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…

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…

Tags: 2018 Tax Law, Deductions

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…

Tags: Cash Flow, Investing, Recor Keeping

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…

Tags: Expenses, Investing

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…

Tags: 2018 Tax Law, Deductions, Small Business

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…

Tags: 2018 Tax Law, Pay Roll, Record Keeping

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…

Tags: Record Keeping

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…

Tags: Tax Credits

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…

Tags: 2018 Tax Law, Working Abroad

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…

Tags: Fraud Prevention, Small Business

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…

Tags: Fraud Prevention

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…

Tags: 2018 Tax Law, Investing