Two reasons.

1. Easy Path Tax Guide does not save any of your information used to file taxes. You can access your documents and information directly from your personal device without needing to copy or print any information. This way your information stays safe and secure with you. If you do not have a computer or tablet to bring, you may use a guest log-in computer for the session and all your information is deleted after logging out. 

2. If you choose to do you own taxes with step-by-step guidance, it is best to learn on the device you will be using for future tax returns so you become familiar with using the software. You can also choose to save your log-in credentials on your personal device.

To file your taxes electronically using online software, you need to enter your updated driver’s license or state I.D. information. This helps to reduce fraud and identity theft.

YES!

You are considered a contract worker or contractor or gig worker or self-employed.

Anything you pay out of pocket that directly relates to performing your duties for the business can be deducted as an expense and can help reduce the tax you owe on your income. Keep track of utilities paid and the percentage of business use (phone, internet, electricity, etc), insurance, fees, supplies, mileage between worksites, equipment bought or leased.

Check the business checklist.

Depends.

You do not need to file if you are a MI resident who only receives social security payments and does not receive property tax credit.

You may need to file if you receive any payments that are more than the standard deduction and you did not have taxes taken from those payments throughout the year. Age, disability, and marriage status affect your standard deduction amount, and you may or may not need to file based on your standard deduction amount. Stocks and bonds also affect your payments received throughout the year and may require you to file. If you qualify for property tax credit and you want to receive the credit, you must file. 

If you live or work in the limits of a city that collects taxes, you most likely pay city or local taxes. For employees, your W-2 form will have boxes for local taxes. If boxes 19 and 20 (“Local Tax” and “Locality Name”) are filled out with a number and city, the city taxes have already been paid from your wages throughout the year. If those boxes are blank, you either do not owe city taxes or you need to pay them separately when you file your tax return. Not all cities collect local tax.

Depreciation is a business expense for an item intended for long-term use that is deducted over several tax years instead of deducting the total cost of that item in one tax year. Choosing to use depreciation as a business expense rather than deducting the total cost depends on the item and your business.

For example, you buy a new equipment for your business. You paid $10,000 for the equipment in 2020.

You can deduct the total cost of $10,000 as a single business expense on your 2020 tax return, which would greatly reduce your income for that year only. Or you could choose to depreciate the equipment, and the $10,000 expense will be split over several years, and you will be able to deduct a portion of that $10,000 each year until the pre-determined lifespan limit is reached. If the equipment is designed to last 5 years, you will be able to deduct $2,000 each year for 5 years.

If you expect your business profit to increase each year or you plan to sell the equipment before the depreciation ends, depreciation may be the best option for you. If your business acquires new equipment every year or you are about to close your business, deducting the full cost may be the best option.