Category: Small Business

Business Taxes, General Information, General Tax Topics, Self Employed, Small Business, Tax Deductions, Uncategorized, Vehicles

Commercial Fuel Card Without A Personal Guarantee.

Howard Tax Prep LLC

gas card

Commercial Fuel Card

Gas Cards Without A Personal Guarantee

Would you like to free up some cash so that you can increase your marketing budget, purchase more supplies, or reward your employees? Have you heard about obtaining business credit without a personal guarantee, but haven’t been able to secure your own business credit? Are you a small business owner that has damaged personal credit? Have you been told that you can’t get business credit if you have bad personal credit? If any of these things apply to you, you’ve come to the right place!
To start, let us explain what a “personal guarantee is.” A personal guarantee means that the owners will be held personally liable for the debts of their business. Suppose you have a LLC Howard Tax Prep LLC has partnered with a national gas chain (comparable with Exon Mobil, Citgo, etc. with over 18,000 locations worldwide) to offer small business owners (being defined as businesses with revenues under 1 million dollars) fuel cards that report business payment history to Dunn and Brad Street, and Equifax every 30 days!
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Only verified businesses that are structured as a LLC, S-Corp, or C-Corp with a Dun and Brad Street number will qualify. Because this is not a publicly marketed program, your business must be verified, prior to receiving the name of the fuel company (but trust us, you can find a station near you).  

The best part about this offer? THE CARDS ARE ISSUED WITHOUT ANY PERSONAL LIABILITY TO THE OWNERS, & WITHOUT THE USE OF THE OWNERS PERSONAL CREDIT. If you need a truck driver fuel card, Uber driver fuel card, Lyft driver fuel card, or just a general small business owner fuel card, we can help! 

WHAT ARE THE DETAILS?

  • National fuel provider. Qualified businesses that are ready to move forward will be given the name of the fuel company prior to paying the 1 time $49.95 Howard Tax Prep LLC processing fee.
  • Minimum deposit of $200 for a $500 credit line is required.
  • Accounts are reviewed every quarter for credit line increases.
  • After 12 months of ON TIME PAYMENTS, your deposit will be returned.

WHAT ARE THE REQUIREMENTS?

  • Business Must Be Structured As A LLC, Corporation, or S-corporation.
  • Must have a BUSINESS CHECKING account.
  • Must Agree To Make ON-TIME Payments.
  • Deposit Payment Can Only Be Drafted From Business Checking account.

Who should use fuel cards?

Owner Operator Truck Driver

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Owner Operator Truck Drivers no longer have to use personal credit cards or cash profits to purchase fuel! Reduce driver fraud by setting fuel limits & restricting usage. Save on fuel cost, while building your business credit Paydex score.     

  • The principal or owner is not personally liable for any bad debt.
  • The account will be in the name of the business.
  • Helps to Establish & build business credit.
  • Account payment history reported to DnB and Equifax every 30 days.
  • Accepted at over 18,000 locations Worldwide.
  • Free online invoicing.
  • Activate new cards as needed.
  • Restrict cards with fuel only limits & purchase restrictions during non-business hours.
  • Save up to 6¢/gal* on fuel purchases at thousands of locations in the U.S.
  • Earn rebates on fuel at branded locations.

GET YOUR CARD NOW!

Small Business Owner

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Small business owners no more using your profits & personal credit cards to cover fuel cost. Use the cash you save and apply it toward marketing, inventory, and more! Save on fuel cost, while building your business credit Paydex score. 

  • The principal or owner is not personally liable for any bad debt.
  • The account will be in the name of the business.
  • Helps to Establish & build business credit.
  • Account payment history reported to DnB and Equifax every 30 days.
  • Accepted at over 18,000 locations Worldwide.
  • Free online invoicing.
  • Activate new cards as needed.
  • Restrict cards with fuel only limits & purchase restrictions during non-business hours.
  • Save up to 6¢/gal* on fuel purchases at thousands of locations in the U.S.
  • Earn rebates on fuel at branded locations.

GET YOUR CARD NOW! 

Uber & Lyft Driver

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Uber and Lyft Drivers that would like to build their business credit, and free up their cash flow. Use your additional cash flow for brake repairs, oil changes, and more! Save on fuel cost, while building your business credit Paydex score.  

  • The principal or owner is not personally liable for any bad debt.
  • The account will be in the name of the business.
  • Helps to Establish & build business credit.
  • Account payment history reported to DnB and Equifax every 30 days.
  • Accepted at over 18,000 locations Worldwide.
  • Free online invoicing.
  • Activate new cards as needed.
  • Restrict cards with fuel only limits & purchase restrictions during non-business hours.
  • Save up to 6¢/gal* on fuel purchases at thousands of locations in the U.S.
  • Earn rebates on fuel at branded locations.

 GET YOUR CARD NOW!  

How easy it to use the card?

image43

 1-2-3 Driver Instructions 

  • Swipe card
  • Enter driver ID when prompted (may also be call DIN or PIN)
  • Enter odometer reading when prompted
  • The principal or owner is not personally liable for any bad debt.
  • The account will be in the name of the business.
  • Helps to Establish & build business credit.
  • Account payment history reported to DnB and Equifax every 30 days.
  • Accepted at over 18,000 locations Worldwide.
  • Free online invoicing.
  • Activate new cards as needed.
  • Restrict cards with fuel only limits & purchase restrictions during non-business hours.
  • Save up to 6¢/gal* on fuel purchases at thousands of locations in the U.S.
  • Earn rebates on fuel at branded locations.

 GET YOUR CARD NOW! 

 

Business Taxes, Family Taxes, General Information, General Tax Topics, Self Employed, Small Business, Tax Debt, Tax Deductions, Tax Reduction, Uncategorized

Now that you’ve filed, do you need to tell your employer to withhold more or less income to pay your 2019 taxes?

Howard Tax Prep LLC

man holding white paper

Reprinted with changes, edits, & permission by the IRS.

Was your refund lower than expected, or did you have an unexpected tax bill when you filed this year? In our south loop Chicago tax preparation office, we saw a slight decrease in income tax refunds for personal 1040 taxes. On the other hand, many of our Chicago business tax preparation clients saw a decrease in their taxes dues thanks to the Tax Cut and Jobs Act. If you are concerned about your tax bill for the 2019 tax year, there are steps that you can take steps to make sure your federal income tax withholding is on the right track for this year.
Checking your withholding at the beginning of the year helps ensure you don’t have too little or too much withheld from your paychecks throughout the year. This is especially
important if you changed your withholding in 2018. A mid-year withholding change in 2018 can have a different full-year impact in 2019. You should also check your withholding any time your personal or financial information changes. Use the Withholding Calculator to help you decide whether you need to change your
withholding.

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Federal taxes operate on a pay-as-you-go basis. This means that you need to pay most of your tax during the year, as you earn the income. Paying too much tax throughout the year will result in a refund while not paying enough can lead to a tax bill, penalties and interest when you file. One way to avoid owing a balance is to correctly calculate and adjust how much tax you should have withheld from your wages. Use the Withholding Calculator to help you decide whether you need to change your withholding.

Another option is to consider making quarterly estimated tax payments. Those who
don’t pay taxes through withholding, or don’t pay enough tax that way, may still use the Withholding Calculator to determine if they have to pay estimated tax quarterly during the year to the IRS. Those who are self-employed generally pay tax this way. See Form
1040-ES, Estimated Taxes for Individuals, for details. Visit IRS.gov/payasyougo to learn more about withholding and to determine if you should be making estimated tax payments. You are in the driver’s seat. Check your withholding today.

Although we’ve given you the basics, this is not an all-inclusive article. Should you have tax debt help questions, need Chicago business tax preparation, business entity creation, business insurance, or business compliance assistance please contact us online, or call our office toll free at 1-855-743-5765 or locally in Chicago or Indiana at 1-708-529-6604. Make sure to join our newsletter for more tips on reducing taxes, and increasing your wealth.

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Business Taxes, Family Taxes, General Information, General Tax Topics, Self Employed, Small Business, Tax Debt, Tax Deductions, Tax Reduction, Uncategorized

Owe taxes? What to do when you owe the IRS.

Howard Tax Prep LLC

Listen, I’ve been there. You know the place where you’re afraid to open the notice from the IRS because you think they are coming for your right arm and both legs? The place where you KNEW that you should have been paying more through out the year, but you needed your money, so you chose go exempt from Federal taxes? Or how about the place where you thought you were paying enough to the IRS, and to your surprise you wound up with a tax bill! Listen to this quick podcast below by clicking the play button, or listen on iTunes by searching “small biz tax lady.”

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I talk about if you should file, your payment options, and why you need to read your IRS notices. If you have a more complicated case (such as refund taken due to spousal debt, IRS wage garnishments, or a pending levy, please call us immediately at 855-743-5765 or email me directly at thoward@howardtaxprep.com

Have a podcast idea? Send me your suggestions at podcast@howardtaxprep.com or inbox me.

 

Business Taxes, Family Taxes, General Information, General Tax Topics, Self Employed, Small Business, Tax Deductions, Tax Reduction, Uncategorized

Let’s face it, no one really likes to pay taxes.

Howard Tax Prep LLC

Spanky little rascals

Author Trudy M. Howard

Let’s face it, no one really likes to pay taxes.

Unfortunately, while most Americans don’t like to pay taxes, we know that taxes have to be paid. As a self employed person, and business owner, not only do you have to pay local & state taxes, but you must also make Federal estimated tax payments throughout the year. Whenever I work with Chicago South Loop small business tax preparation customers, I find that they are often very surprised to hear about the estimated tax concept.

The American tax system is a a pay as you go system, not a pay once a year, or pay when you feel like it system. According to the IRS, “taxpayers must generally pay at least 90 percent of their taxes throughout the year through withholding, estimated tax payments or a combination of the two. If they don’t, they may owe an estimated tax penalty.” In most cases, you must pay estimated tax for 2019 if both of the following apply: 1. You expect to owe at least $1,000 in tax for 2019, after subtracting your withholding and refundable credits. You expect your withholding and refundable credits to be less than the smaller of: a. 90% of the tax to be shown on your 2019 tax return, or b. 100% of the tax shown on your 2018 tax return. Your 2018 tax return must cover all 12 months.

If you are a self employed driver (think UBER, LYFT, DOORDASH), contractor, real estate agent, barber, beautician, makeup artist, blogger, home care provider, etc. you need to have an EFTPS® account to make your Federal estimated tax payments. EFTPS® is a system for paying federal taxes electronically using the Internet, or by phone using the EFTPS® Voice Response System. EFTPS® is offered free by the U.S. Department of Treasury, however, you must setup an account to use the system. Listed below are the estimated quarterly tax payment dates for sole proprietors, and the quarterly payment dates for S-corp owners and C-corporations.

Estimated tax payment due dates for 2019:

April 15, 2019: Income tax due date AND the due date for your first quarterly estimated tax (QET) payment. In April, you’ll pay quarterly estimated taxes on the income you made in January, February, and March 2019.

June 17, 2019: This is when you’ll pay quarterly estimated taxes on the income you made in April, May, and June 2019.

September 16, 2019: Quarterly estimated taxes for the months of July, August, and September 2019 are due on this date.

January 15, 2020: Quarterly estimated taxes for the months of October, November, and December 2019 are due on this date.

For those that are S-corps or Corps. Remember that you are considered an employee, and a shareholder. This means that you’ll need to pay your income, social security, and Medicare taxes as the employer & the employee. In addition to making the deposits, you will also need to file quarterly payroll tax return. C-corporation owners will need to file estimated taxes on the corporations income, and file a 941 quarterly payroll return.

Here are the quarterly payroll tax return due dates for 2019:

April 30, 2019: File Form 941 – Employer’s Quarterly Federal Tax Return. If you made all required payments in full by the due dates, you have 10 more days to submit this form (by February 10).

July 31st 2019: File Form 941 – Employer’s Quarterly Federal Tax Return. If you made all required payments in full by the due dates, you have 10 more days to submit this form

October 31 2019 File Form 941 – Employer’s Quarterly Federal Tax Return. If you made all required payments in full by the due dates, you have 10 more days to submit this form.

January 31, 2020: File Form 941 – Employer’s Quarterly Federal Tax Return. If you made all required payments in full by the due dates, you have 10 more days to submit this form.

Although we’ve given you the basics, this is not an all-inclusive article. Should you have tax debt help questions, need Chicago business tax preparation, business entity creation, business insurance, or business compliance assistance please contact us online, or call our office toll free at 1-855-743-5765 or locally in Chicago or Indiana at 1-708-529-6604. Make sure to join our newsletter for more tips on reducing taxes, and increasing your wealth.

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Business Taxes, Family Taxes, Self Employed, Small Business, Tax Debt, Tax Deductions, Tax Reduction, Uncategorized

IRS Issues Final Section 199A Regulations and Defines QBI

Howard Tax Prep LLC

gavel
Your ownership of a pass-through trade or business can generate a Section 199A tax deduction of up to 20 percent of your qualified business income (QBI). The C corporation does not generate this deduction, but the proprietorship, partnership, S corporation, and certain trusts, estates, and rental properties do.

The tax code says QBI includes the net dollar amount of qualified items of income, gain, deduction, and loss with respect to any qualified trade or business of the taxpayer.

Sole Proprietorship QBI

The QBI for the sole proprietor begins with your net business profit as shown on your Schedule C. You then adjust that profit as follows:

• Subtract the deduction for self-employed health insurance.
• Subtract the deduction for one-half of the self-employment tax.
• Subtract qualified retirement plan deductions.
• Subtract Section 1231 net losses (ignore gains).

Example. You have $120,000 of net income on Schedule C. You deducted $10,000 for self-employed health insurance, $8,478 for one-half of your self-employment taxes, and $10,000 for a SEP-IRA contribution. Your QBI is $91,522 ($120,000 – $10,000 – $8,478 – $10,000).

Rental Property QBI

If you own rental property as an individual or through a single-member LLC for which you did not elect corporate taxation, you report your rental activity on Schedule E of your Form 1040. If you can claim the property is a trade or business, your QBI begins with the net income from your Schedule E.

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Partner’s QBI from the Partnership

A partner may obtain income from the partnership in two ways: (1) as a payout of profits and/or (2) as a Section 707 payment (generally referred to as a “guaranteed payment”). The profits qualify as QBI, and the partnership profits are adjusted for the same items as with the sole proprietorship. The Section 707 payments reduce the net income of the partnership. They do not count as QBI.

S Corporation Shareholder QBI

The more than 2 percent shareholder in an S corporation ends with QBI calculated in the same manner as for the sole proprietor. For example, the S corporation treats the health insurance as wages to the shareholder which reduces the profits of the S corporation and that reduces the shareholder’s QBI.

Wages paid to the shareholder-employee reduce the net income of the S corporation but do not count as QBI.

Trusts and Estates

The rules above apply to trusts and estates. The tricky part is where to apply the rules—to the trust, to the estate, or to the beneficiary?

Although we’ve given you the basics, this is not an all-inclusive article. Should you have tax debt help questions, need Chicago business tax preparation, business entity creation, business insurance, or business compliance assistance please contact us online, or call our office toll free at 1-855-743-5765 or locally in Chicago or Indiana at 1-708-529-6604. Make sure to join our newsletter for more tips on reducing taxes, and increasing your wealth.

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Never miss another tip again! Join our newsletter, to receive tax reduction/wealth building tips delivered right to your inbox!

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