Tax Tips

IRS Makes it Easier to Deduct PCs

Previously the IRS classified many computers and computer peripherals (such as printers) as “Listed Property.” If your business use of Listed Property is less than 50%, you are usually required to distribute the business portion of the property’s cost over your tax returns for multiple years, using a depreciation method that is unfavorable to the […]

This Tues (10/15) is the 6 mo Filing Extension Deadline

If you requested an extra six-month extension in April to file your 2018 personal income tax return, that deadline to file is coming up this week on Tuesday, October 15th. If you are an employer that makes contributions into employee Simplified Employee Pension IRA accounts, October 15th is also the six-month extension deadline to make […]

Tax Credits for Higher Education

If you or any of your dependents are enrolled in a higher education program this fall, you may qualify to claim one or more credits on your 2019 tax return. The American Opportunity Tax Credit (AOTC) is a credit of up to $2,500 for a student pursuing a degree or certified credential at a college […]

Age Limitations for 3 key Child Tax Deductions

Several key tax credits end when dependent children reach a particular age. Here is a quick summary of the age rules for three of the most important tax credits for parents, as well as the most important exceptions: Child and Dependent Care Credit: Child must be under 13 years of age (12 years old or […]

Teachers: Save Your Receipts for Educator Expense Deduction

During this back-to-school period when classroom expenses are most likely to occur, remember to save your receipts if you are educator. If you are a teacher, principal, counselor, or classroom aide who works at least 900 hours a year in a state-accredited school (grades K-12), you may qualify for the Educator Expense Deduction. This IRS […]

September & October Tax Deadlines

The following are tax deadlines due in September and October: September 16th is the deadline for the third quarter installment for individuals & corporations paying estimated taxes throughout the year. September 16th is the deadline for Forms 1120S (S Corporations) & 1065 (Partnerships) for S Corporations and Partnerships that requested a 6-month extension on their […]

September Tax Withholding Checkup

The best way to avoid an unpleasant IRS surprise next spring is to make sure that the correct amount of tax is being withheld from your paychecks. Here’s a simple way to do a September withholding checkup:   Step 1) On your pay stub for the pay period ending August 31 or September 1, find […]

Taxable Events that are reported to the IRS

All are aware of the traditional income sources like employee wages and business profits that must be reported to the IRS as taxable income.  However, there  are several other activities and transactions that the IRS classifies as potentially taxable. It is important to consider all of these “taxable events” when you prepare your returns. Some […]

How to Reduce Taxes when renting a bedroom in your home

Firms such as Airbnb have made bedroom rentals more common than just a few years ago. Depending on the length of the rentals and the people to whom you rent, the tax code treats your bedroom rental as one of the following: 1) A tax-free activity. 2) A bedroom rental that you report on Schedule […]

Business Meals: Q & A on the new tax rules

Here is some good news for business meals:  The Tax Cuts and Jobs Act (TCJA) removed the “directly related and associated with” requirements from business meals. The net effect of this change is to subject business meals once again to the pre-1963 “ordinary and necessary” business expense rules.  You are going to like these rules. […]