Roth for Kids and Young Adults
Setting up a Roth IRA for your child can be a smart financial move with long-term benefits. It can also help them get started saving for retirement or other life events early. For 2024, the maximum contribution is $7,000 for those under age 50. Time is a powerful ally when it comes to investing. Even…
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IRS Update on ERC Claims
IRS Commissioner Danny Werfel reported to the Senate Finance Committee that even with the moratorium since September 2023 on processing previous and new claims for the ERC, the IRS averages 20,000 new applications weekly. The IRS recently announced ERC that claims processing could resume by late spring depending on whether Congress extends the statute of…
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Biden’s Budget and Potential 2nd Term Tax Legislation
Soon after The President’s State of the Union Address, the proposed fiscal year 2025 budget was released. This outlines how the administration would implement the President’s tax policy, indicating a gross tax hike of approximately $5.3 trillion from 2024 to 2034. Notable Provisions: Increased Taxes on High Earners: Increase income taxes for individuals earning more…
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The Safest & Easiest Way to Make Tax Payments
We’re past the April 15th deadline, which means many of you just paid balances due and first-quarter estimates. If you are still writing checks to make tax payments, there is a much better (and safer) alternative. Both the IRS and the State of Alabama have excellent platforms for making payments electronically via bank draft. A process…
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How to Assist A Child Buying a Home
As housing prices and mortgage rates continue to escalate, many young people struggle to purchase their first home or upgrade. One option is for parents or family to finance the purchase of the house and hold a mortgage. The transaction is documented like a regular mortgage with monthly payments. Let’s look at the advantages: Favorable…
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Navigating Expense Reimbursement Challenges: A Tech-Savvy Approach
Expense reimbursement remains a significant challenge for many businesses in the accounting landscape. Manual processes often lead to errors, delays, and employee dissatisfaction. To address these issues, businesses are increasingly turning to software solutions that streamline the reimbursement process and enhance accuracy and efficiency. Expense reimbursement problems are commonly rooted in paper-based systems, which result…
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Estate and Gift Taxes – Plan Now for Reduced Exemption in 2026
For the past five years, taxpayers have enjoyed historically high gift and estate tax exemptions, thanks to the Tax Cuts and Jobs Act of 2017. This legislation doubled the exemption from approximately $5.5 million to $13.61 million per person (adjusted for inflation) in 2024. The annual gift exemption also increased to $18,000 per donee in…
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The Benefits of Outsourced Accounting
In today’s business environment, companies are constantly seeking ways to optimize operations and enhance efficiency. One strategy gaining prominence is outsourcing, particularly accounting functions. Outsourcing accounting services can offer a myriad of benefits, revolutionizing a business’s financial landscape. Firstly, outsourcing allows companies to tap into a pool of skilled professionals without the burden…
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$1 Billion in Unclaimed Property Held by the Alabama Treasury
We run this post periodically, and each time, several people report finding funds held by the State of Alabama. Each year, unclaimed or abandoned assets are turned over to Alabama Unclaimed Property by financial institutions and businesses that lose contact with the owners. Currently, approximately $1 billion in unclaimed funds is being held by the…
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Structure Disability Benefits to be Tax-Free
Many employers provide long-term disability benefits to employees. It’s a great benefit, but no one considers the tax side. Typical policy benefits pay the equivalent of 50%-70% of the normal salary. That could be adequate if the benefits are not taxable. If they are taxable, you’ll wind up with significantly less income. For example, let’s…
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