taxes – Boost My Dream: Entrepreneurship | Self Improvement | Money | Tax Tips and more https://boostmydream.com Change to the New You! Mon, 14 Sep 2020 16:49:55 +0000 en-US hourly 1 https://wordpress.org/?v=6.5.4 Why you Should File your Taxes even if “not required”? https://boostmydream.com/why-you-should-file-your-taxes-even-if-not-required/ Mon, 14 Sep 2020 16:49:50 +0000 https://boostmydream.com/?p=391 The CARES Act enacted by Congress at the beginning of the pandemic offered 1200 dollars to qualifying American citizens. For those who previously filed their taxes with the IRS, the IRS already had their banking credentials to be able to send in the direct payments…This much-needed cash payment helped a lot of people. But, it also ended up leaving out millions of Americans who never filed taxes because they never had to. Cosequently, the IRS did not have these people’s banking information. They eventually had to set up a system for those folks so they can request that payment via a website.

This problem shows us the importance of filing taxes, even if you think you do not have to. Hundreds of thousands of low-income Americans, and those who never worked do not file taxes because they do not see any use for it, because many of them assume that won’t “get anything back”… Here are a few things a taxpayer could potentially receive if he files his taxes even if not required:

1) A refund of income tax withheld from their pay

Fedral and state taxes are often withheld from your pay regardless of how much you make. If you are under the filing threshold, the amount that was taken out from your paycheck is owed to you. Claim it!

2) The Earned Income Credit

You may received EIC if you don’t have a qualifying child but meet the income requirements for your filing status. Unemployment income does not count as “earned income” by the IRS. Also, nobody can claim you on their taxes.

3) The Additional Child Tax Credit

ACTC is a refundable credit that are eligible for if your Child Tax Credit is greater than the total amount of income taxes you owe, as long as your earned income was at least $2,500

4) The Health Coverage Credit

This tax credit is administered by the IRS for those who are at least 55-yrs-old upto 65. You’ve to be receiving benefits from the Pension Benefit Guaranty Corporation, also known as PBGC.

5) Any refundable credit prior to your minimum tax

6) The American Opportunity Credit

If your modified adjusted gross income is $80,000 or less ($160,000 or less for joint filers) can claim the credit for the qualified expenses of an eligible student.

7) The credit for federal tax on fuels

Some uses of fuels are not taxed, however, and fuel users can get a credit for the taxes by filing Form 4136.

]]> The One Thing you Must track as a Rideshare driver https://boostmydream.com/the-one-thing-you-must-track-as-a-rideshare-driver/ Tue, 11 Aug 2020 01:59:27 +0000 https://boostmydream.com/?p=337 There exists an estimated 2 million rideshare drivers in the United States. Many of whom drive full-time. In most states, driving for Uber and Lyft are considered self-employment and drivers are considered as independent contractors and not employees. Therefore, it’s up to the driver to ensure that he pays taxes on his income to his home state and the federal government. While it is ideal to put aside about 15% one’s daily earnings so there’s no “shortage of funds” while filing one’s taxes, most drivers simply do not do that. They usually spend most of what they earn only to be left with a bill an at the end of the year to pay to his State and the IRS. Depending on one’s income this number can be thousands of dollars.

The good news is that as self-employed, you’re also entitled to a series of business-related deductions on your taxes. As the name suggests, “deductions” are amounts that you can deduct from your taxable income because they are oftgen business-related expenses. Aside from your repair costs, any yearly city-stickers or registration cost, you can also have you mileage deducted. However. to be able to do this properly, you must first know how many miles exclusively for your business you’ve added on the odometer. Mileage cannot include driving hours for personal purposes. You may write off $0.545 per mile that you’ve driven as a rideshare contractor.

There are various apps you can use to track your mileage properly. Some popular ones are Stride, Triplog, Everlance and MileIQ.

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