Save for College and Get a Tax Deduction
The State of New Jersey is now offering an attractive deduction for families saving for college. Taxpayers with a gross income of $200,000 or less may qualify for a state income tax deduction when they contribute to a Franklin Templeton 529 College Savings Plan. Deductions are permitted for up to $10,000 per taxpayer, per year, […]
All Work and No Play Helps Make Taxes Go Away
Let’s say you have a side-hustle that makes you a little money. Should you consider it a business if you claim tax losses on your 1040? The IRS would prefer that you think of a money-losing sideline activity as a hobby rather than a business. The tax rules for hobbies have been anti-taxpayer for years, […]
Extreme Expenses
Employers are going to extremes to retain their staff throughout the pandemic’s “Great Resignation.” Many have taken to approving some over-the-top expenses submitted by their teams while working from home over the past two years. Emburse, a spend-management software company, shared some of the craziest expenses that were approved by employers in 2021, according to […]
Self-Employment Tax
The Supreme Court ruled that to be in a trade or business, you need to be involved with continuity and regularity and that a sporadic activity does not qualify. For example, in Batok (T.C. Memo 1992-727), the court ruled that John Batok’s window installation job did not rise to a trade or business level. Mr. […]
What if the IRS owed you money?
Wouldn’t it be nice if the IRS owed you money at the end of the year? Well, that’s not likely, but with the right planning, you could keep more of your hard-earned money by paying less in taxes. We’ll be posting tips for you throughout the end of the year. Putting these strategies into action […]
The Show Must Go On!
Congress is Making an Effort to Save Performers Through Tax Breaks Bi-partisan legislation was recently introduced in the House to amend a provision in the Tax Cuts and Jobs Act of 2017 to help performing artists claim work-related expenses. The elimination of most deductions through the prior Act led to artists having fewer tax write-offs. […]
Pay it Down, Or Save it Up?
The question is asked of us all the time…should I focus on paying down my debt or saving up for my retirement? Both are important to your financial health, but it may not be an “either, or” scenario. The critical thing to do is to get started. Let’s take a look. Rate of Return vs. […]
The Times, They Are A-Changing
President Biden recently outlined the American Families Plan extends the tax breaks of the American Rescue Plan for lower- to middle-income taxpayers. If you are making over $400,000 a year, an increase in your taxes along with the closing of some of your loopholes will make this tax break possible. The Plan is not finalized yet, […]
Getting Paid Via PayPal? The Taxman’s Coming!
In the past, online sellers and companies accepting PayPal or other third-party settlement organizations (TPSO) for goods and services only received IRS Form 1099K when engaging in at least 200 annual transactions worth over $20,000. That will change beginning January 1, 2022, when the American Rescue Plan Act replaces the former ruling with a single […]
Multiply Your Net Worth with Your Retirement Plan
Believe it or not, the government can actually help you on this one! Your SEP IRA and solo 401(k) retirement plans, can enhance your net worth by: Creating tax deductions for the money you invest Growing tax-deferred money within the plan Holding off taxes until funds are withdrawn (hopefully, once you are in a lower […]
