In or Out Tax Service Inc

Worth repeating!

PSA: if you are a sole proprietor (self employed,) you do not need to be a LLC (Limited Liability Company) to deduct business expenses! There are other reasons to organize as one, but that isn’t one of them. Talk to a tax expert before you make this decision.

In or Out Tax Service Inc. Is closed today to observe Juneteenth.

The Historical Legacy of Juneteenth Juneteenth is an often overlooked event in our nation’s history. On June 19, 1865, Union troops freed enslaved African Americans in Galveston Bay and across Texas some two and a half years after President Abraham Lincoln signed the Emancipation Proclamation.

https://twitter.com/robergtax/status/1623019528455131138?s=46&t=wtkT-fYscM9F2Pgk_yOzrA

Jan Roberg on Twitter “If you are a college student and your parents claim you on their tax return, be sure to give them the 1098T that you get from your school. Your parents will need that to file their taxes.”

PSA: if you are a sole proprietor (self employed,) you do not need to be a LLC (Limited Liability Company) to deduct business expenses! There are other reasons to organize as one, but that isn’t one of them. Talk to a tax expert before you make this decision.

Washington Sate had a new capital gains tax starting in 2022. https://dor.wa.gov/taxes-rates/other-taxes/capital-gains-tax #:~:text=The%202021%20Washington%20State%20Legislature,tax%20only%20applies%20to%20individuals. It was ruled unconstitutional, but is being appealed.

Capital gains tax | Washington Department of Revenue In March of 2022, the Douglas County Superior Court ruled in Quinn v. State of Washington that the capital gains excise tax (ESSB 5096) does not meet state constitutional requirements and, therefore, is unconstitutional and invalid. The State has appealed the ruling to the Washington Supreme Court.....

If you use your car or truck for business, be aware the standard mileage rate increases starting tomorrow July 1st, 2022. The number goes from 58.5 cents a mile to 62.5 cents a mile. You will need two sets of business mileage numbers for your taxes. One number for the mileage between January 1st and June 30th and the other for the business mileage between July 1st and December 31st. The number for medical mileage purposes increases from 18 cents for the first six months to 22 cents for the last six months of 2022.

IRS increases mileage rate for remainder of 2022 | Internal Revenue Service

I was just doing a self employment 101 consultion with a client who is newly self employment and when going over the standard business milage rate, I pondered if it would be raised due to the higher cost of gas now. Then, I get a notice from IRS that starting 7/1/22, the standard mileage rate for business use is 62.5 cents a mile up from 58.5 and the rate for medical mileage is 22 cents a mile, up from 18. Charitable mileage purposes remain at 14 cents.

IRS Raises Mileage Rates as Gas Prices Increase In response to rising gas prices, the IRS increased the standard mileage rates used for calculating business deductions.

This client is being so catty!

Information about the Oregon “Kicker” Credit.

Kicker rebate finalized: Oregonians will get 17% of their 2020 state income taxes back The fact that Oregon’s unique kicker rebate law would generate a jaw-dropping $1.9 billion in refunds was determined months ago. But officials needed to certify exactly how large a credit each tax filer would be entitled to.

As the deadline approaches, even the LTCs (Licensed Tax Cats) have to help prep for eFiling. Just six more days...

Yes, IRS has extended the individual tax filing deadline to 5/17. However, this is only for the federal tax return, states with individual income taxes will still have to decide individually. Some states like Texas, Oklahoma and Louisiana have already extended to 6/15 due to federally declared disasters. The first quarter estimated payment is still due 4/15 at this time.

Tax Day for individuals extended to May 17: Treasury, IRS extend filing and payment deadline | Internal Revenue Service IR-2021-59, March 17, 2021 — The Treasury Department and Internal Revenue Service announced today that the federal income tax filing due date for individuals for the 2020 tax year will be automatically extended from April 15, 2021, to May 17, 2021.