September - 2020

Tax Blog

Tax Blog

My Nanny Is Great With My Kids, But Do I Really Have to Pay Her Taxes?

My Nanny Is Great With My Kids, But Do I Really Have to Pay Her Taxes?

Due to COVID, a large number of families have found themselves seeking some sort of caregiver for their children during the work week. Whether it is a family member, daycare, or in-house help, people are willing to pay to make sure that their kids are safe. Some people may opt to hire a nanny, and some may even need to pay the federal government their “fair share” in the forms of social security and Medicare taxes. A nanny would be considered a household employee and the fami

Part Time or Seasonal Help According to the IRS

Part Time or Seasonal Help According to the IRS

The popup of random Halloween-themed stores across old, vacant buildings across the United States means one thing: shoppers are coming. While recent events may force some shoppers to opt for a virtual option this year such as Amazon, brick and mortar stores still expect shoppers to show up for the busiest part of the year for retail stores thanks to the approaching holidays. Businesses often need to hire workers on a seasonal or part-time basis. Not all employers may need to

Closing Your Business? Keep This Checklist From the IRS in Mind

Closing Your Business? Keep This Checklist From the IRS in Mind

There are typical actions that are taken when closing a business. You must file an annual return for the year you go out of business. If you have employees, you must file the final employment tax returns, in addition to making final federal tax deposits of these taxes. Also attach a statement to your return showing the name of the person keeping the payroll records and the address where those records will be kept. The annual tax return for a partnership, corporation, S corpor

Stock Options According to the IRS

Stock Options According to the IRS

If you receive an option to buy stock as payment for your services, you may have income when you receive the option, when you exercise the option, or when you dispose of the option or stock received when you exercise the option. There are two types of stock options: Options granted under an employee stock purchase plan or an incentive stock option (ISO) plan are statutory stock options. Stock options that are granted neither under an employee stock purchase plan nor an ISO pl

Renting Residential and Vacation Property According to the IRS

Renting Residential and Vacation Property According to the IRS

If you receive rental income for the use of a dwelling unit, such as a house or an apartment, you may deduct certain expenses. These expenses, which may include mortgage interest, real estate taxes, casualty losses, maintenance, utilities, insurance, and depreciation, will reduce the amount of rental income that ends up being subject to tax. For individuals, these expenses are typically reported on a Form 1040 and Schedule E. If you are renting to make a profit and do not use

As the NFL Season Begins Tonight, Here is Your Friendly Reminder to Not Forget the Tax Man..

As the NFL Season Begins Tonight, Here is Your Friendly Reminder to Not Forget the Tax Man..

In an attempt to return to normalcy, the United States is excited for the kickoff of the 2020 NFL Season. While only an extremely small number of people will attend the game in-person, millions will be watching from the television, laptop, or tablet around the world. While COVID has slowed down a lot of the world, it hasn’t stopped the gamblers and fantasy sports fanatics in the United States. If you are “smart” (lucky) enough to select the right players/bets, you’ll pocket s

What is the Employee Retention Credit?

What is the Employee Retention Credit?

Employers should pay close attention to their eligibility with regards to the Employee Retention Credit. Eligible employers can claim the credit for wages paid between March 12, 2020 and January 1, 2021. Most importantly, the credit is fully refundable. The Employee Retention Credit is a fully refundable tax credit for employers equal to 50 percent of qualified wages (including allocable qualified health plan expenses) that Eligible Employers pay their employees. This Employe

Can I Get A Tax Refund Under an Installment Agreement or Payment Plan?

Can I Get A Tax Refund Under an Installment Agreement or Payment Plan?

This is a common question that we often get from taxpayers. They had a hard couple of years, went into tax debt, and now owe the IRS a lot of money. Luckily, however, they are on an installment agreement or payment plan. However, what they may not have realized is that by entering that agreement or plan, they signed all rights away to future tax refunds for the time being. One of the conditions of your installment agreement is that the IRS will automatically apply any refund

Split Refunds With the IRS: What Is It and What Are the Benefits?

Split Refunds With the IRS: What Is It and What Are the Benefits?

You have several options for receiving your federal income tax refund. You can split your direct deposit refund among two or three different accounts, with up to three different U.S. financial institutions, direct deposit your refund into a single checking or savings account, receive your refund in a paper check. If that doesn’t intrigue you, then you can buy up to $5,000 in U.S. Series I Savings Bonds with your refund. With split refunds, you have a convenient option for ma

The 32-item List for Valuation and Estate/Succession Planning: Part 2 of 2.

The 32-item List for Valuation and Estate/Succession Planning: Part 2 of 2.

Now that you have been introduced to the list from part one of this two-part blog series, we can dive into the specifics of the list and the “why” behind some of the categories. Background Data and Why it Matters. People often underestimate the background data section and its importance. The first item on the list is, “A statement as to the objective and purpose of the valuation and/or succession plan.” The “why?” matters here. Not all clients will want the same things whe

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