Are you taking advantage of Qualified Charitable Distributions ("QCDs")?
Many people withdraw money from their IRA to make charitable contributions. The IRA distribution becomes taxable income, and the charitable contribution reduces taxable income. It's a wash, so no big deal, right?
Are your out-of-pocket medical expenses giving you any tax benefit? Do you realize that unless you have an effective medical expense tax strategy in place, it is likely that your out-of-pocket medical expenses are NOT tax deductible?
We get calls every week from people who are concerned about scammers. It is very important to be extra cautious with your identity and banking information. The IRS will not inform you of a lawsuit via a phone call. They will not email you. They will not text you. They will not contact you on social media. If you ever have a communication from someone claiming to be the IRS, ask for their name, badge number, and call back number. Then you can call the IRS at 1-800-366-4484 and confirm their information. Included below is handy list for what to do if you suspect a scam. If you have questions, please call us first! We can help you determine if a request is legitimate or not.
Schedule C is an attachment to your personal tax return to report business income and expenses. Most often it is used for reporting small, side businesses, such as for a homemaker that also sells makeup, or an office worker that also does lawn care. There are no limits, though, and it can be used for much larger, full-time business activities. (I’ve seen it used for a sales business that exceeded $1 million a year in gross revenues!)
There is a familiar buzz in the air this time of year. Some anxiously awaiting their tax refund, others wondering why the heck they aren’t getting a tax refund at all. Even worse, some shocked by the news of a big fat tax bill they weren’t expecting. We all start to believe, or at the very least wonder, if an effective tax strategy is determined by the answer to this one question - “how big is your tax refund?”
Next Step Blog
Our blog is intended as a tool to keep people informed about relevant tax and accounting issues. If you have a question or an idea for a post, let us know!