What is taxable income? This question sounds simple, but the distinction between taxable and non-taxable income, as well as when to report income, are important and commonly overlooked aspects of running a massage therapy practice. This course, with Margo Bowman provides simple but highly effective instruction and concepts for massage therapists who want to improve their compliance, reduce the risk of audit, and ensure that they are receiving the best net deal on their taxes each year. The course begins by describing the principles behind determining whether income is taxable, and when it is taxable, and concludes with a discussion of reportable income that isn’t ever deposited in a bank. The course also features a discussion with a practicing massage therapist in order to answer common student questions and apply course concepts.
Margo Bowman has been a practicing accountant for over fifty-four years, specializing in small business taxation and record keeping. She is a licensed Tax Consultant (LTC) in Oregon & Enrolled Agent (EA) in IRS designation. Margo also is a Licensed Massage Therapist (LMT) in Oregon giving her a unique insight into the needs of the massage therapy industry.
Are all of the deposits I put in my bank account taxable? This chapter seeks to answer this and other important questions from massage therapists about exactly what types of income are taxable, and how these distinctions impact their practice.
What are the scenarios when income is taxable? Massage therapists must not only know what is taxable, but when potentially taxable income should be reported. This chapter describes example situations about when income is or is not taxable in order to maximize net income and minimize audit risk.
Is there income that I don’t even deposit that is taxable? The answer is yes! This chapter delves into taxable income that is not deposited in the bank, including trades and other transactions that must not be discounted as income.
The final chapter of this course applies the information from the rest of the course. Margo Bowman answers commonly answered questions that she has fielded over the years, and sits down with a practicing massage therapist to discuss concepts from the course.