Estimated taxes are a critical aspect of tax planning for individuals and businesses, particularly for those who do not have taxes withheld from their income throughout the year. This is common for freelancers, small business owners, and others with income outside of traditional employment. Both the federal government and the state of Illinois require the […]
The Benefits of the Augusta Tax Rule: Maximizing Savings for Homeowners
As a homeowner, you’re likely always on the lookout for ways to make the most of your investment. One often overlooked opportunity is the Augusta Tax Rule, a provision in the U.S. tax code that allows homeowners to rent out their homes for short periods without paying taxes on the rental income. At Blue Ocean […]
Understanding the Differences Between W-2 Employees and 1099 Contractors in Illinois
Navigating the distinctions between W-2 employees and 1099 contractors is crucial for both employers and workers in Illinois. Each classification comes with unique legal, financial, and operational implications. At Blue Ocean Tax Advisors, we aim to demystify these differences, helping you make informed decisions. Definitions W-2 Employees: A W-2 employee is a worker who performs […]
Tax Planning for the Self-Employed
Self-employment offers the opportunity to be your own boss and establish a lifelong bond with your accountant. If you’re self-employed, you will need to pay your own FICA taxes and manage your retirement plan, among other responsibilities. Here are some essential tax planning tips for the self-employed. Understand Self-Employment Tax and How It’s Calculated Ensure […]
Quarterly Estimated Tax Payments: A Guide for Business Owners
At Blue Ocean Tax Advisors, we understand that determining your quarterly estimated tax payments can be a daunting task. To help ease this burden, we’ve put together a guide addressing some of the most frequently asked questions about estimated taxes. What are Estimated Taxes? Estimated taxes are payments made to the IRS throughout the year […]
The Essential Guide to QuickBooks Bookkeeping: Why Accuracy Matters for Your Business
In the world of business management, maintaining accurate accounting records isn’t just about staying afloat; it’s about thriving. If your business is currently navigating without a solid bookkeeping system, you’re likely facing challenges like mixing personal and business expenses or dealing with inaccurate financial data. But fear not! QuickBooks, paired with the expertise of Blue […]