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 […]
Author: John Sutton, CPA
Education Planning & Tax Benefits
There are a number of tax saving options and strategies to help you save for college expenses. Below is an overview of some of the most important options available to you. For additional information, please view the IRS’ Q&A on education credits and IRS Publication 970 – Tax Benefits for Education. Tuition Tax Credits There […]
Should your business be an S-Corporation?
S-Corporations are one of the most commonly recommended forms for new business owners to save taxes, however; it’s important not to rush into structuring your business as an s-corporation as you may not realize these benefits until your business reaches significant profitability. You should weigh the tax savings of having an s-corporation with the additional […]
Income Tax Changes in the One Big Beautiful Bill Act
Here is a condensed breakdown of income tax changes as a result of the 2025 One Big Beautiful Bill Act. The following breakdown focuses on changes applicable to individual taxpayers and small businesses that I typically serve. This information has been aggregated from various articles and resources. Since this major tax reform is recent and […]
Choosing Between Roth and Pre-Tax Retirement Accounts
There are tradeoffs between Roth and Pre-Tax retirement accounts. The best choice depends on your situation. The guidance below can help you decide which is best for you, but contributing to either type of account over the course of your career is a great way to save for your future. Roth Accounts: -Greater long-term benefit […]
IRS.gov Account
Did you know that you can create an IRS.gov account to view information for your current and past federal income tax returns? To create an account, go to IRS.gov and click Sign in to your account on the home page. Select Individual to view information for your personal income tax returns. You can log in […]
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 […]
Starting a Business
The following are general recommendations when starting a small business or becoming self-employed: Use a separate bank account (and optionally a business credit card). The stricter you are with separating business from personal transactions at the time of paying for something, the easier it makes record keeping and bookkeeping. Everything will be in one central […]
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 […]
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 […]