Before the COVID-19 pandemic hit, the number of people engaged in the ‘gig’ or sharing economy had been growing, according to several reports. And reductions in working hours during the pandemic have caused even more people to turn to gig work to make up lost...
Many businesses use independent contractors to help keep their costs down. If you are among them, make sure these workers are properly classified for federal tax purposes. If the IRS reclassifies them as employees, it can be a costly error. It can be complex to determine...
President Biden recently announced his $1.8 trillion American Families Plan (AFP), the third step in his Build Back Better policy initiative. The announcement followed the previous releases of the proposed $2.3 trillion American Jobs Plan and the Made in America Tax Plan. These plans propose...
‘Tax day’ is just around the corner. This year, the deadline for filing 2020 individual tax returns is Monday, May 17, 2021. The IRS postponed the usual April 15 due date again this year because of the COVID-19 pandemic. If you still are not ready...
Many businesses provide education fringe benefits so their employees can improve their skills and gain additional knowledge. An employee can receive, on a tax-free basis, up to $5,250 each year from his or her employer for educational assistance under a ‘qualified educational assistance program.’ For this...
The May 17 deadline for filing your 2020 individual tax return is approaching. It is important to file and pay your tax return on time to avoid penalties imposed by the IRS. Here are the basic rules. Failure to Pay Separate penalties apply for failing to pay...
Are you wondering whether alternative energy technologies can help you manage energy costs in your business? If so, there is a valuable federal income tax benefit (the business energy credit) that applies to the acquisition of many types of alternative energy property. The credit is intended...
In recent months, there have been a number of tax changes that may affect your individual tax bill. Many of these changes were enacted to help mitigate the financial damage caused by COVID-19. Here are two changes that may result in tax savings for you on...
Owners of incorporated businesses know there is a tax advantage to taking money out of a C corporation as compensation rather than as dividends. The reason: A corporation can deduct the salaries and bonuses that it pays executives but not dividend payments. Thus, if funds...
The housing market in many parts of the country is strong this spring. If you are buying or selling a home, you should know how to determine your ‘basis.’ How it Works You can claim an itemized deduction on your tax return for real estate taxes and...