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Nuts with Taxes
19 minutes | Oct 3, 2020
028: CTC & $500 "Family Tax Credit"
The Child Tax Credit (CTC) is designed to give an income boost to parents or guardians of children and other dependents. It only applies to dependents who are younger than 17 as of the last day of the tax year. The CTC is worth up to $2,000 per dependent, but your income level determines exactly much you can get. You need to have earned at least $2,500 to qualify for the CTC. The CTC is reduced (but not below zero) by $50 for each $1,000 (or fraction thereof) by which the taxpayer’s Modified Adjusted Gross Income (MAGI) exceeds a threshold amount ($400,000 for a joint return or $200,000 for any other filing status). The $500 Credit for Other Dependents (aka “Family Tax Credit”) was signed into law as part of the 2017 Tax Cuts and Jobs Act and is in effect for tax years 2018 through 2025. The credit allows taxpayers a credit for certain dependents that don't qualify for the Child Tax Credit, such as qualifying children age 17 or older, adult dependents, and dependents who have an ITIN. To be eligible for this credit, the person(s) being claimed must fit the definition of a qualifying child or a qualifying relative and be a dependent.
14 minutes | Sep 19, 2020
027: §530 Safe-Harbor Relief
How §530 Protection Works: §530 safe harbor provisions allow protection from liability or payment if the person or business can show a good faith effort to comply with the law. Typically, this means compliance with three specific requirements. §530 Relief lists three requirements for receiving a "safe harbor" exemption. All three must be present: 1. Consistently prepared 1099-MISC forms, each year, for all the workers in this case (Reporting Consistency). 2. Treated all similar workers as independent contractors (Substantive Consistency) 3. Can show treating the workers as independent contractors is an industry-standard (Reasonable Basis)
11 minutes | Sep 17, 2020
026: Positives & Negatives of the S-Corp - Part 2
Shareholder Basis is next. When you take money out of an S-Corp, it should always be accounted for as either S-Corp distributions or dividends (like Proprietor’s Drawing), salaries-to-officers, commissions, bonuses, or loans.
5 minutes | Sep 14, 2020
025: Tax Checklist for Newly Married Couples
Marriage changes a lot of things and taxes are on that list. Newlyweds should be cognizant of how their new filing status, Married-filing-Joint, affects their tax situation. Here is a checklist of items for newly married couples to review?
13 minutes | Sep 10, 2020
024: Positives & Negatives of the S-Corp - Part 1
S-Corporations are corporations electing to pass corporate income, losses, deductions, and credits through to their shareholders (via Form K-1) for federal tax purposes. Shareholders of S-Corps report the flow-through of income and losses on their personal tax returns (Form 1040) and are assessed tax at their individual income tax rates. This allows S-Corp’s to avoid double taxation on their corporate income.
14 minutes | Aug 17, 2020
023: Backdoor Roth
A Backdoor Roth IRA is a way for people with high income to sidestep the Roth's income limits. Basically, you invest non-deductible money in a Traditional IRA, convert the account to a Roth IRA, pay any tax on the Traditional IRA earnings and you are done.
3 minutes | Jul 7, 2020
022: How are the Balance Sheet & Income Statement related
A company's Balance Sheet and Income Statement are linked through Net Income for the period, and any subsequent increase, or decrease, in Owner Equity that results. Accountants refer to the Income Statement accounts (such as; Revenues, Expenses, gains, losses) as "Temporary accounts", because their balances will be closed and transferred to the Owner's Equity (i.e. Capital) account at the end of the year.
16 minutes | Jan 25, 2020
021: Five Tips for more efficient 1099 Filing
As a responsible employer, it’s important to prepare and issue 1099's to recipients, and file them with the Service without delay.
15 minutes | Jan 18, 2020
020: Ten Rules for Handling an IRS Audit
Here are some do’s and don’ts for successfully navigating an IRS audit.
9 minutes | Jan 6, 2020
019: Sale of Business Property, §1231
Tax rules related to disposition of property, §1231: whether it is ordinary or capital, as well as, how to figure, treat & report a gain or loss.
16 minutes | Jan 3, 2020
018: Depreciation - Part 2
Congress approved depreciation and expensing rules for property used in business, to stimulate the economy by encouraging business owners to buy new assets.
12 minutes | Dec 21, 2019
017: Depreciation - Part 1
§168 requires depreciation to be calculated using the appropriate Method, Recovery Period and Convention. These are defined in §168(b) - (d).
12 minutes | Dec 16, 2019
016: Understanding Employee vs. Independent Contractor - Part 2
Hiring a contract worker may save a business money on payroll taxes, health benefits, paid vacation, sick time and other employee benefits, but there are limitations on hiring a contract worker over an hourly or salaried employee, and vice versa.
11 minutes | Dec 15, 2019
015: Understanding Employee vs. Independent Contractor - Part 1
The Service closely monitors businesses to be sure they are properly classifying workers as independent contractors when they should be employees?
19 minutes | Dec 7, 2019
014: IRS Audit Red Flags
The Service has an open invitation to audit individuals, who are overly aggressive with tax deductions and credits?
14 minutes | Dec 2, 2019
013: Gambling Winnings & Losses
What you need to know about your gambling winnings.
11 minutes | Nov 28, 2019
012: When Should I Claim my Social Security benefits?
If you have a choice, and are in good health, think seriously about waiting as long as you can to take your benefits (but no later than age 70)?
10 minutes | Nov 26, 2019
011: Sale of Primary Residence
When selling your primary residence, you may qualify to exclude all or part of any gain on the sale, under §121.
7 minutes | Nov 24, 2019
010: Qualified Joint Venture (QJV) & Hiring Family Members
QJV Election for a Married Couple’s Unincorporated Business
8 minutes | Nov 22, 2019
009: Big Savings Sch. D - Capital Gains & (Losses)
Capital Gains & Losses and 3.8% Medicare Surtax (NIIT)
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