Author: John Sutton, CPA

In most states, business owners of pass-through entities, including S-corporations and partnerships, are able to take advantage of pass-through entity tax payments. Whereby, you elect to pay the state income tax on the profits of the business at the business level, instead of the personal level. The benefit is deducting the state tax payments as […]

Maximizing contributions to retirement plans can be a great way to reduce your tax liability and save for your future benefit. Contribution limits vary by type of retirement plan and other details. Below is a brief overview of retirement plans and contribution limits for tax year 2025: For Employees: 401k: Employees that have access to […]

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 […]

Health Savings Accounts (HSA) allow taxpayers with qualifying health insurance coverage to make tax deductible contributions to fund their accounts to be used for medical expenses. Often, taxpayers without an HSA are not able to receive any tax benefit from their out-of-pocket medical expenses, as they’re required to reduce their medical expenses by a percentage […]

There are income limits on contributing to a Roth IRA. Taxpayers whose incomes are above these limits can get around these limits with the backdoor Roth IRA strategy. Using this strategy, a taxpayer contributes to their traditional IRA account and converts the amount to their Roth IRA account. There are no income limits on contributing […]

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, […]

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 […]

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 […]

Self-employed individuals and business owners that use an area of their home for business may be able to take a tax deduction for costs associated with a home office. In order to claim the home office deduction, the area in your home must be used exclusively for business on a regular basis. The area does […]