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Categories for Tax and Financial News

  • What is Innocent Spouse Relief?

    Posted Date January 1, 2025 Posted Time 12:00 am Published in

    🖨 Print⏱ 4 min read The word “innocent” in innocent spouse relief can be misleading. It doesn’t imply you’re perfect or blameless – it’s more about whether you knew or should have known about the tax issue. The IRS defines “innocence” in a specific way, and it hinges on the concept of reasonable ignorance. In short, the issue isn’t one of morality; it’s about whether you could have reasonably been unaware of a tax problem. Innocent spouse relief allows you to avoid being held responsible for tax debts, penalties, and interest stemming from a joint tax filing. In the case... View Article

  • Tax Planning 2024

    Posted Date December 1, 2024 Posted Time 12:00 am Published in

    🖨 Print⏱ 4 min read Personal Income Tax Planning Strategies for Year-End 2024 As 2024 draws to a close, it’s the perfect time to review your personal income tax situation and implement strategies to minimize your tax liability for the year. Proactive year-end tax planning can lead to significant savings, as well as ensure that you take full advantage of tax credits, deductions and other opportunities available to you. 1. Maximize Contributions to Retirement Accounts One of the most effective ways to reduce your taxable income is by contributing to tax-advantaged retirement accounts. In 2024, you may contribute up to... View Article

  • 2025 Federal Income Tax Brackets

    Posted Date November 1, 2024 Posted Time 12:00 am Published in

    🖨 Print⏱ 2 min read According to estimates, inflation adjustments to the Internal Revenue Code are expected to yield increases of 2.8 percent compared to 2024 amounts. This means wider tax brackets and increased exemptions, among other things. With the U.S. Bureau of Labor Statistics consumer price index (CPI) moderating, this increase is about 50 percent less than 2024’s inflation adjustment. Below, we’ll look at what the projected 2025 inflation adjustment means in terms of dollars and cents for you and your taxes. Individual Income Tax Brackets The tables below illustrate the individual income tax rates and brackets for 2025.... View Article

  • The New Era of “No Tax” Policies: Selective Tax Exemptions and Their Side Effects

    Posted Date October 1, 2024 Posted Time 12:00 am Published in

    🖨 Print⏱ 4 min read Former President and current candidate Donald Trump introduced a new policy of his in a recent Arizona rally: No more income tax on overtime pay. This follows both Trump and Vice President Harris’ proposal for a no income tax on tips policy, as well. Below we will look at the two recent proposals and what they could mean for both taxpayers and businesses. No Tax on Tips The no tax on tips policy looks to lighten the tax burden on service industry workers. According to the Fair Labor and Standards Act, anyone who “customarily and... View Article

  • Important Update on New Company Reporting Laws CTA – BOI

    Posted Date September 1, 2024 Posted Time 12:00 am Published in

    🖨 Print⏱ 4 min read On Jan. 1, 2024, the U.S. government debuted the Corporate Transparency Act (CTA). This legislation established the requirement for the majority of private companies, both big and small, to file information with the Financial Crimes Enforcement Network (FinCEN). As with most new laws, the initial guidance and interpretations have been both challenged and questioned. In response, FinCEN recently turned out new FAQs, which we review below. Big Question First: To Report or Not Reporting is generally required by all private, for-profit entities. This includes corporations, LLCs, S-Corps, etc., whenever the company was created by filing... View Article

  • Are You Ready for Major Tax Changes in 2026?

    Posted Date August 1, 2024 Posted Time 12:00 am Published in

    🖨 Print⏱ 4 min read The enactment of the Tax Cuts and Jobs Act (TCJA) in 2017 brought with it major changes to the tax code on both personal and business levels. While many taxpayers have not only enjoyed but come to see these tax provisions as normal over the past seven years, many provisions of the TCJA are set to expire at the end of 2025. This makes 2026 and beyond potentially a very different tax landscape than the one we operate in today. This article reviews main provisions of the TCJA that could be affected and what it... View Article

  • So, You’ve Been Audited: Should You Go It Alone or Hire a CPA, EA or Tax Professional?

    Posted Date July 1, 2024 Posted Time 12:00 am Published in

    🖨 Print⏱ 3 min read I sincerely hope you have never had to go through an IRS audit – and never have to in the future. But what if that dark day does arrive? Should you go it alone and defend yourself or hire a CPA, EA, or Tax Professional to be on your side? The temptation to handle this alone is usually prompted by one of two things. First, the notion is that this is not such a big deal. Other times, people think if they handle it themselves, they will save money. Unfortunately, neither of these are good... View Article

  • Marrying a Non-U.S. Citizen? No Tax Honeymoon for You

    Posted Date June 1, 2024 Posted Time 12:00 am Published in

    🖨 Print⏱ 4 min read Marriage is a major life event. One that comes with all kinds of change, including financial. After getting married, there is so much to consider, from merging bank and brokerage accounts to setting up a will; from changing your withholding to updating retirement account beneficiary forms. If this seems like a lot to consider, it’s important to keep in mind that when a U.S. citizen marries a non-U.S. citizen, the situation gets even more complex. Among some of the more complex tax considerations of mixed citizenship marriages are gift and estate taxes, which we will... View Article

  • ‘Master’ The Augusta Rule and Save Money on Your Taxes

    Posted Date May 1, 2024 Posted Time 12:00 am Published in

    🖨 Print⏱ 3 min read Anyone who lives in a highly seasonal tourist destination knows you can make money on short-term rentals during events and festivities in your city or town. Think high concentration, short-term, tourist-driven events such as horse racing season in Saratoga Springs, N.Y., or The Masters Tournament in Augusta, Ga. As a result, it is common for locals to get out of dodge and rent out their place during these highly lucrative periods. Typically, this is just for a very brief period while they are on vacation somewhere else themselves, for instance. Given these circumstances, Congress realized... View Article

  • Reduce Your Taxes by Putting the Right Assets in Your IRA

    Posted Date April 1, 2024 Posted Time 12:00 am Published in

    🖨 Print⏱ 5 min read Most people know the basic concept that certain types of investment accounts are tax sheltered while others are not. Think 401(k), 403(b), IRA and Roth IRA accounts, for example. What most people are not aware of is how you split your investment positions between your taxable and non-taxable accounts can result in major tax savings. Asset Allocation and Location One of the core principles of investing is to have an appropriate asset allocation that aligns with your risk tolerance and goals. In other words, how much of your investable net worth is in cash, stocks,... View Article

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