVID-19 pandemic legislation passed by Congress in 2020 allows some taxpayers who work from home but do not normally qualify for the home office deduction to claim certain expenses on their 2020 returns.
Whether you’re receiving a W-2 or juggling the complexities of self-employment, it’s crucial to have a trusted tax professional on your side. They can guide you through the process and ensure that you’re taking advantage of all possible deductions and credits.
Tax professionals stay updated with ever-changing tax laws, understand how these changes impact individuals differently based on their employment status, income levels, and other factors. This expertise allows them to provide accurate advice tailored to each person’s unique situation.
In conclusion, no matter if you’re navigating W-2s or handling the intricacies of being self-employed, rest assured we’ve got your taxes covered. Our team is here to help simplify this complex process and make sure you feel confident about your financial future as we move into another tax season together.
TaxShield Service
3624 Austin Peay Hwy, Memphis, TN 38128, United States
18444151040
