Do I need to file taxes if I have a low income?

Whether you need to file depends on your filing status, age, and gross income. For 2024, the general thresholds are:

• Single under 65: $13,850
• Single 65 or older: $15,700
• Married filing jointly (both under 65): $27,700
• Married filing jointly (one spouse 65 or older): $29,200
• Married filing jointly (both 65 or older): $30,700
• Head of household under 65: $20,800
• Head of household 65 or older: $22,650

Even if you're below these thresholds, you may want to file to claim refundable credits or get back withheld income tax.

What tax filing status should I choose?

Common filing statuses include:

• Single: For unmarried individuals
• Married filing jointly: For married couples filing together
• Married filing separately: For married individuals filing separate returns
• Head of household: For unmarried individuals who pay more than half the cost of keeping up a home for themselves and a qualifying person
• Qualifying widow(er): For recent widows or widowers with a dependent child

Your filing status can significantly impact your tax liability, so consult with our tax professionals to determine the most advantageous status for your situation.

What common tax deductions should I know about?

Common deductions include:

• Standard deduction (varies by filing status)
• Student loan interest
• Contributions to retirement accounts (like traditional IRAs)
• Health Savings Account (HSA) contributions
• Mortgage interest
• Charitable contributions (if you itemize)
• State and local taxes (SALT) up to $10,000

Self-Employed Filers

What taxes do self-employed individuals need to pay?

Self-employed individuals must pay:

• Income tax on their net business income
• Self-employment tax (15.3%, covering both employer and employee portions of Social Security and Medicare)

These are typically paid through quarterly estimated tax payments.

How do I calculate estimated quarterly taxes?

To calculate quarterly taxes:

1. Estimate your annual income and self-employment tax liability
2. Divide by 4 for each quarterly payment
3. Submit payments by their due dates (typically April 15, June 15, September 15, and January 15)

Our tax professionals can help you set up a system to track your income and expenses to make accurate quarterly payments.

What business expenses can I deduct?

Common deductions for self-employed individuals include:

• Home office expenses (if you have a dedicated workspace)
• Business insurance premiums
• Business travel, meals (50% deductible), and vehicle expenses
• Professional development and education
• Business supplies and equipment
• Retirement plan contributions
• Health insurance premiums

Do I need to pay taxes if my business isn't profitable yet?

If your business shows a loss, you may not owe income tax on your business income. However, you'll still need to file a tax return to document the loss, which may offset other income. Losses can often be carried forward to future tax years.

Small Business Filers

What business structure is best for tax purposes?

Common business structures include:

• Sole proprietorship: Income flows through to your personal return
• Partnership: Income flows through to partners' personal returns
• LLC: Flexible structure that can be taxed as a sole proprietorship, partnership, or corporation
• S Corporation: Income flows through to shareholders; may save on self-employment taxes
• C Corporation: Business pays its own taxes; potential for double taxation

The best structure depends on your specific situation. Our tax advisors can help you evaluate the tax implications of each option.

What employment taxes do I need to pay for employees?

For employees, you must:

• Withhold federal income tax
• Withhold and match Social Security and Medicare taxes (FICA)
• Pay federal unemployment tax (FUTA)
• Pay state unemployment taxes
• Possibly pay additional state or local taxes

How do I handle taxes for independent contractors vs. employees?

For independent contractors:

• No need to withhold income taxes or pay employment taxes
• Provide Form 1099-NEC by January 31 for contractors paid $600+ during the year

For employees:

• Withhold income and FICA taxes
• Pay employer portion of taxes
• Provide W-2 forms by January 31

Misclassifying employees as contractors can result in significant penalties, so ensure proper classification.

What business tax deadlines should I know?

Key deadlines include:

• March 15: Partnership and S Corporation tax returns due
• April 15: C Corporation and individual tax returns due
• Quarterly estimated tax payments: April 15, June 15, September 15, January 15
• Employer quarterly tax returns: April 30, July 31, October 31, January 31

Getting Help with Your Taxes

How can Millz Financial Group help me with my taxes?

Our team of experienced tax professionals can:

• Prepare and file your tax returns
• Help identify all eligible deductions and credits
• Provide year-round tax planning
• Assist with bookkeeping and financial record organization
• Represent you in case of an IRS audit
• Offer guidance for tax-efficient business structures

What information should I bring to my tax appointment?

Please bring:

• Photo ID
• Social Security cards for you, your spouse, and dependents
• All income documents (W-2s, 1099s, etc.)
• Previous year's tax return (if you're a new client)
• Information about deductible expenses (receipts, statements)
• Bank account information for direct deposit
• Any IRS correspondence received during the year
• Business records if you're self-employed

Do you offer virtual tax preparation services?

Yes! We offer secure virtual tax preparation services. You can upload your documents through our secure client portal, schedule a video consultation, and review your completed return electronically before filing.