A Tax Break For Educators Gets An Update
Teachers who are setting up their classrooms for a new school year often pay for some of their classroom supplies out-of-pocket. They can recoup some of that cost by taking advantage of a special tax break for educators. This deduction gained new importance after the 2017 passage of the Tax Cuts and Jobs Act (TCJA). […]
Using Alternative Energy For Business Can Bring Tax Benefits
If you’re a business owner, you might be wondering if using alternative energy technologies in your company can help you manage energy costs and improve your bottom line. If this sounds interesting, you should know there’s also a valuable federal income tax benefit that applies to the acquisition of many types of alternative energy property: […]
How Start-up Costs Of A New Business Affect Your Tax Return
Despite the COVID-19 pandemic, there has been a large increase in the number of new businesses being launched. The latest data available from the U.S. Census Bureau shows that, for the period of June 2020 through June 2021, business applications were up 18.6%. The Bureau measures this by the number of businesses applying for an […]
Deducting The Costs Of A Self-managed Portfolio
Do you have significant investment-related expenses, including payment for financial service subscriptions, home office maintenance and clerical support? Under the 2017 Tax Cuts and Jobs Act (TCJA), these expenses aren’t deductible if they’re considered investment expenses to produce income. But they are deductible if they’re considered trade or business expenses. Changing rules For years before […]
After Filing Your Taxes, What Records Can You Toss?
If you’ve filed your 2021 tax return, you may want to do some spring cleaning, starting with tax-related paper clutter. Paring down is good. Just be careful to hold on to essential records that may be needed in the event of an IRS audit. Some documents may be needed to help you collect a future […]
Hiring Your Minor Children For Summer Jobs
If you’re a business owner and you hire your children this summer, you can obtain tax breaks and other nontax benefits. The kids can gain on-the-job experience, save for college and learn how to manage money. And you may be able to: Plus, you can spend more time with your kids. A legitimate job If […]
Taking Casualty Loss Tax Deductions Is Now Harder
Unexpected disasters can happen anywhere, causing damage to your home and personal property. Before the Tax Cuts and Jobs Act (TCJA), eligible casualty loss victims could claim a deduction on their tax returns. But restrictions make it tougher to qualify for these deductions. What’s considered a casualty for tax purposes? It’s a sudden, unexpected or […]
Could You Be Hit With The Trust Fund Recovery Penalty?
There’s a harsh tax penalty that you could be personally responsible to pay if you own or manage a business with employees. It’s called the Trust Fund Recovery Penalty. It applies to the Social Security and income taxes required to be withheld by a business from the wages of its employees. Because taxes are considered […]
Hiring? You May Be Eligible For A Valuable Credit
If you’re a business owner who needs to hire, be aware that a law enacted at the end of 2020 extended through 2025 a tax credit for employers that hire individuals from one or more targeted groups. The Work Opportunity Tax Credit (WOTC) is generally worth $2,400 for each eligible employee but can be worth […]
Slim Your 2021 Tax Bill By Fattening Your IRA
If you didn’t get around to contributing to an IRA in 2021 and you’re looking for ways to lower your tax bill, you may still have an option. Qualified taxpayers can make deductible contributions to traditional IRAs until the tax filing date of April 18, 2022, and claim the benefit on their 2021 returns. Who […]