There is a new information report required for businesses called the Beneficial Ownership Information (BOI) Report. This post contains general information applicable to small business owners to notify them and help them understand this new reporting requirement. Filing the report online on the US Treasury’s website is free, easy, and straightforward (it should take less […]
Author: John Sutton, CPA
Estimated Tax Payments Due Jan 16
As a reminder, estimated tax payments for the 4th quarter of 2023 are due January 16, 2024 (typically Jan 15, but pushed back due to the holiday). Set Up Annual Recurring Calendar Reminders in Advance of these Federal Due Dates: April 15 – First quarter estimated tax payments are due June 15 – Second quarter […]
1099-NEC Forms Due Jan 31
Businesses and self-employed individuals that pay individuals and businesses $600 or more for services are required to issue 1099-NEC forms. Formerly, these payments were reported for form 1099-MISC; however, the IRS created a new form solely for Non-Employee Compensation (form 1099-NEC). Generally two copies of 1099 forms are issued. One copy is filed with the […]
IRA Contributions
Traditional IRA: Tax Deductible (subject to income limitations if you or your spouse are covered by a retirement plan at work see table below) No income limits on contributions (though your contribution may not be tax deductible) Ideal for taxpayers above the Roth IRA income limits, older taxpayers (fewer years for earnings growth), taxpayers with […]
Attention Business Owners – Don’t Fall for Scams
Unscrupulous individuals search public business listings to find business owners to scam. They will send you letters that, at first glance, appear to be official forms from your state, but are actually solicitations. Often these scams include offering state issued documents you may not need, including various certificates, for fees that are marked up significantly […]
Review your Pay Stubs
Before the end of the year, it’s a good idea to review your pay stubs to make sure everything appears to be accurate. It’s always easier to fix things before year-end payroll reports are filed and W-2 forms are issued. There’s still time left in the year to make changes and avoid issues. Some common […]
Avoiding Penalties for Underpayment of Taxes
All taxpayers are required to pay taxes throughout the calendar year to avoid paying Underpayment Penalties. Most employees have income taxes withheld from their wages to help pay in these taxes throughout the year, but depending on your overall tax situation, these payments may not be sufficient to avoid the underpayment penalty. For self-employed individuals, […]
Self-Employed Retirement Plans
A major tax benefit available to self-employed individuals and business owners are retirement plan contributions. Contributions to retirement plans can save a significant amount of tax and allow you to save and invest for your retirement. Employer retirement plans have significantly higher contribution limits than traditional and Roth IRA accounts. If the business has other […]
Deduct Cash Charitable Donations for 2021 while taking the Standard Deduction
For the 2021 tax year, taxpayers are able to deduct up to $300 of cash charitable donations ($600 if married filing jointly) even when taking the standard deduction. Prior to 2020, taxpayers were only able to deduct charitable donations if they itemized their deductions. As a result of the increased standard deduction amounts, fewer taxpayers […]
Tax Planning for Self-Employed – Business Expenses
If you have a profitable business, it likely makes sense to work with an accountant for year-end tax planning. Your accountant can provide an estimate of the bottom-line numbers for your current year’s taxes before year-end to avoid surprises, plan accordingly, and discuss tax saving opportunities. Some large end-of-year purchases and deductions that business owners […]