1040, Schedule C “Sole Proprietorship” or single member LLC (SMLLC)? We got you covered.

We’re specialized in Individual and small business federal and state income tax returns. Over a decade of experience in taxes and global payroll operation.

We are tax professionals and run our practice differently than most seasonal preparers. IRS tax codes are our reference and your Income Tax will be prepared and reviewed by a credential, IRS Enrolled Agent. We fully comply with all federal and state requirements.

Our “One on One” tax service is unique. We give our clients all the time and attention they need to discuss and explain the tax process. Our expertise will help you save money!

We offer competitive fees with a very high value service. Our tax preparation fees depends on the number of forms and time spent preparing your tax return. Some taxable events that may increase the preparation time are:

• Rental property, sales, and AirBNB.
• Like-Kind Exchange (Section 1031)
• Assets sale
• Non-U.S. citizens 
• Multi-state tax returns
• Home office use for business

Personal Income Tax

Individuals generally files form 1040, U.S. Individual Income Tax Return, to report their income throughout the year. The due date to file Form 1040 is April 15 of the following year. Most popular 1040 schedules are listed at the bottom of this page. 

 

Sole Proprietorship

A sole proprietor is someone who owns an unincorporated business by himself or herself. However, if you are the sole member of a domestic limited liability company (LLC), you are not a sole proprietor if you elect to treat the LLC as a corporation, (C or S Corp).

In addition to Form 1040, individual income tax return, sole proprietors are required to file schedule C, profit or loss from business, or schedule C-EZ, net profit from business.

 

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Tax Planning for Individuals

Understanding your Adjusted Gross Income (AGI), increasing your deductions, and taking advantage of tax credits are the three basic components of tax planning.

Adjusted Gross Income (AGI) is the starting number for calculating your taxes. Gross Income – Adjustments (Mostly Standard or Itemized Deductions) = AGI. Additional sources of income such as capital gain, self employments income, and unemployment compensation will increase your AGI. In the other hand, adjustments such as qualified retirement plan contributions, student loan interest, contributions to health saving accounts, and standard or Itemized deductions reduces your AGI.

Increase Your Tax Deductions – You can either claim the standard deduction for your filing status or you can itemize your qualifying deductions, but you can’t do both.

One key tax planning strategy is to keep track of your itemized expenses throughout the year. We can then compare your itemized expenses with your standard deduction and take the higher to avoid paying taxes on more income than you have to.

Itemized Deductions includes health care expenses that exceed 7.5 % of your AGI, real estate tax or sales tax (but cannot take both), mortgage interest, and motor vehicle registration fees will reduce your taxable income. The standard deductions for the 2023 tax year are:

• $13,850 for single filers
• $13,850 for married filing separately
• $20,800 for heads of household
• $27,700 for married filing jointly and QSS

Refundable Tax Credits: These are treated as payments and can result into a refund to the taxpayer. For instance, if you owe $1000 in taxes and received a refundable tax credit for $1,500, you will receive a refund of $500.

Non-Refundable Tax Credits: These are not treated as payments and only meant to reduce your tax liability until it reaches zero. Once the tax liability reaches zero, no more credit can be claimed. For instance, if you owe $1,000 in taxes and received a non-refundable tax credit for $1,500, your tax liability will be reduced to zero. You will not receive a refund of $500.

Here is a list of most usable tax credits with indications if they are refundable or non-refundable. Each of these credits are subject to rules and regulations that has to be reviewed before determining the taxpayer eligibility.

• Foreign Tax Credit (Non-Refundable)
• Child and Dependent Care Credit (Non-Refundable)
• Life time learning credit (Non-Refundable)
• Retirement saving contribution credit (Non-Refundable)
• Child Tax Credit (Non-Refundable)
• Non-Business Energy property credit (Non-Refundable)
• Credit for Elderly or Disabled (Non-Refundable)
• Adoption Credit (Non-Refundable)
• Resident Mortgage Interest Credit (Non-Refundable)
• Minimum Tax Credit (Non-Refundable)
• American Opportunity Education Credit (Partially Refundable)
• Additional Child Tax Credit (Refundable)
• Earned Income Tax Credit (Refundable)
• Net Premium Tax Credit (Refundable)

By optimizing your Tax Deductions and Credits, we will make sure you Keep More of What You Earn!

 

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Tax Refund Methods Available to You

Direct Deposit – Choose direct deposit to have your refund automatically deposited into your checking or savings account.

Paper Check – IRS will mail your Tax refund check to your home.

 

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Individual 1040 Schedules Guide

 

Schedule A (Form 1040), Itemized Deductions: Used by filers to report itemized deductions.

Schedule B (Form 1040A or 1040), Interest and Ordinary Dividends:  Used by filers to report interest and ordinary dividend income.

Schedule C Form 1040, Profit or Loss From Business:  Used to report income or loss from a business operated or a profession practiced as a sole proprietor. Also, use Schedule C to report wages and expenses that occurred as a statutory employee.

Schedule C EZ (Form 1040), Net Profit From Business: Used instead of Schedule C by qualifying small businesses and statutory employees with expenses of $5,000 or less. You can use this schedule if you operated a business or practiced a profession as a sole proprietorship or qualified joint venture, or you were a statutory employee and you have met all the requirements listed in Schedule C-EZ, Part I.

Schedule D (Form 1040), Capital Gains and Losses: Used to report sales, exchanges or certain involuntary conversions of capital assets, certain capital gain distributions, and non-business bad debts. The form includes the tax computation using maximum capital gain rates.

Schedule E (Form 1040): Used by filers to report income from rental real estate, royalties, partnerships, S corporations, estates, trusts, and residual interests in real estate mortgage investment conduits (REMICs).

Schedule EIC (Form 1040A or 1040), Earned Income Credit: Used by filers who claim the earned income credit to give the IRS information about the qualifying child.

Schedule F (Form 1040), Profit or Loss From Farming: Use this schedule to report farm income and expenses.

Schedule H (Form 1040): Use this schedule to report household employment taxes if you paid cash wages to a household employee and the wages were subject to social security, Medicare, or FUTA taxes, or if you withheld federal income tax.

Schedule J (Form 1040), Income Averaging for Farmers and Fishermen: Use this schedule to elect to figure your income tax by averaging, over the previous 3 years (base years), all or part of your taxable income from your trade or business of farming or fishing.

Schedule R (Form 1040A or 1040), Credit for the Elderly or the Disabled: Use this schedule to figure the credit for the elderly or the disabled.

Schedule SE (Form 1040), Self-Employment Tax: Used for self-employed persons to figure the self-employment tax due on net earnings.

Schedule 8812 (Form 1040), Child Tax Credit: Used for taxpayers to calculate and report both the Child Tax Credit and the Additional Child Tax Credit.

If you have any Tax questions or need more information, please call us or visit our Contact Us page.