Providing Essential Accounting Services in East Brunswick, NJ, after a Difficult Year

It’s now been over a year since businesses began to lock down and individuals began to isolate in response to the COVID-19 pandemic. And though things are slowly inching back towards normal, the effects of 2020 will likely be felt for a long time. Right now, as the tax deadline approaches, many people are uncertain about many aspects of handling their 2020 returns. Demian & Company, CPAs, is here to help our clients in East Brunswick, NJ, and surrounding areas to find reassurance and certainty in their taxes and accounting.

Apr 01, 2021
Energy Efficiency Deductions: What Qualifies and How Much?

Many homeowners have made the effort to “go green” in recent years, with residential solar power quickly growing in popularity and more energy-efficient home systems becoming available. While the upfront cost of these upgrades can be quite steep, most find that the energy cost savings and the tax deductions for them help to balance out the investment. Recent changes to tax law have decreased the amount that you can deduct for these upgrades, however, and the deduction will continue to decrease until it’s no longer available. But how much can you deduct right now, and what kinds of upgrades qualify? Keep reading to find out.

Mar 15, 2021
Why You Should Consult Your CPA when Considering a Legal Settlement

When you’re in the middle of negotiations for a legal settlement, you’re probably focused on consulting with your attorney. But have you taken the time to consult with a CPA about it yet? Many people are unaware that they should speak with an accountant before reaching a final agreement on their legal case, but doing so can drastically change your perception of what a fair settlement amount would be. At the very least, it will help you to get a better picture of how much you’ll actually receive in your account when all is said and done. Keep reading to learn why you need to speak to your CPA regarding your legal settlement.

Mar 01, 2021
Important Information about the Second Round of PPP

The long-awaited second round of COVID relief was rolled out with the New Year, including an expansion and extension of the Paycheck Protection Program. Many businesses can be eligible for additional funding from the government, which may help your company make it through what are hopefully the final months of the COVID-19 crisis. According to a survey of business owners conducted by Alignable, 85% of businesses feel they need this additional financial relief to keep their companies running. If you’re one of them, here’s what you need to know about this second round of PPP loans.

Feb 15, 2021
Updating Your Address with the IRS: How to Do It and Why It Matters

When you move, it seems there are countless entities that need your new address—credit card companies, magazine subscriptions, fitness memberships, etc.—and odds are high that you’re going to forget to change your address with a couple of them. But what about updating your address with the IRS? Most people don’t have this at the forefront of their mind when making a list of entities to which they must submit a change of address. In some cases, however, failing to update your address with the IRS can have major consequences. Keep reading to learn more.

Feb 01, 2021
The Newest Tax Scams for the 2021 Tax Season

Tax scams strike every tax season, and they are constantly evolving and changing. While most people intuitively recognize most forms of tax scams, it’s still important to be aware of how these thieves are changing their tactics so that you can avoid becoming a victim. Here are some of the newest tax scams that we’re seeing for the 2021 tax season. Make sure you know how to recognize them if they come your way.

Jan 15, 2021
Reconciling Your COVID Stimulus Payment on Your Tax Return

The COVID stimulus payment provided earlier this year brought financial relief to many who were struggling near the beginning of the pandemic. But it also brought some confusion to taxpayers about how this stimulus check would be handled when it was time to file taxes.

Jan 01, 2021
Do You Qualify for a Home Office Deduction?

For business owners, contractors, and self-employed individuals, the possibility of a home office deduction can be quite appealing. However, taking that deduction can be quite a bit more complicated than you might imagine. This deduction is one of the most commonly abused deductions on tax returns, and therefore, is one of the most commonly audited.

Dec 15, 2020
How Your PPP Loan May Impact Your Business Deductions

When COVID-19 began to spread across the United States, many businesses were forced to close down or to greatly limit the way they provide goods and services. For business owners, the government’s Paycheck Protection Program may have been the only thing that stood between them and losing their business for good.

Dec 01, 2020
Factoring Your Stocks into Your Tax Planning

With 2020 nearing its end, now is the time to begin planning for the 2021 tax season. Everyone can benefit from proper tax planning, which enables you to look ahead and make last-minute financial decisions that can minimize your taxes. For those with stock portfolios, this tax planning is especially important. Here are some important things to consider in regards to your stocks and how they’ll impact your tax planning.

Nov 15, 2020
Determining State of Residence and How It Affects Your Income Tax

Your state of residence is quite easy to determine, isn’t it? It’s the state you live in, the state where your house is located. But what if you have more than one property, and they’re located in different states? In these cases, determining your legal state of residence (or legal domicile) is more complicated than you might think, and it’s not solely based on the amount of time you spend in each location. Keep reading to learn how you can determine your legal state of residence, and how that determination will impact your income taxes.

Nov 01, 2020
Why You Should Consider Registering Your Business as an S Corp

There are numerous designations for businesses. The right one for your company will depend on many factors, including your size, the number of owners, and more. However, if the option is available to you, you may want to consider filing to register your business as an S corporation. Doing so can provide you with numerous tax benefits. Keep reading to learn more about what an S corp is, what the benefits of becoming one are, and whether or not it may be right for you.

Oct 15, 2020
Do You Pay Taxes on Unemployment Benefits?

With unemployment claims on the rise, many Americans have found themselves receiving their very first unemployment checks. Having never received this kind of income before, you may find yourself uncertain about how taxes on this income are handled. Is this income taxed? And if so, how are you expected to pay those taxes? It’s important that you understand what your tax obligations are in regards to your unemployment benefits. Keep reading to learn more about this.

Oct 01, 2020
The Benefits of Using Tax Projections and Tax Planning Services

Tax season is still a few months away. But if you’re not thinking about and planning for it already, you could be missing out on some extremely important benefits. In fact, simply filing your return without proper tax planning and tax projections could result in you paying thousands more in taxes in some cases. That’s why we do far more for our clients than simply preparing their tax returns; we can provide you with tax projections and help you to plan for the upcoming tax season, so that you can make important financial decisions that could reduce your tax liability. Here are just a few ways that our tax projections and tax planning services can help you.

Sep 21, 2020
Different Types of Retirement Plans and Their Tax Benefits

Contributing to retirement accounts is one of the smartest investments you can make with your money, as it helps to secure your financial future—and, as an added bonus, many of these contributions offer tax benefits. If you have more than one type of retirement account, and you don’t have the funds to max out all of them, you may be wondering which account you should focus on to get the greatest tax benefit. Keep reading to learn more about the different types of accounts, how taxation on contributions work, and how to determine the best account to put your money in first.

Sep 02, 2020
What Qualifies as a Tax-Deductible Charitable Contribution?

Charitable contributions can be an excellent way to reduce your tax liability, but it’s important that you ensure the contributions you’re making are actually tax deductible. Many people believe that contributions to any charitable cause can be deducted on their tax returns, but this is not the case. Even if you’re giving to a good cause, it doesn’t many it’s a tax-deductible contribution. Keep reading to learn more about what types of contributions usually do or don’t qualify. If you’re unsure if the contributions you’re making will be deductible on this year’s tax return, please reach out to one of our CPAs.

Aug 21, 2020
How Is Social Security Income Taxed?

If you’ve begun collecting Social Security income, you might be uncertain about how that income will be taxed, if at all. Many people are under the impression that Social Security income is never taxed, but this isn’t true; tax rates on that income will vary depending on your total combined income. And, because Social Security distributions are not taxed upfront, many retirees find themselves surprised by the amount they owe when it comes time to file. Here’s what you need to know about Social Security income tax, so that you’re not blindsided when you file your return.

Aug 07, 2020
Tips for Protecting Your Identity When Filing Your Taxes

Though the deadline for filing taxes this year changed dramatically, one thing about the process hasn’t changed at all: Tax season is a prime opportunity for scammers and identity thieves to steal your information. A great deal of sensitive data is necessary to file your taxes, from your financial data to your personal identifying information, like your Social Security number. So, how can you protect your identity while filing your taxes? Keep reading for some tips.

Jul 13, 2020
What You Should Know about This Year's New Tax Deadline

At the peak of the COVID-19 pandemic, taxes were probably the very last thing on your mind. Many Americans were trying to adapt to working from home, or were losing their jobs altogether. Small-business owners were fighting to keep their business operational even as they had to close their doors, and citizens across the country were struggling more than ever to make ends meet. In addition to providing stimulus checks to ease financial burdens, the federal government also elected to extend their tax deadline to July 15th this year. That date is right around the corner, so here’s what you need to know about this new tax deadline.

Jul 01, 2020
Will You Have to Repay Your COVID-19 Relief Check?

The stimulus checks sent out as part of the CARES Act were the biggest headliner that came out of the $2 trillion piece of legislation. Giving $1,200 to each adult, plus $500 for each dependent child, was a relief to many citizens who are suffering financially in the wake of the COVID-19 pandemic. But, due to certain wording in the way these checks were distributed, there has been a great deal of confusion over whether these checks really were a free check from the government, or if you’re expected to pay them back down the line. We hope we can answer all your questions in this regard here.

Jun 15, 2020