Key Takeaways: As its name suggests, Amazon Flex gives you a flexible way to earn money. But since drivers are independent contractors, Amazon doesn’t withhold income taxes, Social Security, or Medicare from your pay. This means you’re responsible for tracking your earnings, reporting income, and paying taxes directly to the IRS. Many drivers are surprised …

Amazon Flex Tax Guide: Everything You Need To Know For US Taxes Read More »

Key Takeaways: IRS Form 5472 is a reporting requirement for foreign-owned U.S. corporations and U.S. corporations with foreign shareholders holding at least 25% ownership. The IRS uses it to track financial transactions between related parties across international lines, so that income isn’t shifted offshore to avoid U.S. taxes.  Failure to remit this form has consequences. …

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Key Takeaways: DoorDash has become a common way to earn income through app-based delivery. Millions of drivers, known as Dashers, use their own vehicles to pick up restaurant orders and deliver them to customers. In 2024, more than 8 million people worked as DoorDash delivery drivers, generating over $18 billion in earnings through the platform. …

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Key Takeaways: A high-net-worth individual, broadly defined as someone with $1 million or more in investable assets (excluding their primary residence), has more complicated tax liabilities. For example, they may get their income from business distributions, investment dividends, real estate rents, and executive compensation – each with its own reporting rules. A single liquidity event, …

11 Tax Planning Strategies For High-Net-Worth Individuals Read More »

Key Takeaways: Are you an Indian citizen working in the U.S. on an H-1B visa? Or a U.S. investor collecting dividends from Indian stocks? If so, you may be paying more tax than you need to. When income crosses international borders, two countries can each claim the right to tax it, leading to double taxation. …

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Key Takeaways: According to the IRS, nearly 5,000 Americans renounced their U.S. citizenship in 2024. If you’re thinking about making a similar move, you’ll want to be aware of the exit tax and its implications before you schedule your embassy appointment. This tax applies only to “covered expatriates” who meet at least one of three …

U.S. Exit Tax: How It Works and How To Avoid It Read More »

Key Takeaways: If you earn income outside a traditional W-2 paycheck, the IRS requires you to pay taxes throughout the year, not only when you file your annual return. These payments are called quarterly estimated taxes, and failing to make them correctly (and on time!) can result in penalties and interest charges. This tax payment …

Quarterly Estimated Tax Guide: How & When To Make Payments Read More »

Key Takeaways: Capital gains tax hits when you sell real estate for more than the original purchase price plus improvements. The IRS taxes short-term gains at ordinary income rates (up to 37%) for properties held under one year, while long-term gains (on properties held over a year) get taxed at 0%, 15%, or 20% based …

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Key Takeaways: If you’ve paid income taxes to a foreign country, the IRS lets you reduce your U.S. tax bill through the Foreign Tax Credit. This credit, which is claimed using Form 1116, prevents you from paying tax twice on the same income. Many taxpayers qualify without realizing it, especially those earning foreign wages, dividends, …

How to Fill Out IRS Tax Form 1116 and Claim the Foreign Tax Credit Read More »