Category: Tax Tips

Handling Tips and Gratuities: Proper Reporting and Tax Treatment for Salon Owners and Staff

Published on: July 23, 2024 By: Oozle Media

In the salon industry, tips and gratuities form a significant portion of the income for many professionals. Properly managing and reporting these tips is essential for compliance with tax laws and ensuring fair treatment of both salon owners and staff. This article provides an overview of the correct reporting and tax treatment of tips, offering guidance for salon owners and their employees.

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The Case of the Vanishing Hairspray: Why You Should Outsource Bookkeeping (and Save Your Salon)

Published on: June 20, 2024 By: Oozle Media

By Sharon Moulder, Accounting Manager, Lightheart Sanders & Associates Imagine a world of bouncy curls, happy clients, and the sweet scent of success. Now, picture that same world turning upside down, drowning in receipts and financial woes. This, my friends, is the fictional story of Sarah, a talented hairstylist who dreamt of a thriving salon…

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Booth Renters vs. Employees: Tax Implications in the Salon Industry

Published on: June 15, 2024 By: Oozle Media

Navigating the tax landscape is crucial for salon professionals, whether you’re a booth renter or an employee. Understanding the distinctions in tax responsibilities between these two roles can help you manage your finances more effectively and avoid potential pitfalls. Here’s a breakdown of the key differences in tax implications for booth renters and salon employees….

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Pros and cons of turning your home into a rental

Published on: May 20, 2024 By: Oozle Media

If you’re buying a new home, you may have thought about keeping your current home and renting it out. In March, average rents for one- and two-bedroom residences were $1,487 and $1,847, respectively, according to the latest Zumper National Rent Report. In some parts of the country, rents are much higher or lower than the…

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The tax deadline is almost here: File for an extension if you’re not ready

Published on: April 10, 2024 By: Oozle Media

The April 15 tax filing deadline is right around the corner. However, you might not be ready to file. Sometimes, it’s not possible to gather your tax information by the due date. If you need more time, you should file for an extension on Form 4868. An extension will give you until October 15 to…

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Beware of a stealth tax on Social Security benefits

Published on: April 1, 2024 By: Oozle Media

Some people mistakenly believe that Social Security benefits are always free from federal income tax. Unfortunately, that’s often not the case. In fact, depending on how much overall income you have, up to 85% of your benefits could be hit with federal income tax.

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Taking your spouse on a business trip? Can you write off the costs?

Published on: March 21, 2024 By: Oozle Media

A recent report shows that post-pandemic global business travel is going strong. The market reached $665.3 billion in 2022 and is estimated to hit $928.4 billion by 2030, according to a report from Research and Markets. If you own your own company and travel for business, you may wonder whether you can deduct the costs of having…

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Filing Jointly or Separately as a Married Couple: What’s the Difference?

Published on: February 15, 2024 By: Oozle Media

When you file your tax return, a tax filing status must be chosen. This status is used to determine your standard deduction, tax rates, eligibility for certain tax breaks and your correct tax. The five filing statuses are: Single Married filing jointly, Married filing separately, Head of household, and Qualifying surviving spouse. If you’re married,…

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Answers to your tax season questions

Published on: January 22, 2024 By: Oozle Media

Answers to your tax season questions The IRS announced it will open the 2024 income tax return filing season on January 29. That’s when the tax agency will begin accepting and processing 2023 tax year returns. Here are answers to seven tax season questions we receive at this time of year. 1.What are this year’s…

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It’s possible (but not easy) to claim a medical expense tax deduction

Published on: December 22, 2023 By: Oozle Media

It’s possible (but not easy) to claim a medical expense tax deduction One of your New Year’s resolutions may be to pay more attention to your health. Of course, that may cost you. Can you deduct your out-of-pocket medical costs on your tax return? It depends. Many expenses are tax deductible, but there are several…

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Business automobiles: How the tax depreciation rules work

Published on: November 15, 2023 By: Oozle Media

Do you use an automobile in your trade or business? If so, you may question how depreciation tax deductions are determined. The rules are complicated, and special limitations that apply to vehicles classified as passenger autos (which include many pickups and SUVs) can result in it taking longer than expected to fully depreciate a vehicle.

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What types of expenses can’t be written off by your business?

Published on: October 11, 2023 By: Oozle Media

In the world of tax deductions, it’s crucial to know what you can’t claim. Explore this blog to unveil the expenses your business can’t write off and safeguard your financial compliance.

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