A tax credit directly reduces the amount of tax you owe, while a tax deduction reduces your taxable income, which lowers the amount of income subject to tax. Example: A $1,000 tax credit = $1,000 off your tax bill. A $1,000 deduction = Reduces taxable income (savings depend on your tax bracket). 3. Can I deduct home office expenses if I work from home? You can claim the home office deduction if: ✅ You regularly and exclusively use a specific part of your home for work. ✅ You’re self-employed or a business owner (W-2 employees do NOT qualify after the 2018 tax reform). For exact deductions, use the simplified method ($5 per sq. ft. up to 300 sq. ft.) or actual expense method (a percentage of rent, utilities, etc.).

If your income exceeds the IRS filing threshold, you typically must file. The threshold depends on your filing status, age, and income sources. For 2024, the limits are: (Consider Booking a free consultation and you won't have to figure it out) 1. Single Filers: Under 65: You must file if your gross income was at least $14,600.​irs.gov+2NerdWallet+2turbotax.intuit.com+2 65 or older: You must file if your gross income was at least $16,550.​irs.gov+3turbotax.intuit.com+3NerdWallet+3 2. Married Filing Jointly: Both spouses under 65: You must file if your combined gross income was at least $29,200.​NerdWallet One spouse 65 or older: You must file if your combined gross income was at least $30,650.​irs.gov+2NerdWallet+2turbotax.intuit.com+2 Both spouses 65 or older: You must file if your combined gross income was at least $32,100.​taxesforexpats.com 3. Married Filing Separately: You must file if your gross income was at least $5, regardless of age.​irs.gov 4. Head of Household: Under 65: You must file if your gross income was at least $21,900.​ 65 or older: You must file if your gross income was at least $23,850.​NerdWallet+2turbotax.intuit.com+2irs.gov+2 5. Qualifying Widow(er) with Dependent Child: Under 65: You must file if your gross income was at least $29,200.​irs.gov Additional Considerations: Self-Employed Individuals: Regardless of age or filing status, if your net earnings from self-employment were $400 or more, you are required to file a tax return.​ Dependents: If you can be claimed as a dependent on someone else's tax return, different filing requirements apply based on your income, marital status, and whether you are blind or over 65. ​NerdWallet Other Situations Requiring Filing: You may need to file a tax return if:​irs.gov You owe special taxes, such as the alternative minimum tax.​ You received distributions from a health savings account, Archer MSA, or Medicare Advantage MSA.​ You had wages of $108.28 or more from a church or qualified church-controlled organization that is exempt from employer Social Security and Medicare taxes.​ Even if your income is below the thresholds mentioned above, you might still want to file a tax return if:​ Federal income tax was withheld from your pay, and you may be entitled to a refund.​ You are eligible for refundable credits, such as the Earned Income Tax Credit or the Additional Child Tax Credit.​ For more detailed information, refer to the IRS guidelines on filing requirements.

Common tax credits include: Self-Employed Health Insurance Deduction Retirement Savings Contribution Credit (Saver’s Credit) R&D Tax Credit (for certain businesses developing new products/technologies) EV Tax Credit (for business-use electric vehicles)

You can claim the home office deduction if: ✅ You regularly and exclusively use a specific part of your home for work. ✅ You’re self-employed or a business owner (W-2 employees do NOT qualify after the 2018 tax reform). For exact deductions, use the simplified method ($5 per sq. ft. up to 300 sq. ft.) or actual expense method (a percentage of rent, utilities, etc.).

You can deduct: ✔ Home office expenses ✔ Internet & phone bills (business portion) ✔ Software & subscriptions ✔ Travel & business meals ✔ Health insurance (if self-employed) ✔ Retirement plan contributions 🔗 Comprehensive business deduction guide

It depends on your income level, tax savings, and liability protection needs. LLC: Easier setup, pass-through taxation, and good for small businesses or side hustles. S-Corp: Can reduce self-employment taxes if you earn over $___ annually (owners must pay themselves a reasonable salary). 🔗 Full LLC vs. S-Corp Guide

LLC (Single-Member): Take owner’s draws (not a payroll salary). LLC (Multi-Member): Distribute profits based on your operating agreement. S-Corp: Pay a reasonable salary through payroll, then take distributions.

✅ Open a separate business bank account. ✅ Use business credit cards for expenses. ✅ Track finances in QuickBooks (or similar software). ✅ Pay yourself a set salary if using an S-Corp.

Common options: ✔ Solo 401(k) – High contribution limits, allows employer/employee contributions. ✔ SEP IRA – Easier setup, contributions up to 25% of compensation. ✔ Roth IRA – No tax deduction now, but tax-free withdrawals in retirement. 🔗 Best Retirement Plans for Self-Employed

Generally, S-Corps are not ideal for passive investments like real estate or stocks due to tax restrictions. Instead: ✔ Use an LLC for real estate. ✔ Use a self-directed IRA for tax-advantaged investing. 🔗 Guide to Business Entity Investing

I know tax and financial matters can be complex. If you have specific questions or need personalized advice, book a consultation below! 🔗 Schedule a Consultation