6 results for tag: Form 1040

The IRS Wants to Know about Your Crypto

The IRS really wants to know about your Bitcoins and other Cryptos. It starts at the top of the first page of your Form 1040, where you find the following question right after the spaces for your name and address: At any time during 2021, did you receive, sell, exchange, or otherwise dispose of any financial interest in any virtual currency? At any time during 2021, did you receive, sell, exchange, or otherwise dispose of any financial interest in any virtual currency? All taxpayers must answer this question under penalty of perjury, even those who have never heard of Bitcoin and don’t know what cryptocurrency is. You can’t ...

Don’t Rob Yourself of the Home Internet Deduction

Parts of this article are published with permission from Bradford Tax Institute, © 2021 Daniel Morris, Morris + D’Angelo Given the connected nature of remote work these days, you likely use your home internet to do a little or a lot of work. In this article, you will learn how to deduct the cost of your home internet. The rules that apply to the home internet also apply to all the other expenses incurred while working at home, regardless of whether you claim the Home-Office Deduction. Deduction on Schedule C If you operate your business as a sole proprietorship or as a single-member LLC, you file a Schedule C to report your ...

IRAs for Kids

Parts of this article are published with permission from Bradford Tax Institute, © 2021 Daniel Morris, Morris + D’Angelo Working at a young age in the United States is an American tradition. I did it... I worked at my Father's Construction Business at an early age that taught me a lot of lessons along the way. What isn’t so traditional is the notion of your child contributing to their own IRA, especially a Roth IRA. But it should be a tradition because it’s a really good idea. Here’s what you need to know about IRAs for your child. Let’s start with the Roth IRA option. Roth IRA Contribution Basics The only Federal-Income-Ta...

Is Your Sideline Activity a Business (Good) or a Hobby (Not Good)?

Parts of this article are published with permission from Bradford Tax Institute, © 2021 Daniel Morris, Morris + D’Angelo Do you have a "Sideline Activity" that you think of as a Business? From this "Sideline Activity", are you claiming Tax Losses on your Form 1040? Will the IRS consider your Sideline a Business and allow your Loss Deductions? The IRS likes to claim that money-losing sideline activities are hobbies rather than businesses. The federal income tax rules for hobbies have been anti-taxpayer for years, and now an unfavorable change enacted in the Tax Cuts and Jobs Act (TCJA) made things even worse for 2018-2025. If you have ...

Self-Employed During the Pandemic? Uncle Sam Didn’t Forget About You

In the past, Uncle Sam made no special effort to help you as a self-employed individual. For example, you had no “safety net” that existed for employees who lost their jobs during the COVID-19 Pandemic. You were just supposed to "Hang On" until things got better. But this time, with COVID-19, it’s different... If you report your business income as Self-Employed on Schedule C of your Form 1040 or any of the following: Receive 1099 income Operate your business as a single-member LLC and did not elect corporate status Operate a retail establishment or professional practice as a sole proprietor, or Report your W-2 income on a ...