Hints to Audit Proof Your Tax Return

Audit rates for individuals are at historic lows. The overall rate is down to a minuscule 0.45% for 2019. But recent proposals out of Washington D.C. would give the IRS up to $80 billion for auditing upper-income taxpayers. And when you consider households with income over $87,000 are considered to be in the top 25%…

Different Tax Rules for Different Assets

Know the rules and avoid a tax surprise! Are you thinking about making a major purchase? Whether that purchase is your primary house, a rental property, shares of stock or a piece of art, begin with the end in mind by thinking through how the property you’re buying is treated for tax purposes when you…

Get More Accuracy in Your Tax Forecasts

With ever-changing tax laws, forecasting your tax obligation is now extremely difficult to do. To make matters worse, this uncertainty can create the need to write a large payment to the IRS and pay penalties to boot! Here are some suggestions to help you manage this for you and your family. The basics of forecasting…

Beware the Tax Torpedo!

Large retirement account balances can cause Social Security tax problems Building a nest egg and holding a majority of your assets in your retirement accounts as long as possible may seem like a good idea, but waiting longer than you need to start taking distributions can also cause a tax problem. When you reach age…

Which Business Entity Is Right For Me?

Many business owners occasionally think about whether they should change entity structures. Trying to decide between the more popular entity structures, such as LLCs, C corporations, S corporations, partnerships or the simple sole proprietorship can get confusing. Here are some common reasons why you may want to change the entity structure of your business and…

Higher Taxes May Be In Your Future

Here’s what to think about now. There’s little question the tides are moving towards a higher tax environment with multiple trillion dollar spending bills, a new administration, and deficits as far as the eye can see. Instead of feeling helpless, here is a quick look at what might be on the horizon and some thoughts…

Avoid these IRA mistakes

These days we need to do all we can to boost our retirement savings, and tax breaks can help. To build your individual retirement account and maximize your potential savings, avoid these common IRA mistakes: Don’t delay opening an IRA. The earlier you start, the longer your savings will compound tax-deferred. Those extra early years…

Your 2021 Go-To Tax Moves

Here are three time-tested steps you can take to begin your 2021 tax planning on the right foot: Check your withholding. Confirm you have the right amount withheld from your paycheck in 2021. Doing this will help you make sure your withholdings will meet minimum tax payment requirements so you don’t end up paying underpayment…

Be Prepared For These Pandemic-Related Tax Surprises

Don’t get shocked by a high tax bill! Be prepared for these pandemic-related tax surprises when you file your 2020 tax return. Taxes on unemployment income. If you received unemployment benefits in 2020, you need to report these benefits on your tax return as taxable income. Check to see if either federal or state taxes were…

Your Tax Season Checklist

With tax filing just around the corner, now is a great time to look through your tax filing plan for 2021. Here are some ideas: Organize your records. Find a place in your house and put all the documents there when you receive them, or consider scanning documents to store on your computer. A great…