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| FAQs About the IRS 1040 Tax Form Posted: 02 Mar 2020 09:23 AM PST 
Tax season is in full swing, and if you're a small business owner or one of the millions of Americans who balance a side hustle with a primary gig, figuring out all the forms you need to get in order can be a daunting task. This FAQs guide is all about the 1040 tax form, what it's for, who needs it and where you can find it. What is the 1040 tax form?Form 1040 is the U.S. Individual Income Tax Return form, the purpose of which is to report your taxable income to the government, as well as to claim any tax deductions or credits. The rate at which you are taxed depends on how much taxable income you have: The higher your taxable income, the more you pay in taxes. The amount in taxes you either owe or get back depends on a combination of your taxable income, deductions and credits, and how much you've already paid in taxes throughout the year. How can I decrease my taxable income?The easiest way to pay less money in taxes is to decrease your taxable income without decreasing your earnings. Contributing to a tax-advantaged account, like a 401(k) or IRA, is the most accessible way to decrease your taxable income. Money you put into tax-advantaged accounts is essentially subtracted from your taxable income, so it not only helps you grow your money through compound interest, it also shelters your money from the tax man. Who needs an IRS 1040 tax form?Anyone who has taxable income for the last tax year needs to fill out Form 1040. Taxable income can be regular income from a job or income from investments, unemployment, rental properties, alimony, and some types of trusts. If you have a highly complex income situation, you may want to consult with your lawyer or accountant before filing taxes, as failure to report income on your taxes can result in an audit. Is the 1040 tax form for federal or state taxes?You must pay both state and federal taxes for each tax year. Form 1040 is for income tax, which is a federal tax. In addition to income tax, you must pay state taxes, but other tax forms cover those. What is the difference between a 1040 tax form and a 1099 tax form?Form 1040 is the standard income-reporting form for regular employees and most people who receive a paycheck from one company on a regular basis. Form 1099 is something freelancers, contractors and self-employed people get from their clients; it shows how much a person has received in exchange for goods and services, from one or multiple clients. If a contractor has many clients, they will receive a 1099 form from each client. How do I get a 1040 tax form?Before filing your tax return, you should make sure you have all the forms you need. If you haven't gotten a 1040 form for the last tax year yet, you can download it from the IRS website. If you have a disability and require accessible versions of the 1040 or any other tax forms, there are also links to accessible files and instructions. Can I download tax forms online?Yes. You can download all your tax forms online from the IRS website. There are also accessible versions of the tax forms you'll need to complete your tax return. There's no reason to wait to file your taxes; the sooner you finish the tax preparation process, the sooner you'll get your tax refund. How can I avoid filling out tax forms?There are two main ways to avoid filling out tax forms. First, you can use tax preparation software that allows you to answer questions in a user-friendly format rather than by filling it out manually on a tax form. The other option is to take all your income and deduction documentation to a tax professional and have them file your return for you. Both software and a tax professional may cost you money to file your returns, but if you receive a sizable tax return, you should be able to pay for your services from that. Are there free tax preparation services?Yes. If your yearly income is below $69,000, you can file your federal and most likely your state taxes for free. The IRS has a complete list of resources for free lower-income tax filling here. AARP also maintains a repository of free filing options available to people at certain income thresholds. If your income is over $69,000, you can still file your federal taxes for free. Free forms for people above this income threshold are also available on the IRS website. What is a standard deduction?The standard deduction is available to all people who file taxes, and it's the best route to take if you don't have any other tax credits or major deductions. Even if you do have deductions, it is likely the standard deduction will limit your taxable income more than your itemized deductions. Married people who are filing jointly are eligible for a $24,800 deduction, heads of household are eligible for an $18,650 deduction, and both single filers and married people filing separately are eligible for a $12,400 deduction. Good tax software will allow you to input your itemized deductions and tax credits to see if they total more than the standard deduction. Will I get a bigger tax return filing jointly or filing separately from my spouse?As with anything in taxes, there are exceptions, but most married couples are better off filing jointly. The standard deduction for couples filing jointly is $24,800, and the deduction for married couples filing separately is $12,400. Filling taxes separately can be financially beneficial in less common situations, like when a couple wants to keep tax liability separate, when one partner has extensive deductions that are limited by adjusted gross income, or when one or both partners receives income-based repayment for unpaid student loans. What's the right form for filing an income tax return?Form 1040 is also referred to as the income tax form. If you are a regular part-time or full-time employee who receives paychecks, the 1040 is what you need. If you have to report income from multiple jobs or sources, you may need other forms, such as Form 1099-MISC. How do I report self-employment income on my tax return?If you are a contractor or freelancer, you still have to report your self-employment income to the IRS. Such workers often owe money on income they have already received because taxes have not been preemptively removed, the way they are for standard employees of an organization or company. To report your self-employment income, you'll need Form 1099-MISC, which you should receive from any companies that have paid you for services. A separate form is required for each organization you've done work for during the last tax year. How can I receive my tax refund payments?The IRS allows tax filers to receive their tax refunds either in check form or as a direct deposit to a checking account. Some tax software, like TurboTax, will offer users additional options, like advanced loans. These payments offer instant access to some of your money in exchange for insanely high interest rates or transaction fees, much like what rip-off check cashing and payday loan stores offer. |
| Posted: 02 Mar 2020 05:00 AM PST  Your logo is the central and most consistent element of your brand; it's important to create one that represents your business, your personality and your tone. A good logo resonates with consumers and can give your brand the edge over the competition. To understand the value of a logo, imagine for a moment you're taking a long road trip: You and your friends are searching for a spot to stop and eat. You're tired, hungry and craving a hamburger. After miles of open road and few dining options, you find the iconic McDonald's golden arches. For many, just seeing the McDonald's logo evokes feelings of happiness and excitement. The same goes for sports fans and their relationship with Nike. When sports junkies walk into a mall and see the Nike swoosh, they don't only think about athletic wear. They see the Nike logo and immediately conjure up images of the world's best athletes competing with the Nike logo on their chest, sleeve or shoes. The value of a logo, especially as your business gains a strong reputation in a community, can be massive. What are the five characteristics of a great logo?For a startup, designing a logo that captures your brand essence can be a daunting task. What is it that makes a good logo? According to the branding experts we spoke with, a good logo is
There are several factors that make Nike's logo more iconic than other brands' logos, but focusing on the five elements above gives your business a starting point in the logo development process. However, a good logo doesn't make up for mediocre products, services or customer support. You can't sell subpar shoes and make up for it with an exceptional logo. Nike's products please customers. It's the phenomenal branding combined with suitable products that separate Nike from its competitors. SimpleIt might sound counterintuitive, but the most recognizable logos feature a simple design. There are varying degrees to logo simplicity, but the logo must be readable and easy to understand. The McDonald's arches and Nike swoosh are easy on the eyes, while the complicated logo for the 2012 London Olympics drew intense backlash. "A great logo doesn't make one think very hard when it's looked at," said Lisa McKenna, senior brand strategist at Arrow North. "It can't be art [that] one sits in front of and ponders its meaning. If you have to [that], then it's not working." "Initially, people aren't likely to give your logo much more than a passing glance, so they won't have the time to memorize the intricacies of complex designs," said Steve Pritchard, digital marketing consultant at Anglo Liners. "A simple logo that instantly stands out and catches their attention is more likely to sit in their memory than one with a lot of detail." Whether you're paying a design firm or designing a new logo yourself, it's easy to go overboard. Again, keep your logo simple. Nike's logo is simple, it conveys motion and represents the wing of Nike, the Greek goddess of victory. Your business's logo doesn't need to be complicated to share an important meaning. Less can be more. MemorableA key aspect of a good logo is that it is memorable the first time a consumer sees it. The primary goal when designing a logo is to create a strong connection between your brand and a potential customer. The more memorable your logo is, the stronger your connection is with a consumer. This trait ties in closely with simplicity. The more complex and lavish a logo is, the more difficult it is for a consumer to remember it and connect with it. However, a logo shouldn't be simple just for the sake of being simple. It must also communicate your brand's personality, tone and core values. Apple's logo, for instance, is both simple and represents an early core value of the company: "making personal computing accessible to each and every individual." Finally, memorable logos are unique. The biggest brands often operate in the same industry, and none of them have a generic or bland logo: Nike, Adidas, Microsoft, Apple, Coca-Cola and Pepsi have unique logos, despite the competition. VersatileA simple logo can be used on different marketing materials than a complex and intricate design. Apple, McDonald's and Nike all feature simple logos that look just as good on giant signs as they do on pens. Putting a detailed and wordy design on a banner might work fine, but what happens when you move to smaller marketing materials like stickers? It's also worth considering the different mediums of advertising you might use. Will your logo translate well from your website to a magazine? What about from a postage stamp to a full-page ad in a newspaper? If your logo only looks good in a few specific use cases, you have a problem. You also want your logo to be prominent in your local community and spread across a growing base of loyal customers. By getting your logo in front of people, you can create a buzz about your business. "Once you get your logo, make sure you use it like crazy," said Chelsey Derks, owner of Stella del Nord Public Relations. "Have it across all your platforms and marketing materials, because that's how people start associating it with you and creating a sense of trust when they see it." Authentic"A good logo is simple, memorable, versatile and easily recognizable, but most importantly, a good logo supports your brand identity and who you are as a company," Derks said. A logo doesn't have to be literal. For instance, Jaguar doesn't sell live jaguars, but the image of a jaguar matches the brand's name and exudes a sense of elegance and speed that Jaguar wants people to feel when they drive its cars. FedEx doesn't sell colored letters, but the use of white space in its simplistic logo forms an arrow, which emphasizes the company's action of transporting goods for customers. "People can gather what your company is about from a logo," said Shane Hebzynski, owner of 3 Cats Labs. "If it's an easy-to-recall logo, and you've developed enough goodwill, your logo will be specifically looked for." If your business sells upscale clothing, use a color scheme and design that exudes elegance. If you're a fast-food chain, use an element that represents the core concept of your business. Burger King includes a hamburger in its logo to emphasize its specialty, while In-N-Out Burger uses a zigzag symbol to create motion and accentuate the "fast" in fast food. These businesses have built their reputations over many years, and their logos help boost that reputation by staying true to who they are. "It all comes back to your logo connecting to your brand," Derks said. "People have loyalties to certain products and companies, and that little logo is sometimes the only thing that separates them from the competition." TimelessFinally, all good logos stand the test of time. They avoid obvious fads while remaining relevant and memorable. Creating a logo with a timeless quality ensures it will connect with your target customers today, tomorrow, 10 years from now and another 10 years after that. The biggest brands on the planet include timeless logos that have remained largely unchanged for decades, such as Starbucks' mermaid, McDonald's golden arches or Amazon's arrow from "A" to "Z." However, each of these brands started with more complicated logos but have simplified over time to remove unnecessary elements. With every redesign, these three logos have become less colorful, less busy and more iconic while still paying homage to the previous version. When designing your logo, think of how people will react to it 10, 20 or even 30 years from now. Does the logo capitalize on a modern fad or does it evoke a timeless quality? The bottom lineThere isn't a one-size-fits-all approach to designing a logo, but there are five key elements that define the best logos. To create a good logo, focus on simplicity, memorability, versatility, authenticity and timelessness. If you can check those boxes, you're well on your way to creating a dynamic logo. The value of a logo is clear, and small businesses and startups need to make sure they prioritize the importance of creating a good logo. "Think of your business 10, 20 years from now," McKenna said. "Will the logo still be something you're proud of and [that] people easily recognize? If you're a new business, take the time now to put a great mark out there. Don't go out of the gates with a TBD logo; it's likely you'll get used to it." Bennett Conlin also contributed to the reporting and writing in this article. |
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