If your small business is unincorporated, you may be fed up with paying the federal self-employment (SE) tax. This tax is how the federal government collects Social Security and Medicare taxes from self-employed individuals. However, you may be able to lower your exposure to these taxes if you structure your business as a subchapter S corporation for federal tax purposes. Here are the … [Read more...] about How Can Small Business Owners Reduce Social Security and Medicare Taxes?
Warm weather and rainy days bring the urge to purge. But before you clean your file cabinets or declutter your computer files, it's important to review these guidelines. Federal Tax Records It's a good idea to keep records that supportitems shown on your individual tax return until the statute of limitations runs out — generally, three years from the due date of the return or the … [Read more...] about Records Retention Guidelines to Remember During Spring Cleaning
Are you considering buying a new plug-in electric vehicle or a plug-in electric-gas hybrid vehicle? There is good and bad news about the tax credits and other cost-saving benefits available on these vehicles. The good news is that the Tax Cuts and Jobs Act didn't eliminate the federal income tax credit for purchasing plug-in electric vehicles. But the bad news is that credits for … [Read more...] about Electric Vehicle Tax Credit: You Can Still Save Greenbacks for Going Green
Tips on Lowering Your Taxes 1. Choose to Deduct State and Local Sales Taxes If you live in a jurisdiction with low or no personal income tax or you owe little or nothing to the state and local income tax collectors, you might consider deducting state sales taxes instead of state income taxes. However, this option only applies if you have enough itemized … [Read more...] about 5 Last-Minute Ideas to Lower Your 2018 Taxes
Itemize or Standard Deductions? Under the Tax Cuts and Jobs Act (TCJA), fewer people will be itemizing deductions — and more will be claiming the standard deduction — for the 2018 through 2025 tax years. Why? First, the TCJA almost doubled the standard deduction amounts: STANDARD DEDUCTIONS 2018 2019Single filers and married people whofile separately $12,000$12,200Heads of … [Read more...] about Itemizing vs. Taking the Standard Deduction
Tax filing season kicked off as scheduled on January 28. But tax returns for 2018 may require extra time to file and process due to confusion over the sweeping tax law changes under the Tax Cuts and Jobs Act (TCJA). Most the TCJA provisions that affect individuals are effective for 2018 through 2025, unless Congress extends them. In addition, people who prepare their own returns may … [Read more...] about Six Common Mistakes When Taxpayers Prepare Their Own Tax Returns
Small business owners have several options for their retirement plans. Two tax-smart and flexible alternatives are SIMPLE IRAs and solo 401(k) plans. If you're eligible for these types of plans and you want to maximize your tax-deferred savings, which makes more sense? Here's a series of side-by-side comparisons to help you decide.Eligibility Requirements SIMPLE IRASolo 401(k)SIMPLE IRAs … [Read more...] about SIMPLE IRA vs. Solo 401(k): Which Is Right for Your Small Business?
Health care is a top concern for many Americans, especially people who are age 65 and older. While these individuals qualify for basic Medicare insurance, they may need to pay additional premiums to get the level of coverage they desire. Those premiums can add up to a substantial annual sum, especially if you're married and both you and your spouse are paying them. But the silver lining is … [Read more...] about Could Medicare Premiums Lower Your Taxes?
Have you ever kept a New Year's resolution for the entire year? Every January, millions of Americans make promises to eat less, exercise more and save for the future. But most resolutions are forgotten by spring. However, there are ten promises that relate to your financial health that you can't afford to abandon. 1. Make a financial plan. Creating a financial plan forces you … [Read more...] about 10 New Year’s Resolutions to Improve Your Personal Financial Position
Private companies that follow U.S. Generally Accepted Accounting Principles (GAAP) must implement new revenue recognition rules in fiscal years that start after December 15, 2018. Are your accounting systems and personnel ready for this fundamental shift in financial reporting? The effects will likely be more far-reaching than expected, based on feedback from public companies that … [Read more...] about Revenue Recognition: New Rules Go Live for Private Companies