When you enroll in Jackson Hewitt’s Tax School, our experienced
instructors will provide education and training for beginners, as well as
ongoing tax education and training to meet IRS requirements for experienced tax
professionals. And, learning to prepare taxes is a skill that could even lead
to extra income at tax time!*
Enrollment is starting now and class sizes are limited—so don’t
delay. Visit JacksonHewitt.com to find out more or to find the Tax School
location nearest you!
*Enrollment in, or completion of, a course is neither an offer
nor a guarantee of employment. Additional training, experience or skills may be
required to be employed as a tax preparer.
Important Tax Information for Small Business Owners!
As a small business owner, there are some
important tax issues that could impact your 2012 return:
rules for online sales! Beginning in 2012, online businesses that accept
credit card payments will receive a Form 1099-K reporting the payments
received from payment settlement entities (PSEs), such as PayPal.
Deductible charges such as handling fees, sales taxes collected and
cash-back amounts will be included in the Gross amounts reported on the
1099-K and must be accounted for and claimed as either an adjustment
(sales taxes paid) or a business expenses (per payment charges) on the
- The IRS allows a business to have a loss only
two years out of any five consecutive years. If a business can show the
IRS a five-year business plan and can show that local or national
economics contributed to more than the two allowed losses, the IRS may
allow the extra loss. If a business has more than the allowed two years of
losses, but is making progress towards making a profit, has a solid business
plan and it is common in the type of industry to take more than two years
to make a profit, the IRS may allow the business loss.
IRS reclassifies a business as a hobby when they determine the business is
not run as a potentially successful business. A hobby is not subject to
self-employment taxes. The IRS does not allow a taxpayer to claim a hobby
loss and requires the income to be reported as “other income” on Form
1040. Hobby expenses are allowed up to the total income only and are
reported on Schedule A, Itemized Deductions as an “other miscellaneous
all receipts for purchased items, contracts for purchased items, bills,
log books and other back-up for all income, expenses, and taxes on your
business return for at least three years past filing the return. Keep
payroll information for four years and employee information for four years
after the employee has left your employ.
IRS requires detailed record keeping on mileage for a vehicle, including
total miles for the year and miles driven daily for business. Acceptable
documentation includes: daily mileage log and calendar/daytimer entries
for business mileage.
When it comes to your small business...don’t take chances. Let
the Jackson Hewitt tax pros help you get every deduction and credit your
entitled to get. Call your neighborhood office to speak with a local tax pro
Will You Be Ready if Disaster Strikes?
Floods, hurricanes, wildfires, tornadoes...are you ready for the
worst that nature can dish out? Safeguard yourself and your business against
natural disasters by taking a few simple steps now.
Create a Set of Electronic Backup Records
Always keep a set of backup records in a safe place, stored away
from the original set.
If you’re a Jackson Hewitt® client, you can sign up for
MyTaxManager—a FREE online tool which lets you safely upload and store all of your important documents
in one easy-to-access place.
Document Your Valuables
Try to photograph or videotape the contents of your home,
particularly when pertaining to high-value items. Jackson Hewitt has a Home
Inventory Guide on our website, which can help you compile a room-by-room list
of your belongings.
Having photographic records can help prove the market value of
your items for insurance and casualty loss claims. Store photos with a friend
or family member who lives outside the area of your home business.
Update Your Emergency Plans
Annually review your emergency plans to make sure that your
personal or business situation still matches your existing plan. Your emergency
plan may need to evolve over time to suit certain changes.
If your business hires new employees or changes functions, plans
should be updated accordingly and employees should be informed of the changes
Check on Fiduciary Bonds
Employers who use payroll service providers should ask the
provider if it has a fiduciary bond in place. The bond could protect the
employer in the event of default by the payroll service provider.
Want to find out more? Just visit www.JacksonHewitt.com.
you use a vacation home as a residence and rent it for fewer than 15 days per
year, you do not have to report any of the rental income. Schedule A, Itemized
Deductions, may be used to report regularly deductible personal expenses, such
as qualified mortgage interest, property taxes, and casualty losses.