If you want to save money on your tax bill next year, consider using one or more of these tax-saving strategies that reduce your income, lower your tax bracket, and minimize your tax bill. 1. Max out your 401(k) or Contribute to an IRA You've heard it before, but it's worth repeating because it's one of the easiest and most [...]
Selecting your business successor is a fundamental objective of planning an exit strategy, but it requires a careful assessment of what you want from the sale of your business and who can best give it to you. There are four ways to leave your business: transfer ownership to family members, Employee Stock Option Plan (ESOP), sale to a third party, [...]
Tax year 2018 annual inflation adjustments have been updated to reflect changes from the Tax Cuts and Jobs Act (TCJA). These tax year 2018 adjustments are generally used on tax returns filed in 2019. The tax items affected by TCJA for tax year 2018 of greatest interest to most taxpayers include the following: The standard deduction for married filing jointly [...]
Of all the retirement plans available to small business owners, the SIMPLE IRA plan (Savings Incentive Match PLan for Employees) is the easiest to set up and the least expensive to manage. The catch is that you'll need to set it up by October 1st. Here's what you need to know. What is a SIMPLE IRA Plan? SIMPLE IRA Plans are intended to encourage [...]
Small employer HRAs or QSEHRAs (Qualified Small Employer Health Reimbursement Arrangements) allow small businesses without group health plans to set aside money, tax-free, for employees to use toward medical expenses--including the cost of buying health insurance. Here's what you need to know about QSEHRAs. Background Included in the 21st Century Cures Act enacted by Congress on December 13, 2016, was [...]
While September and October are prime time for Atlantic hurricanes, natural disasters of any kind can strike at any time. As such, it's a good idea for taxpayers to think about - and plan ahead for - what they can do to be prepared. Here’s what taxpayers should keep in mind: 1. Update emergency plans. Because a disaster can strike any [...]
In most cases, gains from sales are taxable. But did you know that if you sell your home, you may not have to pay taxes? Here are ten facts to keep in mind if you sell your home this year. 1. Exclusion of Gain. You may be able to exclude part or all of the gain from the sale of your [...]
Taxpayers that need prior years' tax returns and other tax documents should know that there is a new format for individual tax transcripts that redacts personally identifiable information from Form 1040 tax documents. This new transcript replaces the previous format and will be the default format available via Get Transcript Online, Get Transcript by Mail or the Transcript Delivery System [...]
Taxpayers with school-age children should be aware of three recent tax law changes affecting 529 education savings plans. Tuition refunds The PATH Act change added a special rule for a beneficiary of a 529 plan, usually a student, who receives a refund of tuition or other qualified education expenses. This can occur when a student drops a class mid-semester. If [...]
Time is running short for taxpayers who requested an extra six months to file their 2017 tax return. As a reminder, Monday, October 15, 2018, is the extension deadline for most taxpayers. For taxpayers who have not yet filed, here are a few tips to keep in mind about the extension deadline and taxes: 1. Taxpayers can still e-file returns. [...]
Last month's Quick Books article explored the benefits of having QuickBooks on your desktop. Among those listed were three that impact every business. To recap, QuickBooks helps you: Save time. Save money. Minimize errors. There are numerous examples that could be used to illustrate how this software accomplishes this but for this month the topic is using memorized transactions. These are [...]
If you're still doing your accounting manually you are at a competitive disadvantage--even if you're a very small business. You might be managing just fine using Microsoft Word for invoices and records and Excel for reports, but keep in mind that many of your rivals digitally manage their financial data. Some of your competitors likely use QuickBooks; it's the [...]
Tax Due Dates for September 2018
Employees Who Work for Tips – If you received $20 or more in tips during August, report them to your employer. You can use Form 4070.
Individuals – Make a payment of your 2018 estimated tax if you are not paying your income tax for the year through withholding (or will not pay in enough tax that way). Use Form 1040-ES. This is the third installment date for estimated tax in 2018.
Partnerships – File a 2017 calendar year income tax return (Form 1065). This due date applies only if you were given an additional 6-month extension. Provide each shareholder with a copy of Schedule K-1 (Form 1065) or a substitute Schedule K-1.
S corporations – File a 2017 calendar year income tax return (Form 1120S) and pay any tax due. This due date applies only if you made a timely request for an automatic 6-month extension. Provide each shareholder with a copy of Schedule K-1 (Form 1120S) or a substitute Schedule K-1.
Electing Large Partnerships – File a 2017 calendar year income tax return (Form 1065-B) and pay any tax due. This due date applies only if you timely requested an automatic 6-month extension. Otherwise, see March 15. Provide each partner with a copy of Schedule K-1 (Form 1065-B) or a substitute Schedule K-1.
Corporations – Deposit the third installment of estimated income tax for 2018. A worksheet, Form 1120-W, is available to help you make an estimate of your tax for the year.
Employers – Nonpayroll withholding. If the monthly deposit rule applies, deposit the tax for payments in August.
Employers – Social Security, Medicare, and withheld income tax. If the monthly deposit rule applies, deposit the tax for payments in August.