Tax Guides
The rules behind the decisions.
Topic-based tax references connected to the stories in Money Meets Tax.
LLC vs. S Corporation: When Does an S Election Make Sense?
There is no single profit level that makes an S corporation election automatically worthwhile. Learn how LLC tax status, reasonable compensation, payroll taxes, existing W-2 wages, California S corporation tax, and compliance costs affect the decision.
Employee Business Expenses: Reimbursement vs. Deduction
A W-2 employee can pay legitimate work expenses and still get no federal deduction. Learn how employer reimbursements, accountable plans, mileage, unreimbursed expenses, and California’s different rules fit together.
Having a Child: What Changes on Your Tax Return?
Having a child can change who appears on your tax return, which credits may apply, and how childcare is treated. Learn the rules for dependents, the Child Tax Credit, work-related childcare, dependent-care benefits, and the records new parents should keep.
Extra Side Income: How Much Do You Actually Keep?
A higher tax bracket does not mean all of your income is taxed at the higher rate. Learn how marginal rates, self-employment tax, QBI, and California income tax affect what you actually keep from another project.
Business Equipment: Can You Deduct the Full Cost?
A laptop can be a legitimate business asset without being 100% deductible. Learn how business-use percentage, the de minimis safe harbor, §179, bonus depreciation, regular depreciation, and California differences affect the write-off.
Side Income and Estimated Taxes: How Much Should You Set Aside?
A fixed tax percentage can be a useful savings habit, but it is not a tax calculation. Learn how net business profit, self-employment tax, federal safe harbors, W-2 withholding, and California estimated taxes fit together.
Home Repairs vs. Improvements: What Adds to Basis?
Not every dollar spent on a home gets the same tax treatment. Learn when repairs are simply personal costs, when improvements increase home basis, what records to keep, and how the former 30% residential clean energy credit fits in.
Buying a Home: What Actually Changes on Your Tax Return?
Buying a home can change your deductions, but not every housing cost is deductible. Learn how mortgage interest, property taxes, PMI, closing costs, and home basis actually work.
California LLC: The $800 Annual Tax and Form 568
California LLCs can owe the $800 annual tax before earning revenue. Learn Form 568, first-year rules, LLC fees, deadlines, and the 2027 change.
Does an LLC Automatically Save Taxes?
Forming a single-member LLC does not automatically lower federal taxes. Learn what changes, what stays the same, how S corporation taxation differs, and why California’s $800 annual tax matters.
Side Hustle Income: When Does It Become a Business?
One paid project can be taxable before it becomes a Schedule C business.