IRS Announces Mid-Year Optional Vehicle Mileage Rate Increase Article Highlights: Mid-year IncreaseItems Included in the Optional Mileage RateWhat Can Be Deducted in Addition to the Optional Mileage RateSwitching Methods With gas prices soaring it has been expected the IRS would increase the mileage rate that business owners can deduct for vehicle use instead of keeping [...]
$5,000 First-year Start-up and Organizational Expense Write-offTimely Filing RequirementsQualifying Start-up ExpensesTrade or Business PurchaseQualifying Organizational ExpensesExpense Write-off LimitationsHow to Make the ElectionOther Considerations Unfortunately, as a result of the COVID pandemic many small firms have gone out of business. However, with the help of vaccines and the waning lethality of the latest versions of the [...]
General statute is 3 yearsSome states are longerFraud, failure to file and other issues can extend the statuteKeeping the actual return Taxpayers often question how long records must be kept and the amount of time IRS has to audit a return after it is filed. It all depends on the circumstances! In many cases, the [...]
Filing status. Adjusted gross income (AGI). Taxable income.Marginal tax rate. Alternative minimum tax (AMT). Tax Credits.Underpayment of estimated tax penalty. When discussing taxes, reading tax-related articles or trying to decipher tax form instructions, one needs to understand the lingo and acronyms used by tax professionals and authors to be able to grasp what they are saying. It can be [...]
June 10 - Report Tips to Employer If you are an employee who works for tips and received more than $20 in tips during May, you are required to report them to your employer on IRS Form 4070 no later than June 10. Your employer is required to withhold FICA taxes and income tax withholding [...]
If you’re a business owner who has been through a recession before, you know that smart cash flow management is absolutely crucial. If you’re a new entrepreneur who hasn’t been through an economic downturn, you may be less familiar with how quickly your finances can be affected. To protect yourself and keep your business operating, [...]
Article Highlights: 1099-NEC Filing RequirementsIndependent Contractor Filing ThresholdForm W-9Form 1099-MISC If you use independent contractors to perform services for your business, for each one that you pay $600 or more for the year, you are required to issue the worker and the IRS a Form 1099-NEC no later than January 31, 2022, for 2021 payments. [...]
Article Highlights: Lifetime ExclusionAnnual ExclusionMedical ExceptionEducation ExceptionGifting Techniques If you are fortunate enough to have an estate large enough to be subject to the estate tax upon your death, you might be considering ways to give away some of your wealth to your family and loved ones now, thereby reducing the estate tax when you [...]
Article Highlights: Long-Form Itemization RequiredBelow-the-Line Cash Contributions for 2021Qualified Charities OnlyCash DonationsNon-cash DonationsLeave DonationsOther Qualifying DonationsAGI LimitationsYear-End Donations During the holidays, many charities solicit gifts of money or property. This article includes tips for documenting your charitable gifts so that you can claim a deduction on your tax return. Cash Donations – To claim a [...]
Article Highlights: Taking Stock of Tax StrategiesEducation Tax CreditsConverting a Traditional IRA to a Roth IRAMinimum Required DistributionsCharitable ContributionsQualified Charitable DistributionsHealth Savings AccountsPrepaying State TaxesPaying Medical/Dental BillsGiftingAvoiding Underpayment Penalties It seems hard to believe, but the holiday season is almost upon us, and that means that the 2021 tax preparation season will soon follow. With [...]
