When it comes to owning your own business, there are many perks to keep you going for years. However, at some juncture, every business reaches a stage where the owner needs to plan for the next stage of their life and the life of the business. In the world of financial planning, we call that Exit Planning. According to the Exit Planning Institute, the average business owner has around 80% of their net worth tied up in the business. If retirement is part of their life plan, then they’ll need that 80% to live off of. So how do you make those plans and get everything you want out of your business? Is your business sexy? Here are some things to think about as you formulate your exit strategy. Getting Out Whether your plan involves selling, handing down or going out of business altogether, you need a strategy in place to get the most out of your business. In the next ten years, 3 out of 4 business will change hands. The reason for that is that many baby boomers own businesses right now. Next for them is the retirement phase of life. So essentially what’s going to happen is a lot […]
Tax Tips for Students with Summer Jobs Many students get summer jobs. It’s a great way to earn extra spending money or to save for later. Here are some tips for students with summer jobs: Withholding and Estimated Tax. If you are an employee, your employer normally withholds tax from your paychecks. If you are self-employed, you may be responsible for paying taxes directly to the IRS. One way to do that is by making estimated tax payments on set dates during the year. This is essentially how our pay-as-you-go tax system works. New Employees. When you get a new job, you need to fill out a Form W-4, Employee’s Withholding Allowance Certificate. Employers use this form to calculate how much federal income tax to withhold from your pay. The IRS Withholding Calculator tool on IRS.gov can help you fill out the form. Self-Employment. The money you earn working for others is taxable. Some work you do may count as self-employment. These can be jobs like babysitting or lawn care. Keep good records of your income and expenses related to your work. You may be able to deduct those costs. A tax deduction generally reduces the taxes you pay. Tip […]
When it comes to investing, how you invest your money isn’t the only thing that matters. Who you let invest your money is just as important. In today’s market, you’ve got options, so which one suits you best? Let’s look at the advantages of a human versus robo advisor.
IRS Face-To-Face Help Is Now By Appointment Taxpayers who need in-person help from an IRS Taxpayer Assistance Center (TAC) need to call to schedule an appointment. The IRS Face-to-Face help is available at all TACs by appointment. They are an essential service the IRS provides when a tax issue cannot be resolved online or by phone. Consider the self-service options on IRS.gov before calling for an appointment. Many questions can be resolved online without taxpayers having to travel to a Tax Assistance Center. Publication 5136, the IRS Services Guide, has additional information about where to find help. Answering a tax question: The Interactive Tax Assistant asks the taxpayer a series of questions and provides answers based on their input. IRS Publication 17 covers a broad range of topics and updates on tax law changes. The IRS Tax Map finds all the relevant tax information needed in one place. The IRS mails millions of letters every year. Each one deals with a specific issue and provides specific instructions on what to do so careful reading is essential. Checking on a refund status: Use the “Where’s My Refund?” online tool to check the status of a tax refund. Call 800-829-1954 anytime, to access […]