Last year, when I was reviewing all of the forms that are standard for my book, “Taxation 101,” I check http://1099-form-gov.com/ and realized that there are hundreds of different forms for information, including: 1099 MISC instructions, 1099-K for individuals, Form W-2 for corporations, IRS Tax Forms, and the complete Tax History. That list is just the tip of the iceberg, and it only scratches the surface of what you need to know about tax.
Just like the tax code itself, every organization has different standards of what they believe is acceptable when it comes to tax. It is essential to understand your requirements and have a basic understanding of the business transaction before you can take the steps necessary to properly report your income.
The first key terminology, and one of the most important pieces of information to understand, is income and payroll. Payroll is the amount of money you take home by way of salary and wages, and income is how much money you bring home from other sources. It is essential to know how to split these two variables for your tax reporting.
Another important phrase that you need to be familiar with is “legal deductions.” Legal deductions refer to what you deduct when claiming other items, such as: state taxes, sales taxes, FICA, IRA, etc. Legal deductions can make or break your tax filing.
The fourth section of the book includes a detailed list of general guidelines and general rules that every business owner should be aware of. Most commonly known as GAAP or Generally Accepted Accounting Principles, this section can help you avoid common accounting mistakes.
Like most tax books, this book is full of graphs and illustrations to give you a quick overview of how the process works. When you are taking time to look at a lot of charts and graphs, it can be time consuming. If you are looking for something to take your mind off of things, this can help.
One of the most significant aspect of this book is the section on depreciation limitations. If you want to learn how to deduct your taxes properly, this section can help you understand exactly how much you can deduct.
Even though most books are easy to read, some can get very confusing. However, this book is packed with facts and figures that are absolutely easy to understand. With this book, it is very easy to follow the examples given and you will have no trouble doing so.
Just like any book, there are some basic sections that are easily accessible and easy to understand. For example, this book has an entire chapter dedicated to training you on what IRS forms are available. You may not have thought about this, but you can learn how to claim W-2s, Form W-2A, and Form 1099-MISC among others.
Many people may wonder what it means to claim a Form W-2. It simply means that you are working for your own business, as an employee, and you are reporting it on your taxes. As a business owner, it is easy to learn how to properly do this.
It is necessary to understand complicated tax forms, but too many individuals choose to skip them and simply declare their income on their tax returns. By following the tips in this book, you will have no problem answering your tax questions. As a business owner, you will no longer be confused when there are questions or problems.
Just because you can deduct something doesn’t mean you have to. To fully understand the tax code, you must be aware of all of the nuances. It is not enough to be able to claim your allowable deductions.