Your Year-End Financial Checklist to Navigate 2024 with Confidence
Get ready for a prosperous 2024! Check out our practical year-end financial checklist that we’ve prepared to help you finish the year strong and set achievable goals.
How To Maximize the Potential of Your 401(k) Plan
You can contribute a portion of your paycheck to your 401(k) by participating in an employer-sponsored retirement plan. Read our article to learn how to maximize its potential.
Small Business Startup Costs Deductions
If you’ve got recently a business started – or are contemplating to start a business – there are a few things you should know as a new business owner. You could be eligible to deduct your business costs incurred before the business started operating. Read our article to learn more.
Year-End Tax Planning Tips for Individuals and Businesses
Here we are again, nearing the end of another year. While the tax deadline for 2021 isn’t until April 2022, now is the time to plan and make some strategic moves to optimize your tax situation. Below we’ll look at some tax planning ideas for both small businesses and individuals.
Congress Provides Sick Leave and Child Care Leave Benefits for Employees
The COVID-19 epidemic has created situations where employees are not able to work because they tested positive for the virus or have been quarantined after coming in contact with someone who has tested positive. It has also caused parents to miss work because their children’s school has closed due to the outbreak and…
What Does a Tax Deduction Save You?
Taxpayers frequently ask what benefit is derived from a tax deduction. Unfortunately, there is no straightforward answer. The reason the benefit cannot be determined simply is because some deductions are above-the-line, others must be itemized, some must exceed a threshold amount before being deductible, and certain ones…
Congress Green-Lights Some Alternative Vehicle Credits
To encourage U.S. taxpayers to move away from gasoline-powered motor vehicles, over the years, Congress has provided various tax credits for purchasing electric or alternative fuel vehicles. These credits generally come with an expiration date or a sales limitation. For example, from 2006 through 2010, a credit was available…
Congress Extends Employers’ Hiring Tax Credit for Another Year
Employers that hire disadvantaged individuals, such as unemployed veterans, SSI recipients, and ex-felons, among others, may benefit from a substantial federal tax credit. Hiring certain new employees can qualify the employer for the Work Opportunity Tax Credit (WOTC), which Congress extended for one additional year, so…
Congress Adds More Uses for College Savings Plan (Sec 529 Plan)
Congress originally created the Qualified State Tuition Plan, often referred to as the Sec 529 Plan, as a tax-beneficial incentive for parents, grandparents, and others to save money for an individual’s future college tuition and fees. There is no federal tax deduction for making contributions, but taxes on the earnings…
New Twist Added to The IRA-to-Charity Provision
Ever since 2006, individuals age 70½ or older have been able to transfer up to $100,000 annually from their IRAs to qualified charities.
Congress Removes IRA Contribution Age Restriction
In the past, unlike Roth IRAs, which have no age restriction associated with making a contribution, taxpayers were unable to make a traditional IRA contribution in and after the year they reached the age of 70½. This is primarily because a Roth IRA contribution is not tax deductible, while a traditional IRA is, unless
Childbirth & Adoption Penalty Exception Added
If you are looking for cash for a specific purpose, your retirement savings may be a tempting source. However, if you are under age 59½ and plan to withdraw money from a traditional IRA or qualified retirement account, then you will likely pay both income tax and a 10% early-distribution tax (also referred to as a penalty) on any previously untaxed money that you take out.
New Twist for Kiddie Tax With a Refund Opportunity
Your dependent child who worked during the year or had investment income, such as interest or dividends, may be required to file a tax return, depending upon the type and amount of the income. Years ago, to prevent parents from putting their investments in their children’s names to avoid or significantly reduce the tax…
Above-the-Line Education Tax Deduction Reinstated
As part of the Appropriations Act of 2020, Congress has retroactively reinstated the above-the-line deduction for 2018 through 2020.
Employer’s Pension Startup Credit Substantially Increased
If you are considering establishing a qualified pension plan for your business, you may be entitled to the Credit for Small Employer Pension Startup Costs.
Congress Allowing Higher Medical Deductions for 2019 and 2020
Medical expenses are deductible as an itemized deduction but only to the extent they exceed a percentage of a taxpayer’s adjusted gross income (AGI).
2020 Standard Mileage Rates Announced
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.
Congress Passes Last-Minute Tax Changes
Congress, at almost the last minute, has passed a large number of tax changes, including retirement plan issues that will become effective in 2020, as well as extensions through 2020 of a number of tax provisions that had expired or were about to end.