Personal Taxation
1099 Income
Speakers from all over the world will join our experts to give inspiring talks on various topics. Stay on top of the latest business management trends & technologies
Gig Economy Income
DoorDash, Uber, Amazon, Etsy, eBay, and more—maximize your deductions!
Contact Us
Investments | Tax Planning
At MT Bachani CPA, we help individuals optimize taxes on investments, capital gains, and cross-border income. Our expert tax planning ensures compliance, maximizes savings, and minimizes liabilities. Contact us today for tailored solutions.
Contact UsNeed Help with Personal Tax Preparation?
Are you ready to file your taxes but feeling overwhelmed? We’re here to help! Our firm specializes in making tax preparation simple, accurate, and stress-free, no matter how straightforward or complex your situation might be.
We assist with:
- W-2 Income: Streamline your filing with accurate reporting.
- 1099 Income: From freelancing to contract work, we’ve got you covered.
- Gig Economy Income: DoorDash, Uber, Amazon, Etsy, eBay, and more—maximize your deductions!
- Investments: Crypto, stocks, and other financial assets—ensure accurate reporting.
- Foreign Income: Claim the Foreign Tax Credit and stay compliant with international tax rules.
- Interstate Income: Paid taxes in multiple states? We’ll simplify the process for you.
- Sole Proprietorships & E-Commerce Businesses: Tailored solutions for small business owners and online entrepreneurs.
- Earned Income Tax Credit (EITC): We’ll ensure you claim the credits you’re eligible for.
- American Opportunity Credit: Support for education-related tax benefits.
- Hobby Business Accounting: Make sense of your hobby income and expenses.
- Foreign Account Tax Compliance Act (FATCA): Stay compliant with foreign asset reporting.
With our expertise, we’ll ensure your personal tax returns are professionally prepared, timely filed, and optimized for all allowable deductions and credits.
Let us handle your tax concerns so you can focus on what matters most. Contact us today to get started!
Personal Taxation Services
Comprehensive Guide to Personal Taxation Categories and Requirements
W-2 Income
W-2 income is earned from traditional employment and reported annually by your employer. The W-2 form summarizes your wages, taxes withheld, and benefits like retirement contributions. Accurate reporting ensures you receive the appropriate refunds and avoid penalties. Submit all your W-2s to ensure compliance and maximize your return.
1099 Income
1099 income includes earnings from freelance work, contract gigs, and side hustles. Each 1099 form reports income not subject to payroll withholding. Ensure you track your business expenses to claim deductions and reduce your tax liability. Missing a 1099 can lead to IRS penalties, so double-check your records.
Gig Economy Income
Income from platforms like DoorDash, Uber, Etsy, or Amazon must be reported, even if you didn’t receive a 1099. Expenses such as mileage, equipment, or fees may qualify for deductions. The IRS treats gig income as self-employment, so be prepared for additional tax obligations like self-employment tax. Proper recordkeeping is key to maximizing deductions.
Crypto Investments
Cryptocurrency transactions, including buying, selling, or trading, are taxable events. You need to report capital gains or losses, and the IRS requires accurate records for each transaction. Failure to report crypto can lead to audits or penalties. Use a reliable tracking tool to simplify tax reporting for your digital assets.
Stock Investments
Earnings from buying and selling stocks are taxed as capital gains, while dividends are subject to ordinary income tax. Ensure you have Form 1099-B and 1099-DIV from your broker. Keep records of your stock purchase dates and prices to calculate gains or losses accurately. Proper documentation ensures compliance and minimizes tax burdens.
Foreign Income
If you earn income abroad, you may qualify for the Foreign Earned Income Exclusion or Foreign Tax Credit. Use Form 2555 or Form 1116 to claim these benefits. Ensure compliance with reporting requirements under the Foreign Account Tax Compliance Act (FATCA). Missing this could lead to steep penalties, so accurate reporting is essential.
Interstate Income
If you earned income in multiple states, you may need to file tax returns in each. Keep records of taxes paid in other states to claim credits and avoid double taxation. Each state has unique rules, so careful preparation is crucial. Our expertise ensures you comply with all state tax laws.
Sole Proprietorships & E-Commerce
Sole proprietors and e-commerce sellers must report all income and deduct eligible business expenses. Common deductions include advertising, shipping, office supplies, and home office use. Use Schedule C to report income and expenses to the IRS. Proper bookkeeping helps optimize your tax return and avoid audits.
Earned Income Tax Credit (EITC)
The EITC is a refundable credit for low-to-moderate-income individuals and families. Eligibility depends on income, filing status, and the number of dependents. Claiming the EITC can result in a significant refund. Ensure accurate income reporting to qualify and avoid delays in processing.
American Opportunity Credit
The American Opportunity Tax Credit helps cover education expenses for the first four years of college. You can claim up to $2,500 per eligible student, with 40% of the credit refundable. Expenses like tuition, books, and supplies qualify, but room and board do not. Use Form 8863 to claim this valuable education credit.
Hobby Business Accounting
If you earn income from a hobby, it must be reported to the IRS, even if it’s not a full-fledged business. Deduct expenses up to the income earned, but be careful not to classify it as a business unless you meet the criteria. Hobby income is reported on Form 1040, while expenses go on Schedule A. Clear documentation is essential to substantiate claims.
Foreign Account Tax Compliance Act (FATCA
FATCA requires reporting foreign financial accounts if their value exceeds $10,000 at any time during the year. Use Form 8938 for FATCA compliance and ensure your FBAR (Foreign Bank Account Report) is submitted. Noncompliance can result in severe penalties. Maintain detailed records of all foreign assets and transactions.