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The Hobby Loss Rule Could Hurt Your Side Hustle: 5 Tips to Overcome It

Posted on June 24th, 2018

Your Side Gig Could Be Your Main Tax Headache…Thanks to the Hobby Loss Rule

Imagine this. By day, you’re a software engineer. By night? You’re an author on a mission to publish the next great American novel.

You take writing seriously. It’s your side business. But the IRS isn’t so sure… Read More…

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The Kids Are More Than Alright: 3 Tax Benefits of Employing Your Kids

Posted on June 21st, 2018

Tax Advantages of Employing Your Kids

Do you run a small business? Got kids under 18? Now is the time to put them on the payroll. Employing your kids is a winning triple play that benefits your children, your business, and your family’s financial wellbeing. Discover the tax advantages of employing your kids, then see 4 must-follow tips if you put the kids to work! Read More…

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Tax Consequences of Crowdfunding — Don’t Get Caught Short

Posted on June 1st, 2018

Crowdfunding websites such as Kickstarter, GoFundMe, Indiegogo, and Lending Club have become increasingly popular for both individual fundraising and small business owners looking for start-up capital or funding for creative ventures. The upside is that it’s often possible to raise the cash you need but the downside is that the IRS considers that money taxable income. Here’s what you need to know. Read More…

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Saving for Education: 529 College Savings Plans

Posted on June 1st, 2018

Many parents are looking for ways to save for their child’s education and a 529 Plan is an excellent way to do so. Even better, is that they are now available to parents wishing to save for their child’s K-12 education as well as college.

Every state has a program allowing persons to prepay for future higher education, tax-free, and you may open a Section 529 plan in any state. Contributions must be in cash, and they must not total more than reasonably needed for higher education (as determined initially by the state). Neither account owner or beneficiary may direct investments, but the state may allow the owner to select a type of investment fund (e.g., fixed income securities), and to change the investment annually, and when the beneficiary is changed. The account owner decides who gets the funds (can pick and change the beneficiary) and is legally allowed to withdraw funds at any time, subject to tax and penalties (discussed later). Read More…

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6 Tax Breaks for Businesses Hiring New Employees

Posted on June 1st, 2018

If you’re thinking about hiring new employees this year you won’t want to miss out on tax breaks available to businesses with employees. Read More…

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Seasonal Employees and Taxes — 2018 Updates and Changes

Posted on June 1st, 2018

Many businesses hire part-time or full-time workers, especially in the summer. These types of employees are referred to as seasonal workers, which the IRS defines as an employee who performs labor or services on a seasonal basis (i.e., six months or less). Examples of this kind of work include retail workers employed exclusively during holiday seasons, sports events, or during the harvest or commercial fishing season. Part-time and seasonal employees are subject to the same tax withholding rules that apply to other employees. Read More…

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Filing an Amended Tax Return — Correcting Tax Mistakes

Posted on June 1st, 2018

What should you do if you already filed your federal tax return and then discover a mistake? First of all, don’t worry. In most cases, all you have to do is file an amended tax return. But before you do that, here is what you should be aware of when filing an amended tax return. Read More…

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6 Facts About Employer Credit for Family and Medical Leave

Posted on June 1st, 2018

Thanks to the passage of the Tax Cuts and Jobs Act last year, there’s a new tax benefit for employers: the employer credit for paid family and medical leave. As the name implies, employers may claim the credit based on wages paid to qualifying employees while they are on family and medical leave. Read More…

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Offshore Voluntary Disclosure Program to End this Year

Posted on June 1st, 2018

U.S. taxpayers with undisclosed foreign financial assets should take advantage of the Offshore Voluntary Disclosure Program (OVDP) before the program closes on September 28, 2018. The planned end of the current OVDP also reflects advances in third-party reporting and increased awareness of U.S. taxpayers of their offshore tax and reporting obligations. Read More…

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What to Do If You Get a Letter from the IRS

Posted on June 1st, 2018

Each year, the IRS mails millions of notices and letters to taxpayers for a variety of reasons. If you receive correspondence from the IRS here’s what to do: Read More…

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New Scam Targets Non-resident Aliens — Fake IRS Form W-8BEN

Posted on June 1st, 2018

In yet another new twist on an old scam—this time affecting non-resident aliens and international taxpayers—criminals are using a fake IRS Form W-8BEN to solicit detailed personal identification and bank account information from victims. Here’s how the scam works: Read More…

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HSA or Health Savings Account Limits Increase for 2019

Posted on June 1st, 2018

Contributions to a Health Savings Account (HSA) are used to pay current or future medical expenses of the account owner, his or her spouse, and any qualified dependent and are adjusted annually for inflation. For 2019, the annual inflation-adjusted contribution limit for a Health Savings Account (HSA) increases to $3,500 for individuals with self-only coverage (up $50 from 2018) and $7,000 for family coverage (up $100 from 2018). Read More…

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