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Showing posts with the label Small Business Taxes

IRS Audit Triggers in 2026: Small Errors That Flag Returns

IRS Audit Triggers in 2026: Small Errors That Flag Returns IRS Audit Triggers in 2026: Small Errors That Flag Returns TL;DR Summary Most “audit triggers” in 2026 are automated mismatches, not in-person audits. Small filing errors can flag returns when IRS data doesn’t match third-party reports. Careful reconciliation and quick responses to IRS notices can reduce risk. Many taxpayers worry that a minor mistake will automatically lead to an IRS audit. In reality, most issues that feel like audits begin with automated systems comparing what you reported against information sent to the IRS by employers, banks, brokers, and payment platforms. In 2026, these automated checks remain one of the most common reasons tax returns are flagged. While that can lead to additional tax and interest if left unresolved, many cases are fixable when addressed early. What Changed in 2026 and Why It Matters The biggest factor in 2026 is not a single ne...

Mileage Deduction vs Actual Expenses: Which Saves You More in 2026?

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Mileage Deduction vs Actual Expenses: Which Saves You More in 2026? Mileage Deduction vs Actual Expenses: Which Saves You More in 2026? TL;DR Summary In 2026, self-employed drivers can typically choose between the IRS standard mileage rate or the actual expenses method. The method that saves more depends on mileage, vehicle costs, depreciation, and recordkeeping. Choosing the wrong method—or switching incorrectly—can reduce deductions or trigger IRS questions. If you drive for work—whether as a gig worker, freelancer, or small-business owner—vehicle deductions can significantly affect your tax bill. As the 2026 filing season approaches, many drivers are asking the same question: should I deduct mileage or actual car expenses? The answer is not universal. The IRS allows two methods, each with different rules, benefits, and recordkeeping requirements. Understanding how they work can help filers...

Mileage Deduction vs Actual Expenses: Which Saves You More in 2026?

SEO Title (60–65 chars): Why Your Credit Score Drops in 2026 (Even If You Pay on Time) Meta Description (≤150 chars): Credit scores can drop in 2026 despite on-time payments due to utilization, reporting timing, credit mix, and account changes. Labels: credit score 2026, FICO score, VantageScore, credit utilization, credit reporting, late payment myths, credit cards, personal finance, debt, credit monitoring Publish Time (US Eastern, ISO-like text): 2025-12-17 09:00 ET Why Your Credit Score Drops in 2026 (Even If You Pay on Time) Why Your Credit Score Drops in 2026 Even If You Pay On Time TL;DR Summary Credit scores can dip in 2026 even with on-time payments because scoring also reacts to balances, credit limits, account changes, and how lenders report data. High credit utilization (especially on one card), a new loan, a credit limit cut, or a closed account can lower scores—sometimes temporarily. What to...

Small Business Tax Filing Checklist 2025: LLC & S-Corp Requirements Explained

Small Business Tax Filing Checklist 2025 (LLC · S-Corp Focus) TL;DR Summary LLCs usually file as sole proprietors or partnerships unless they elect S-Corp status. S-Corps must file IRS Form 1120-S by the March deadline and provide Schedule K-1 to all shareholders. Track quarterly estimated taxes, payroll documentation, deductible expenses, and business-use records. Prepare a clean P&L, balance sheet, mileage log, payroll reports, and 1099/1096 filings. Use IRS-compliant bookkeeping tools and have everything organized before your CPA asks. Understanding How Your Business Is Taxed in 2025 Your filing requirements depend on your business structure. While LLCs have flexible classifications, S-Corps follow a more formal IRS filing process with strict deadlines. LLC Tax Categories Single-Member LLC: Default filing as a disregarded entity (Schedule C on Form 1040). Multi-Member LLC...

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