Blogging Beyond the Numbers

As a company grows it more than likely will need to hire employees and pay those employees wages.  An employer that pays wages has a responsibility to pay payroll taxes and report those taxes to the IRS on quarterly and annual forms.  This post will look specifically at Federal Unemployment Tax (FUTA) taxes and ways businesses can attempt to reduce their future FUTA tax liability. Anyone who ...

As we head toward the holiday gift-giving season, some taxpayers also consider giving gifts of cash or securities to their family members. Who doesn’t like receiving a cash gift at year-end from the grandparents? Taxpayers can transfer substantial amounts to their children and others TAX-FREE through the use of the annual federal gift tax exclusion. The amount is adjusted for inflation annually. For 2019...

September 30: For calendar year-end trusts or estates that filed an extension, the 2018 Form 1041 is due October 1: Deadline for self-employed persons or small employers to establish a SIMPLE-IRA October 15: For calendar year C corporations that filed a six month extension, the 2018 Form 1120 is due along with any unpaid tax, interest and penalties.Final deadline to fund certain employer spo...

If you’re an owner of a Partnership, S-Corporation, or Sole Proprietorship and don’t have withholding from paychecks, or if you have a lot of income from investments or rental properties, you probably have to make estimated tax payments. These payments must be sent to the IRS and State governments on a quarterly basis. The third quarter 2019 estimated tax payment deadline for individuals is Monday, Sep...

As teachers head back for a new school year, they often pay for various classroom expenses for which they don’t receive reimbursement. Fortunately, teachers may be able to deduct these expenses on their tax returns. For 2019, qualifying educators can deduct some of their unreimbursed out-of-pocket classroom costs under the educator expense deduction. This is an “above-the-line” deduction, which m...

If you’re lucky enough to be a winner at gambling or the lottery, congratulations! Before you celebrate, understand the tax consequences of your good fortune. Winning at gambling Whether you win at the casino, a bingo hall, or office pool, you must report 100% of your winnings as taxable income. They’re reported on the “Other income” line on Schedule 1 of your 1040 tax return. To calculate yo...

IRS warned today that they became aware of another email scam. The email subject line may say “Automatic Income Tax Reminder” or Electronic Tax Return Reminder”. Also included in the “fake” email are links and temporary passwords to access files to get a refund. Unfortunately these links provide the scammers access to malicious files. DO NOT CLICK ON ANYTHING IN THESE EMAILS. DELETE TH...

The IRS announced that for 2018 tax returns already filed, the relief from the underpayment of estimated taxes would be automatically granted, even if the return as filed did not properly claim the relief. FACTS: In 2018 the withholding tables were changed due to the Tax Cuts and Jobs Act.  It was estimated that nearly 30 million taxpayers could be under withheld. To avoid an underpayment penalty...

Has your business received a “no match” letter in the past few months? Many businesses and employers nationwide have received “no-match” letters from the Social Security Administration (SSA). The purpose of these letters is to alert employers if there is a discrepancy between the agency’s files and data reported on W-2 forms, which are given to employees and filed with the IRS. Generally, a no ma...

You may have heard the term “kiddie tax” before. The “kiddie tax” rules prevent high-income taxpayers from shifting “unearned income” to their children or grandchildren in lower tax brackets. Children, in this case, refers to a child under age 19 at year-end, or under 24 years of age if they are in college and do not support more than 50% of their expenses. The term “unearned income” refers...