Doing freelance or side hustles involves tax considerations. Even if it's your first time dealing with it, it's manageable. Always report all income, deduct business expenses, and pay self-employment taxes. If possible, consider an S corporation to reduce tax burden. Think creatively to find more deductible expenses that support your business. Get actively involved in tax planning, use separate bank accounts, and document expenses. Seek professional help if needed.
President Biden and Vice President Harris released their tax returns for 2023. Biden's income rose slightly while Harris's income decreased slightly. Both couples paid federal income taxes and incurred small penalties for underpaying estimated taxes. The returns highlight the complexities of the tax code, including handling multiple income sources and managing tax liabilities. Tax experts advise higher earners with complex financial situations to consider working with professionals to optimize their tax strategies.
The 2017 tax cuts may not have been as beneficial for middle class Americans as advertised. Many provisions, including increased standard deductions and favorable tax brackets, are set to expire unless Congress extends them. Other hidden costs, such as increased property taxes and excise taxes, can offset some of the savings. Consider consulting a tax advisor for personalized advice on how to minimize tax exposure given these complexities.
The tax filing deadline for most Americans is April 15th. Those who haven't filed can still apply for an extension until October 15th, but taxes owed must be paid by April 15th. Many can file taxes for free through IRS Free File or Direct File. If someone owes a balance but doesn't file, they can expect penalties and interest. The IRS also suggests filing electronically for a faster refund.
Did you know you can contribute to an IRA up to April 15th and potentially get a tax deduction? The contribution limit for 2023 is $6,500 (plus $1,000 if you're 50 or older). The catch is that you may not qualify for the deduction if you have a workplace retirement plan and your income is too high. If you're eligible, weigh your goals and consider your immediate expenses before contributing.
The Powerball jackpot has reached an astounding $1 billion, with the next drawing scheduled for Monday night. The winner has two payout options: a lump sum of $483.8 million or an annuity worth $1 billion paid out over 29 years. While the lump sum may be tempting, experts warn that it could be difficult to manage without financial guidance. The annuity provides a guaranteed stream of income, which could be a wiser choice for some winners.
