Liz Smith, CPA, MSTFP

The main differences between TaxAct vs TaxSlayer are pricing and use case. I really like TaxAct’s user interface (UI) and customer support options, but TaxSlayer offers simple filings at a more affordable price point. Both, however, promise ease of use, accuracy, and efficiency in helping users maximize their tax refunds and minimize their tax liabilities….

H&R Block is a tax preparation service that helps you file your own tax returns either online or with desktop software. With locations in all 50 states, H&R Block can service the public through virtual or in-person appointments. One of my favorite features is the versatility of services offered, which include W-2 import, refund transfer,…

Our list of tax saving tips for small business owners will help you keep your tax bill down. There are many ways to minimize income taxes, such as investing in clean energy, contributing to a retirement plan, identifying unused deductions, converting your sole proprietorship into an S corporation (S-corp), and making estimated tax payments. 1….

All domestic C corporations (C-corps) must file IRS Form 1120, US Corporation Income Tax Return, every year they are in business—even if they don’t have any taxable income. The financial information in Form 1120 is pretty straightforward as long as you have your balance sheet and profit and loss (P&L) statement prepared before completing the…

Self-employment tax consists of Social Security (12.4%) and Medicare (2.9%), for a total of 15.3%. It is assessed on income earned and must be paid even if you don’t receive a 1099-MISC for your services. If you’re a sole proprietor, freelancer, general partner, or independent contractor making $400 or more in self-employment income then you’ll…

The filing of Form 1120S is required annually for every S corporation (S-corp). The return includes a combination of financial data and questions about the nature and operations of the business. We’ll cover how to enter the financial information and do an in-depth dive into the questions required on Schedule B. Step 1: Gather the…

If you meet the criteria to complete Schedule C—an attachment to Form 1040—you will use it to report your business income and expenses for the year. To do so, you’ll need your profit and loss (P&L) report or any other report that consolidates the income you received and expenses you incurred during the year. Who…

Independent contractors pay federal, state, and local taxes. At the federal level, independent contractors are subject to income tax and self-employment tax on their net earnings. Most independent contractors also pay income tax in the state where they live and work. In addition, some cities and counties assess additional business taxes, along with fees for…

The tax treatment of vacation rental property depends on how many days you rent it out and how much you use it yourself. If you rent your vacation property for less than 14 days a year, then you don’t have to report the rental income—plus you don’t deduct the expense of renting. However, if you…

Quick Cloud Hosting is a cloud-based hosting provider for businesses, including accounting and tax firms and financial institutions, with a focus on those using QuickBooks. It supports QuickBooks Desktop, Sage, and tax software products, such as Drake and Lacerte. It offers standard and dedicated hosting, with round-the-clock support and monitoring to ensure all services are…

TaxAct Professional is a thorough and affordable professional tax software program. Combined with strong customer support options, it is an excellent choice for high-volume tax preparers of returns with medium to low complexity. Its pay-per-return pricing starts at $150 per return plus a $25 filing fee for individual returns and $249 plus a $40 filing…

The Dividends Received Deduction (DRD) is a tax break available to a C corporation (C-corp) that receives dividends from other corporations in which it is a shareholder. The DRD’s main purpose is to protect corporate income from being subject to multiple layers of taxation. A corporation can claim a specific amount of DRD based on…