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Category: Taxes

Can You Deduct Car Expenses and Mileage on Your Taxes?

Employees are no strangers when it comes to using their personal vehicles for work purposes. Some employees travel to and from multiple job sites, some use their car to complete work tasks, while other employees simply have to drive to work from their residence. Prior to 2018, employees who used their personal vehicles for business purposes were allowed to claim these expenses as deductions on their taxes. However, since the creation of the Tax Cuts and Jobs Act of 2017 (TCJA), most employees were no longer permitted to claim itemized deductions for personal vehicle expenses. This caused confusion among employees who use their vehicles for business, and many wondered whether they are still allowed to claim these types of deductions. So let’s find out!

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The 2020 Tax Filing Deadline is Extended to May 2021!

If you’re a procrastinator, much like the 50-million people who didn’t file their taxes in 2019 until April 15th, I have good news for you! The U.S. Department of Treasury and Internal Revenue Service (IRS) announced that the tax due date will extend from April 15th, 2021 to May 17th, 2021, giving everyone an extra month to gather their 2020 tax information.

Here’s what you need to know:

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Small Business Hiring Tax Credit for CA Employers- Effective Dec. 1, 2020

a person putting money into a piggy bank.

Many California employees and employers faced challenges as the coronavirus impacted their workplaces. During this difficult time, business owners had to make tough decisions in order to stay afloat. Ultimately, this led to many lay-offs in the state. With rising unemployment rates, the California government decided to take action. In order to remedy this economic and unemployment setback, Governor Gavin Newsom enacted Senate Bill 1447, the Small Business Hiring Tax Credit, on September 9, 2020. This bill allows any qualified employer credit against personal income and/or corporate taxes for each taxable year beginning on or after January 1, 2020. 

Do you qualify for assistance? Let’s find out:

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Does the New 2020 Form W-4 Affect Employees and Employers?

2020 W-4 Form

There have been a lot of changes in 2020 in regards to the US overtime policy salary history bans in Ohio, New York, and New Jersey, and the federal mileage rate. In addition to that, the IRS recently changed Form W-4 for employees and employers starting in 2020. This change leaves employees and employers wondering what they need to do moving forward. Luckily, most people don’t have to worry about changes; however, if you’re thinking about getting a new job or hiring new employees in 2020, you’ll want to acquaint yourself with the new Form W-4. 

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Important Employer Tax Filing Dates 2020

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* As of March 21st, 2020, The Treasury Department and Internal Revenue Service extended the federal income tax filing due date from April 15, 2020, to July, 15, 2020.

Taxes are difficult for a lot of people, and it’s even tougher when you own a company. Not only do business owners have to track expenses for taxes and other tax deductions, but they must also fill out multiple forms throughout the year for tax filing purposes. With many forms and deadlines, it is difficult to remember when certain IRS forms are due. We don’t want you to stress, so we’ve mapped out all of the important dates so that you know exactly what to do and when to do it. 


Your Guide to Tax Deductions for Small Businesses

A person putting money into a piggy bank

If you run a small business, you’re going to want to file your tax deductions accurately. Properly filing tax deductions will give you a larger tax return. Unfortunately some businesses are not keeping accurate track of their records. As a result, there are a lot of tax write offs that people miss. To ensure that you benefit from deductions, you must keep records of all aspects of your business, including expenses. Once you’re organized and have valuable data to back up your claims, you may deduct many business expenses.


Federal Tax Deductions For Businesses Who Donate to Charity

Hands holding a ball of money

Businesses everywhere donate to charitable organizations every year. After all, it’s a great way to contribute to society and it’s probably tax deductible., for instance, donates to organizations like the Jane Goodall Institute, The African Wildlife Foundation, The Humane Society of the United States, and others. Did your business donate to a charitable organization this year? If so, you may be able to claim a deduction if you donated to a qualifying  501(c) 3 organization. The IRS states that you can deduct contributions given to any religious, charitable, educational, scientific, or literary organization. If you donated to any of the organizations listed above, you may be eligible for deductions. Here’s your guide to understand your contributions and tax deductions:


5 Helpful Tax Time Tools for Stressed Out Business Owners

Woman doing her taxesContributed by Julie Morris

Though it’s still a few months away, you’re probably already starting to feel some anxiety about tax time. Adding one more thing to a busy business owner’s to do list is bad enough but the stress of making a mistake on your taxes can be maddening. The good news is there are many helpful tools for business owners to better navigate this “taxing” process. Here are a few to check out.


If Employers Don’t Reimburse, Employees Can Claim Mileage Deduction

Mileage reimbursement is not mandatory in the US (in most cases), however, the IRS issues a yearly Standard Mileage Rate for use by employees and employers in the following ways:

  1. The rate gives employees a rate to use when they claim mileage deduction at tax time.
  2. It gives employers a reasonable reimbursement rate based on current research.
  3. The rate informs employers of the amount employees kickback for minimum wage considerations.

The rate gives employees a chance to get compensated either through payment by the employer or as a deduction for business related mileage on their taxes. If you need to calculate employee mileage reimbursement, try our free calculator to figure out the cost.

Technically, employers can pay any mileage rate of their choosing (except in California), whether that be over or under the IRS standard. But if an employer pays less, employees can deduct the difference on their taxes.