Ideally, you want an experienced CPA for tax assistance, as automated services aren’t going to offer the thorough tax planning and preparation that a CPA can. At Fusion CPA we have outsourced, online accountants that are extremely dedicated to what they do.

We use accounting software to streamline your taxes, but we aren’t tied to any specific platforms and offer software integration too. This is valuable when your financial data is spread across a variety of platforms. Because we offer outsourced tax services, you only pay for the help you need!

You can contact one of our client success team to discuss your needs with a real person! If it looks like Fusion CPA is a good fit for you, we will put together a quote.  Once you’ve accepted it, we will connect you with one of our expert CPAs.

Individuals

For individual taxpayers, the tax year is the same as the calendar year, which means that it starts on January 1 and culminates on December 31. Business entities can follow the fiscal year or the calendar year. The question “when is tax season?” typically refers to the period in which tax returns can be sent to the IRS.

Tax filing season for the previous year starts on January 1 and ends with the regular filing deadline of April 15. If happened to be running behind and you had to file an extension then your tax filing is due by October 15.

Businesses

Business tax returns are due on March 15 for partnerships, and S-corporations. In the case of C-corporations, the deadline is on April 15 if they operate under the calendar year.

Read our extensive article on corporate tax deadlines as well as some end-of-year tax tips from our CPAs.

Limited liability and sole proprietors

Single member limited liability companies taxes are typically filed with the business owner’s personal tax return so the filing deadline is April 15th, and if an extension had to be filed then the tax filing is due by October 15th.

Our clients can get in touch with our office after their tax returns are submitted in order to learn about the status of their refunds.

Where’s my refund if I filed my return already?

Alternatively, you can also check the federal government’s website set up for this purpose. 

Individuals

It would take several pages to explain the basics of how tax is calculated in the United States because of the great diversity of taxpayers and their different financial situations. What you should know is that American taxation is progressive, which means that tax assessment levels will increase along with the income you report. Marginal and effective tax rates at the federal level have a lot to do with how tax is calculated; they range between 10% and 37% as of 2021, and they are by no means among the highest in the world.

If we were to boil down tax calculations to a single paragraph it would be as follows:

The most applicable filing status must be ascertained first; this is followed by a determination of all income sources and qualified deductions. These steps result in the calculation of taxable income, but there will be additional workflows to figure out if the overall tax liability can be lowered by means of credits such as education, healthcare, and child care in the case of individual tax returns.

Businesses

Tax rates are currently 21% on taxable income for US C Corporations, whereas S Corporations and Partnerships remain “flow through” entities and are not subject to Federal tax. 

The process is different for business entities because of matters related to equipment, depreciation, payroll, and quite a few others; nonetheless, the common denominator crucial to tax calculation will always be the determination of taxable income. You can read our article explaining US corporate tax rates.

There are several entity structures that businesses can choose from. Each structure comes with its advantages and drawbacks. The entity type that would work best for your business depends on different factors such as the size of your organization, your preferred tax structure, and more. A small business accountant can help you choose the structure that will suit your needs best. This article will explore the most suitable entity structure for your business.

You report self-employment or freelance income on Schedule C of your tax return. If you use part of your home exclusively for your work or business, then you may be eligible for home office tax deductions. Self employed individuals can also benefit from other tax deductions, but must keep detailed records of qualifying expenses to be able to do so.

Tax deductions and tax credits are similar in that they both translate to more money in your pocket. The only difference is that the one saves you money by reducing your taxable income and the other does so by reducing your tax liability. Let’s take a closer look:

An individual or business can subtract tax deductible expenses – typically those seen as necessary for the business or individual earnings. This helps to reduce the amount of income subject to taxation and is considered a tax deduction. Tax credits on the other hand are designed to incentivize specific behaviors or activities that the government deems beneficial to individuals, businesses, or society as a whole. Examples of tax credits include those for education expenses or renewable energy technologies. These provide a dollar-for-dollar reduction in your tax liability.

Estimated taxes are periodic, estimated tax payments that must be made by individuals who receive income that are not subject to withholding. This includes self-employed individuals, freelancers, and those with significant investment income. Essentially, it is to pay the IRS an estimated amount of taxes based on the income received over a period. Use Form 1040-ES to calculate and submit your estimated tax payments and consult your CPA to ensure accurate submissions.

Capital gains tax is typically payable on the profits made from selling an asset and is often in addition to corporate income taxes. Investment income and capital gains are reported on Schedule D of Form 1040. The tax rate depends on factors such as your income and how long you held the investment. For example: The tax rate on most net capital gain is no higher than 15% for most individuals. However, some or all net capital gain may be taxed at 0% depending on various factors. It is advisable to consult with a tax professional for personalized advice in this regard.

One of the primary tax benefits of homeownership is the mortgage interest deduction. You can deduct the interest paid on your mortgage loan from your taxable income. Selling a home on the other hand, could lead to capital gains taxes if your gains exceed the exclusion limits. There are potential tax benefits and implications for both scenarios. Consult with a tax advisor for guidance.

Traditional IRAs are tax-deferred, meaning that you don’t have to pay tax on any interest until you withdraw the money.  Then, they are taxed at your ordinary income rate. The contributions you make to the account, however, may entitle you to a tax deduction each year.But, the tax treatment may vary based on the type of retirement account you have. It is advisable to consult with a trusted expert to avoid common tax mistakes for retirees.

Moving to a new state can be intricate to navigate from a tax perspective. This is because different states have different tax rates and rules. You may need to file part-year resident returns in both states, which can be challenging to navigate if you are not familiar with tax residency rules per state.  Consult your CPA to ensure compliance with state-specific tax laws.

Profits from selling stocks or bonds are subject to capital gains tax. The taxable part of a gain from selling section 1202 qualified small business stock is taxed at a maximum 28% rate. But, the tax rate depends on factors such as your income and how long you held the investment. Consult with a tax expert to have a look at your stock portfolio for personalized tax advice.

Rental income and expenses are reported on Schedule E. You may be able to deduct rental-related expenses, including repairs and maintenance, to maximize deductions. But, it is crucial to keep detailed records of these expenses as evidence.Consult with a tax expert for personalized tax advice.

Charitable donations are deductible and must be claimed as itemized deductions on Schedule A of Form 1040. For tax years 2023 and 2024, the limit on charitable cash contributions is 60% of your gross income. For compliance, if your charitable contributions meet certain criteria you must keep records to claim them as deductions on your tax return.

You may qualify for a credit up to $7,500 under Internal Revenue Code Section 30D if you buy a new, qualified plug-in EV or fuel cell electric vehicle (FCV). The credit is available to individuals and their businesses, but is subject to certain qualifying criteria.