Article Highlight: Appropriations Act of 2020 Medical AGI LimitationsSometimes Overlooked DeductionsDeductible Health InsuranceAbove-the-Line Health Insurance Deduction for Self-Employed On December 20, 2019, President Trump signed into law the Appropriations Act of 2020, which included a number of tax law changes, including extending certain tax provisions that expired after 2017 or were about to expire, a [...]
In 2019, the Governor signed AB 5. Under AB 5, most workers are presumed to be employees for purposes of the Labor Code, the Unemployment Insurance Code, and for most wage orders of the Industrial Welfare Commission unless a hiring entity satisfies a three-factor test, referred to as the ABC test. This means that many [...]
Article Highlights: Independent ContractorsNon-employee Compensation1099 Filing RequirementDue DatesPenaltiesForm W-9 and 1099 Worksheet If your business engages the services of an individual (independent contractor), 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 [...]
AB 5 – New Employee Classification Test: The law codifies and modifies the California Supreme Court’s “ABC test” from its decision in the Dynamex case. The law severely limits the ability of California companies to classify workers as independent contractors rather than employees. Stated in an abbreviated manner, to satisfy the ABC test and classify [...]
Article Highlights: ABLE AccountsDisabled Spouse or Dependent Care CreditMedical DeductionsHome ModificationsSpecial SchoolingNursing Services Individuals with disabilities as well as parents of disabled children are eligible for a number of income tax benefits. This article explains some of these tax breaks. ABLE Accounts – A federal law allows states to offer specially designed, tax-favored ABLE accounts [...]
Article Highlights: Excess IRA ContributionsExcess Contribution PenaltyCorrecting Excess IRA ContributionsApplying the Excess to a Future YearExcess 401(k) Contributions Failing to Timely Correct 401(k) Excess Contributions Some individuals financially struggle just to be able to make a nominal contribution to their tax-favored retirement plan, whether it be an IRA, 401(k) plan, or some form of self-employment [...]
Even as recently as a decade ago, most people listened to their radio shows in the exact same way — on the actual radio. Fast forward to today, and the world of podcasting has absolutely exploded, changing the way we think about broadcasting for generations to come. One great thing about podcasting is that absolutely [...]
Article Highlights: Education CreditAvoiding Underpayment Penalties StrategySpouse IRA StrategyQualified Charitable DistributionsMedical ExpensesElection to Deduct Start-Up CostsState and Local Tax (SALT) DeductionsElectric Car CreditAlimonyHeath Insurance PenaltyCryptocurrency TransactionsQualified Opportunity FundsSolar Credit As the year draws to a close, we have pulled together a number of tax tips that may be beneficial, some of which need to be [...]
Article Highlights: Tax Cuts & Jobs ActEstate Tax ExclusionWhy a Will or Trust?Life-Changing CircumstancesBeneficiaries When was the last time you or your attorney reviewed or updated your will or trust? If it was before the passage of the 2017 tax reform legislation, or the Tax Cuts and Jobs Act (TCJA), your documents may be out [...]
Article Highlights: Exercise Stock OptionsConvert a Traditional IRA to a Roth IRAMaximize IRA DistributionsSell Appreciated StockDelay Business ExpendituresRelease DependencyDelay Personal Deductible Expenditures People generally assume that tax planning only applies to individuals with the big bucks. But think again, as some tax moves benefit lower-income taxpayers and those who are having a lower-than-normal income year. [...]
