Tax Form 1040 Evolution: Everything You Need to Know for Tax Planning in 2024
Since 1913, Americans have used Form 1040 to file taxes. Even with the option to file online, the form remains crucial. The 16th Amendment made income tax collection possible, solidifying the use of IRS Form 1040. There are different versions of Form 1040 for U.S. citizens. The main two are the standard 1040 and the […]
Tax Planning 2024: When, How and Where To Start Filing Your Taxes
If you file your taxes annually and your tax year concludes on December 31, mark April 15 on your calendar – that’s when your federal individual income tax return is typically due. Now, if you follow a fiscal year ending on a month other than December, file by the 15th day of the fourth month […]
Gambling Winnings and Tax Strategies: Smart Planning for Unexpected Fortunes
Listen up, all you gambling enthusiasts! Before you hit the casino tables or buy that lottery ticket, there’s something you need to know: your gambling winnings are not entirely yours to keep. Uncle Sam wants his cut. The Internal Revenue Service (IRS) has its eye on your winnings from casinos, lotteries, horse races, off-track betting, […]
Year-End Tax Planning: Section 199A Deduction
Section 199A of the Tax Cuts and Jobs Act (TCJA) lets you deduct up to 20% of your qualified business income (QBI) on your income taxes. Your deduction hinges on factors like your business structure and income level. To maximize this benefit, grasp how Section 199A tax deductions function and take year-end tax planning steps […]
Variance in Accounting and Tax: Hobby Earnings vs. Business Earnings
In today’s world, many people have a side gig, in addition to their regular job. It could be teaching fitness classes or selling skincare products, often stemming from their hobbies. Understanding whether your activity is considered a business for tax purposes is crucial. For instance, if you’re just starting your business and, like most new […]
Family Loans: What’s the IRS’s Take on Lending Money to Your Kids?
Are you a parent who loans money to your kids for things like a bike, their first car, or even a home? Wondering if the IRS cares about it? Good news: Small loans to your children don’t bother the IRS. But if it’s a significant amount, charging some interest can help you avoid gift tax […]
The No-Go Zone: A Roadmap for Non-Tax Deductible Business Expenses
A tax deduction, also known as a “tax write-off,” is like a magic trick that can make your tax bill smaller. This trick works by subtracting certain expenses from the money you earn, which means you pay less in taxes. Today, we’re talking about deductible business expenses, the ones that help your business pay less […]
Get Your Business Back on Track: Dealing with IRS Back Taxes
Many people delay filing and paying their taxes for various reasons. It could be uncertainty about owing taxes, messy bookkeeping, or simply a fear of the process. These unpaid taxes are known as “back taxes,” and they can cause significant problems. If you owe back taxes, the IRS can: Owing the IRS back taxes is […]
NIL Contributions: Are They Eligible for Tax Deductions?
Recently, one of our clients, a business owner, approached us. His daughter, a talented volleyball player, earned a full athletic scholarship for college, but it didn’t kick in until her sophomore year. This got us wondering: Are there any special tax rules that might let our client’s business cover his daughter’s freshman year tuition as […]
2023 Tax Season: What’s Different Due to Inflation?
Inflation is something we all deal with, but the IRS is here to help by making adjustments every year. They’ve made some important changes for 2023. This year, the standard deduction has gone up, and you can now contribute more to your retirement accounts. The IRS also tweaked the federal income tax brackets and capital […]