What Is Form W-4?
On your employee’s first day on the job, you are required to ask them to complete federal Form W-4, Employee’s Withholding Certificate. (Multiple language versions are available here.) The employee enters various data onto the form — including their tax filing status, whether they have multiple jobs, any credits they have, the amount of other income they […]
How to Deduct Business Travel Expenses
Ordinary and necessary travel expenses are deductible when you travel away from home on business. You are considered to be traveling away from home if: In order to be deductible, the expense must be reasonable and not lavish under the circumstances. Determining your tax home Generally, your tax home is your regular place of business […]
Just How Does Property Tax Work?
Property taxes fund essential services such as roads, schools, public transportation, parks and emergency services in your community. Levied by city, county and school districts, these taxes combine to create a total tax rate, which is multiplied by your property’s assessed value to determine your tax bill. Your property includes the land you own and […]
Health Savings Accounts: How Do They Work?
Health savings accounts can be advantageous when your goal is to recruit new hires or improve existing employees’ job satisfaction. They are an incredible benefit that you can offer to people who work for you. Your employees will have the opportunity to save pretax dollars and put them toward qualified medical expenses, including copays, prescriptions, […]
Navigating a Business Tax Audit
If your business is being audited, take a deep breath and understand the reasons behind it. Audits may be random or triggered by issues specific to small businesses, such as excessive expenses, misclassified employees or questionable deductions. While an audit doesn’t necessarily mean you’ve done something wrong, it is the IRS’s way of verifying your […]
Tax Implications of Home Improvements
For any renovation or repair to qualify for a tax deduction, the work must qualify under IRS rules as a home (or capital) improvement. Examples of projects that may qualify include new additions, new roofs, whole room renovations, new siding, new heating or air conditioning systems and certain interior renovations such as new floors. In […]
Trusts Versus Wills: What’s Right for You?
A will is a legal document that takes effect after your death. It specifies how you want your assets distributed and allows you to name a guardian for minor children. Wills must be signed and witnessed according to your state’s laws, and they are filed with a probate court after your death. Probate is a […]
Is a Roth IRA Conversion Right for You?
There may be circumstances under which you would want to move assets from a traditional IRA to a Roth IRA. Only people who already have a Roth IRA can complete a Roth IRA conversion, but the conversion can be made even if your current income makes you ineligible for direct contributions to the Roth IRA. […]
Feds Make Retirement Dollars Available In Disasters Like L.A. Fires
The IRS has sent out a notice explaining how the SECURE 2.0 Act makes it easier for qualified individuals impacted by a federally declared major disaster to access their retirement savings. Who is eligible? A taxpayer may be eligible for relief that provides for expanded access to their retirement funds if their principal residence was […]
Form W-2: The Basics
In many ways, Form W-2 is simple and straightforward: You enter information that is already available from payroll and personnel records. You then use your employer identification number and, in most cases, a state ID number to complete most of the form. The main challenge comes when entering this data accurately into the fields on […]
