According to Investopedia, financial literacy is the knowledge and application of various financial skills. These may include creating a budget, understanding how credit works, and saving for retirement. Financial literacy includes understanding different financial instruments, such as stocks, bonds, ETFs, and creating an investment plan.
Primerica think so. So as many other financial institutions. States are now taking a closer look at teaching financial literacy. The State of Florida think so. The State passed SB 1054: Financial Literacy Instruction in Public Schools.
The law states that public schools must teach financial literacy. The areas that must be thought are:
Types of bank accounts offered, opening and managing a bank account, and assessing the quality of a depository institution’s services.
Balancing a checkbook.
Basic principles of money management, such as spending, credit, credit scores, and managing debt, including retail and credit card debt.
Completing a loan application.
Receiving an inheritance and related implications.
Any clues on how to find the best recordkeeping, tax filing advice? Key word search shows a lot of info on this from 2016. Bah-humbug. I’m thinking I might get a CPA’s help once, and see how they organize and arrange…and do my own work after. But maybe there are tax magicians to be found.
I save receipts and records, and am moderately educated on common deductions. I have been hammered with car expenses over and over and have not contacted the IRS at all this year (last year I did not earn enough to get a 1099 and just used TurboTax).
Perhaps I’m equipped to handle it on my own. I use Excel, although I’m kinda playing catch-up with logging everything and thinking my bookkeeping may not need to be as meticulous as I’m making it. I enter weekly earnings. I copy & paste fueling records from Speedway. I document mileage at every fill-up. My mileage is for sure 95% rideshare–maybe higher (I record exceptions)!
Not looking for app suggestions, by the way. I know the best rated ones and am not interested.
I’m not real big on traveling far from New Lenox/Mokena for help. But I suppose it’s a 1x or 2x consult and maybe there’s a real magician out there with Illinois-specific advice.
Here is our response:
Here is my advice. Coming from an Accountant, Tax Expert and a former Uber Driver.
Most of us drive ourselves to work and to other destinations. If we do not have a car, we use public transportation. There is a difference between driving yourself and driving as a Uber or Lyft driver.
Here is the difference
When we are driving ourselves, all we do is to sit at the wheel, turn on the engine and get going. We do not put any thoughts into what the rules of the road are. The rules are subconsciously programmed into our heads. That is, we start the engine and go to where ever we are heading. We stopped at the stop lights, stop signs, and signal left or right and get to where we want to go. That is so easy. It’s routine !!!
When I am driving for uber, I do much the same as above. The difference being is that I am more conscientious of the laws that governs driving. I tend to drive for Uber with my antenna up. I now know that have the responsibility of taking my passenger to his/her destination safely. The same applies to Do-it-Yourself taxes and have a Tax Expert do your taxes.
A Tax Professional is much more verse in the laws that govern preparing taxes. He or She can save you time and money. He or she has been trained to know what is allowable or not allowable. What is deductible or not deductible. For example, you can not say I made $50,000 driving and my expenses are $45,000. Like how do you support yourself? Are you married or single? What makes up the $45,000 allowable expenses?
That knowledge the Tax Preparer has comes from education, training and experience.You can not do taxes without knowing the ramifications and consequences of taking non-deductible expenses.
We can help you with your taxes.
We can help save you money and time.
We are Tax Experts. We are LA PREMIER Tax Service.
The home office deduction allows qualified taxpayers to deduct certain home expenses when they file taxes. To claim the home office deduction on their 2021 tax return, taxpayers generally must exclusively and regularly use part of their home or a separate structure on their property as their primary place of business.
Here are some details about this deduction to help taxpayers determine if they can claim it:
Employees are not eligible to claim the home office deduction.
The home office deduction, calculated on Form 8829, is available to both homeowners and renters.
There are certain expenses taxpayers can deduct. These may include mortgage interest, insurance, utilities, repairs, maintenance, depreciation and rent.
Taxpayers must meet specific requirements to claim home expenses as a deduction. Even then, the deductible amount of these types of expenses may be limited.
The term “home” for purposes of this deduction:
Includes a house, apartment, condominium, mobile home, boat or similar property.
Also includes structures on the property. These are places like an unattached garage, studio, barn or greenhouse.
Doesn’t include any part of the taxpayer’s property used exclusively as a hotel, motel, inn or similar business.
Generally, there are two basic requirements for the taxpayer’s home to qualify as a deduction:
There generally must be exclusive use of a portion of the home for conducting business on a regular basis. For example, a taxpayer who uses an extra room to run their business can take a home office deduction only for that extra room so long as it is used both regularly and exclusively in the business.
The home must generally be the taxpayer’s principal place of business. A taxpayer can also meet this requirement if administrative or management activities are conducted at the home and there is no other location to perform these duties. Therefore, someone who conducts business outside of their home but also uses their home to conduct business may still qualify for a home office deduction.
Expenses that relate to a separate structure not attached to the home may qualify for a home office deduction. They will qualify only if the structure is used exclusively and regularly for business.
Taxpayers who qualify may choose one of two methods to calculate their home office expense deduction:
The simplified option has a rate of $5 a square foot for business use of the home. The maximum size for this option is 300 square feet. The maximum deduction under this method is $1,500.
When using the regular method, deductions for a home office are based on the percentage of the home devoted to business use. Taxpayers who use a whole room or part of a room for conducting their business need to figure out the percentage of the home used for business activities to deduct indirect expenses. Direct expenses are deducted in full.
Share this tip on social media — #IRSTaxTip: How small business owners can deduct their home office from their taxes. https://go.usa.gov/xtbkP
Filing Uber Driver’s Taxes Is Not As Easy As You Think
As a Uber Driver, you are technically Self-Employed or an Independent Contractor. Under California Laws (AB5) known as the gig workers law, employers are to classify you as an employee. Nevertheless, if you received a 1099-K or 1099-MISC or a 1099-NEC, the IRS classify you as self-employed. Meaning you would have to prepare your tax return showing your business Income (1099) and Expenses (Schedule C).
So you say to yourself this is easy, right? Uber have provided me with a annual statement that tell me my monthly income, mileage drove, etc. etc. etc. This sounds good, right? Nope. The record keeping is incomplete.
Turbotax tells you it easy, sign up and do your taxes or get Expert help. That also sounds good, Right?
Nope. Here is why. You need to speak with the Tax Expert to guide him or her as to your expenses for the year. The Tax Expert will also need to sometimes see the physical copy of the document that make up the expense so as to categorize that expense.
At PREMIER Financial Tax & Accounting Services dba Friendly Tax Services, we can help you with this.
That is what we do. WE ARE EXPERTS.
Friendly Tax Services is the premier income tax preparation firm for individuals, families, small business owners and the self-employed; Uber, Lyft, Taxi, and Limousine drivers; Actors, Independent Contractors and Entrepreneurs. We have empathy and understand the toll driving takes on Uber, Lyft, Taxi, and Truck drivers. That driving is time consuming. Uber drivers just don’t have the time it takes time to keep track of those business-related expenses.