Ag FinTax

It’s true what they say, that nothing is for sure but death and taxes. However, this year we get a little reprieve from the latter. Due to the global COVID-19 pandemic, the IRS has extended the tax filing deadline from April 15 to May 17, giving filers an additional month to get their financial affairs in order. While the procrastinators amongst us might be rejoicing (and no shame in that), could it help to file before the tax filing extension? Does this extension give taxpayers more time to file state taxes? What incentive is there to get your taxes wrapped up?  That’s what we’ll cover in this guide: Tax Deadline Delayed Until May 17 — Should I Wait or File Now? Why did the tax filing date change? While the original tax filing date was slated for April 15, in keeping with most years, the Treasury Department and Internal Revenue Service announced on March 17, 2021, that this year’s tax filing deadline would be extended to May 17.  The announcement was made to give taxpayers r...

The big news this tax season is that the deadline for filing has been pushed back from April 15th to May 17th . This decision was made in light of the ongoing coronavirus pandemic, and it gives taxpayers a little more time to file their taxes.  That said, it never hurts to start preparing a little early. And if you’re new to filing taxes, or you’re not sure you’ve done it correctly in the past, then you may want to go over the basics of filing. Fortunately, even though filing your taxes seems intimidating, it can be fairly straightforward once you answer a few questions. Who has to file their taxes? If you’re reading this, you probably need to file a tax return. If you’re a dependent or your income is very low, you may not need to file, however, there can still be benefits to filing in these cases. So it’s best to check with a tax professional if you’re unsure of whether or not you should file.  What will I need to file my taxes? The first step in filing your taxes is gatherin...

Back in 1980, over 50% of businesses filed as C Corporations or a corporation in which the shareholders are taxed separately from the entity.  However, the number of businesses choosing the structure of a C-corp has been steadily declining, and most U.S. businesses today do not pay the corporate income tax. Instead, they’re what’s known as pass-through businesses , because the profits they make a pass through to the owners and end up being taxed at individual income tax rates. If you have a sole proprietorship, partnership, S-corp, or limited liability company, then your business is probably a pass-through entity.  However, with the reduction of the corporate tax rate to 21% via the Tax Cuts and Jobs Act (TCJA) of 2017, the idea of a C corporation may be more appealing to those who would otherwise form a pass-through business. After all, when you start doing tax planning for your small business, doesn’t a 21% corporate rate look more attractive than the maximum individual rat...