Month: October 2016
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Health insurance spike hurts small contractors in PA
Health insurance price increases will hit small business contractors hard next year. A Pennsylvania contractor earning $100,000 per year will pay about $350 more per month. I’ve already heard from Pennsylvania contractor clients facing rate increases of $750 or month and a NJ contractor with more than $1,000 hike in his monthly bill for family…
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How to appeal a Pennsylvania tax penalty
Taxpayers who feel that Pennsylvania tax penalties were improperly applied may appeal those taxes. In many cases the amount of the penalty will exceed the original amount of the tax adjusted. You should explain in detail why your tax relief request should be granted and attach additional documentation, if necessary, of any supporting documents. Petitions for refund…
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How to deal with shock increases in health insurance expense
Shocking increases in health insurance rates for 2017 have many of my small business clients reeling. The problem affects most people who pay for their own health coverage throughout the country. Some states and certain health plans are hit harder than others. The smallest rate increase I’ve seen directly in communications with clients is about…
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The return of flat fee tax planning
This month I am bringing back the flat fee income tax planning service that I promoted a few years ago. I stopped marketing this service last year under criticism from other accountants that I was underselling the value of this type of expertise. I saw it as a great way to attract new clients that justified deliberately…
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Tax collection: Uncivil or just dumb?
Yesterday the Pennsylvania Department of Revenue sent a collection agent to the business office of a local client over a $294 shortage of payroll tax withholding in 2011 through 2014 where the state then added over $750 of interest and penalties. The total bill with interest and penalties is a little over $1100. The business…
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Soaring cellular data costs
I live and work in an area 50 miles south of Philadelphia, Pennsylvania and 20 miles east of Dover, Delaware in a rural part of New Jersey not served by cables or phone wires. We used to have regular telephone wires that were used for basic internet in the 1990s but service was always spotty and…
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Self-employed dental insurance
Most self-employed people have medical insurance but relatively few have dental insurance. Medical insurance is required by law but dental insurance is not. In the past, small business health insurance plans often included dental insurance as an option. These plans were eliminated by the Affordable Care Act. Even just a few years into implementation of…
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Mobile technology is awesome
I was running errands in a tightly packed schedule today when I picked up an email message on my phone from a former client sent a message asking for a copy of his 2014 tax return. I have just recently switched over to an Office 365 platform and there are still some kinks to be…
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New Jersey death tax update
Until now, New Jersey had both an estate tax and an inheritance tax. Estate taxes are paid by the deceased person’s estate before the money is distributed to their heirs. Inheritance taxes are paid by the heir who inherits the money or assets. The New Jersey law referred to as the Transportation Trust Fund bill negotiated by state…
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Tax concepts in marriage and divorce
When a married couple owes federal taxes there are different outcomes that may be applicable and available. This blog post lists some of the concepts that IRS recognizes that might be considered in any stressed marital tax settlement: Joint and several liability Injured spouse allocation and relief provisions Innocent Spouse Relief Separation of liability Equitable relief…