Adam’s Tax Blog
Note: Tax advice, articles, and content contained on this site are intended for informational and educational purposes only. They are not a substitute for professional advice. Tax matters are can be extremely complex and vary greatly for each individual or company. Please click here to read our complete disclosure and disclaimer for the information presented on this site.
Have Employees Who Receive Tips? Here are the Tax Implications
Businesses like restaurants, hotels, and salons employ individuals who receive tips as a significant part of their compensation. Tips are optional payments customers make to employees who perform services. They can be cash or noncash. Cash tips include those received...
Retirement Plan Early Withdrawals: Make Sure You Meet the Requirements to Avoid a Penalty
Most retirement plan distributions are subject to income tax. They may also be subject to an additional penalty if you take an early withdrawal. What’s considered early? In general, it’s when participants take money out of a traditional IRA or other qualified...
Do You Run a Business from Home? You May Be Able to Deduct Home Office Expenses
Many people began working from home during the COVID-19 pandemic. Many still work from home offices either all the time or on a hybrid basis. If you’re self-employed and run your business from home or perform certain functions there, you might be able to claim...
Many Tax Limits Affecting Businesses Have Increased for 2023
A variety of tax-related limits affecting businesses are indexed annually, and due to high inflation, many have increased more than usual for 2023. Here are some that may be important to you and your business. Social Security tax The amount of employees’ earnings that...
Why You Might Want to File Early and Answers to Other Tax Season Questions
The IRS opened the 2023 individual income tax return filing season on January 23. That’s when the agency began accepting and processing 2022 tax year returns. Even if you typically don’t file until much closer to the mid-April deadline (or you file for an extension),...
Forms W-2 and 1099-NEC Are Due to be Filed Soon
The 2023 filing season deadline is drawing near, but you should also be aware the deadline for businesses to file information returns for hired workers is even closer. Employers must file these forms by January 31, 2023: Form W-2, Wage and Tax Statement. W-2 forms...
Tax-Saving Ways to Help Pay for College — Once Your Child Starts Attending
Do you have a child or grandchild in college? Many parents and grandparents saved for years in tax-favored accounts, such as 529 plans, to help pay for expenses. But there are also a number of tax breaks you may be able to claim once your child begins attending...
How the New SECURE 2.0 Law May Affect Your Business
If your small business has a retirement plan, and even if it doesn’t, you may see changes and benefits from a new law. The Setting Every Community Up for Retirement Enhancement 2.0 Act (SECURE 2.0) was recently signed into law. Provisions in the law will kick in over...
Tax-Wise Ways to Save for College
If you’re a parent or grandparent with college-bound children, you may want to save to fund future education costs. Here are several approaches to take maximum advantage of the tax-favored ways to save that may be available to you. Savings bonds Series EE U.S. savings...
Employers Should Be Wary of ERC Claims that Are Too Good to Be True
The Employee Retention Credit (ERC) was a valuable tax credit to help employers who kept workers on staff during the height of the COVID-19 pandemic. While the credit is no longer available, eligible employers who haven’t yet claimed it might still be able to do so by...
SECURE 2.0 Law May Make You More Secure in Retirement
A new law was recently signed to help Americans save more for retirement, although many of the provisions don’t kick in for a few years. The Setting Every Community Up for Retirement Enhancement 2.0 Act (SECURE 2.0) was signed into law on December 29, 2022. SECURE 2.0...
The Standard Business Mileage Rate Is Going Up in 2023
The price of gas is a bit lower than it was a year ago, but the optional standard mileage rate used to calculate the deductible cost of operating an automobile for business is going up in 2023. The IRS recently announced the 2023 cents-per-mile rate for the business...