As communicated each year, the IRS has updated some of the deductions, tax exemptions, tax exclusions and other tax items based on inflation. In several media, this has been celebrated as the IRS increasing the threshold and in some cases creating clickbait headlines to attract readers, but the reality is that each fall the IRS
As you might be aware, the IRS was established by the Tax Relief and Health Care Act of 2006 and paid its first award one year later. As mentioned in the IR-2024-199, "... since issuing its first award in 2007 through June 2024, the IRS has paid over $1.2 billion in awards based on the
The Cohan rule originated from a case from 1930, but it is still applicable and used to this date. The Cohan rule allowed to claim deductions even if the taxpayer had no documentation for these expenses (in general and in practice, the Court allows lower expenses that the ones claimed by the taxpayer). Cohan was
Note that we are noticing more and more of our colleagues having overseas help as a way to reduce cost in some cases and others because of the lack of accounting and tax professionals in the United States. As of the date of this post, we do not outsource our accounting and tax preparation to
From mid October 2024, Delaware businesses with 5 or more employees will have to register by 10/15/24 in the Delaware EARNS (Expanding Access for Retirement and Necessary Saving) website. You could be exempt if you already offer a tax qualified retirement plan to the employees, such as 401k plan or similar. The employee can opt
If you have kids under 13 that have after (or before) school activities (i.e. soccer, basketball, dance, etc.), daycare, or even summer camp, you might be entitled to a tax credit when you file your taxes. You will need to get some information to claim that tax credit like a) name of the institution or
In July 2024, the IRS released several warnings on widespread scams and misleading claims on the Self Employment tax credit. The IRS is taking a proactive communication approach and raising awareness of scams, fraud and other misleading information on social media and by different promoters. Clean Energy Tax Credit – In the IR-2024-182, the
If you are covered by an Health Savings Account HSA eligible plan, then, you can make pre-tax contributions to a medical savings account for future health related expenses. The growth of these funds are tax free and if used for its medical purpose, the withdrawal is not taxable. However, if not used for the right
As you might be aware, taxpayers are leaving States with double digit State income taxes like California, Hawaii, New Jersey, New York and the District of Columbia for more tax friendly States like Texas and Florida in 2023 as described in the Tax Foundation article. Based on Wirepoints data, if we go back to 2020
Our colleagues from NJ SBDC have posted the Mid-year Financial review seminar from mid-June 2024 in Youtube. We highly recommended checking the amazing video library of this organization as it has over a hundred and fifty recording on different topics relevant to any business owner. What You'll Learn from this presentation: - Key tax changes
