Tax-Saving Tips

Is Your Sideline Activity a Business or a Hobby? Do you have a sideline activity that you think of as a business? From this sideline activity, are you claiming tax losses on your Form 1040? Will the IRS consider your sideline a business and allow your loss deductions? The IRS likes to claim that money-losing […]

Make Extra “Catch-Up” Contributions to Retirement Accounts: We Quantify the Benefit

After reaching age 50, you can make additional “catch-up” contributions to certain types of tax-advantaged retirement accounts. For the 2021 tax year, this opportunity is available if you’ll be age 50 or older on Friday, December 31, 2021. Specifically, with an employer-sponsored 401(k), 403(b), 457, or SIMPLE plan, you can make extra salary-reduction catch-up contributions […]

Ready, Set, Depreciate

When you buy real property (or personal property that lasts more than one year) to use in your business, you may have up to three options for deducting the cost: Regular depreciation Bonus depreciation IRC Section 179 expensing (technically, depreciation in advance) Regular depreciation takes several years. Bonus depreciation allows you, through 2022, to deduct […]

Vaccinated? Claim Tax Credits for Your Employees and Yourself

As the nation suffers from the ravages of the super-contagious COVID-19 delta variant, the federal government desperately wants all American workers and their families to get vaccinated. If you have employees, you probably feel the same way. Indeed, more and more employers are implementing vaccine mandates—a trend that will likely grow as the FDA gives […]

Don’t Miss Out on the Employee Retention Credit

Your government wants your small business to survive (and likely thrive, too). Since COVID-19 struck, the government has created free and/or easy money in the form of tax credits and loans that are forgiven. The employee retention credit (ERC) is one such perk for your small business, and it’s operating in high gear right now. […]

You Took Coronavirus-Related IRA Money Last Year: What Now?

If you’re a traditional IRA owner who was adversely affected by the COVID-19 pandemic last year (2020), you may have been eligible to takea tax-favored coronavirus-related distribution from a traditional IRA.If so, that privilege was thanks to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).In this analysis, we will call these tax-favored traditional […]

The Work Opportunity Tax Credit rewards your good deeds

The Work Opportunity Tax Credit rewards your good deeds. And now, because of new legislation, the rules are in place for longer than usual. If you need to hire workers in your business, this dollar-for-dollar reducer of your taxes is one to know about. Suppose your business hires a member of a targeted group. In […]

New Wisconsin Tax Laws Affect 2020 Wisconsin Tax Returns

On February 18, 2021, Governor Tony Evers signed 2021 Wisconsin Acts 1 and 2, which provide the following significant changes for 2020 Wisconsin income/franchise tax returns. The tax form instructions are being updated and more information will be published next week in Wisconsin Tax Bulletin 212. Earned Income Tax Credit Wisconsin adopted section 211 of […]

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