Understanding money, one blog at a time

New and old business owners alike have met with this struggle at some point in their entrepreneurial journey. Your business is thriving and you need help! You decide to hire one person. Excited at the new relief and separation of duties, you bring the candidate of your dreams in to duplicate yourself (insert mass exaggeration).   The time has come to issue their first paycheck. After realizing that you have to pay additional taxes and worker’s compensation to employ this person, you revert to paying them as a contractor.   “Ok” you think, “this will save some money and still get the job done”. You’re living the dream for two years when suddenly, you receive a certified letter from the IRS. You are being audited! Let’s transgress into a real life story.   This happened to a previous client of mine.   In this case, they had 17 people working as contractor’s when really, they were employee’s.   After a 30 day debate, the IRS hit my client with a $45,000 bill. T...

Has the IRS intercepted your tax refund?  The truth is that this happens to people every year!  Why did this happen to you, and what can you do about it? Reasons Why Your Refund has been Offset There can be several reasons why your refund has been has been or will be intercepted. Past-due federal tax; State income tax; State unemployment compensation debts; Child support; Spousal support; and Federal non-tax debt, like student loans. Find Out Why MY (OUR) Tax Refund was Offset If you are married filing a joint return, the IRS will take your refund if your spouse has any of the above mentioned past due debts! Yes-Your spouse. However, there is relief for this.  You can complete and mail an injured spouse allocation IRS Form 8379 follow this link →   https://www.irs.gov/pub/irs-pdf/f8379.pd  to complete the form.  Follow this link for instructions on where to mail your form → https://www.irs.gov/pub/irs-pdf/i8379.pdf . This form will infor...

Greetings and money blessings to you my friends! Oh how quickly time flies.  Tax season has approached us yet again.  For those of us who pay taxes annually, it's a somber time and also a procrastination to stretch the dreadful filing out to April 15th. However, for those of us who receive refunds from our Federal government and state agencies it is a wonderful and stimulating time 😉😉😉.  I have a few tips to make that money stretch possibly until the following tax season. Choose a 'Don't Touch Me Amount' Have a pre-determined amount in your mind that you will set aside upon immediate receipt of your refund.  This could be a start to your savings account or an addition.  My recommended amount would be 50% of your refund or more. That sounds like a lot, however this is additional income.  If you have been able to survive without it the last 11 months, then you will be able to survive with out it again! Budget the Remaining Money Let's say your to...