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Tax credits and tax deductions are both ways to reduce your tax liability, but they work in different ways. A tax credit is a dollar-for-dollar reduction in the amount of tax you owe. For example, if you owe $5,000 in taxes and you qualify for a $1,000 tax credit, your tax bill will be reduced… [Read More]

There are several tax credits that you may qualify for when you file your personal taxes for the year 2024. Keep in mind that as opposed to a tax deduction, a tax credit is a dollar-for-dollar reduction in the amount of tax you owe. For example, if you owe $5,000 in taxes and you qualify… [Read More]

If you’ve filed Form 4868, this extends your deadline to October 15th. It’s important to note that the extension granted by filing form 4868 only applies to the filing of your return, not to the payment of any taxes owed. We can help you with your tax problems! Reasons to file your tax return as soon as… [Read More]

Planning for retirement is one of the most important financial steps you can take. Yet, many people struggle to determine exactly how much they need to save. Fortunately, a Retirement Savings Calculator can provide valuable insights, helping you set realistic goals and adjust your savings strategy accordingly. At Daniel Ahart Tax Service, we understand the importance of financial… [Read More]

Tax season can be stressful, but with the right preparation, you can maximize your refund, avoid costly penalties, and save valuable time. Whether you’re filing as an individual or a business owner, having your documents in order before submitting your tax return is essential for a smooth and hassle-free process. At Daniel Ahart Tax Service, we understand… [Read More]

The Importance of Meeting These Deadlines Failing to meet the contribution deadlines means missing out on: The deadline for most retirement contributions for the tax year 2024 is April 15, 2025, which is the same deadline for filing your tax return for the year 2024,” shared Daniel Ahart, chief tax officer at Daniel Ahart Tax… [Read More]

Which Form to Report Income—W-2 or 1099-NEC? The difference between these forms is straightforward: Key Differences: Updates to Reporting Nonemployee Compensation Since Tax Year 2020, you must use Form 1099-NEC, Nonemployee Compensation, to report payments of nonemployee compensation (NEC) previously reported in box 7 on Form 1099-MISC,” said Daniel Ahart, chief tax officer at the tax… [Read More]

The deadline for most retirement contributions for the tax year 2024 is April 15, 2025 However, if you have a Simplified Employee Pension (SEP) IRA or a solo 401(k), the deadline for making contributions for the year 2024 is the tax filing deadline, including extensions, which is typically October 15, 2025. It’s important to note… [Read More]

As the tax season approaches, it’s natural to wonder when you’re officially ready to sit down and prepare your tax return. The truth is, readiness begins with preparation. Whether you’re filing as an individual, a family, or a business owner, having the right documents at hand is key to ensuring a smooth and stress-free tax… [Read More]

Failure to report your crypto gains and losses can result in penalties, interest, or even legal action from the IRS. The agency has been increasingly active in tracking crypto transactions, partnering with exchanges and issuing notices to taxpayers. Do I Need to Report Crypto Losses? Yes! Reporting your crypto losses is just as important as reporting gains…. [Read More]

Crypto Capital Gains and Losses As cryptocurrencies continue to grow in popularity, so do questions about how these digital assets are taxed. If you’ve been trading, investing, or earning income in crypto, it’s important to understand your tax obligations for the 2024 tax year. Do I Need to Report My Crypto Transactions? Yes. The IRS… [Read More]

Gig economy workers, who often work as independent contractors or freelancers, may face certain common tax problems. As explained on this previous blog, there are tax considerations when it comes to a side hustle. Here are some of the most common tax issues that gig economy workers may encounter: Read also: “How Do You Report Income… [Read More]