Tax Relief May be a Give-and-Take Situation
Across the country, our state legislatures are negotiating new tax cuts and rebates to allow taxpayers to keep more of their hard-earned dollars and offset the sharp rise in inflation. Sounds great, right? Well, slow down, there. This may be a give-and-take kind of deal. Some experts claim that providing more spending money to taxpayers […]
How to Change 1099 Contractors to W2 Employees
It’s the age-old tale of the 1099 and W2. You may have heard the long and gruesome story told by business owners who have been assessed thousands of dollars in back payroll taxes, interest, and penalties because they classified a worker as a contractor (1099) rather than an employee (W2). Could it happen to you? […]
The $600 Rule In Online Payments
Do you receive or send $600 or more in online payments? Get ready for some extra bookkeeping! A new law requires that e-commerce and digital payment platforms that transfer money from a buyer to a seller must now issue the recipient a Form 1099-K if they receive $600 or more in a calendar year. As […]
New Schedules K-2 and K-3 Impact Partnership Tax Filings
New Schedules K-2 and K-3 (Form 1065) have been created by the IRS to offer standardized reporting of U.S. international tax information. The new formats include specific parts and boxes for certain items of international transactions, including withholding details and sourcing details. They will be used by partnerships and large corporations to report a wide […]
Get Your Money Today – Stop Waiting for the IRS Refund Check
The past few years have been a rollercoaster ride when it comes to getting your tax refund check from the IRS. If I told you there was a way for you to get that money when you make it, each and every pay period, would you believe me? Well, there is and it’s a simple […]
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 […]
