Author: Tony Novak
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Higher marginal tax rate for some single filers
While most taxpayers get a decrease in marginal tax rates some single taxpayers will face higher marginal tax rates. This means that a single taxpayer with taxable income of $195,450 will see significantly less of a tax cut than a single with taxable income of $157,500. This does not mean that these taxpayers will necessarily see…
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First five strategies to deal with the new tax law
My action plan for bringing actionable information to clients as soon as the tax bill becomes law. Update December 31, 2017: Major parts of the law become effective tomorrow. I’ve moved past most of the preliminary points in this article and am now focused on the actions that can make the most immediate impact on…
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Why the tax law might not mean much to you (but a lot for the rich)
We now have the final details of the federal income tax bill published about 10 hours ago1. It seems natural for a tax geek like me to immediately calculate the effect the tax bill has on my family. My family is clearly in the ‘middle of the middle class’ by any measurement we may choose…
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Adjusting payroll taxes for 2018
Once all the political commotion over tax reform settles, what most people care about is “Is my paycheck going up or down?” The problem is complicated by politicians promising a big tax cut on the television news and through social media channels while accountants warn that some people will likely pay more. The end result…
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Collapse of the democratic rulemaking process
Never in our lifetime has the will of the people mattered less than this month. We know that over 75% of Americans oppose the tax bill being pushed by a small group of Republican oligarchs. Today the federal government repealed net neutrality rules that, as far as we can tell, is an action opposed by…
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The Paperless Office
I began the move toward a paperless office more than 20 years ago. Back then I operated a 5 person inter-discipline office with technology dominated by cables running from one machine to another. I was the the firm owner as well as the ‘technology guy’ by virtue of my early adoption of PC technologies1. By…
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Respect for law / December 12, 2017
“I submit that an individual who breaks a law that conscience tells him is unjust, and who willingly accepts the penalty of imprisonment in order to arouse the conscience of the community over its injustice, is in reality expressing the highest respect for law.” – this excerpt from Martin Luther King’s letter from Birmingham jail…
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Facebook Live: “30 Minutes to Faster, Easier, Cheaper Small Business Accounting”
Look for online announcements of upcoming presentations. I will be hosting a series of free, short, fast-paced online programs for small business owners, self-employed folks and part-time freelancers. The intent is to help us prepare to save time and money on tax accounting in 2018. It will be Facebook Live presentation with the ability to…
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Qualified Small Employer Health Reimbursement Arrangements for 2018
(This inform is not updated to reflect 2019 proposed regulations so should be presumed to be partially obsolete). Last month the Internal Revenue Service released 59 page Notice 2017-67 which provides guidance on Qualified Small Employer Health Reimbursement Arrangements (QSEHRAs). QSEHRAs were first established as part of the 21st Century Cures Act enacted in late 2016…
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Tax preparers consider expanding small business services
Now more than ever before, tax preparers are considering expanding their practice into small business services. We expect the number of self-employed people will continue to rise. They require assistance with a wider range of business support services than traditional individual tax clients. The market for these services is evolving at a rapid pace. Integrated…