Estimated Taxes and Withholding – What to Pay and When
Federal and Alabama taxes are collected on a pay-as-you-go system, either through withholding or estimated taxes. Do You Need to Pay Estimates? If your income is mainly from wages and you always have a substantial balance due at tax time, increase withholding and pass on making estimates. Otherwise consider if the following applies to you:…
Read More
SafeSend Return FAQs
Many of you have successfully SafeSend returns e-sign feature as part of our tax return delivery process; however, we would like to take this opportunity to provide additional information and provide some extra incentive to give the program a try if you haven’t yet had the opportunity. SafeSend FAQs What are the benefits to you,…
Read More
The IRS Raises 2023 Retirement Plan Contribution Limits
As they do each year, the IRS announced 2023 retirement plan increases as follows: 2022 2023 2023 Catch Up 401(k), 403(b) & 457 $20,500 $22,500 $7,500 Traditional or Roth IRA $6,000 $6,500 $1,000 SIMPLE IRA $14,000 $15,500 $3,500 SEP IRA $61,000 $66,000 N/A Catch-Up Contributions Individuals aged 50 or older are allowed to make…
Read More
Charitable Contribution Documentation
Approximately 30% of annual charitable giving in the US occurs in December. As we enter the giving season, make sure you have the proper documentation to substantiate a gift for tax deduction purposes. For all contributions of $250 or more, you must have a contemporaneous written acknowledgment (“CWA”) from the organization. A CWA must include…
Read More
Individual Capital Gains Explained
At year-end, we get calls from clients asking about individual capital gains as they harvest gains and losses. This is an overview of the rules. Capital gains are grouped and taxed based on the holding period. Long-term capital gains or losses are generated by the sale of assets held over 12 months, and short-term have…
Read More
Making the Most of Fixed Asset Purchases – Expensing Options
Let’s review some options to reduce taxable income through expensing of fixed asset purchases and, in some cases, improvements.
A Better Way to Make Federal and State Tax Payments?
By: Lane Hooper, CPA, Senior Accountant Since the pandemic began, the Internal Revenue Service has struggled to process returns, payments and correspondence. See our July 13th post (link here) if you’d like to read more in depth about the current state of affairs at the IRS. If one of our clients experiences an IRS issue,…
Read More
Introducing IRS Form 1099-NEC
For many years, non-employee compensation has been reported in Box 7 on IRS form 1099-MISC. Beginning with the tax year 2020, non-employee compensation will be reported on the new form 1099-NEC in Box 1.
What to do with all these pesky 1099s directed toward your business
I received an email from a dental client of mine yesterday – he unwittingly inspired this post. His question was, “What do I do with this mountain of 1099s that I have received in the business?” This is a short question with a long answer. First, the rules The may be a refresher for most…
Read More
Cents-per-mile rate for business miles decreases slightly for 2020
This year, the optional standard mileage rate used to calculate the deductible costs of operating an automobile for business decreased by one-half cent, to 57.5 cents per mile. As a result, you might claim a lower deduction for vehicle-related expense for 2020 than you can for 2019.