Author: John Sutton, CPA

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 […]

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 […]

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 […]

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 […]

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 […]

Part of the Coronavirus tax relief for the 2021 tax year includes changes to the federal Child & Dependent Care tax credit. Generally, this credit allows taxpayers with children under 13 years of age to reduce their tax liability for expenses they incur for the cost of care for their children that allow the taxpayers […]

After over 10 years of working as an employee, I am excited to announce the launch of my own accounting firm. I have advised hundreds of new business owners over the years and I’m looking forward to taking the leap myself. If you or someone you know could benefit from my services in the areas […]