The Standard Deduction is a cornerstone of the US tax system, designed to simplify the process of filing taxes and ensure that every taxpayer has a baseline amount of income that is not subject to federal income tax. For 2026, the Standard Deduction has increased to account for inflation, offering
Unincorporated Business Tax (UBT) Guide
The unincorporated business tax (UBT) remains a crucial consideration for businesses operating as sole proprietorships, partnerships, limited liability companies (LLCs) taxed as partnerships, and trusts in specific localities. This levy, imposed at the local level rather than federally, applies to
Taxpayers’ Dilemma: Selling Assets to Pay Taxes?
It is one of the most frustrating catch-22s in financial planning: you face an outstanding tax liability, decide to liquidate an appreciated asset to generate liquidity, and suddenly trigger a brand-new wave of capital gains taxes. Liquidating capital to settle tax debt requires a careful approach
Tax Law Changes You Need to Know in Seattle
Recent state and federal legislative changes introduce significant updates to Washington Business & Occupation (B&O) rates, sales tax scope, capital gains, and federal pass-through rules. 1. Increased B&O Tax Rates & Surcharges (HB 2081) 2. Retail Sales Tax Expansion to
Tax Deductions for Contributions to a Traditional IRA
Contributing to a Traditional Individual Retirement Account (IRA) allows you to build retirement savings with tax-deferred growth while potentially reducing your taxable income in the year you contribute. Because the IRA deduction is an above-the-line deduction (claimed on Form 1040, Schedule 1),
Do I Need to Pay Taxes Quarterly as a 1099 Contractor?
Transitioning from a standard W2 paycheck to 1099 status is one of the most common leaps for independent professionals in the Puget Sound area. While being your own boss brings flexibility, it also means taking full ownership of your tax obligations. Without an employer automatically withholding
The Double Entry Bookkeeping System: Debits & Credits
Double-entry bookkeeping is the foundational framework of modern business accounting.It operates on a universal principle: every financial transaction impacts at least two accounts.For every debit (an entry on the left side of a ledger), there must be an equal and offsetting credit (an entry on the
Personal vs Business Expenses: Where’s the Line?
One of the most common crises small business owners face is the separation of personal vs business expenses. Especially when you're starting out as a sole proprietor, you may not immediately create a separate bank account or even apply for a business credit card. However, that's usually where the