There’s Still Time To Make an IRA Contribution for 2020
Posted on March 1st, 2021
If you haven’t contributed funds to an Individual Retirement Account (IRA) for tax year 2020, or if you’ve put in less than the maximum allowed, you still have time to do so. You can contribute to either a traditional or Roth IRA until the April 15, 2021, due date, not including extensions. Read More…
What is Taxable vs Nontaxable Income?
Posted on February 1st, 2021
Are you wondering if there’s a hard and fast rule about what income is taxable and what income is not taxable? The quick answer is that all income is taxable unless the law specifically excludes it. But as you might have guessed, there’s more to it than that. Read More…
PPP Round 2: What You Need to Know to Cash In
Posted on January 4th, 2021
The new tax law just signed by President Trump has significantly changed the current Paycheck Protection Program.
Most importantly, it provides a second round of additional PPP loan funding.
Here are the key changes — from forgiveness to the requirements for new PPP funding. Read More…
Credit Reports: What You Should Know
Posted on January 3rd, 2021
Creditors keep their evaluation standards secret, making it difficult to know just how to improve your credit rating. Nonetheless, it is still important to understand the factors that determine creditworthiness. Periodically reviewing your credit report can also help you protect your credit rating from fraud – and you from identity theft. Read More…
Tags: Credit Report
Protecting Business Taxpayers From Identity Theft
Posted on January 2nd, 2021
Starting December 13, 2020, the IRS began masking sensitive data on business tax transcripts. Previously, only sensitive data on individual tax transcripts was masked. Read More…
Tax Preparation vs. Tax Planning
Posted on November 6th, 2020
Many people assume tax planning is the same as tax preparation, but the two are quite different. Let’s take a closer look: Read More…
Tags: Tax Planning
Taking Early Withdrawals From Retirement Accounts
Posted on October 2nd, 2020
While taking money out of a retirement fund before age 59 1/2 is usually not recommended, in certain cases, it may be unavoidable, especially during times of economic crisis. If you need cash and have a retirement fund you can tap, here’s what you need to know. Read More…
Ask Bob: Should My Business Be an S Corporation? 6 Myths and Facts
Posted on September 25th, 2020
CPA Robert Russo Breaks Down the Question: Should My Business Be an S Corp?
Ever since the Tax Cuts and Jobs Act was signed into law in late 2017, the team at Robert P. Russo, CPA has been getting questions about which business entity will allow them to best take advantage of the law. One question that keeps coming up is: should my business be an S corp? We get this question 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).
Dirty Dozen Tax Scams: 2020 Edition
Posted on August 5th, 2020
The “Dirty Dozen” is a list of common tax scams that target taxpayers. Compiled and issued annually every year by the IRS, this year it includes many aggressive and evolving schemes related to coronavirus tax relief, including Economic Impact Payments. The criminals behind these bogus schemes view everyone as potentially easy prey and everyone should be on guard, especially vulnerable populations such as the elderly.
While tax-related scams usually increase at tax time, this year, scam artists are using pandemic to try stealing money and information from honest taxpayers. As such, taxpayers should refrain from engaging potential scammers online or on the phone.
Here are this year’s “Dirty Dozen” tax scams: Read More…
Paying off Debt the Smart Way
Posted on July 6th, 2020
With a potential economic downturn in the wings due to COVID-19, being debt-free is a worthwhile goal. Unfortunately, between mortgages, car loans, credit cards, and student loans, this is unrealistic for most people – especially those of pre-retirement age. Instead, it’s better to start by focusing on managing debt. When you handle debt wisely, you won’t have to shell out every cent of your hard-earned money to your lender or feel like you’re always on the verge of bankruptcy.
These tips will help you get started paying off debt the smart way and help you save extra money to pay down those debts even faster: Read More…
Q & A: Returning an Economic Impact Payment
Posted on July 1st, 2020
According to the Treasury Department, more than 159 million individuals have already received their Economic Impact Payments; however, a recent audit found that the IRS sent $1.4 billion in stimulus checks to deceased individuals. As such, many people may have received a payment for a deceased family member or another taxpayer who is not eligible to receive a payment and may have questions about what to do. Here are some answers: Read More…
PPP Loan Forgiveness — A Step-by-Step Guide
Posted on June 26th, 2020
On 6/22/20 the SBA issue a new set of Interim Finals Rules (one of many) that helped to clarify some issues but not all. Here is what you need to know:
As of now, you have 8 weeks (56 days) from date money hits your bank account to spend the funds (Covered Period). But you can elect to start the 8 weeks for the payroll costs from the first payroll period date after you receive the funds (Alternative Payroll Covered Period (APCP)) instead. For those that receive funds after 6/5, you automatically have 24 weeks to spend the funds. Those that received the funds pre 6/5 can elect to use the 24 weeks also. Read More…
Ask Bob: Should I Hire an Accountant or Do Taxes Myself? (7 FAQs)
Posted on June 9th, 2020
The big question: Is hiring an accountant to do my tax return really worth it?
At this time of year, we’re all bombarded with ads promoting the simplicity and savings of using online tax software or walk-in tax prep centers. For people with a simple W2 form and maybe an investment account or two, these services will get the job done.
However, there are many situations where hiring an accountant can save you thousands of dollars, help you avoid an audit and fines, and set you up for an even more profitable year ahead. The question is: which category do you fall into?
In our latest edition of “Ask Bob,” we answer frequently asked questions about whether it’s really necessary to hire an accountant, or if you can go it alone. Here’s what Bob had to say… Read More…
4 Cash Management Tips for Small Businesses
Posted on June 4th, 2020
Cash is the lifeblood of any small business. Here are some tips to help your business maintain a sufficient cash flow to meet its financial goals and run efficiently: Read More…
How to Prepare an Effective Business Plan
Posted on June 2nd, 2020
A business plan is a valuable tool whether you’re seeking additional financing for an existing business, starting a new company, or analyzing a new market. Think of it as your blueprint for success. Not only will it clarify your business vision and goals, but it will also force you to gain a thorough understanding of how resources (financial and human) will be used to carry out that vision and goals. Read More…