June 16, 2025 • 44 mins
Year-Round Tax Planning Tips, Trucker & Business Taxes, stay informed on tax law changes, Maximize deductions, Tax Credits, Roth conversion, Capital gains and loss timing, Review your w-4, marriage Divorce, new child, adoption. Trucker taxes, trucker bookkeeping, entity selection, LLC, Inc, S-Corp, Partnership. Business taxes, Payroll taxes double taxation.
Key tax planning tips for 2025. Retirement Accounts, Health Savings Accounts HSA, Flexible Savings Accounts FSA. TaxTalk4U.com
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Key tax planning tips for 2025. Retirement Accounts, Health Savings Accounts HSA, Flexible Savings Accounts FSA. TaxTalk4U.com
Tax Talk 4 U is broadcast live Mondays at 10AM ET and Music on W4CY Radio (www.w4cy.com) part of Talk 4 Radio (www.talk4radio.com) on the Talk 4 Media Network (www.talk4media.com). Tax Talk 4 U is viewed on Talk 4 TV (www.talk4tv.com).
Tax Talk 4 U Podcast is also available on Talk 4 Media (www.talk4media.com), Talk 4 Podcasting (www.talk4podcasting.com), iHeartRadio, Amazon Music, Pandora, Spotify, Audible, and over 100 other podcast outlets.
Become a supporter of this podcast: https://www.spreaker.com/podcast/tax-talk-4-u--6333550/support.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
The topics and opinions express in the following show are
solely those of the hosts and their guests and not
those of W FOURCY Radio. It's employees are affiliates. We
make no recommendations or endorsements for radio show programs, services,
or products mentioned on air or on our web. No
liability explicit or implies shall be extended to W FOURCY
Radio or it's employees are affiliates. Any questions or comments
should be directed to those show hosts. Thank you for
(00:20):
choosing W FOURCY Radio.
Speaker 2 (00:27):
Barry G.
Speaker 3 (00:28):
Fouler EA brings you tax talk for you right here
on W four CY Radio and talk for TV. As
an enrolled agent and a national leader in tax resolution
as well as Trucker bookkeeping and tax planning. With over
thirty years of experience, Barry will break down taxes, bookkeeping,
(00:49):
tax planning, and tax relief for individuals and businesses just
like you. So let's have some tax talk for you
with your hosts.
Speaker 2 (00:58):
Barry G. Foul Good morning.
Speaker 4 (01:04):
It is great morning, had a great weekend and great
Father's Day. I have to actually spend some time with grandkids
and then we get back at it your Monday morning
talking about your favorite topic, taxes, book keeping, tax planning,
and today that's really what this is about. Can you
(01:25):
believe we're already into June, almost halfway through twenty twenty five.
Time flies when you're having fun. Time seems to fly
as you get older and moving quicker. But that's the
story for another day. Here we talking about taxes, talking
about tax planning. Midyear tax planning. You know, this is
(01:46):
an excellent opportunity for you to actually review your financial situation,
you know, make adjustments potentially help minimize your tax liability.
Speaker 2 (01:58):
For this year.
Speaker 4 (01:59):
And it's a great way to do it. You know,
the first thing we tell people to do, you haven't
done it already, and you should always start from the
beginning of the year because it's much simpler it is. First,
make sure you organize all your tax records, you know,
create a system that keeps all the important information together.
You know, you can use a tax you can use
(02:20):
a software out there to electronically store things and store
paper documents and clearly label all your folders. In our situation,
we have one drive out there or even Google drive
out there where we store dfs of receipts and we
(02:41):
organize it based on year based on categories. And then
because we do run business and then we run farm
and ranch, and then we have things that happen in
our personal life. We have those three buckets and we
put everything into each one of those bucket, so you know,
if it applies to the business, it's you know, been
(03:03):
categorized expense thrown through bookkeeping and we know what all
the expenses are there. If it's running the farm and
the ranch, then it goes into that bucket, whether it's
buying a new calf, leasing a bowl, upgrading fencing, fixing
water lines, whatever it may be, the chickens, donkeys, bigs,
(03:29):
you name it, it's got its bucket within that apartment, ranch folder.
And then all the personal stuff that we do as well.
So we find a way to keep things organized. And
like I said, it's easier to do it from the
first of the year and continue to do it, you know,
all year long. Whether you're using a spreadsheet, whether you're
using a bookkeeping software, whatever it may be. It's it's
(03:53):
about organization and keeping your life and the items and
things that are happening in your life life completely organized.
Take a look at your filing status. You know, has
your filing status changed. Did you get married, did you
get divorced, did you have new dependence, Maybe you had
(04:14):
new kids, maybe you adopted or are caring for your grandkids.
All those things can and do effect your taxes. So
you know, you can identify how you're going to file,
whether it's you know, married filing, joint married filing, separate,
had a household, or maybe you're now just single again.
(04:35):
So all those can have an impact on your taxes.
When those have an impact on your taxes, then you
might want to go back and adjust your W four
if you're an employee. If you're not an employee and
you're self employed, maybe an owner operator, truck driver, maybe
you run a small business, maybe you're a consultant, then
you might want to relook at your estimated taxes. By
(04:57):
the way, June sixteenth, your second estimated tax payment is
due today, so you know, if you've been working with
us and you got your estimated taxes to pay, make
sure you get those estimated taxes pay today, so you know,
get in there and make those estimated tax payments. So
changes in life, marriage, divorce, birth and death all affect
(05:22):
your personal situation, your filing status eligibility to claim certain
credits and claim certain deductions. When all those are impacting
your life. For taxes, it's a time for a financial
review and see where you're at and what's changed. You
know best to sit down and work with an enrolled
(05:44):
agent or somebody at our office to figure out what
your estimated taxes should be. But you can also, as
the IRS says, go to the IRS dot gov and
you can use the IRS Tax Withholding Estimator, and you
can utilize their online tool. I'm not going to say
how accurate it is or inaccurate it is. You know,
(06:07):
that's for you to choose. Especially if you're changing, you're withholding,
so you know, when you are sitting down and you're
looking at what's impacting your life, you know, make sure
that you've correlated it over to what's going to impact
your taxes for the year or federal and state. Hey
(06:30):
maybe you've changed your address and you've moved, it's a
good idea to keep the IRS up to date on
your address. Notify the postal service, notify the IRS as well.
You can complete the Form eighty eight twenty two, which
is the change of Address form with the IRS so
that they have the correct address, so just in case
(06:53):
you get one of those fund grams from the IRS
saying hey, you made a mistake on your tax return.
The IRS knows where the mail at too, or of
course yet you get elected for that, try it audit,
or they just made changes to your return because you
made a mistake or left the W two off the
(07:16):
nine A nine hour off, whichever it is. But at
least you're getting notified so you can make the corrections
or figure out what went wrong. You should also report
name changes to Solid Security Administration. Get your Solid Security
card corrected.
Speaker 2 (07:33):
You know.
Speaker 4 (07:33):
You should make all these changes as soon as possible.
You know, and since you're sitting here, you know, midyear
looking at everything that has transpired. So if you're a newlywed,
get those addresses changed with the IRS, get your name changed.
If you've changed your name when you got married, get
it changed with Solid Security Administration. Make sure if you're
(07:55):
working with the tax preprayer they know that you've changed it,
because when you go to E file, if you've changed
your name, it's going to get kicked out. If you
didn't change your name, and you're going to prepare, let
him know what the name is on your Social Security
card as well. And you know I always say this,
better late than never. If you haven't started saving for retirement,
(08:17):
start now. Make the changes. Every dollar that you can
put into a retirement plan is money saved for your future,
and the longer you have, the more that money will
be worth out there in the future. You know, as
I told my son when he first started working, he's like, Dad,
(08:40):
you know, I can't afford to put any money into
retirement plan. Sat down with my son and I looked
at him and I went, this is your first job, right, yes,
So you really don't know what your actual take home
pay is going to be until you get that first check. Correct, Well, yeah,
we could estimate here the company you're working for and
(09:02):
does a four to h one K match and they
do it up to five percent, So take five percent,
put it into your four oh one k, then they
match that same five percent. Now, when you get your
first check, it's going to be painful. You're going to
notice it because it'll be the first time getting out
of college and working a job for a good amount
(09:25):
of money that you're going to actually see the impact
of federal Social Security and Medicare taxes coming out of
your check. But you can also going to see the
four to oh one k that comes out as well
that you've just started saving for retirement. Now, after that
first check, you're never going to notice it again, because
I almost guarantee you're going to be like a lot
(09:46):
of other people that you don't look at your check
very much. You look at what went into your bank account.
You make sure the deposit was there, but you don't
make sure anything else that was on your past up.
Now you don't feel it anymore, is not as painful,
and you've got an automatic savings program for you. Hey,
it's a great way to start saving, and it's a
(10:08):
great way for you to ignore what the net is
coming out of your paycheck. Hey, when we come back
after this break, we're going to talk about maximizing deductions
and credits. Yeah, we're talking about midyear tax planning and
that's part of it. Be right back after this.
Speaker 3 (10:27):
We have only scratched the surface of today's show. Please
stand by as Barry gif Fowler will be right back
with tax talk for you. If you owe the IRS
or are going through an IRS audit, don't go at
it alone. Called taxation Solutions, tax relief at eight eight
(10:48):
eight nine three zero one zero one six. We are
your solution for IRS, debts, audits, back taxes, garnishments, leans
and levees. Whether you're an individual or business, you need
a solution and a strong aggressive tax resolution. Don't let
(11:08):
the IRS walk all over you. Stop the IRS now
call eight eight eight nine three zero one zero one
six or go to Taxationsolutions dot net now for a
free no obligation consultation. Let's get back to tax stock
(11:28):
for you with more tax stock once again.
Speaker 2 (11:32):
Here's your host, Barry G. Fatler.
Speaker 4 (11:37):
Welcome back. In our next segment, we're going to talk
about business tax planning, small business owner operators, truck drivers,
over the wall, truckers, you name it, it's going to
apply to them, So make sure you're staying tuned in.
So the next segment is going to be about that.
But hey, this segment, we're talking about maximizing you tos
(12:00):
and credits and other tax planning on your personal side.
So if you're thinking you might be itemizing this year,
you know that's a big hurdle to get over with
this larger standard deduction, but with mortgage interest rates as
high as they have been over the last couple of years,
and if you've bought a new house, you can you
definitely feel it. You might be very close to itemizing.
(12:23):
So you know, part of this is being strategic about it.
You know, since your mortgage interest is going to be
so high and then your state and local income taxes,
property taxes might be pretty high, your charitable contributions could
be high enough, and you may be getting over that,
(12:44):
so you might look at bunching deduction. Now every year
we talk to people about bunching deductions. Now, we know
state and local taxes are limited to ten thousand dollars,
but if your mortgage interest rate is pretty high and
you have or you have a large purchase that has
(13:05):
large mortgage interest and you have that expense, you can
bunch with charitable contributions and maybe make more charitable contributions
one year. Or if your property taxes and your local
income taxes or maybe only five or six thousand a year,
then maybe you look at one year paying them in
(13:27):
January of one and then that same year paying them
in December. Therefore, you've bunched your property taxes or your
state and local taxes into one year and you got
to that ten thousand, and you're able to now itemize
and get more for your charitable contributions. Maybe you're retired
(13:48):
and you're taking money out of your iras. Instead of
taking the money out and then giving it to a charity,
you can use your rm ds to give directly to
a charity and those non taxable. So there's a lot
of things that you can do to help you lower
your tax pretty much at any age that is out there.
(14:11):
It's figuring out how to use the tax system to
your benefit, and it's where sometimes using a good preparer
to to do this really helps you in figuring out
the best way to get the tax deductions that you
(14:31):
need to save money on taxes. You know, what tax
credits can you get as well, you know, such as
the child tax credit. You know, maybe it is the
improvements to your home energy efficiency credits that are out there,
you know, maybe you have solar credits. Maybe at times
(14:54):
there's credits on you know, purchasing an electronic vehicle, if
that's what you're you know, looking for. Maybe it's even
as we've discussed in the previous segment, retirement contributions, should
you increase your contributions to your four to oh one K,
your IRA or other pre tax retirement accounts to lower
(15:15):
your taxable income. So if you're teacher, maybe it's using
the four or three bs that are offered through the
school districts to help reduce your income and reduce the
taxes and save for retirement out there. You know, I
know a lot of times, you know, maybe you're a
dual income family and you're trying to live off of
(15:37):
one income and save the other. So you know, maybe
you can maximize four oh one ks or four four
H three b's or other retirement savings out there to
create that wealth for you in the future. You know,
other items that you can look at our health savings
accounts hsas. So if your medical plan is eligible and
(16:00):
you're eligible to contribute to an HSA for tax free growth,
tax free withdraws for qualified medical expenses. Great way to
put money away. And then when you use it and
you do have the medical expenses and you use it
out of your HSA account, it's a tax free withdraw
to help meet your deductible's copays so forth and so on.
(16:24):
You know, really nice way to put money away pre
tax And so when I speak at different seminars around
the country, and we talk about how to minimize your
tax We always talk about how to make sure that
you take from what is after tax dollars and money
(16:46):
that you spend after you pay your taxes and put
it into money that you spend or save pre tax
before it gets taxed. HSA's is a good way to
do that. Sometimes the flexible spending arrangements are really good.
But in a FSA flexible spending arrangement, you got to
(17:08):
use that money before the end of the year. So
things like daycare, if you're a company offers being able
to take money and put it aside before tax, or
even sometimes meeting deductibles on insurance and stuff, you have
to use that money before the end of the year.
So it's a good way to do it, but it's
a use it or lose it plan, so you kind
(17:30):
of got to watch how you do it.
Speaker 2 (17:32):
Now.
Speaker 4 (17:32):
If you're investing, you know, sometimes you've got to look
at managing your investment income. You know, when the market
is going up and your account is being successful, you
may have some unharvested, unrealized losses, so you can take
those losses to help offset those realized gains. And reduce
(17:54):
your tax pule income. There is an art to do
and so you know, you've kind of got to look
at it. I know I've had some losses in my
account I hate taking, but if my tax rates high enough,
then maybe I've got to look at taking those losses
to offset those realized gains that I've had in my
investment accounts so that i can reduce those taxes. Something
(18:16):
to sit down and look at plan your year, plan
how you want to do it. You may not want
to do it today, but maybe you want to look
at it and do it before the end of the year.
Maybe your income is where maybe you should start considering
making wroth conversions. We have some tax guys clients of
ours who are now have quite a bit of money
(18:38):
into a four oh one k or ira that's a
regular account, and they want to start looking at converting
it to a wroth. Now, you know, a wroth ira
grows and when you distribute that money, there's no tax
on it. So it's advantageous depending on where your tax
(18:59):
rate is going to be in the future. But if
your future tax rates are expected to be higher, then
you should consider converting some of your traditional ira or
traditional four oh one k over to a wroth ira
or the wroth for a one k, especially when you're
paying the conversion taxes. Now could be very advantageous here
(19:22):
in a lower tax bracket out there, But it takes
a little bit of a state and a lot of
tax planning to make sure you're doing this correctly. You know,
maybe you do have an estate and you need to
start planning what's going to happen to it. You know,
maybe that living trust is rightful. Maybe just a will
is correct for you. Maybe you need to sit down
(19:45):
with a trust or a state planning attorney and determine
the pros and cons of living trusts and other estate
planning activities, especially maybe you own land that is going up,
your homes that are going up a value, or you
want to make sure that your family has said and
(20:05):
can avoid like we have in Texas probate, and you
might want to avoid probate, so you use that living
trust that's out there. You know, whatever you decide to do,
you know what I always strongly recommend seek professional advice.
You know, talk to a tax professional. Your tax advisor
is going to provide personalized gallant guidance tailor to your needs,
(20:31):
your financial situation and help you identify, you know, tax
saving opportunities. But you've got to act as well. Don't
just listen to the advice, take advantage of the advice
and do the things that they're telling you to do.
You know, going through this mid year tax planning helps
you avoid surprises, maximize your savings, helps you adapt to changes,
(20:55):
reduce stress at tax time. But be proactive in your
tax situation. Implement some of the strategies so you can
improve your financial health. Hey, we're going to get into
your business taxes, owner operator taxes, trucking taxes. We're going
to do that right after this break. We'll be right back.
Speaker 3 (21:16):
We have only scratched the surface of today's show. Please
stand by as Barry Chief Fowler will be right back.
Speaker 2 (21:23):
With tax talk for you.
Speaker 3 (21:27):
As an owner operator, you already spend too much time
away from your family. Trucker Tax Tools handles all your
bookkeeping and taxes. No matter what level trucker you are.
Life on the road can be taxing, but that doesn't
mean that your wallet or time with your family should suffer.
Trucker Tax Tools makes your life run smoothly. Go to
(21:49):
Trucker tax tools dot Com for a free guide that
will give you the tools to never worry about your
taxes again. Call Trucker Tax Tools eight seven seven nine
six six two four seven seven or go to Trucker
tax Tools dot com now and let the experts keep
you trucking. Let's get back to tax stock for you
(22:14):
with more tax stock once again.
Speaker 2 (22:17):
Here's your host, Barry G. Fallam.
Speaker 4 (22:22):
Hey, welcome back. Hey, speaking of Trucker Tax Tools, and
we had a great week last week, probably one of
the greatest weeks we've had, you know this year. You know,
we're always helping truckers and we're always signing new clients
up for bookkeeping and taxes, new low raids. I don't
(22:42):
know how long the special is going to keep going
on for, but you know, bookkeeping at twenty five dollars
a week, you can't beat it. Give us a call, uh,
let us talk about what we do for owner operators
truckers all across the country. You don't have to be
local to us in any way, shape or form. Our
program has developed around you, a small business owner, the
(23:06):
owner operator over the road trucker that you know needs
financial freedom, needs a freedom from doing bookkeeping and taxes, and.
Speaker 2 (23:16):
We can help.
Speaker 4 (23:18):
That's what we're here to do. Give us a call
today eight seven seven nine sixty six two four seven
seven Again eight seven seven nine sixty six two four
seven seven. Let us put the program together for you.
Let us show us what we can do for you.
We were helping a new client figuring out how to
(23:39):
transfer his charter from New Jersey to Florida, sending him
some information out and helping him along the way. It's
great to help new clients out there, other people of
the other truckers that we've gotten started helping with their bookkeeping,
getting them on the right track and keeping them working
(23:59):
on you know, that's what it's all about.
Speaker 2 (24:02):
You know.
Speaker 4 (24:03):
We started from helping truckers when they had i RS
problems and dealing with the i R s and putting
a solution in place, you know, to save them from
their tax debts, unfiled returns money that was owed or
even i R s audits and out of the ad
(24:24):
Guru Trucker Tax tools, to where we helped truckers with
their bookkeeping and taxes.
Speaker 2 (24:31):
We had.
Speaker 4 (24:33):
Many, many, many truckers comeing to us and say, hey,
can't you just now pick up our bookkeeping taxes. So
we had to do this through this new entity. It's
all about trucking and Trucker tax Tools. Go to Trucker
tax Tools dot com. We're again call us at eight
seven seven nine six six two four seven seven. Let
us get started working for you. We were going to
(24:55):
talk about, you know, small businesses. You know, small businesses
as subject to various taxes, both federal and state, and
it really all comes down to depending on your structure,
your activities. You know, what do you do in business.
But you know, when it comes down to it, it's taxes,
(25:16):
taxes and taxes. I mean, federal, state, you name it,
local city. Everybody wants a piece of what you do.
And so you know, when you're an owner operator or
a small business, you know you've got to have to
file your federal income tax and you're going to pay
(25:36):
federal income tax. You know, most businesses must file an
annual tax returns, you know, paying their taxes on profits
after deducting your expenses, deductions, exemptions, credits, you know, and
then you know, if you're a C corp, then you're
(25:58):
going to pay your flat tax rate, which is about
twenty one percent as of twenty twenty five. And then
if you if you're a C corp and you pass
dividends out, then the shareholders that receive the dividends are
going to pay tax on the dividends, so you have
a double taxation.
Speaker 2 (26:15):
May not be the.
Speaker 4 (26:16):
Best way to go. Or maybe you set up your
LLC and you're a single member and you're filing your
return on the schedule. See, well, now you also have
self employment tax on top of that. So you know,
if you're operated as a sole proprietor or an independent
contractor single member LLC, you're going to need to pay
(26:38):
self employment tax to cover social Security and Medicare tax.
If you've taken that entity and made it into let's
say in this corp, you're now going to have payroll
taxes because you as the employee of the business, as
the owner working in the business and have to have
a reasonable salary. You're going to have payroll and you're
(27:00):
going to pay federal income tax, You're going to pay
Social Security Medicare. You're going to pay the employer half
of Social Security and Medicare. You're going to pay the
employee half of Social Security and Medicare. And then you're
going to pay the federal income taxes. Well, now with
an employee, you may have state workers compensation or unemployment
(27:23):
insurance that you also have to pay by these are
stacking up. And who said a business never pays taxes?
It seems like it's taxes, taxes, taxes, taxes. Now you're
a business owner. Now you're going to make sure you
make your estimated tax payments. You know, it's crazy again,
it's taxes. Hey, what's today estimated tax payment day? Make
(27:44):
your estimated taxes. Make that payment today, they're due today.
You know, if you are a c court, you may
have estimated taxes as well for your business. Maybe you're
multi member LLC and now you file a partnership return. Well,
it's a pass through so if you don't have employees,
you don't not going to have employment taxes. Matter of fact,
(28:07):
you as the business owner working in your partnership, are
not going to be on payroll, but you're going to
receive what we call guaranteed payments for the work you
do for the business. Those guaranteed payments are going to
be subject to tax self employment taxes on your personal
return that you pay through your estimated tax payments. Again,
(28:29):
do today. Taxes continue to accumulate now depending on the
type of business. If you're an owner operator, you're familiar
with excise taxes. So excise taxes are also applied to
other business activities, such as manufacturing or selling certain types
of products, operating certain types of businesses, or using certain
(28:53):
type of equipment that might truck. Make sure you file
your twenty two to ninety taxes. Those are coming up
to here really soon. If you're an owner operator. See
people don't understand running a small business. Running a small
business means you pay more taxes, have more responsibility. See
(29:14):
that responsibility doesn't stop just with yourself. You are no
longer responsible for one. Now if you're a contractor maybe
it's just you working for it, and you're responsible for
you your business and then your personal taxes. See how that goes.
Not just one responsible for the entity. You're then responsible
(29:35):
for income taxes, so employment taxes, So it becomes two.
Now you start in small business and you're growing, you're
not responsible for one anymore or two anymore. You're now
responsible for each and every one of those employees that
now have become like family. You want to take care
(29:57):
of them. You've got to be responsible to make sure
not only do you give them their paycheck on the
day day, but making sure that your business isn't going
to be in financial debt or hardship. You've got to
make those tax payments for the payroll taxes. Yes, the
Federal withholding the mountain you withheld from their check, the
(30:19):
Soial Security and medicare that you withheld from their check,
the matching Social Security and medicare that the company has to,
the state unemployment insurance that the company has to put,
the federal income taxes, the company would be responsible. Okay,
burden has become great for you. You need to be making
sure that you as the business owner, dotting your eyes,
(30:43):
crossing your t's and making the taxes and tax payments
that you're required to make, including your state and local taxes,
state and local income tax sales tax, deployment workers compensation,
property taxes, all burden on you. Hey, Mike, I appreciate
the question. As a matter of fact, it's going to
(31:04):
bring us to our next topic after the break, which
is what can we do for tax planning for businesses
out there? Owner operators? Mike, We're going to address that
question right after this.
Speaker 3 (31:16):
We have only scratched the surface of today's show. Please
stand by as Barry G. Fowler will be right back
with tax talk for you. As an owner operator, you
already spend too much time away from your family.
Speaker 2 (31:33):
Stop spending time doing paperwork.
Speaker 3 (31:35):
Go to Trucker tax toools dot com, a solution built
specifically for truckers. Trucker tax toools dot com makes your
life run smoothly. Let's get back to tax stock for
you with more tax stock once again, here's your host, BARRYG.
Speaker 2 (31:55):
Foller.
Speaker 4 (31:57):
Hey, I'd like to message here Albert, you know, thank you.
Happy Father's Day to all the fathers out there. I
know yesterday was Father's Day, so I hope you guys,
all fathers and dads out there had a wonderful Father's Day,
whether it's you know, with your kids, your grandkids. Hope
you enjoyed the day. We're talked about tax planning.
Speaker 2 (32:17):
Midyear.
Speaker 4 (32:18):
Great time to look at this and look at tax
planning both on the individual and the business level. One
of the places we start looking for businesses and tax planning,
and Mike, thanks for the question about tax planning for
businesses is we start looking at your business structure.
Speaker 2 (32:38):
How are you.
Speaker 4 (32:38):
Structured, Are you so proprietorship, Are you a partnership, Are
you an LLC? Are you a corporation? All those are
going to determine how you're paying tax each and every
and that structure can also impact the amount of tax
that you're going to pay. See so proprietor depending on
(33:00):
how much money you're making, you're going to be paying
social Security and medicare on the whole bottom line of
your business. So if you were to make one hundred
thousand dollars a year, you're going to pay fifteen point
three percent on that for Social Security and medicare right
off the top. If you are a partnership, as we discussed,
(33:22):
it depends on how you set your guaranteed payments and
that might be manipulated to the quality and the level
of work that you're providing and services you're providing to
the partnership to make it a reasonable salary. LLC could
be taxed as a single member, it could be taxed
as a partnership, could be taxed as an escort. You know,
(33:45):
depending on how you filed your for your employer identification number,
and then if you filed all the right paperwork to
elect escort status or something else. Those can be used
to work at lowering the amount of Social Security and
Medicare taxes that you're going to pay. Or maybe you're
a c court and maybe you shouldn't be now paying
(34:08):
taxes and double taxes and then payroll taxes. See that
business structure out there, it can have a huge impact.
Great time to sit down and do an analysis with
your tax professional to make a determination which is the
right structure for you and how to improve your tax
situation within the structure that you've chosen, or choose a
(34:30):
new structure out there. You know, looking at your business,
what tax deductions and credits that you should be able
to take advantage of. There are various tax deductions that
help reduce your tax burdens. So you know, you got
to look at all the deductionable expenses out there, whether
(34:52):
it's advertising, employee wages, office supplies, business travel, professional services,
all of that is available out there, and you've got
to look at all those deductions and find all the
credits and everything that you can take to help you
reduce for taxes. Hey, we've got a great question here
from Kyle. Do you fill out es Corp paper once
(35:15):
or is it done every year for taxes? Well, the
ESCORP election that you make on Form twenty five to
fifty three is filed one time. IRS has to accept it.
It's got to be filed timely and then for the
IRS to accept for the time period you're asking to
(35:36):
start the escorp. But once the s corp election has
been made, you will file every single year, whether you
have income or not, eleven twenty s which is the
tax return for the ESCORP. So even if your escorp
is not generating any income or having any expenses maybe dormant,
(35:58):
the IRS is actually expected you to still file a
tax return for each and every year that's out there,
and if you don't, they can and do penalize you
for a non compliance. So the election is made one time,
but you continue to file the eleven twenty s the
corporate tax return, every single year. So something else you
(36:22):
want to make sure that you're doing for your business
and helping with your tax plannings and filings is keep
meticulous records. Maintain accurate records of your income and expenses
to support your tax filings and every deduction that's out there.
Use a bookkeeping service. Bookkeeping services and professional services like
(36:43):
ours here at truck Or Tax Tools are tax deductible.
It's a pre tax expense, so you're not paying after tax.
You get the deduction for what you pay for our
services to help save you money on your tax. So
you know, use a service like us. As a matter
(37:05):
of fact, the great low plan that we're offering right
now for bookkeeping for truckers owner operators out there at
twenty five dollars a week call us here at eight
seven seven nine sixty six two four seven seven. Let's
get started here right away. Let's save you money and
find every deduction that's out there. And I tell you,
(37:27):
if you run in a small business, get professional assistance,
whether it's from us here Trucker Tax Tools, taxation solutions,
tax relief. You know, hire a tax consultant, a tax
professional for guidance on you know, strategies, tax savings, business
structure and filing. And be aware of every deadline that
(37:50):
you are going to encounter as a business person. You know,
missing deadlines causes penalties, causes interest and you don't want
to miss those deadlines. Now, Hey, we know we operate
across the United States. We have clients in almost every
(38:11):
state country, long story short. For a long time, didn't
have a client in Hawaii. I got to take a
vacation out in Hawaii, and while I was in Hawaii,
we gained three new clients in Hawaii. So you know,
we are nationwide business out here. Both Taxation Solutions dot
net and Trucker Tax Tools dot Com operate across the
(38:33):
whole US. We're out here helping businesses manage regulations. And
you know, those state tax rates can vary and can
change from state to state. There's some great states out
there that don't have state income tax. I always recommend
those states over states that are paying taxes. But it's
(38:54):
all your choice. Beth Hey, good question here. You know
we're running short on time. You're saying that even if
a company is not running, took a loss or just
to start up phase, that it's practically dormant. You still
have to file a paper and work taxes. Absolutely, if
you are an escorp, you are still required to file
(39:14):
that eleven twenty s. So when you filed and received
your ESCORP election and you receive the letter, it tells
you when you've got a first file, and then you've
got to continue to file that ESCORP return even if
it's zeros. If you want to keep that company open,
if you're going to be dormant or you're not going
(39:37):
to operate, you know, it's sometimes advisable just to close
the business down and set up a new business or
keep it open with the state and when you're ready
to go back to running the business, get a employer
identification number and start over. You know, but you've got
to look at state regulations as well. Sometimes you've got
(40:00):
to talk to an attorney determine what's the right thing
for you to do, you know, for you and your business.
But the one thing I could say, when you run
a business, you really need to take the time to
go through the structure and then go through your bookkeep
You know, you can use our recommended tax software or
(40:22):
I mean our bookkeeping software that we use zero if
you come to us. You know, we like zero one
of the better softwares out there. It's actually x e
R zero over quick books and over some of the
other softwares that you can be using out there. We
(40:43):
like to use it in our practice because it allows
us to do things a little bit easier and it
is all online, so you know, that's kind of one
of the downfalls, but we can work from from anywhere
using this software that's out there, so it's user friendly,
at least for us. It takes a little bit of
(41:05):
time to get used to, but you can work through it.
As far as taxes go, I always tell you never
go it alone. Don't file your own taxes. Use a
tax professional, use it an enrolled agent, somebody licensed to
do your taxes. Have a consultant, Have somebody that you
can consider a friend that you can call to get
(41:26):
tax advice. When things happen in your business, in your life,
whether it's new child, divorce, marriage, death, whatever it may be,
having that person that you can rely on to consult
with is well worth it. You know, not just when
you're running a business, but in all walks and things
(41:48):
in your life. You know, sometimes do it yourself is
not the right way to do it. As my wife
tells me, we have an electrical problem, we call the electrician.
We have a plumbing problem, we call the plumber. When
we have taxes to do, we rely on us, the
enrolled agents CPAs, the lines of people that are licensed
(42:09):
to work and do this kind of stuff. It makes
your life easier and having somebody that you've been working
with for a number of years. Sometimes is even easier.
Our clients have been with us for three, four, five,
ten years, and we try to make their life easier.
I have clients that have been with me over twenty
years to make their life their businesses easier. How do
(42:31):
you get started working with Trucker Tax Tools Taxation Solutions? Hey,
you give us a call eight seven seven nine six
six two four seven seven again eight seven seven nine
sixty six two four seven seven. We put you on
the low cost book keeping playing. We'll get you started.
We'll get working with you, saving you money on your
taxes and finding all those deductions. Listen, follow the instructions.
(42:55):
Let us help you.
Speaker 2 (42:56):
Hey.
Speaker 4 (42:56):
One of the most wonderful things that I get to
do is be on here every Monday at time at
tax TALKFORU dot com on W four CY Radio. Never
miss an episode. Go to Facebook, go to Instagram, click follow,
follow and share Tucker tax Tools dot com, Taxation Solutions
dot net. But go to tax Talk for you dot com.
(43:19):
Follow us over there, share it with your friends, and
join us every Monday right here ten am Eastern time,
W four CUI Radio, and we'll see you next week.
You have a God blessed and glorious week. Excel at
what you do, have fun at what you do, but
be here every Monday, ten am at tax talkfor You
dot com. Thank you have a God blessed week.
Speaker 3 (43:41):
Are you an individual or business that wants to understand
taxes and how they affect you? Are you looking for
specific tax advice for self employed business owners and truckers.
Are you behind on taxes and your bookkeeping? Are you
dealing with dirs and ready to have some relief, Then
(44:02):
you need Tax Talk for You, hosted by tax and
trucker expert Barry G.
Speaker 2 (44:08):
Fower EA.
Speaker 3 (44:09):
Tune in ten am Eastern time every Monday right here
on W four CY Radio and Talk for TV. Don't
forget to check this and past episodes at tax talkforu
dot com. See you next week at W fourcy dot
com
The topics and opinions express in the following show are
solely those of the hosts and their guests and not
those of W FOURCY Radio. It's employees are affiliates. We
make no recommendations or endorsements for radio show programs, services,
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(00:20):
choosing W FOURCY Radio.
Speaker 2 (00:27):
Barry G.
Speaker 3 (00:28):
Fouler EA brings you tax talk for you right here
on W four CY Radio and talk for TV. As
an enrolled agent and a national leader in tax resolution
as well as Trucker bookkeeping and tax planning. With over
thirty years of experience, Barry will break down taxes, bookkeeping,
(00:49):
tax planning, and tax relief for individuals and businesses just
like you. So let's have some tax talk for you
with your hosts.
Speaker 2 (00:58):
Barry G. Foul Good morning.
Speaker 4 (01:04):
It is great morning, had a great weekend and great
Father's Day. I have to actually spend some time with grandkids
and then we get back at it your Monday morning
talking about your favorite topic, taxes, book keeping, tax planning,
and today that's really what this is about. Can you
(01:25):
believe we're already into June, almost halfway through twenty twenty five.
Time flies when you're having fun. Time seems to fly
as you get older and moving quicker. But that's the
story for another day. Here we talking about taxes, talking
about tax planning. Midyear tax planning. You know, this is
(01:46):
an excellent opportunity for you to actually review your financial situation,
you know, make adjustments potentially help minimize your tax liability.
Speaker 2 (01:58):
For this year.
Speaker 4 (01:59):
And it's a great way to do it. You know,
the first thing we tell people to do, you haven't
done it already, and you should always start from the
beginning of the year because it's much simpler it is. First,
make sure you organize all your tax records, you know,
create a system that keeps all the important information together.
You know, you can use a tax you can use
(02:20):
a software out there to electronically store things and store
paper documents and clearly label all your folders. In our situation,
we have one drive out there or even Google drive
out there where we store dfs of receipts and we
(02:41):
organize it based on year based on categories. And then
because we do run business and then we run farm
and ranch, and then we have things that happen in
our personal life. We have those three buckets and we
put everything into each one of those bucket, so you know,
if it applies to the business, it's you know, been
(03:03):
categorized expense thrown through bookkeeping and we know what all
the expenses are there. If it's running the farm and
the ranch, then it goes into that bucket, whether it's
buying a new calf, leasing a bowl, upgrading fencing, fixing
water lines, whatever it may be, the chickens, donkeys, bigs,
(03:29):
you name it, it's got its bucket within that apartment, ranch folder.
And then all the personal stuff that we do as well.
So we find a way to keep things organized. And
like I said, it's easier to do it from the
first of the year and continue to do it, you know,
all year long. Whether you're using a spreadsheet, whether you're
using a bookkeeping software, whatever it may be. It's it's
(03:53):
about organization and keeping your life and the items and
things that are happening in your life life completely organized.
Take a look at your filing status. You know, has
your filing status changed. Did you get married, did you
get divorced, did you have new dependence, Maybe you had
(04:14):
new kids, maybe you adopted or are caring for your grandkids.
All those things can and do effect your taxes. So
you know, you can identify how you're going to file,
whether it's you know, married filing, joint married filing, separate,
had a household, or maybe you're now just single again.
(04:35):
So all those can have an impact on your taxes.
When those have an impact on your taxes, then you
might want to go back and adjust your W four
if you're an employee. If you're not an employee and
you're self employed, maybe an owner operator, truck driver, maybe
you run a small business, maybe you're a consultant, then
you might want to relook at your estimated taxes. By
(04:57):
the way, June sixteenth, your second estimated tax payment is
due today, so you know, if you've been working with
us and you got your estimated taxes to pay, make
sure you get those estimated taxes pay today, so you know,
get in there and make those estimated tax payments. So
changes in life, marriage, divorce, birth and death all affect
(05:22):
your personal situation, your filing status eligibility to claim certain
credits and claim certain deductions. When all those are impacting
your life. For taxes, it's a time for a financial
review and see where you're at and what's changed. You
know best to sit down and work with an enrolled
(05:44):
agent or somebody at our office to figure out what
your estimated taxes should be. But you can also, as
the IRS says, go to the IRS dot gov and
you can use the IRS Tax Withholding Estimator, and you
can utilize their online tool. I'm not going to say
how accurate it is or inaccurate it is. You know,
(06:07):
that's for you to choose. Especially if you're changing, you're withholding,
so you know, when you are sitting down and you're
looking at what's impacting your life, you know, make sure
that you've correlated it over to what's going to impact
your taxes for the year or federal and state. Hey
(06:30):
maybe you've changed your address and you've moved, it's a
good idea to keep the IRS up to date on
your address. Notify the postal service, notify the IRS as well.
You can complete the Form eighty eight twenty two, which
is the change of Address form with the IRS so
that they have the correct address, so just in case
(06:53):
you get one of those fund grams from the IRS
saying hey, you made a mistake on your tax return.
The IRS knows where the mail at too, or of
course yet you get elected for that, try it audit,
or they just made changes to your return because you
made a mistake or left the W two off the
(07:16):
nine A nine hour off, whichever it is. But at
least you're getting notified so you can make the corrections
or figure out what went wrong. You should also report
name changes to Solid Security Administration. Get your Solid Security
card corrected.
Speaker 2 (07:33):
You know.
Speaker 4 (07:33):
You should make all these changes as soon as possible.
You know, and since you're sitting here, you know, midyear
looking at everything that has transpired. So if you're a newlywed,
get those addresses changed with the IRS, get your name changed.
If you've changed your name when you got married, get
it changed with Solid Security Administration. Make sure if you're
(07:55):
working with the tax preprayer they know that you've changed it,
because when you go to E file, if you've changed
your name, it's going to get kicked out. If you
didn't change your name, and you're going to prepare, let
him know what the name is on your Social Security
card as well. And you know I always say this,
better late than never. If you haven't started saving for retirement,
(08:17):
start now. Make the changes. Every dollar that you can
put into a retirement plan is money saved for your future,
and the longer you have, the more that money will
be worth out there in the future. You know, as
I told my son when he first started working, he's like, Dad,
(08:40):
you know, I can't afford to put any money into
retirement plan. Sat down with my son and I looked
at him and I went, this is your first job, right, yes,
So you really don't know what your actual take home
pay is going to be until you get that first check. Correct, Well, yeah,
we could estimate here the company you're working for and
(09:02):
does a four to h one K match and they
do it up to five percent, So take five percent,
put it into your four oh one k, then they
match that same five percent. Now, when you get your
first check, it's going to be painful. You're going to
notice it because it'll be the first time getting out
of college and working a job for a good amount
(09:25):
of money that you're going to actually see the impact
of federal Social Security and Medicare taxes coming out of
your check. But you can also going to see the
four to oh one k that comes out as well
that you've just started saving for retirement. Now, after that
first check, you're never going to notice it again, because
I almost guarantee you're going to be like a lot
(09:46):
of other people that you don't look at your check
very much. You look at what went into your bank account.
You make sure the deposit was there, but you don't
make sure anything else that was on your past up.
Now you don't feel it anymore, is not as painful,
and you've got an automatic savings program for you. Hey,
it's a great way to start saving, and it's a
(10:08):
great way for you to ignore what the net is
coming out of your paycheck. Hey, when we come back
after this break, we're going to talk about maximizing deductions
and credits. Yeah, we're talking about midyear tax planning and
that's part of it. Be right back after this.
Speaker 3 (10:27):
We have only scratched the surface of today's show. Please
stand by as Barry gif Fowler will be right back
with tax talk for you. If you owe the IRS
or are going through an IRS audit, don't go at
it alone. Called taxation Solutions, tax relief at eight eight
(10:48):
eight nine three zero one zero one six. We are
your solution for IRS, debts, audits, back taxes, garnishments, leans
and levees. Whether you're an individual or business, you need
a solution and a strong aggressive tax resolution. Don't let
(11:08):
the IRS walk all over you. Stop the IRS now
call eight eight eight nine three zero one zero one
six or go to Taxationsolutions dot net now for a
free no obligation consultation. Let's get back to tax stock
(11:28):
for you with more tax stock once again.
Speaker 2 (11:32):
Here's your host, Barry G. Fatler.
Speaker 4 (11:37):
Welcome back. In our next segment, we're going to talk
about business tax planning, small business owner operators, truck drivers,
over the wall, truckers, you name it, it's going to
apply to them, So make sure you're staying tuned in.
So the next segment is going to be about that.
But hey, this segment, we're talking about maximizing you tos
(12:00):
and credits and other tax planning on your personal side.
So if you're thinking you might be itemizing this year,
you know that's a big hurdle to get over with
this larger standard deduction, but with mortgage interest rates as
high as they have been over the last couple of years,
and if you've bought a new house, you can you
definitely feel it. You might be very close to itemizing.
(12:23):
So you know, part of this is being strategic about it.
You know, since your mortgage interest is going to be
so high and then your state and local income taxes,
property taxes might be pretty high, your charitable contributions could
be high enough, and you may be getting over that,
(12:44):
so you might look at bunching deduction. Now every year
we talk to people about bunching deductions. Now, we know
state and local taxes are limited to ten thousand dollars,
but if your mortgage interest rate is pretty high and
you have or you have a large purchase that has
(13:05):
large mortgage interest and you have that expense, you can
bunch with charitable contributions and maybe make more charitable contributions
one year. Or if your property taxes and your local
income taxes or maybe only five or six thousand a year,
then maybe you look at one year paying them in
(13:27):
January of one and then that same year paying them
in December. Therefore, you've bunched your property taxes or your
state and local taxes into one year and you got
to that ten thousand, and you're able to now itemize
and get more for your charitable contributions. Maybe you're retired
(13:48):
and you're taking money out of your iras. Instead of
taking the money out and then giving it to a charity,
you can use your rm ds to give directly to
a charity and those non taxable. So there's a lot
of things that you can do to help you lower
your tax pretty much at any age that is out there.
(14:11):
It's figuring out how to use the tax system to
your benefit, and it's where sometimes using a good preparer
to to do this really helps you in figuring out
the best way to get the tax deductions that you
(14:31):
need to save money on taxes. You know, what tax
credits can you get as well, you know, such as
the child tax credit. You know, maybe it is the
improvements to your home energy efficiency credits that are out there,
you know, maybe you have solar credits. Maybe at times
(14:54):
there's credits on you know, purchasing an electronic vehicle, if
that's what you're you know, looking for. Maybe it's even
as we've discussed in the previous segment, retirement contributions, should
you increase your contributions to your four to oh one K,
your IRA or other pre tax retirement accounts to lower
(15:15):
your taxable income. So if you're teacher, maybe it's using
the four or three bs that are offered through the
school districts to help reduce your income and reduce the
taxes and save for retirement out there. You know, I
know a lot of times, you know, maybe you're a
dual income family and you're trying to live off of
(15:37):
one income and save the other. So you know, maybe
you can maximize four oh one ks or four four
H three b's or other retirement savings out there to
create that wealth for you in the future. You know,
other items that you can look at our health savings
accounts hsas. So if your medical plan is eligible and
(16:00):
you're eligible to contribute to an HSA for tax free growth,
tax free withdraws for qualified medical expenses. Great way to
put money away. And then when you use it and
you do have the medical expenses and you use it
out of your HSA account, it's a tax free withdraw
to help meet your deductible's copays so forth and so on.
(16:24):
You know, really nice way to put money away pre
tax And so when I speak at different seminars around
the country, and we talk about how to minimize your
tax We always talk about how to make sure that
you take from what is after tax dollars and money
(16:46):
that you spend after you pay your taxes and put
it into money that you spend or save pre tax
before it gets taxed. HSA's is a good way to
do that. Sometimes the flexible spending arrangements are really good.
But in a FSA flexible spending arrangement, you got to
(17:08):
use that money before the end of the year. So
things like daycare, if you're a company offers being able
to take money and put it aside before tax, or
even sometimes meeting deductibles on insurance and stuff, you have
to use that money before the end of the year.
So it's a good way to do it, but it's
a use it or lose it plan, so you kind
(17:30):
of got to watch how you do it.
Speaker 2 (17:32):
Now.
Speaker 4 (17:32):
If you're investing, you know, sometimes you've got to look
at managing your investment income. You know, when the market
is going up and your account is being successful, you
may have some unharvested, unrealized losses, so you can take
those losses to help offset those realized gains. And reduce
(17:54):
your tax pule income. There is an art to do
and so you know, you've kind of got to look
at it. I know I've had some losses in my
account I hate taking, but if my tax rates high enough,
then maybe I've got to look at taking those losses
to offset those realized gains that I've had in my
investment accounts so that i can reduce those taxes. Something
(18:16):
to sit down and look at plan your year, plan
how you want to do it. You may not want
to do it today, but maybe you want to look
at it and do it before the end of the year.
Maybe your income is where maybe you should start considering
making wroth conversions. We have some tax guys clients of
ours who are now have quite a bit of money
(18:38):
into a four oh one k or ira that's a
regular account, and they want to start looking at converting
it to a wroth. Now, you know, a wroth ira
grows and when you distribute that money, there's no tax
on it. So it's advantageous depending on where your tax
(18:59):
rate is going to be in the future. But if
your future tax rates are expected to be higher, then
you should consider converting some of your traditional ira or
traditional four oh one k over to a wroth ira
or the wroth for a one k, especially when you're
paying the conversion taxes. Now could be very advantageous here
(19:22):
in a lower tax bracket out there, But it takes
a little bit of a state and a lot of
tax planning to make sure you're doing this correctly. You know,
maybe you do have an estate and you need to
start planning what's going to happen to it. You know,
maybe that living trust is rightful. Maybe just a will
is correct for you. Maybe you need to sit down
(19:45):
with a trust or a state planning attorney and determine
the pros and cons of living trusts and other estate
planning activities, especially maybe you own land that is going up,
your homes that are going up a value, or you
want to make sure that your family has said and
(20:05):
can avoid like we have in Texas probate, and you
might want to avoid probate, so you use that living
trust that's out there. You know, whatever you decide to do,
you know what I always strongly recommend seek professional advice.
You know, talk to a tax professional. Your tax advisor
is going to provide personalized gallant guidance tailor to your needs,
(20:31):
your financial situation and help you identify, you know, tax
saving opportunities. But you've got to act as well. Don't
just listen to the advice, take advantage of the advice
and do the things that they're telling you to do.
You know, going through this mid year tax planning helps
you avoid surprises, maximize your savings, helps you adapt to changes,
(20:55):
reduce stress at tax time. But be proactive in your
tax situation. Implement some of the strategies so you can
improve your financial health. Hey, we're going to get into
your business taxes, owner operator taxes, trucking taxes. We're going
to do that right after this break. We'll be right back.
Speaker 3 (21:16):
We have only scratched the surface of today's show. Please
stand by as Barry Chief Fowler will be right back.
Speaker 2 (21:23):
With tax talk for you.
Speaker 3 (21:27):
As an owner operator, you already spend too much time
away from your family. Trucker Tax Tools handles all your
bookkeeping and taxes. No matter what level trucker you are.
Life on the road can be taxing, but that doesn't
mean that your wallet or time with your family should suffer.
Trucker Tax Tools makes your life run smoothly. Go to
(21:49):
Trucker tax tools dot Com for a free guide that
will give you the tools to never worry about your
taxes again. Call Trucker Tax Tools eight seven seven nine
six six two four seven seven or go to Trucker
tax Tools dot com now and let the experts keep
you trucking. Let's get back to tax stock for you
(22:14):
with more tax stock once again.
Speaker 2 (22:17):
Here's your host, Barry G. Fallam.
Speaker 4 (22:22):
Hey, welcome back. Hey, speaking of Trucker Tax Tools, and
we had a great week last week, probably one of
the greatest weeks we've had, you know this year. You know,
we're always helping truckers and we're always signing new clients
up for bookkeeping and taxes, new low raids. I don't
(22:42):
know how long the special is going to keep going
on for, but you know, bookkeeping at twenty five dollars
a week, you can't beat it. Give us a call, uh,
let us talk about what we do for owner operators
truckers all across the country. You don't have to be
local to us in any way, shape or form. Our
program has developed around you, a small business owner, the
(23:06):
owner operator over the road trucker that you know needs
financial freedom, needs a freedom from doing bookkeeping and taxes, and.
Speaker 2 (23:16):
We can help.
Speaker 4 (23:18):
That's what we're here to do. Give us a call
today eight seven seven nine sixty six two four seven
seven Again eight seven seven nine sixty six two four
seven seven. Let us put the program together for you.
Let us show us what we can do for you.
We were helping a new client figuring out how to
(23:39):
transfer his charter from New Jersey to Florida, sending him
some information out and helping him along the way. It's
great to help new clients out there, other people of
the other truckers that we've gotten started helping with their bookkeeping,
getting them on the right track and keeping them working
(23:59):
on you know, that's what it's all about.
Speaker 2 (24:02):
You know.
Speaker 4 (24:03):
We started from helping truckers when they had i RS
problems and dealing with the i R s and putting
a solution in place, you know, to save them from
their tax debts, unfiled returns money that was owed or
even i R s audits and out of the ad
(24:24):
Guru Trucker Tax tools, to where we helped truckers with
their bookkeeping and taxes.
Speaker 2 (24:31):
We had.
Speaker 4 (24:33):
Many, many, many truckers comeing to us and say, hey,
can't you just now pick up our bookkeeping taxes. So
we had to do this through this new entity. It's
all about trucking and Trucker tax Tools. Go to Trucker
tax Tools dot com. We're again call us at eight
seven seven nine six six two four seven seven. Let
us get started working for you. We were going to
(24:55):
talk about, you know, small businesses. You know, small businesses
as subject to various taxes, both federal and state, and
it really all comes down to depending on your structure,
your activities. You know, what do you do in business.
But you know, when it comes down to it, it's taxes,
(25:16):
taxes and taxes. I mean, federal, state, you name it,
local city. Everybody wants a piece of what you do.
And so you know, when you're an owner operator or
a small business, you know you've got to have to
file your federal income tax and you're going to pay
(25:36):
federal income tax. You know, most businesses must file an
annual tax returns, you know, paying their taxes on profits
after deducting your expenses, deductions, exemptions, credits, you know, and
then you know, if you're a C corp, then you're
(25:58):
going to pay your flat tax rate, which is about
twenty one percent as of twenty twenty five. And then
if you if you're a C corp and you pass
dividends out, then the shareholders that receive the dividends are
going to pay tax on the dividends, so you have
a double taxation.
Speaker 2 (26:15):
May not be the.
Speaker 4 (26:16):
Best way to go. Or maybe you set up your
LLC and you're a single member and you're filing your
return on the schedule. See, well, now you also have
self employment tax on top of that. So you know,
if you're operated as a sole proprietor or an independent
contractor single member LLC, you're going to need to pay
(26:38):
self employment tax to cover social Security and Medicare tax.
If you've taken that entity and made it into let's
say in this corp, you're now going to have payroll
taxes because you as the employee of the business, as
the owner working in the business and have to have
a reasonable salary. You're going to have payroll and you're
(27:00):
going to pay federal income tax, You're going to pay
Social Security Medicare. You're going to pay the employer half
of Social Security and Medicare. You're going to pay the
employee half of Social Security and Medicare. And then you're
going to pay the federal income taxes. Well, now with
an employee, you may have state workers compensation or unemployment
(27:23):
insurance that you also have to pay by these are
stacking up. And who said a business never pays taxes?
It seems like it's taxes, taxes, taxes, taxes. Now you're
a business owner. Now you're going to make sure you
make your estimated tax payments. You know, it's crazy again,
it's taxes. Hey, what's today estimated tax payment day? Make
(27:44):
your estimated taxes. Make that payment today, they're due today.
You know, if you are a c court, you may
have estimated taxes as well for your business. Maybe you're
multi member LLC and now you file a partnership return. Well,
it's a pass through so if you don't have employees,
you don't not going to have employment taxes. Matter of fact,
(28:07):
you as the business owner working in your partnership, are
not going to be on payroll, but you're going to
receive what we call guaranteed payments for the work you
do for the business. Those guaranteed payments are going to
be subject to tax self employment taxes on your personal
return that you pay through your estimated tax payments. Again,
(28:29):
do today. Taxes continue to accumulate now depending on the
type of business. If you're an owner operator, you're familiar
with excise taxes. So excise taxes are also applied to
other business activities, such as manufacturing or selling certain types
of products, operating certain types of businesses, or using certain
(28:53):
type of equipment that might truck. Make sure you file
your twenty two to ninety taxes. Those are coming up
to here really soon. If you're an owner operator. See
people don't understand running a small business. Running a small
business means you pay more taxes, have more responsibility. See
(29:14):
that responsibility doesn't stop just with yourself. You are no
longer responsible for one. Now if you're a contractor maybe
it's just you working for it, and you're responsible for
you your business and then your personal taxes. See how that goes.
Not just one responsible for the entity. You're then responsible
(29:35):
for income taxes, so employment taxes, So it becomes two.
Now you start in small business and you're growing, you're
not responsible for one anymore or two anymore. You're now
responsible for each and every one of those employees that
now have become like family. You want to take care
(29:57):
of them. You've got to be responsible to make sure
not only do you give them their paycheck on the
day day, but making sure that your business isn't going
to be in financial debt or hardship. You've got to
make those tax payments for the payroll taxes. Yes, the
Federal withholding the mountain you withheld from their check, the
(30:19):
Soial Security and medicare that you withheld from their check,
the matching Social Security and medicare that the company has to,
the state unemployment insurance that the company has to put,
the federal income taxes, the company would be responsible. Okay,
burden has become great for you. You need to be making
sure that you as the business owner, dotting your eyes,
(30:43):
crossing your t's and making the taxes and tax payments
that you're required to make, including your state and local taxes,
state and local income tax sales tax, deployment workers compensation,
property taxes, all burden on you. Hey, Mike, I appreciate
the question. As a matter of fact, it's going to
(31:04):
bring us to our next topic after the break, which
is what can we do for tax planning for businesses
out there? Owner operators? Mike, We're going to address that
question right after this.
Speaker 3 (31:16):
We have only scratched the surface of today's show. Please
stand by as Barry G. Fowler will be right back
with tax talk for you. As an owner operator, you
already spend too much time away from your family.
Speaker 2 (31:33):
Stop spending time doing paperwork.
Speaker 3 (31:35):
Go to Trucker tax toools dot com, a solution built
specifically for truckers. Trucker tax toools dot com makes your
life run smoothly. Let's get back to tax stock for
you with more tax stock once again, here's your host, BARRYG.
Speaker 2 (31:55):
Foller.
Speaker 4 (31:57):
Hey, I'd like to message here Albert, you know, thank you.
Happy Father's Day to all the fathers out there. I
know yesterday was Father's Day, so I hope you guys,
all fathers and dads out there had a wonderful Father's Day,
whether it's you know, with your kids, your grandkids. Hope
you enjoyed the day. We're talked about tax planning.
Speaker 2 (32:17):
Midyear.
Speaker 4 (32:18):
Great time to look at this and look at tax
planning both on the individual and the business level. One
of the places we start looking for businesses and tax planning,
and Mike, thanks for the question about tax planning for
businesses is we start looking at your business structure.
Speaker 2 (32:38):
How are you.
Speaker 4 (32:38):
Structured, Are you so proprietorship, Are you a partnership, Are
you an LLC? Are you a corporation? All those are
going to determine how you're paying tax each and every
and that structure can also impact the amount of tax
that you're going to pay. See so proprietor depending on
(33:00):
how much money you're making, you're going to be paying
social Security and medicare on the whole bottom line of
your business. So if you were to make one hundred
thousand dollars a year, you're going to pay fifteen point
three percent on that for Social Security and medicare right
off the top. If you are a partnership, as we discussed,
(33:22):
it depends on how you set your guaranteed payments and
that might be manipulated to the quality and the level
of work that you're providing and services you're providing to
the partnership to make it a reasonable salary. LLC could
be taxed as a single member, it could be taxed
as a partnership, could be taxed as an escort. You know,
(33:45):
depending on how you filed your for your employer identification number,
and then if you filed all the right paperwork to
elect escort status or something else. Those can be used
to work at lowering the amount of Social Security and
Medicare taxes that you're going to pay. Or maybe you're
a c court and maybe you shouldn't be now paying
(34:08):
taxes and double taxes and then payroll taxes. See that
business structure out there, it can have a huge impact.
Great time to sit down and do an analysis with
your tax professional to make a determination which is the
right structure for you and how to improve your tax
situation within the structure that you've chosen, or choose a
(34:30):
new structure out there. You know, looking at your business,
what tax deductions and credits that you should be able
to take advantage of. There are various tax deductions that
help reduce your tax burdens. So you know, you got
to look at all the deductionable expenses out there, whether
(34:52):
it's advertising, employee wages, office supplies, business travel, professional services,
all of that is available out there, and you've got
to look at all those deductions and find all the
credits and everything that you can take to help you
reduce for taxes. Hey, we've got a great question here
from Kyle. Do you fill out es Corp paper once
(35:15):
or is it done every year for taxes? Well, the
ESCORP election that you make on Form twenty five to
fifty three is filed one time. IRS has to accept it.
It's got to be filed timely and then for the
IRS to accept for the time period you're asking to
(35:36):
start the escorp. But once the s corp election has
been made, you will file every single year, whether you
have income or not, eleven twenty s which is the
tax return for the ESCORP. So even if your escorp
is not generating any income or having any expenses maybe dormant,
(35:58):
the IRS is actually expected you to still file a
tax return for each and every year that's out there,
and if you don't, they can and do penalize you
for a non compliance. So the election is made one time,
but you continue to file the eleven twenty s the
corporate tax return, every single year. So something else you
(36:22):
want to make sure that you're doing for your business
and helping with your tax plannings and filings is keep
meticulous records. Maintain accurate records of your income and expenses
to support your tax filings and every deduction that's out there.
Use a bookkeeping service. Bookkeeping services and professional services like
(36:43):
ours here at truck Or Tax Tools are tax deductible.
It's a pre tax expense, so you're not paying after tax.
You get the deduction for what you pay for our
services to help save you money on your tax. So
you know, use a service like us. As a matter
(37:05):
of fact, the great low plan that we're offering right
now for bookkeeping for truckers owner operators out there at
twenty five dollars a week call us here at eight
seven seven nine sixty six two four seven seven. Let's
get started here right away. Let's save you money and
find every deduction that's out there. And I tell you,
(37:27):
if you run in a small business, get professional assistance,
whether it's from us here Trucker Tax Tools, taxation solutions,
tax relief. You know, hire a tax consultant, a tax
professional for guidance on you know, strategies, tax savings, business
structure and filing. And be aware of every deadline that
(37:50):
you are going to encounter as a business person. You know,
missing deadlines causes penalties, causes interest and you don't want
to miss those deadlines. Now, Hey, we know we operate
across the United States. We have clients in almost every
(38:11):
state country, long story short. For a long time, didn't
have a client in Hawaii. I got to take a
vacation out in Hawaii, and while I was in Hawaii,
we gained three new clients in Hawaii. So you know,
we are nationwide business out here. Both Taxation Solutions dot
net and Trucker Tax Tools dot Com operate across the
(38:33):
whole US. We're out here helping businesses manage regulations. And
you know, those state tax rates can vary and can
change from state to state. There's some great states out
there that don't have state income tax. I always recommend
those states over states that are paying taxes. But it's
(38:54):
all your choice. Beth Hey, good question here. You know
we're running short on time. You're saying that even if
a company is not running, took a loss or just
to start up phase, that it's practically dormant. You still
have to file a paper and work taxes. Absolutely, if
you are an escorp, you are still required to file
(39:14):
that eleven twenty s. So when you filed and received
your ESCORP election and you receive the letter, it tells
you when you've got a first file, and then you've
got to continue to file that ESCORP return even if
it's zeros. If you want to keep that company open,
if you're going to be dormant or you're not going
(39:37):
to operate, you know, it's sometimes advisable just to close
the business down and set up a new business or
keep it open with the state and when you're ready
to go back to running the business, get a employer
identification number and start over. You know, but you've got
to look at state regulations as well. Sometimes you've got
(40:00):
to talk to an attorney determine what's the right thing
for you to do, you know, for you and your business.
But the one thing I could say, when you run
a business, you really need to take the time to
go through the structure and then go through your bookkeep
You know, you can use our recommended tax software or
(40:22):
I mean our bookkeeping software that we use zero if
you come to us. You know, we like zero one
of the better softwares out there. It's actually x e
R zero over quick books and over some of the
other softwares that you can be using out there. We
(40:43):
like to use it in our practice because it allows
us to do things a little bit easier and it
is all online, so you know, that's kind of one
of the downfalls, but we can work from from anywhere
using this software that's out there, so it's user friendly,
at least for us. It takes a little bit of
(41:05):
time to get used to, but you can work through it.
As far as taxes go, I always tell you never
go it alone. Don't file your own taxes. Use a
tax professional, use it an enrolled agent, somebody licensed to
do your taxes. Have a consultant, Have somebody that you
can consider a friend that you can call to get
(41:26):
tax advice. When things happen in your business, in your life,
whether it's new child, divorce, marriage, death, whatever it may be,
having that person that you can rely on to consult
with is well worth it. You know, not just when
you're running a business, but in all walks and things
(41:48):
in your life. You know, sometimes do it yourself is
not the right way to do it. As my wife
tells me, we have an electrical problem, we call the electrician.
We have a plumbing problem, we call the plumber. When
we have taxes to do, we rely on us, the
enrolled agents CPAs, the lines of people that are licensed
(42:09):
to work and do this kind of stuff. It makes
your life easier and having somebody that you've been working
with for a number of years. Sometimes is even easier.
Our clients have been with us for three, four, five,
ten years, and we try to make their life easier.
I have clients that have been with me over twenty
years to make their life their businesses easier. How do
(42:31):
you get started working with Trucker Tax Tools Taxation Solutions? Hey,
you give us a call eight seven seven nine six
six two four seven seven again eight seven seven nine
sixty six two four seven seven. We put you on
the low cost book keeping playing. We'll get you started.
We'll get working with you, saving you money on your
taxes and finding all those deductions. Listen, follow the instructions.
(42:55):
Let us help you.
Speaker 2 (42:56):
Hey.
Speaker 4 (42:56):
One of the most wonderful things that I get to
do is be on here every Monday at time at
tax TALKFORU dot com on W four CY Radio. Never
miss an episode. Go to Facebook, go to Instagram, click follow,
follow and share Tucker tax Tools dot com, Taxation Solutions
dot net. But go to tax Talk for you dot com.
(43:19):
Follow us over there, share it with your friends, and
join us every Monday right here ten am Eastern time,
W four CUI Radio, and we'll see you next week.
You have a God blessed and glorious week. Excel at
what you do, have fun at what you do, but
be here every Monday, ten am at tax talkfor You
dot com. Thank you have a God blessed week.
Speaker 3 (43:41):
Are you an individual or business that wants to understand
taxes and how they affect you? Are you looking for
specific tax advice for self employed business owners and truckers.
Are you behind on taxes and your bookkeeping? Are you
dealing with dirs and ready to have some relief, Then
(44:02):
you need Tax Talk for You, hosted by tax and
trucker expert Barry G.
Speaker 2 (44:08):
Fower EA.
Speaker 3 (44:09):
Tune in ten am Eastern time every Monday right here
on W four CY Radio and Talk for TV. Don't
forget to check this and past episodes at tax talkforu
dot com. See you next week at W fourcy dot
com
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