Welcome to the Merrill Taylor - Tax Tutor Channel!
After spending years preparing tax returns and teaching others how to prepare tax returns, I have come to a conclusion: online courses are helpful in learning how to prepare tax returns, but more support is needed.
Taxes laws can be complex and every tax return has a unique set of circumstances. I have been preparing tax returns for 20 years and I still run into new and challenging situations every tax season.
It would be impossible for an online course to address every possible situation that comes up on tax returns.
So, what is the best way to learn tax preparation?
Tax Tutor Coaching!
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It seems you're a bit confused, so let me clarify. As a tax professional, I use spreadsheets to ensure accuracy and transparency, especially when dealing with multiple W-2s. While it's true that each company reports the income they paid out, combining data from multiple W-2s in a spreadsheet helps to ensure that all income sources are properly accounted for on the final tax return. This also helps identify potential errors or discrepancies, which is critical when filing taxes accurately. Using a spreadsheet isn't about figuring out how W-2s work-it's about being thorough and precise for the client's benefit.
Happened to me last year when I had 2 W-2s and I owed when both had withholdings on them. But it is what it is, I paid and luckily this upcoming tax season I’ll only have 1 W-2 to deal with
Hi. Can you please tell me that in company name section need to write Company name or company name llc. Do need to write type of company (llc, inc) with name (llc,inc) or just name without type is ok?
@Sunnygdi You would put the name exactly as it is registered with the state, so look at your state registration documents and use the name that is shown in those documents. You can also find the registered name by doing a business entity search with the state where your entity is registered. To do that, do a Google search for: (name of state where entity is registered) "business entity search". That will help you find the business entity search for that state, where you can find exactly how your entity name is registered with the state.
When tying your shoe, you will need to manipulate the laces. When done correctly, your shoe will be secure to the foot. Edit--> deleted my reply so now here. No thanks. You seem to think people are pretty stupid...I just think you are. Edit 2---> don't bother subscribing, dude deletes comments.
I know the video is very basic for most people, but you would be surprised to see how many people do not follow basic bookkeeping rules and end up in trouble with the IRS. I will give some stories as examples in some upcoming shorts, so be sure to subscribe to see how people get themselves in trouble with the IRS.
I agree with you about common sense. The problem is most business owners are too busy running their business, so they sometimes don't think about something as simple as keeping business and personal separate.
Not to mention that commingling funds typically pierces the corporate veil which can make a shareholder/owner personally liable for liabilities of the company. Best practice is to definitely keep personal and company funds separate 👍
That is correct - the employer match will still be a "traditional" contribution, but you can still contribute to a Roth account for the employee contributions. That is what I do in my business.
VERY well done! The video title is perfect. I was searching how to pay tax online without creating an IRS account. Creating an account looked like a total hassle now with that id.me thing. Horrible - just give me simplicity. Direct Pay looks easy. I've been paying ES tax by check for years, so will try it. Thanks, good video! SUBSCRIBED for more business tax tip videos!
How would you calculate Actual reimbursement for an employee with an electric car (Tesla)? They charge at their apartment and only pay $300/year to charge and as you know Teslas don't require oil changes or other traditional maintenance. Thanks!
Actual reimbursement is based on actual expenses, so they would only receive a reimbursement for the out of pocket expenses - such as the cost to charge the car and any maintenance they pay for. In this case, it might be better to use a mileage reimbursement rather than actual.
It depends on the penalty type. If it is a failure to file or failure to pay, then FTA will apply. If it was a failure to pay estimated tax payments, FTA will not apply.
I'm wrapping my car through Carvertise and advertising a third party's business. They say I am an independent contractor and will receive a 1099. Can I deduct any part of my commute even though it is not my business I am advertising?
Unfortunately, the IRS will still treat this as a personal trip, because it is commuting: www.irs.gov/publications/p463#en_US_2023_publink100033913:~:text=customer%20or%20client.-,Advertising%20display%20on%20car,-.%20Putting%20display
I have a question. Where can I find how much I owe?? I’m doing multiple years, and I did get approved for the 180 days for 2023. Do I wait until my return is processed to make payments?? I know in general what the federal number is. I’m just not able to find it in the site. Then again right now it still says return not processed.
The balance due will not show up until the IRS processes the return. Pay whatever you can now to avoid penalties and interest. Once the IRS processes the return, the balance due will be updated in your IRS online account.
A semi-truck is considered a qualified non-personal-use vehicle, which means mileage cannot be deducted. Semi-truck drivers must deduct actual expenses rather than taking the standard mileage rate.
Thank you! I was going in the wrong direction and was about to give up, order a book of checks, and send one of those in. After watching your video, i see how simple it is. Not sure how i got so far off track hah.
I don’t think your video is accurate. It does impact taxes. If the operating company owns the building and pays no rent then they have extra income to pay out as wages…. Or a distribution against against the shareholder basis. Wages would be subject to payroll taxes but rent wouldn’t. A distribution wouldn’t be subject to payroll taxes either but it also requires a basis and subject to paying a reasonable wage. I think rent is cleaner way to avoid pay roll taxes and decrease active income
If no rent is paid, then the leasing company would not recognize any income and would just have expenses. That would create a loss in the leasing company that would offset the additional income in the operating company. Either way, everything washes out in the tax returns.
@taxtutor Not if you do a Triple Net Lease… as such you’d get to write off all the expenses through the leasee’s business, and the leaser would be on more solid ground claiming it as passive income.
I am turning my hobby farm into a business. In 2023 used all my heavy stuff; tractor, forks, digger etc for the business and its personally owned. This is the first year I am filing taxes for the business as it is new. Currently it is a sole proprietorship. I plan to LLC this yeIar. For 2023; should I "sell or lease" the tractor to the sole proprietorship?? If I claim equipment lease fees is this helpful or does it just up my personal income and become a wash? Any other thoughts to a tax advantage??
There is not much tax advantage to leasing equipment to yourself or to your own business. It is a wash on your personal return. It is more of a legal play to potentially help with liability issues that may arise. It is best to consult with an attorney if such an arraingement is beneficial to you.
depreciation is built into mileage rates so wouldnt there be some kind of"recapture" when l sell it ?surely theres a worksheet!l sold my last pickup 15 years in and simply DECLARED THE WHOLE AMOUNT ...1500 BUX..it had saved me thousands down through the years t mileage rate,,
if you drive old trucks,depreciation will be low...mileage rate is a gift to us,,,it doesnt cost me 64 cents to drive these older vehicles!!!DONT TAKE MILEAGE IF YOU DRIVE 80,000dollar beautiful pickups!THEprice is the the most important part of this equation...BUT KEEP A GOOD DAILY LOG IF you take mileage...l put the pickup in my LLC name...l dont know if youtube helped me as a 22 minute vid..never told me,,even though it was in the title of the vid!
