A Republican majority in Washington may bring an extension of key provisions of the Tax Cuts and Jobs Act, but further tax cuts may be difficult in light of fiscal concerns such as a burgeoning budget and shrinking revenue. Due to significant financial impact should certain provisions “sunset,” we are urging clients to have a
Will You Owe Your Nanny a W2 on January 31st?
Wondering whether or not you should give your in-home/live-in Nanny a 1099 or W-2? The answer depends on whether or not the individual in question is self-employed or a household employee. The simple answer is, if you control how the work is performed, the nanny is a household employee. In most cases a Nanny providing
End-of-Year Bonuses: Overtime & Tax Considerations for 2024
Nervous about end-of-year bonuses, overtime, and payroll taxes? Many employers reward and recognize high performers with a bonus, especially toward the end of the year. If you award bonuses, there are several overtime and tax rules to consider. Here’s an overview of some of these rules to help you as you close out the business
When Should You File as Head of Household?
The Head of Household status is considered to be the most advantageous filing status because taxpayers who qualify get a higher standard deduction and wider tax brackets compared to the single filing status. The Head of Household standard deduction will be $22,500 for tax year 2025. This is much higher compared to single taxpayers and
Key Structure and Tax Differences Between C-Corps and S-Corps
As we approach a new fiscal year, it might be a good time to review the different types of business structures available and possibly revisit yours for tax efficiency and protections. Like most entrepreneurs, when you started your business you probably chose to form a sole proprietorship because it’s less paperwork and less costly. However
2024 Year-End Tax Planning Tips Even Santa Likes
Don’t be naughty this holiday season, get an early start on tax planning instead of waiting until year-end! This gives you more time to meet with your TFG Accounting and Tax Professional and make the financial moves that can reduce your tax burden when you file in 2025. And, the faster you file your return,
Who is the IRS Auditing the Most?
As a part of a campaign promise four years ago, President Biden stated that individuals and households making less than $400,000 per year wouldn’t see tax increases. Two years later, the Inflation Reduction Act (IRA) was created and was chock full of tax credits, as well as a significant amount of funding for the IRS.
Benefits of Charitable Giving on Your Tax Burden
Most taxpayers will continue donating to their favorite charity at holiday time no matter what deduction they can or cannot claim. Donating appreciated stocks, bonds or other assets instead of cash still avoids all capital gains taxes whether or not a donor itemizes. Most folks don’t give to charity just to get a tax deduction,
When is “ROTH” the Best Choice for Your IRA or 401(k)?
The most common and powerful tools to help individuals save for retirement are IRA and 401(k) accounts. Both types also offer a “Roth” option, but most folks are not familiar with the similarities or differences between them, or know when a Roth is more advantageous tax wise for different stages of life. You might even
Yours, Mine, & Ours: Investing for a Blended Family
You may have noticed that multiple marriages, divorces, step-parents, bonus parents, single parents, and life partners make up numerous households across the country, and provide a second chance for happiness for many. However, navigating the unique financial needs of blended families can be a challenge. There may be children from a previous marriage, stepchildren from
