What is the difference between gross pay and net pay? When it comes to paychecks and paystubs, two of the most important terms to know are gross pay and net pay. Someone may make $60,000 a year, but this doesn’t mean that they will take home all of that money. This is...
If your LLC is looking to change your default tax classification, then the IRS requires you to fill out a Form 8832. Here’s everything you need to know about Form 8832 instructions and where to file a Form 8832. What is Form 8832? Businesses use Form 8832, also called...
What is the difference between a W2 and a W4? IRS Forms W4 and W2 both have to do with employers paying their employees, but they’re very different in function. Tax form W2 is used to record all the wages earned by an employee, as well as any taxes withheld from...
If you don’t work a typical nine to five, tax season can get complicated. Whether you’re self employed or just running an Etsy shop on the side, it’s difficult to know what needs to be reported on your taxes and what you can safely omit without fear of being...
Gross pay is a fundamental concept in the US tax system. It’s simple to understand at a high level but has some finer points that can confuse the unwary tax filer. Read on to become an expert in what gross pay means, how to calculate gross pay, and a few ways to...
Knowing how to figure out your AGI or adjusted gross income is a key step in calculating your tax liability for a given tax year. There are several common misconceptions when a non-tax-professional is learning how to calculate AGI – we’ll go into detail and you’ll...
