First State CPAs and Associates

20 hours ago

𝙃𝙤𝙬 𝙙𝙤 𝙄 𝙩𝙧𝙖𝙘𝙠 𝙢𝙮 𝙗𝙪𝙨𝙞𝙣𝙚𝙨𝙨 𝙢𝙞𝙡𝙚𝙨 𝙩𝙝𝙚 𝙧𝙞𝙜𝙝𝙩 𝙬𝙖𝙮?

For 2026, the mileage rate is 𝟳𝟮.𝟱 𝗰𝗲𝗻𝘁𝘀 𝗽𝗲𝗿 𝗺𝗶𝗹𝗲. So if you drove 12,000 business miles, that’s an $8,700 deduction.

But to claim it, you have to keep a log that proves it. Your log must include:
• Date of the trip
• Where you went
• Business purpose
• Miles driven

And make sure you track this as you go rather than trying to rebuild it later.

Also worth knowing:
• Commuting from home to your regular office isn’t deductible…
• Driving between work locations or to client meetings is!

Comment MILEAGE below if you want help figuring out the right mileage tracking method for your business. ... See MoreSee Less

First State CPAs and Associates

2 days ago

𝙄𝙛 𝙄 𝙨𝙩𝙖𝙧𝙩 𝙢𝙮 𝙤𝙬𝙣 𝙗𝙪𝙨𝙞𝙣𝙚𝙨𝙨, 𝙖𝙢 𝙄 𝙩𝙖𝙭𝙚𝙙 𝙤𝙣 𝙚𝙫𝙚𝙧𝙮𝙩𝙝𝙞𝙣𝙜 𝙩𝙝𝙚 𝙗𝙪𝙨𝙞𝙣𝙚𝙨𝙨 𝙗𝙧𝙞𝙣𝙜𝙨 𝙞𝙣?

If you do make the leap to leave your 9-to-5 and start your own business, tax obligations do change. Though you’re not taxed on EVERYTHING, you are taxed on your net profit (your revenue minus deductible business expenses).

So if you earn $100,000 and have $20,000 in valid expenses, you’re taxed on $80,000…but only if those expenses are actually tracked.

That means filing:
• Receipts
• Business bank and credit card statements
• Mileage logs, if you drive for business
• Records that show the business purpose

When you’re self-employed, the burden of proof is on you.

If you can’t show it, it’s much harder to claim it.

If you want a tax consultation for setting up your business in a tax smart way so you're compliant with the IRS's requirements, DM us. ... See MoreSee Less

First State CPAs and Associates

3 days ago

𝙒𝙝𝙮 𝙙𝙤𝙚𝙨 𝙢𝙮 𝙩𝙖𝙭 𝙗𝙞𝙡𝙡 𝙛𝙚𝙚𝙡 𝙨𝙤 𝙢𝙪𝙘𝙝 𝙝𝙞𝙜𝙝𝙚𝙧 𝙣𝙤𝙬 𝙩𝙝𝙖𝙩 𝙄’𝙢 𝙨𝙚𝙡𝙛-𝙚𝙢𝙥𝙡𝙤𝙮𝙚𝙙?

Because you’re paying both sides of Social Security and Medicare now.

At a W-2 job, you pay 7.65%, and your employer matches it.

When you’re self-employed, you pay the full 15.3%.

On top of that, you’re also responsible for:
• Paying tax on your profit, not revenue
• Making quarterly tax payments
• Tracking your income and expenses yourself

You can typically deduct half of your self-employment tax, which helps lower your taxable income.

But no one is withholding taxes for you anymore.

That’s the shift that catches people off guard.

A practical next step: estimate your monthly tax set-aside based on your last few months of income, then automate that transfer before the money gets absorbed into everything else. ... See MoreSee Less