Will Your Planned Retirement Income Be Enough after Taxes?
Article Highlights: States With No Income Tax Social Security Benefits Roth IRA Retirement Account Traditional IRA Retirement Account Spousal IRA Back-Door Roth IRA Saver’s Credit Employer Pensions Employee Funded Retirement Plans Health Savings Accounts Brokerage Accounts Municipal Bonds Investments Home Equity & Gain Exclusion Reverse Mortgage Whole Life Insurance Cash Value That is an…Read More
Forms W-2 and 1099-NEC: Deadlines, Extensions, and Penalties
Businesses that hire employees and non-employee contract workers must give them end-of-year tax information, with W-2 forms going to employees and 1099-NEC forms to non-employees. This information also must be filed with the appropriate federal agencies. This article gives you information on the deadlines for these forms, what to do if you need an extension,…Read More
What Is IRS Form 1096?
IRS Form 1096 is a summary and transmittal tax form that gives the IRS information on the Forms 1097, 1098, 1099, 3921, 3922, 5498, or W-2G your company sent out to other recipients. Your business needs to use it only when you submit those forms to the IRS in a paper format. When and How…Read More
Inheritances Enjoy a Special Tax Benefit
Article Highlights: Stepped-Up Basis Inherited Basis Inheritance Basis Example Step Down Basis Long-Term Capital Gains Tax Rates Jointly Owned Property Gifting Prior to Death You may hear people use the term “Stepped-Up Basis” that many believe is a tax provision that allows beneficiaries of an inheritance to reduce or even avoid taxes when and if…Read More
Student Loan Debt: Paying and Avoiding It, Plus Tax Benefits
Article Highlights: Tax Advantaged Repayment of Student Loans Employer Provided Educational Assistance Qualified Tuition Programs The Deductibility of Student Loan Interest Student Loans Forgiven in 2021 through 2025 Avoiding Student Loan Debt Section 529 Plans Coverdell Education Savings Account Education Tax Credits The American Opportunity Credit The Lifetime Learning Credit Despite recent rounds of forgiveness…Read More
Tax Benefits for Child Daycare Providers and Users
Article Highlights: Daycare Providers Simplified Food Deduction Special Rules for Business Use of the Provider’s Home Home Sale Consequences Other Expenses Other Daycare Provider Issues Daycare User Credit Employer Dependent Care Benefits Other Credit Criteria Special tax benefits are available for those providing daycare services for children and the parents who pay for those services.…Read More
Does Your Business Need to File Forms 1099-NEC or 1099-MISC?
Article Highlights: 1099-NEC Filing Requirements Independent Contractor Filing Threshold Form W-9 Form 1099-MISC If you use independent contractors to perform services for your business, for each one that you pay $600 or more for the year, you are required to issue the worker and the IRS a Form 1099-NEC no later than January 31, 2022,…Read More
New Payroll Tax in Washington State (earn over $300,000 a year?)
Do you work at Amazon, Microsoft, Facebook, F5 Networks, or any of the other large tech employers in Washington State? Do you earn over $300,000 a year? If so, read this! Washington State passed a new tax on employees to fund the first public-operated, long-term care (LTC) insurance program. Effective January 1, 2022, Washingtonians who…Read More
What Types of Deductions Qualify for Itemized Bunching?
Bunching can work with any expense that you can itemize, but you need to be able to control when you incur these expenses. That typically leads people to bunch expenses in three key areas: Property taxes. If your municipality allows it, wait until January to pay the previous year’s property tax bill. Then, pay the current year in December. Because you…Read More
Maximizing Tax Benefits by “Bunching” Charitable Contributions
The Tax Cuts and Jobs Act (TCJA) became law in December 2017. Most of the law’s changes were implemented in 2018 and are scheduled to sunset after 2025. Under the TCJA, the standard deduction nearly doubled in size. Now, for 2022 taxes, single filers may claim a $12,950 standard deduction, while married couples filing jointly…Read More