It’s that time of the year – the season for preparing tax returns is about to begin. Unfortunately, it is also the season for scammers who are out to steal your identity, swindle you out of your money and even file tax returns in your name. All of this can ruin your credit rating, cause […]
If you engage the services of an individual (independent contractor) in your business, other than one who meets the definition of an employee, and you pay him or her $600 or more for the calendar year, then you are required to issue that person a Form 1099-MISC to avoid penalties and the prospect of losing […]
The Internal Revenue Service (IRS) computes standard mileage rates for business, medical and moving each year, based on a number of factors, to determine the standard mileage rates for the following year. As it does annually around the end of the year, the IRS has announced the 2019 optional standard mileage rates. Thus, beginning on […]
As a small business owner, this is the time to take a closer look at your profit and loss sheets to determine how you can make the most out of this current economy. In the U.S., the economy is thriving and expected to grow over the next few months. Businesses are expanding. The Federal Reserve […]
Because individuals are always looking for tax deductions that can reduce their tax liability it’s important to know what the actual tax benefit is derived from a tax deduction. There is no straightforward answer because some deductions are above the line, others must be itemized, some must exceed a threshold amount before being deductible, and […]
Adjustments to Withholding or Estimated Payments for 2018 Should Be Made Sooner Rather than Later As a result of tax reform, most taxpayers will be paying less tax for 2018 than they did in 2017. But that may not translate into a larger refund. Your refund is the amount that your pre-payments (withheld income tax, […]
One of the most bone-chilling situations an American taxpayer can experience is receiving notification from the Internal Revenue Service that there’s some kind of problem. Just receiving an envelope with a return address from the IRS can strike fear. There are many different reasons that the IRS might reach out, but some are more common […]
Unlike a C corporation, which itself pays the tax on its taxable income, an S corporation does not directly pay taxes on its income; instead, its income, losses, deductions, and credits are distributed across its shareholders’ individual tax returns on a pro rata basis. These distributions are not subject to self-employment (Social Security and Medicare) […]
The IRS is now auditing to see if too much home equity debt interest is being deducted from your taxes. Remember, equity debt is debt not incurred to acquire or improve the home and taxpayers frequently exceed the equity debt limit and fail to adjust their interest deduction accordingly. Normally, you are allowed to deduct […]
Predict Your Future Social Security Income Are you ignoring your future retirement needs? If you are younger, that’s probably the case since retirement is far in the future, and you think you have plenty of time to save for it. It’s not wise to ignore the issue until late in life and then have to […]
