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tax deductions for the money you invest Growing tax-deferred money within the plan Holding off taxes until funds are withdrawn (hopefully, once you are in a lower […]
What If You Didn’t Issue Form 1099s to Your Contractors?
The Good News No provision in the tax law denies you a deduction for labor expenses simply because you didn’t file the required Form 1099s. The Bad News The IRS states that the non-filing of required Form 1099s can cast doubt on the legitimacy of the deduction claimed. Failure to file can also come with […]
Employees Working and Living in Separate States?
Now is the time to prepare for how COVID-19 could impact your state tax payments come tax-return time. The tax nexus is based on where employees physically perform services (though other factors may apply). Some smaller companies may not want to — or simply cannot afford to — pay for a full nexus study to […]
IRS Claims People First
The Internal Revenue Service’s (IRS) new initiative, “People First,” includes new measures in dealing with the fallout of the coronavirus public health emergency. Here are the latest updates on how the IRS is giving taxpayers some breathing room. Installment Agreements: Payments due on existing installment agreements are suspended from April 1 to July 15, 2020. But, […]
Do Your Kids Have Unearned Income?
You’ll Get a Little Less of a Soaking in 2020! Changes to the tax code mean that your little squirts no longer “take a bath” at tax time! “Kiddie tax” has long been in place to restrict parents from re-arranging their income to take advantage of the lower tax rates of their children. Prior to […]
Jeopardy! Winnings and Uncle Sam
What is: The IRS Question: Who Else Profits from This Week’s Big Jeopardy! Championship? The three biggest winners in Jeopardy! history return this week for a championship showdown to decide–once and for all–who is the greatest of all time. Ken Jennings, Brad Rutter, and James Holzhauer will compete in a series of one-hour, stand-alone matches. […]
To Tax or Not to Tax
Which strategy is better? Paying your $50 doctor’s visit deductible with before-tax or after-tax dollars? If you said “before tax,” check if your employer offers an HSA (Health Savings Account) program. HSA’s are the tax-friendly way to pay your medical bills because dollars are deducted directly from your paycheck before taxes are calculated. Contributions made […]
