CPA Robert Russo Breaks Down the Question: Should My Business Be an S Corporation?

Will it help or hurt me? That was the question on every small business owner’s mind on December 22^nd, 2017 when the Tax Cuts and Jobs Act was signed into law. The team at Robert P. Russo, CPA has had a surge in the question: should my business be an S corp? We’re hearing it from LLCs and sole proprietorships – even employees wondering if now’s the time to launch that startup.

The answer to “should my business be an S corp”? It depends. There are benefits to becoming an S corporation (taking a distribution of dividends exempt from self-employment tax). But there are also pitfalls – if you don’t follow S corp requirements (take too large a distribution, and you could hear from the IRS).

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Tags: Business Entity, Self-Employment, Small Business

Where to Look for Hidden Tax Deductions (Even Though 2018 is Over)

It’s that time of year again! Time for business owners to get together with their accountants to review the previous year’s taxes. If you’ve already started crunching your 2018 numbers, and don’t like what you see, there are still ways to uncover hidden tax deductions – which could potentially save you thousands. Read More…

Tags: 2018 Tax Law, Deductions

Your New Year’s Resolutions to Maximize Your 2019 Tax Deductions

It’s a new year, and a new opportunity to ensure you’re taking all possible 2019 tax deductions. That’s why we put together a list of New Year’s Resolutions for business owners and independent contractors.

All of us at Robert P. Russo CPA in NYC are ensuring our clients know how the Tax Cuts and Jobs Act (TCJA) of 2017 impacts their 2019 tax deductions – and now we’re sharing that knowledge with you…

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Tags: Deductions

Every year, it’s a sure bet that there will be changes to current tax law and this year is no different, now that the tax provisions under the Tax Cuts and Jobs Act of 2017 (TCJA) are in full effect. From standard deductions to health savings accounts and tax rate schedules, here’s a checklist of tax changes to help you plan the year ahead. Read More…

Tags: 2018 Tax Law, Small Business

The 2019 tax season is quickly approaching and with it an increase in identity theft and W-2 scams. Small business identity theft is big business for identity thieves. Just like individuals, businesses may have their identities stolen, and their sensitive information used to open credit card accounts or used to file fraudulent tax returns for bogus refunds. Read More…

Tags: Fraud Prevention

The Tax Cuts and Jobs Act, passed in December 2017, made tax law changes that will affect virtually every business and individual in 2018 and the years ahead. One tax provision that taxpayers should be aware of is that like-kind exchanges are now generally limited to exchanges of real property. Here’s what you need to know: Read More…

Tags: Real Estate

Everyone wants to save money on their taxes, and older Americans are no exception. If you’re age 50 or older, here are six tax tips that could help you do just that. Read More…

Tags: 2018 Tax Law

Starting January 1, 2019, the standard mileage rates for the use of a car, van, pickup or panel truck are as follows:

• 58 cents per mile driven for business use, up 3.5 cents from the rate for 2018
• 20 cents per mile driven for medical or moving purposes, up 2 cents from the rate for 2018.
• 14 cents per mile driven in service of charitable organizations.

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Tags: Deductions

If you’ve lost your job you may have questions surrounding unemployment compensation, severance, and other issues that could affect your tax situation. Here are some answers: Read More…

During January

All employers – Give your employees their copies of Form W-2 for 2018 by January 31, 2019. If an employee agreed to receive Form W-2 electronically, post it on a website accessible to the employee and notify the employee of the posting by January 31.

January 10

Employees – who work for tips. If you received $20 or more in tips during December 2018, report them to your employer. You can use Form 4070, Employee’s Report of Tips to Employer.

January 15

Employers – Social Security, Medicare, and withheld income tax. If the monthly deposit rule applies, deposit the tax for payments in December 2018.

Individuals – Make a payment of your estimated tax for 2018 if you did not pay your income tax for the year through withholding (or did not pay in enough tax that way). Use Form 1040-ES. This is the final installment date for 2018 estimated tax. However, you do not have to make this payment if you file your 2018 return (Form 1040) and pay any tax due by January 31, 2019.

Employers – Nonpayroll Withholding. If the monthly deposit rule applies, deposit the tax for payments in December 2018.

Farmers and Fisherman – Pay your estimated tax for 2018 using Form 1040-ES. You have until April 15 (April 17 if you live in Maine and Massachusetts) to file your 2018 income tax return (Form 1040). If you do not pay your estimated tax by January 15, you must file your 2018 return and pay any tax due by March 1, 2019, to avoid an estimated tax penalty.

January 31

Employers – Federal unemployment tax. File Form 940 for 2018. If your undeposited tax is $500 or less, you can either pay it with your return or deposit it. If it is more than $500, you must deposit it. However, if you already deposited the tax for the year in full and on time, you have until February 11 to file the return.

Farm Employers – File Form 943 to report social security and Medicare taxes and withheld income tax for 2018. Deposit or pay any undeposited tax under the accuracy of deposit rules. If your tax liability is less than $2,500, you can pay it in full with a timely filed return. If you deposited the tax for the year in full and on time, you have until February 11 to file the return.

Certain Small Employers – File Form 944 to report Social Security and Medicare taxes and withheld income tax for 2018. Deposit or pay any undeposited tax under the accuracy of deposit rules. If your tax liability is $2,500 or more from 2018 but less than $2,500 for the fourth quarter, deposit any undeposited tax or pay it in full with a timely filed return. If you deposited the tax for the year timely, properly, and in full, you have until February 11 to file the return.

Employers – Social Security, Medicare, and withheld income tax. File Form 941 for the fourth quarter of 2018. Deposit any undeposited tax. If your tax liability is less than $2,500, you can pay it in full with a timely filed return. If you deposited the tax for the quarter in full and on time, you have until February 11 to file the return.

Employers – Nonpayroll taxes. File Form 945 to report income tax withheld for 2018 on all nonpayroll items, including backup withholding and withholding on pensions, annuities, IRAs, gambling winnings, and payments of Indian gaming profits to tribal members. Deposit any undeposited tax. If your tax liability is less than $2,500, you can pay it in full with a timely filed return. If you deposited the tax for the year in full and on time, you have until February 11 to file the return.

Payers of Gambling Winnings – If you either paid reportable gambling winnings or withheld income tax from gambling winnings, give the winners their copies of Form W-2G.

Employers – Give your employees their copies of Form W-2 for 2018. If an employee agreed to receive Form W-2 electronically, post it on a website accessible to the employee and notify the employee.

Businesses – Give annual information statements to recipients of certain payments made during 2018. You can use the appropriate version of Form 1099 or other information return. Form 1099 can be issued electronically with the consent of the recipient. This due date only applies to certain types of payments.

Individuals – who must make estimated tax payments. If you did not pay your last installment of estimated tax by January 15, you may choose (but are not required) to file your income tax return (Form 1040) for 2018 by January 31. Filing your return and paying any tax due by January 31, 2019, prevents any penalty for late payment of the last installment. If you cannot file and pay your tax by January 31, file and pay your tax by April 15, 2019 (April 17 if you live in Maine or Massachusetts).

Health Coverage Reporting – If you are an Applicable Large Employer, provide Form 1095-C, Employer-Provided Health Insurance Offer and Coverage, to full-time employees. For all other providers of minimum essential coverage, provide Form 1095-B, Health Coverage, to responsible individuals.

Tags: Tax Due Dates