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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
The side effects of COVID-19 go far beyond the physical health of those exposed. The economic impact is widespread and far-reaching, and the government has been constantly struggling to find ways to relieve some of the economic downturn brought on by this pandemic. The most recent of these efforts is the Coronavirus Aid, Relief, and Economic Security, or CARES Act. It’s the largest economic stimulus legislation since the New Deal that was passed in the 1930s, and includes $2 trillion of federal funding. Here are some of the major highlights of this act that may be impacting you.
At the end of 2019, the federal government signed the Setting Every Community Up for Retirement Enhancement, or SECURE, Act into law. At the beginning of this year, the SECURE Act officially went into effect, and it changes many things about the way Americans plan and prepare for retirement. If you’re not yet familiar with the SECURE Act, it’s important to understand how the changes it implements will impact your retirement plans—particularly if you’re close to retirement age. If you have any questions regarding your retirement planning, please feel free to reach out to us. In the meantime, this article should give you an overview of the biggest changes the SECURE Act has introduced.
From selling handmade goods online to freelance consulting or running your own registered business, there are many ways in which a person can be self-employed. In fact, having a “side hustle,” as it’s often called, is quite common these days, which makes it that much more important for taxpayers to understand how their self-employed income is taxed. This article will give you a brief introduction to self-employment taxes, what they are, why you pay them, and how you pay them. If you need assistance filing your tax return, contact our accounting firm today.
Many people who have never utilized a professional tax preparer or CPA seem to think that you absolutely must find a local tax professional to work with them. And while there are many benefits to having your tax preparer be someone you can meet with face to face, Demian & Company provides the same personalized, expert tax and accounting services to businesses and individuals to customers across the country as we do to those who live in our own backyard. Keep reading to learn more about our service areas and how we can provide this level of service no matter where you are.
If you haven’t yet heard, the IRS is now performing in-person visits with certain individuals. This new tactic, announced by the IRS in an information release, has many people wondering if they should expect a revenue officer to come knocking at their door. The good news is that this new tactic is focused primarily on high-income individuals with unfiled returns prior to 2018, so the scope is rather narrow. If you fall into this window, however, here’s what you need to know.
On March 17, the IRS announced that it would be deferring tax debt payments for all Americans by 90 days due to the COVID-19 pandemic. This announcement comes in the wake of new government guidelines recommending the shutdown of many businesses, the closure of schools, and extreme social isolation for all citizens. The hope is that this deferral will not only offer some much-needed financial relief to impacted Americans, but that it will also assist in flattening the curve and slowing the spread of the virus. Here’s what you need to know about this deferral, its limitations, and its impact.
Starting a new business is a thrilling venture, especially if it’s your first business. You may be so excited about the prospect that you’re ready to dive in and start marketing your company. But there are so many other things that go into establishing a business than the products or services you provide and marketing them to potential customers. There are a lot of things that go on behind the scenes of a business, and those little details will take up a big portion of your time as a business owner. One of those behind-the-scenes details you’ll need to focus on is your company’s taxes. If you’re new to business ownership, here are some tax-related tips that you should keep in mind.