In the past, the child tax credit has been intended to provide support for each child of American taxpayers. Following the past year, however, one in which many families have faced financial struggle, the American Rescue Plan has expanded that child tax credit in an unprecedented way.
Back when you started your own small business,you most likely started out by hiring a few independent contractors. You were hesitant to hire anyone outright, and simply needed a little help along the way. However, suddenly you became large enough…
Small and mid-sized business tax preparation can be complicated, especially for those who have opted to run their business as an S Corp. Though converting to an S Corpenables businesses to save more money through taxation than a sole proprietorship, the IRS regulations around it are what makes it complex to navigate.
A benefit of an S Corp is the distributions you receive as an owner do not have payroll taxes withheld. However, the IRS requires the owner to become an employee for tax purposes, and, on top of that, take a “reasonable salary”. Over or underpaying yourself, or misrepresenting a salary as distributions, could result in costly penalties.
The Treasury Department and Internal Revenue Service announced the federal income tax filing due date is automatically extended from April 15, 2020, to July 15, 2020. We are continuing to work and complete as many tax returns as we can…
Following President Trump’s declaration of a national emergency, Treasury Secretary Steven Mnuchin stated at a press conference on March 17, 2020 that individuals can defer tax payments up to $1 million for 90 days. Corporations can defer up to $10…
Dear Clients and Friends, As the current situation surrounding the outbreak of the coronavirus (COVID-19) continues to evolve, please know that the health and well-being of our clients and staff is a top priority at Scharf Pera & Co., PLLC….
In today’s tightening job market, to attract and retain the best employees, small businesses need to offer not only competitive pay, but also appealing fringe benefits. Those that are tax-free are especially attractive to employees. Examples include many types of…
Section 529 plans are a popular education-funding tool because of tax and other benefits. Two types are available: 1) prepaid tuition plans, and 2) savings plans. A prepaid tuition plan guarantees tuition regardless of its cost when the child attends…
Have you recently started a new business or are you contemplating starting one? Keep in mind that not all start-up expenses can be deducted on your federal tax return right away. Some expenses probably must be amortized over time. You…
The rules for writing off personal casualty losses on a tax return have changed for 2018 to 2025. Specifically, taxpayers generally can’t deduct losses unless the casualty event qualifies as a federally declared disaster. (The rules for business or income-producing…