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Needed Information

For some people, filing taxes is seen as a hassle and overwhelming when you don’t know how or where to start. Luckily, we have provided some basic information that is needed before taking the leap of filing your taxes:

  • Proof of identification
  • Social Security Cards or Individual Taxpayer Identification notices/cards for you, your spouse and/or dependents and/or a Social Security Number verification letter issued by the Social Security Administration
  • Wage and earning statement(s), Form W-2, W-2G, 1099-R, from all employers
  • Records of earnings (Forms 1099 and/or cash) from self-employment and expenses related to self-employment income Forms 1095-A, B or C Affordable Healthcare Statements

04/10/2021

Advice for College Students and Parents

For many young people, attending college/ university is a great experience. It’s a time learn, grow, and of course venture out into the void of new experiences. However, it is also a time where many get their first taste of financial independence and responsibility. What does this mean for some college students, they eventually be met with the reality of having to get a job and start managing their money. They will definitely realize that purchasing books and school supplies needed for their classes will shockingly add up, regardless of their field of study. Now, you’re probably asking “What does this have to do with taxes?” Well, we have taken the liberty of providing some necessary information and tips that students, and their parent(s) will need when preparing to file the student’s taxes.

  • The 1098-T form of the previous academic year from their college/university
  • W-2 from their place(s) of employment
  • receipt(s) of any and all supplies and items purchased for the same academic year as the 1098-T form. This pertains to: receipts for textbooks (hardback, paperback and e-books), notebooks, pens, pencils (mechanical or number 2 ), sharpies, highlighters, laptops, earbuds (for online classes), and lab materials (lab coat, safety goggles, medical scrubs).

04/15/2021

Types of Income

With the current financial state of the United States and the world at large due the COVID-19 pandemic, it appears that becoming financially literate is something some people still have not made an effort to improve upon. We believe that one of the first steps a person can take in gaining some level of understanding when it comes to financial literacy, is understanding the various types of income there are:

  • Wages (Earned income): Earned income is your primary source of income from a job.
  • Unearned or Passive Income: Unearned income is where the income is not directly tied to any actual activity or work being done such as Social Security benefits or Disability benefits or even rental income collected by a property manager.
  • Active Income: Active income is where you do some work or provide a service, and someone pays you for it. Ex. If own a small business like personal landscape business that requires you to drive to the job site to perform the work, the income you make is considered active income.

04/29/2021

Tips for taxpayers who work in the gig economy

The gig economy allows people to earn income by using technology to arrange transactions. This could include performing rideshare services or deliveries, selling goods online, or providing freelance work. Often, customers and providers of goods or services are brought together through a digital platform on an app or website.

It’s important for all gig economy workers to understand their tax obligations.

Here are some things taxpayers should remember
They must report all income, even if the income is:

  • From part-time, temporary, or side work
  • Not reported on a Form 1099-K, 1099-NEC, 1099-MISC, W-2, or other information return.
  • Paid in the form of cash, property, goods, or virtual currency

Taxpayers may also be required to make quarterly estimated income tax payments and pay self-employment tax. 


While providing gig economy services, it is important that the taxpayer is correctly classified.

  • It is critical that business owners correctly determine whether the individuals providing services are employees or independent contractors.
  • Taxpayers can use the worker classification page on IRS.gov to determine how they are being classified.
  • Independent contractors may be able to deduct business expenses, depending on tax limits and rules. It is important for taxpayers to keep records of their business expenses.

It’s important for taxpayers to pay the right amount of taxes throughout the year to avoid owing when they file.

  • An employer typically withholds income taxes from their employees’ pay to help cover income taxes their employees owe.
  • Gig economy workers, who are not considered employees, have two ways to cover their income taxes:
    • If they have another job as an employee, gig workers can submit a new From W-4 to their employer to have more income taxes withheld from their paycheck.
    • Make quarterly estimated tax payments to help pay their income taxes throughout the year, including self-employment tax.

The Gig Economy Tax Center on IRS.gov answers questions and helps gig economy taxpayers understand their tax responsibilities.


More information:
Publication 5369, Gig economy and your taxes: things to know
Publication 1779, Independent Contractor or Employee
Is My Residential Rental Income Taxable and/or Are My Expenses Deductible?

05/08/2021

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