Few words make people more nervous during tax season than the word audit. It’s easy to imagine the IRS combing through every detail of your finances, looking for something wrong. In reality, audits aren’t as common as most people think. Most tax returns are processed automatically, and only a small percentage is selected for review.
6 Things That Can Raise IRS Audit Risk (and How to Avoid Them) Read More »
When congress passed the Tax Cuts and Jobs Act (TCJA) in December 2017, it redefined how Americans paid taxes. It lowered tax rates, expanded deductions and rewrote decades of policy. But many of those provisions were set to expire at the end of 2025.
Now, a new law has entered the scene: the One Big Beautiful Bill Act (OBBBA). Positioned as both a continuation and a correction, it redefines what the post-TCJA tax world looks like.
From TCJA to the Big Beautiful Bill: What’s Changing for Taxpayers Read More »
As August ushers in back-to-school season, many families may be thinking about new supplies, scheduled and send-offs. But beyond the backpacks and last-minute bookstore runs, this season also provides an opportunity to invest in your student’s future… and save on taxes while you’re at it.
Back-to-School with a Purpose: Smart Tax Moves for Supporting Students Read More »
Sales tax is a consumption-based tax imposed on the sale of goods and certain services. In most cases, the seller collects the tax at the point of sale, and the buyer bears the cost. The collected tax is then remitted to the appropriate state or local tax authority, typically on a monthly or quarterly basis.
What Is Sales Tax? (And How It Works in Florida) Read More »
Tax season can feel overwhelming, but taking the proactive step of filing your taxes early can provide significant advantages (and help you avoid going through the 5 stages of grief over your tax filing). From quicker refunds to reduced stress, early filing helps you stay ahead of deadlines while avoiding many common tax-related headaches. Here’s a closer look at the benefits and effective strategies for filing your taxes early.
File Now, Breathe Later: Why Early Tax Filing is a Smart Move Read More »
Tax loss harvesting is a tax-saving strategy that involves selling investments at a loss to offset capital gains and, in some cases, taxable income. This practice can help investors lower their overall tax burden while maintaining their desired asset allocation.
Understanding Tax Loss Harvesting and Wash Sale Rules Read More »
Unlike traditional employees whose taxes are automatically deducted from their paychecks, business owners and freelancers often need to manage their own tax payments. Making quarterly tax payments are one effective way to handle this, with the added benefits of avoiding potential penalties and managing cash flow. A primary benefit of paying quarterly estimated taxes is
The Benefits of Paying Quarterly Taxes: Avoiding Penalties and Managing Cash Flow Read More »
Whether you’re consolidating debt, funding a major purchase or handling an emergency, personal loans can be a great tool for managing expenses. However, they do come with their own set of tax implications that borrowers should understand to avoid surprises come tax season. Personal loans are not considered taxable income. Borrowers are not subject to
Understanding the Tax Implications of Personal Loans Read More »
Selling a rental home involves different tax rules from selling a primary residence and can have substantial tax implications. Here’s a comprehensive guide to help you understand the tax aspects of selling your rental property. Capital Gains Tax When you sell a rental home, any gain from the sale is generally subject to capital gains
Tax Considerations When Selling a Rental Home Read More »
As the calendar resets and a new year is upon us, it’s time to gear up for the upcoming tax season. This period brings proactive planning, organization and informed decision making to navigate tax obligations efficiently. The IRS will begin accepting electronically filed returns mid-January and the deadline to file will follow on April 15th.
Embrace a Fresh Start: Welcome to the New Tax Season! Read More »
W-2 employment represents the traditional employment model in today’s diverse labor market, defining the conventional employer-employee relationship. W-2 employees are individuals who are formally employed by a company or organization, and whose income tax is withheld by their employer. The employer has specific legal and financial obligations towards the employee. Employers file form W-2 with
Understanding W-2 Employment Read More »
If you receive a letter from the IRS, it’s more than likely regarding your federal tax return.
Your notice will explain the reason for receiving it as well as necessary actions to take. You could have a balance due, or the IRS determined you are due a larger or smaller refund than anticipated. They may also need additional information, have questions or are making a change to your return. The IRS may also need to verify your identity.
What to do when you receive a letter from the IRS Read More »
Overview If you want to evaluate your business, there are three core financial statements you can use. A Profit and Loss Statement will outline changes in accounts over a set period, while a Balance Sheet shows a company’s assets and liabilities at a specific point in time. Cash flow statements highlight cash management and shows
Financial Statements to Evaluate Your Business Read More »
What is tax identity theft? Tax identity theft occurs when an identity thief files a fraudulent return using a stolen taxpayer’s social security number to claim the victims tax refund. The thief would use the victims personal and consumer information to file the forged tax return, usually early in the filing season before the victim
What to do in the event of tax identity theft? Read More »
Married taxpayers, who were married on the last day of the tax year, have two filing status options when it’s time to file their annual tax return. The best choice varies depending on each couple’s individual needs.
Married filing jointly offers lower tax rates, but filing separately may be more beneficial depending on the couple’s individual situations.
So, which filing status is best for you?
Married Filing Jointly vs Separately Read More »
If you have foreign bank accounts in other countries as a US citizen, you may be wondering what this means when it comes to filing your taxes. Per the Bank Secrecy Act (BSA), foreign financial accounts must be reported to the department of treasury every year. This act gives the treasury department authority to collect
There’s been an update to the original SECURE Act passed in 2019. The original SECURE Act governed how to contribute and withdraw from your IRAs and employer-sponsored retirement accounts.
The SECURE Act 2.0 passed at the end of 2022 and created many changes, especially those that affect employer-sponsored 401K accounts.
Of utmost importance are the requirements for new plans that…
Secure Act 2.0 and 401K Enrollment Read More »
Have you ever wondered what your tax return goes through after you file your taxes? Maybe you picture this efficient system where everything is automated, streamlined, and ready for processing immediately. Unfortunately, that’s not it. Instead, what you should picture is piles of papers stacked wall-to-wall, in stacks taller than most adults piled in every
An Inside Look at the IRS (Spoiler Alert: It’s not as Glamorous as you may Think) Read More »
Tax time is almost upon us again, meaning it’s time to look at your finances and see where you can intentionally spend money before the year ends to lower your taxes come April 15th.
It might sound crazy to spend money to lower your taxes, but it’s a great strategy for business owners. Here are five simple ways you can reduce your tax liability this year.
5 Easy Tax Deductions to Lower Your Tax Liability Before the End of the Year Read More »
We’re almost in the season of giving, so we wanted to focus on charitable distributions. Keep reading for what you must know. If you have retirement accounts from which you want to make charitable distributions, you may benefit from the direct income reduction and the standard deduction everyone is eligible to receive. How to Make
Charitable Distributions – What you Must Know Read More »
Your home is your pride and joy, and you earn capital gains when it appreciates. This is why many people buy a home versus renting. When you sell your home, the IRS wants its share of the profits earned. But, if the home is your primary residence, meaning you lived there full-time, you may be able to exclude some of your earnings from your taxable income using the primary residence gain exclusion.
Primary Residence Gain Exclusion Read More »
You have to pay taxes – it’s the law, but that doesn’t mean there aren’t ways to minimize your liability and maximize your refund. Knowing what deductions and credits you’re eligible for can decrease your tax liabilities. These three credits can help you get more money back at tax time, keeping more of your hard-earned
3 Credits to Maximize your Tax Refund Read More »
Cryptocurrencies have been increasing in popularity, and we are seeing more and more questions about how they are taxed. In this blog post, we will take a brief look at the current state of cryptocurrency taxation in the United States. We will answer some common questions about how taxes work for digital currency transactions and provide some tips on how to stay compliant with the tax law.
How is Cryptocurrency Taxed in the United States? Read More »
If you use a part of your home exclusively as your home office, you might be able to write off the expenses on your tax returns up to $10,000 if you don’t show a loss. You don’t have to live in a specific type of home and the deduction applies to both homeowners and renters.
The Tax Cuts and Jobs Act made it a lot easier for self-employed taxpayers to deduct their home office expenses. It doesn’t cause the red flag most people assumed, and it typically doesn’t cause more issues when you sell the home.
Here’s what you must know about deducting your home office expenses.
How to Deduct Your Home Office as a Tax Expense Read More »
If you’re self-employed, you can take a tax deduction for miles driven either as a standard deduction or based on your actual costs. The mileage rate is set each year by the IRS. The standard mileage deduction was $0.56 per mile in 2021, but has jumped up to $0.585 per mile in 2022. However, who
How to Deduct Mileage on your Taxes Read More »
If you work for a company that pays you ‘under the table’ in cash, you may wonder if you have to pay taxes, and if so, how? First things first – you must pay taxes on any income you earn. No matter how much money you earn, if it’s not from an employer, the IRS
Do I Need to File Taxes if I Get Paid Cash? Read More »
Part of the American Rescue Plan Act (ARPA) that was passed in March allowed for an increased child tax credit for certain taxpayers and the choice to receive 50% of the child tax credit as a monthly payment starting in July 2021 and ending in December 2021. Since then, we have received the same question
Should you Opt Out of the Advanced Child Tax Credit? Read More »
Is your tax return secure? An IP PIN may help Starting in 2011, the IRS began offering taxpayers a way to protect their tax return from fraudulent electronic filing by issuing taxpayers an Identity Protection Personal Identification Number (IP PIN). The IP PIN is a six-digit number required to be included on a tax return
Avoid Scams, Get an IP PIN Read More »
PPP Loan and Taxes The CARES Act was passed on March 27, 2020 and introduced the Paycheck Protection Program. It allowed small businesses to receive a loan and use it over the following 8 weeks to pay approved expenses. If the loan was used for approved expenses, it would be forgiven, and the borrower would
PPP Loan Tax Implications Read More »
