Archives of Blog

2019 – 08/20 – Taking distributions from your traditional IRA

If you’re like many people, you’ve worked hard to accumulate a large nest egg in your traditional IRA (or a SEP-IRA). It’s critical to carefully plan for withdrawals. For example, if you need to take money out of your traditional IRA before age 59-1/2, the distribution will generally be taxable. In addition, distributions before age […]

2019 – 07/30 – The “kiddie tax” hurts families more than ever

Congress created the “kiddie tax” to discourage parents from putting investments in their children’s names to save tax. Over the years, it has gradually affected more families because the age at which it generally applies was raised to children under age 19 and full-time students under age 24 (unless the children provide more than half […]

2019 – 07/29 – Take a closer look at home office deductions

Working from home has its perks. You can skip the commute and you might be eligible to deduct home office expenses on your tax return. But you must meet the tax law qualifications. Under current law, employees can no longer claim home office deductions. But if you’re self-employed and run a business from your home, […]

2019 – 07/23 – The “nanny tax” must be paid for more than just nannies

You may have heard of the “nanny tax.” But even if you don’t employ a nanny, it may apply to you. Hiring a housekeeper or other household employee (who isn’t an independent contractor) may make you liable for federal income tax, Social Security and Medicare (FICA) tax and federal unemployment tax. You may also have […]

2019 – 07/16 – Summer: A good time to review your investments

It’s a good time to review your portfolio for tax-saving strategies. The long-term capital gains tax rate is still historically low on appreciated securities that have been held for more than 12 months. The federal income tax rate on long-term capital gains recognized in 2019 is 15% for most taxpayers. However, the top rate of […]

Employers: Be aware (or beware) of a harsh payroll tax penalty

If federal income tax and employment taxes (including Social Security) are withheld from employees’ paychecks and not handed over to the IRS, a harsh penalty can be imposed. To make matters worse, the penalty can be assessed personally against a “responsible individual.” If a business makes payroll tax payments late, there are escalating penalties. And […]

The chances of IRS audit are down but you should still be prepared

The IRS just released its audit statistics for the 2018 fiscal year, and fewer taxpayers had their returns examined as compared with prior years. However, even though a small percentage of tax returns are being chosen for audit these days, that will be little consolation if yours is one of them. Latest statistics Overall, just […]
  • 1
  • 2