Marietta Z. Courtney, CPA, Courtney CPA, P.C.

Services that you'll never outgrow.


Frequently Asked Questions of Start-Ups:

Paying Income Taxes:

  • Do we have to make Estimated Tax Payments? Answer = Will you owe $1,000 or more, will your income tax withholding be at least 90% of your 2020 income tax or 100% of your 2021 income tax (*110% for some taxpayers)

Small Businesses & Self-Employed Estimated Taxes

 Business Deductions:

  • What business expenses can I deduct? Answer = To be deductitble, expenses must be both Ordinary and Necessary. Check out IRS Form Schedule C for general business expenses. Note, some businesses have expenses that are unique to that business.
  • How do I support the business use of my car? Answer = A log showing a description of the trip, the purpose of the trip, and the starting odometer and ending odometer is best.

Deducting Business Expenses

  • Is it a Red Flag to claim a business use of home deduction? Answer = Maybe. A higher percentage of tax returns with home office deductions do get looked at closely by the IRS and with good reason, but it is a worthwhile deduction and with proper documentation, it should not be feared.

Home Office Deduction

Independent Contractor or Employee:

  • Does it make a difference if we give a worker a W-2 or a 1099 Form? Answer = This is one of the most important decisions to be made. Improper treatment of  a worker as an independent contractor (1099) instead of an employee (W-2) can be a costly mistake.

Independent Contractor or Employee

  • What if the worker did not provide their address or social security number? Answer = The business owner is responsible for collecting back up withholding at the high rate of 28%.  Obtain the information via Form W-9 prior to paying the worker.

Form W-9 Request for Taxpayer Identification Number and Certification

  • How do I reimburse employees for business expenses and is it taxable income to them? Answer = It depends on whether an Accountable Plan or a Non-Accountable Plan is adopted by the business.

Employee Business Expenses

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