Category: Taxes
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Tax Simplification
We have read about tax simplification and post card tax returns for many months, but that is not the reality with the new tax law known as the Tax Cut and Jobs Act. Our federal income tax law and income tax calculation process is more complicated than ever before. The new tax law keeps almost…
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When business expenses are not deductible
A general principle of tax accounting is that we deduct ordinary and necessary business expenses from our gross income before reporting the net taxable income. However, this is not always the case. In some cases it is necessary to modify your tax accounting to comply with specific tax laws – even sometimes when the tax…
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2018 tax rates for married filing jointly
While most taxpayers get a decrease in marginal tax rates some small group of ‘married filing jointly‘ taxpayers will face higher marginal tax rates. This means that a married taxpayer with taxable income of $237,951 to $315,000 will see slightly less of a tax cut as a percentage of income compared to married taxpayers in other…
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The three basic principles of individual tax reform
The tax reform bill, as passed, does three key things for individual taxpayers: Temporarily changes the way we calculate “taxable income”. No longer do we calculate personal exemptions. Most deductions are eliminated. The standard deduction is increased. To estimate the impact on your taxes subtract the total amount of your current deductions and personal exemptions…
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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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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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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…
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Graduate students outraged by tax change
The tax reform process has triggered uncertainly and angst while final negotiations are worked out. Many groups, including graduate students, have good reason to be concerned. The proposals that passed by Republicans in both the House and Senate change the tax treatment of employer-provided educational benefits. Scholarships that are now tax-free for employees would be…