Giving to charity may provide you with a warm feeling as well as a nice tax break. But you must itemize deductions on your tax return, which fewer taxpayers will do under the Tax Cuts and Jobs Act. And, like most tax breaks, charitable deductions come with a number of other rules you must follow… Continue reading
News & Updates
Handle with Care: The Nanny Tax Rules
When you hire a nanny, housekeeper or other domestic worker, pay close attention to the tax rules. The laws related to domestic workers are confusing and poorly understood, but ignoring them can land you in hot water—even decades from now. Over the years, there have been news stories about political appointees and others who got… Continue reading
FAQs About Self-Employment Tax
Do you owe self-employment (SE) tax on nonwage income that you collect only occasionally or in a one-off circumstance? Some sources of income may not be subject to the dreaded SE tax. Here’s what you should know if you earn income from “irregular” sources. What Is SE Tax? SE tax is the way the U.S.Treasury… Continue reading
What Employers Should Know About HSAs
Health Savings Accounts (HSAs) are a tax-smart way to cover an individual’s uninsured medical expenses. Your business can set up HSAs for qualifying employees. Then the business can fully or partially fund the accounts or let employees fund them with salary-reduction contributions. While it’s too late to add HSAs to your benefits package for 2019,… Continue reading
How to Reduce the Tax Hit on Soon-to-Be-Developed Land
In many places, real estate prices are soaring. That’s good news for owners of undeveloped land in those areas. But if they decide to subdivide and develop highly appreciated property, it could trigger a whopping income tax bill. Fortunately, there’s a way to reduce the tax hit: Set up an S corporation to develop and sell… Continue reading
Open Enrollment: Make the Most of Your Health Care Benefits Options
It’s open enrollment season at many companies. If you’re lucky enough to work for a company that lets workers choose from a menu of health care plans, review your options carefully. Though it’s easy to stick with what you’re familiar with, a lot is at stake, both financially and in terms of the quality of… Continue reading
Year-End Tax Planning Moves for Small Businesses
It’s hard to believe 2019 is almost over! It’s been a busy year in many sectors, often forcing small business owners to put tax planning on the back burner while they’ve tended to daily business operations. But procrastinate no longer. Consider the following moves to lower your 2019 business tax bill before ringing in the… Continue reading
New Overtime Pay Rules Finalized for 2020
The U.S. Department of Labor (DOL) has issued the long-anticipated final version of its overtime eligibility rules. The changes will take effect on January 1, 2020. As a result, the DOL estimates that 1.3 million workers will be newly eligible for overtime pay. Are any of them on your payroll? Read on to find out.… Continue reading
Year-End Strategies to Reduce AGI
Reducing your current-year adjusted gross income (AGI) is usually a tax-smart idea. Here are ten ways to reduce your AGI (and modified AGI) over the short and long run. Closeup on AGI AGI equals all taxable income items minus selected deductions for such items as deductible IRA and retirement plan contributions and alimony payments required… Continue reading
Bonus Depreciation for Your Business: Let’s Review Your Options
First-year bonus depreciation has been around for a while now. However, the Tax Cuts and Jobs Act (TCJA) set forth more-generous, but temporary, rules for 2018 through 2026. Recent IRS guidance gives you additional flexibility to fine-tune the bonus depreciation break to suit your specific business and personal tax circumstances. Here’s what you need to… Continue reading
