Update 105-HRAs, MSAs, and FSAs to Allow Over-the- Counter Drugs
Here’s good news. The CARES Act reinstated the ability of health reimbursement arrangements (HRAs) to reimburse and deduct the cost of over-the-counter drugs and added a new deduction for menstrual care products. The changes apply retroactively (yes, retroactively) to amounts paid after December 31, 2019. Business Wins As you likely know, individual taxpayers who itemize […]
Answers to 12 Employee Retention Credit (ERC) Questions
October, 2022 As you likely know, it’s not too late to file for the ERC. And now is a good time to get this done. You can qualify for 2020 credits of up to $5,000 per employee and 2021 credits of up to $7,000 per employee for each of the first three quarters. That’s a […]
More on Earning 9.62 Percent Tax-Deferred
You may remember from last month’s article that you can buy from now through October 31, 2022, Series I bonds from the U.S Treasury that pay 9.62 percent tax-deferred interest. If you buy now, you earn that 9.62 percent for six months, guaranteed. At the end of six months, the Treasury Department adds the interest […]
Act Now: Claim Your 2020 and 2021 Employee Retention Credit (ERC)
During much of 2020 and 2021, you may have qualified for the Employee Retention Credit (ERC). With the ERC, you found (or could find) tax credits of up to $26,000 per employee. That’s a lot. With 10 employees, that’s $260,000. Key point. If you have not claimed the ERC, you can amend your 2020 and […]
Self-Employment: Quick and Dirty Guide to Tax Issues and Savings
Are you considering joining the Great Resignation and becoming self-employed to be in charge of yourself? Yes? Okay, but before leaping, consider the tax implications. This self-employment thing may not be as rosy as it appears. Here’s the big picture. Don’t Believe the Hype Despite what some may believe, becoming self-employed won’t allow you to […]
Don’t Rob Yourself of the Home Internet Deduction
Given the connected nature of remote work these days, you likely use your home internet to do a little or a lot ofwork. In this article, you will learn how to deduct the cost of your home internet. The rules that apply to the home internetalso apply to all the other expenses incurred while working […]
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. […]