New mileage rates announced by the IRS Tip Category: What's New Mileage rates for travel are now set for 2025. The standard business mileage rate increases by 3 cents to 70.0 cents per mile. The medical and moving mileage rates stay at 21 cents per mile. Charitable mileage rates remain unchanged at 14 cents per mile. …
Author: Velisa Bookkeeping Services LLC
Reminder: Fourth Quarter Estimated Taxes Now Due
Now is the time to make your estimated tax payment Tip Category: Miscellaneous If you have not already done so, now is the time to review your tax situation and make an estimated quarterly tax payment using Form 1040-ES. The 4th quarter due date for the 2024 tax year is now here. Due date: Wednesday, January …
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Tax Season is Scam Season
PLUS: Small Business Judicial ALERT Update Tip Category: Miscellaneous As a reminder, tax season is also tax scam season for savvy criminals. As you prepare to file your tax return, here are some things to know to reduce your risk of having your valuable personal information stolen. These tips are provided by the IRS and other …
Leveraging Kiddie Tax Rules
PLUS: Small Business Judicial ALERT Tip Category: Planning The beginning of each year is a great time to start next year's tax planning. One area to help reduce your tax obligation, that benefits from an early in the year start, is leveraging your kids to the fullest using the kiddie tax rules. Background The term kiddie …
Maximize the Child & Dependent Care Credit
Tip Category: Deductions The Child & Dependent Care Credit provides a reduction in taxes to offset the cost of daycare when you are employed. The maximum amount of the credit is $3,000 for one dependent or $6,000 for two or more qualifying persons.* To take advantage of the credit here is what you need to know. …
Gone Phishing?
Tip Category: Miscellaneous Each year the IRS publishes the top dozen tax scams it encounters over the prior year. One of them that makes an all too common appearance on their list is the phishing scam. Here is what you need to know. Phishing requires bait Phishing is the act of creating a fake e-mail or …
Plan Your 2025 Retirement Contributions
As part of your planning for next year, now is the time to review funding your retirement accounts in 2025. Recent cost of living calculations means much higher contribution limits for next year. Plus the higher income phaseouts for eligibility will make many more taxpayers eligible for fully-deductible contributions. So plan now to take full …
Tax Shifting Ideas to Reduce Your Bill to Uncle Sam
Is there a taxable income reduction idea you can use? Tip Category: Planning Many tax experts talk about shifting your tax burden from one year to the next. While in theory it may make sense, how can you make it work for you in practice? The concept Since the tax code is complex in its …
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Avoid Name Mismatch Audits
Tip Category: The Audit If you were married, divorced, or changed your name for any reason during the past year, do not forget to file to change your name prior to preparing next year's tax return. The IRS automatically conducts a name match on the first few letters of your last name. The problem If …
Taxable or Not Taxable?
Some of these items may surprise you. Tip Category: Your Income There are a number of areas in the tax code that cause confusion as to the taxability of money received. Here are some of the most common areas of confusion. Unemployment compensation. Unemployment compensation is typically required to be reported as taxable income. So you …
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