Tag: tax services

Key Coronavirus Tax Changes

Key Coronavirus Tax Changes

In addition to filing delays and a one-time stimulus payment, the IRS is implementing many changes in response to the coronavirus pandemic. Here are some of the major topics that could affect you and your family. Early distribution penalty waived The 10% early distribution penalty on up to $100,000 of retirement withdrawals for coronavirus-related reasons is waived during 2020. New…

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The Household Employee Problem

The Household Employee Problem

This often overlooked bookkeeping and payroll tax requirement can cause a tangle of tax problems if not handled correctly. It ended a run for Congress by Caroline Kennedy (JFK’s daughter) and killed a U.S. Attorney General nominee’s chances for appointment. Could you be impacted? This is what you need to know. Nanny Tax Explained In an effort to capture income…

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Five Big Tax Mistakes

Five Big Tax Mistakes

Every year taxpayers are hit with tax surprises that could be avoided if they just knew the rules. Here are five big ones that are easy to avoid with some simple planning. Mistake #1. Withholding too little. This results in a tax surprise when filing your income tax. Don’t be too hard on yourself if this happens to you. Social…

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How to Defend Your Deductions

How to Defend Your Deductions

When faced with questions on your tax return deductions, it is getting all too common for tax authorities to deny everything and then make you prove that your deductions are valid. Do not let this happen to you. Here are some suggestions. The one-two punch To prove your deduction most auditors are looking for two key documents. Miss one of…

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Sharing Economy Now in IRS Spotlight

Sharing Economy Now in IRS Spotlight

Did you know… 40% of the workers in the Sharing Economy are unaware of their tax responsibilities and over 60% of the service provider companies are not training their new workers on their tax responsibilities. Source: Written statement of Nina E. Olson, National Taxpayer Advocate given at the Hearing on “The Sharing Economy” to the Committee on Small Business, U.S.…

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Don’t overlook above-the-line deductions

Even if you don’t itemize deductions on your tax return, you may be entitled to certain “above-the-line” deductions.  These deductions are subtracted from your income to arrive at your adjusted gross income, an important number because it determines your qualification for certain tax credits and various tax breaks.  Above-the-line deductions include such things as IRA contributions, health savings account contributions,…

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Accurate inventory numbers are crucial for your business

For many companies, inventory is a significant dollar amount on the company’s financial statements.  So it’s crucial that recorded inventory balances reflect actual values.  When such accounts aren’t properly stated, the cost of goods sold and current ratios – numbers that often matter to decision makers – may be skewed.  If banks discover that your company’s inventory accounts are overstated,…

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IRS launches new “misclassification initiative”

How you classify your workers – as “independent contractors” or “employees” – matters a great deal to the IRS.  The IRS is aware that employers prefer to treat workers as independent contractors to avoid paying fringe benefits and payroll taxes.  The IRS estimates that 80% of workers who are classified as independent contractors are actually employees.  About 100 new auditors…

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Summertime tax tip

If you itemize your deductions, you can deduct the mortgage interest and property taxes paid for your vacation home.  A boat or RV can qualify as a vacation home if it has sleeping quarters, cooking facilities, and a bathroom.  If a retreat also serves as rental property, you can control your tax deductions by changing the number of days you…

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Check out the current issue of South Jersey Biz magazine featuring Business Accounting Systems, P.C.

South Jersey Biz January 2015 Our Vice President, L. Scott Elwell, MST, EA is currently featured in the January, 2015 edition of South Jersey Biz Magazine.  The article features predictions from local industry leaders on what 2015 has in store for the South Jersey business world.  Here is a copy of the article as well as a link to the website…

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Not all “income” is taxable

There are several sources of revenue that are not subject to income tax. Here are the most common sources of money that are not taxed on your federal income tax return: Borrowed money such as from banks or personal loans. Money received as a gift or inheritance from family or friends. Money paid on your behalf directly to a school…

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Year-End Tax Strategies for Businesses

YEAR-END TAX STRATEGIES FOR BUSINESSES Gift shares of stock to family members who are in a low tax bracket before declaring a dividend, as part of a larger plan to shift ownership of the business to younger family members. The owners of pass-through entities, such as S corporations and partnerships, have the income taxed on their personal tax returns.  The…

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IRS Impostors Phishing for Personal and Financial Information: Report them immediately

It is important to be aware of pop-ups or emails ‘phishing’ for personal information. They are transmitted electronically and done so very easily. You may even receive a text, SMS message or a personal message through social media platforms. These false requests are daily occurrences and are sent in hopes to lure innocent victims into disclosing personal and/or financial information.…

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