Thursday, January 27, 2022

How Do Trends or Life Changes Have an Effect on My Taxes?

 Self-Employment

There are trends emerging following COVID that could impact your taxes. If you were one of the millions that became self-employed in 2021, whether it was due to the Great Resignation or you joined the Creator Economy, remember you will receive a Form 1099-NEC Filing your income of $600 or more, but even if you don’t receive a Form 1099-NEC Online you should remember to report your income. Also, don’t forget expenses directly related to self-employment like your start-up cost, computer equipment, website fees, and home office expenses, which can reduce your taxable income.

Form 1099-NEC Online

Digital Nomads

With the capability to work from home or anywhere, millions of people took that accurately and have taken off on adventure in vans, exploring the great outdoors with nothing but wi-fi and the open road. If you were able to keep your 9 to 5 while traveling the open road, there are some tax insinuations if you’ve been living in different states, even temporarily. Most states will require you to pay taxes in other states besides your home state where you made money after 183 days (or just over 6 months). But there are some states with give-and-take agreements so someone isn’t on the hook to pay taxes in two states.

Financing

If you were one of the millions who took advantage of the unstable market and started investing, remember you only have to pay taxes when you sell your stock or crypto currency. Also, you can counterbalance your gains with the losses you have. You can also offset your ordinary income like wages with up to $3,000 in losses. Check out our Crypto currency communicating Calculator to get an estimate of your capital gains or losses on your cryptocurrency transactions.

Don’t worry about knowing all of these tax rules. TaxSeer will ask you simple questions about you and give you the tax deductions and credits you are eligible for based on your entries. If you have questions, you can connect live via one way video to a TaxSeer Live tax expert to get help along the way, or you can be matched to a dedicated tax expert with experience in your unique tax situation.  Taxseer Live tax experts are available in English and Spanish year-round.

If you have a simple tax situation you may be able to file your taxes for free, whether you want to do your taxes for free with Taxseer  Free Edition, you want to get help along the way from a Taxseer Live tax expert with Taxseer Live Basic Offer, or fully hand your taxes over with Taxseer Live Basic Full Service Offer.

Taxseer Free Edition is available throughout the tax season, Taxseer Live Basic Full Service offer lasts through February 15, and TurboTax Live Basic offer lasts through March 31 and ​​are designed for tax filers with a simple tax situation, filing Form 1040 only. Simple situations covered include W-2 Form, limited interest and dividend income, standard deduction, Earned Income Tax Credit, and Child Tax Credit, and Student Loan interest.

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