You may pay out a bundle in out-of-pocket medical costs each year. However, can you deduct them on your tax return? It is possible but not easy. Medical expenses can be claimed as a deduction only to the extent your unreimbursed costs exceed 7.5% of your adjusted gross income. Furthermore, medical expenses are deductible only […]
Federal Tax The IRS has announced a special new page on IRS.gov to provide the latest information affecting the 2022 filing season. The IRS has created this special web page to help taxpayers who may face numerous issues due to pandemic-related challenges and critical law changes that took place in 2021. This page: – Raises […]
While Congress did not pass the Build Back Better Act in 2021, there are still tax changes that may affect your tax situation for this year. That is because some tax figures are adjusted annually for inflation. If you are like most people, you are probably more concerned about your 2021 tax bill right now […]
The IRS announced it is opening the 2021 individual income tax return filing season on January 24. (Business returns are already being accepted.) Even if you typically don not file until much closer to the April deadline (or you file for an extension until October), consider filing earlier this year. Why? You can potentially protect […]
Auditing standards require external auditors to consider potential fraud risks by watching out for conditions that provide the opportunity to commit fraud. Unfortunately, conditions during the COVID-19 pandemic may have increased your company’s fraud risks. For example, more employees may be working remotely than ever before. In addition, some workers may be experiencing personal financial […]
Every business should prepare an annual budget. Creating a comprehensive, realistic spending plan allows you to identify potential shortages of cash, possible constraints on your capacity to fulfill strategic objectives, and other threats. Whether you have already put together a 2022 budget or still need to get on that before year-end, here are four red […]
The COVID-19 pandemic has put unprecedented stress on private business owners. Some are now considering selling their businesses. Before putting your business on the market, it is important to prepare it for sale. Here are six steps to consider. Clean Up The Financials Buyers are most interested in an acquisition target’s core competencies, and they […]
On October 25, the Financial Accounting Standards Board (FASB) issued a simpler accounting option that will enable private companies to more easily measure certain types of shares they provide to both employees and nonemployees as part of compensation awards. Here are the details. Complex rules Many companies award stock options and other forms of share-based payments […]
The IRS started issuing information letters to advance child tax credit recipients in December. Recipients of the third round of the Economic Impact Payments will begin receiving information letters at the end of January. Using the information in these letters when preparing a tax return can reduce errors and delays in processing. If you received […]
As we approach the holidays, many people plan to donate to their favorite charities or give money or assets to their loved ones. Here are the basic tax rules involved in these transactions. Donating to charity Normally, if you take the standard deduction and do not itemize, you cannot claim a deduction for charitable contributions. But […]