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 […]
Author: John Sutton, CPA
2021 Child and Dependent Care Credit
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 […]
Launch of my Own Accounting Firm
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 […]
Estimated Tax Payments
Taxpayers are required to make estimated tax payments to avoid owing penalties for underpayment of taxes. Uncle Sam and states want taxpayers to pay in taxes throughout the year on their incomes and enforce compliance of making estimated tax payments by imposing penalties for underpaying taxes throughout the year. This post provides helpful information for […]
Business Use of a Vehicle
Business owners have a number of options available to deduct costs of a vehicle used in their business. Here, I provide an overview of tax incentives currently in place and options available to deduct the cost of a vehicle. Tax Incentives for Large Trucks & SUVs Currently, there are tax incentives in place for trucks […]
2020 Retirement Plan Relief – COVID-19
The CARES Act included several changes to retirement plan contributions, loans, and withdrawals to provide relief to taxpayers as a result of COVID-19. Below is an overview some of the major changes. Please view the linked IRS pages for additional details. No Age Limit on IRA Contributions There are no longer age limits on contributing […]