Prepare now for potential income tax hits As your children grow older, you can easily be surprised by a larger tax bill. To help plan for the tax impact of these changes, consider these tax implications as your dependent children age. A higher tax bill in your future At age 13: Loss of your Dependent …
Author: velisabookkeeping
2026 Health Savings Account Limits
Reminder to review your contributions Contribution limits for the ever-popular health savings account (HSA) are outlined here for 2026. Now is a great time to review your contribution levels and make adjustments as appropriate while there is still plenty of time left for 2026. HSA defined An HSA is a tax-advantaged savings account whose funds …
Hidden Back to School Tax Deductions
Plus NEW mileage rates! Summer is coming to a close next month and the back-to-school advertising blitz is underway. Hidden in some of those school expenses are tax deductions you can take advantage of. Here are some ways you can save: Watch for tax deductions on the supply list. Schools often send a list of requested …
Great Charitable Deduction Ideas
Even though the higher standard deduction limits make charitable deductions harder to find, there are still great options to find tax breaks within your charitable giving. Here are five tips to use charitable tax breaks: Qualified charitable distributions. If you’re age 70½ or older, you can transfer up to $100,000 (or a total of $200,000 for …
A Gift of Stock
Information is key when using this tax planning strategy You own some stock that has increased in value. To avoid a possible taxable gain by selling the stock, you wish to give it directly to a child or grandchild. This simple idea has some interesting tax consequences to consider. Value of the gift When you …
To Amend or Not Amend?
Is it always a good idea to amend your tax return if you find an error? Here's a tip that is worth reviewing each year as adjustments to your income tax return may become apparent. This is often common with the advent of changing tax rules and as the IRS finalizes rules on recently passed …
SMALL BUSINESS ALERT: New Federal Reporting Required
Especially important for new business startups Tip Category: What's New New Beginning in 2024, many small businesses will have to report information about their owners to the Financial Crimes Enforcement Network (commonly referred to as FinCEN), a bureau of the U.S. Department of the Treasury that collects and analyzes information to help fight financial crimes. Here …
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Deduct Business Meals the Right Way
Did you know that business meals are deductible but business entertainment isn't? Make sure you keep a detailed expense log distinguishing the two. Tip Category: Miscellaneous Suppose you take your best client out to dinner to celebrate your business relationship. If you own a business, are self-employed or run a side business, can you deduct …
Toss This. Not That. –
Your guide to post tax-filing record retention The ensure you're ready for an audit, tax returns should be kept indefinitely and supporting documents should be kept a minimum of three years. Before you close this year's tax file there is still some work to do. If the IRS or state revenue department selects your return …
Is a Tax Trap Lurking in Your Paycheck?
Does your paycheck look a little higher than normal? If so, it could be a tax trap. The Problem A payroll tax deferral beginning September 1 was recently signed via a presidential executive order. This deferral of the employee's portion of Social Security will raise your paycheck temporarily until January, 2021. Beginning in 2021, the …
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