Thursday, December 3, 2020

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Posted February 05, 2020in Accounting

Have you heard about the Disaster Relief Act?

On Dec. 20, 2019, the President signed the Taxpayer Certainty and Disaster Tax Relief Act of 2019. Inside this law, Congress retroactively reinstated several tax deductions that lapsed on Dec. 31, 2017. This means that you can take them on the 2019 federal return and amend your 2018 tax return

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Posted January 01, 2020in Accounting

What type of fringe benefits can a business offer to employees?

Offering fringe benefits to employees is an excellent way to help attract and retain great staff, improve employee morale, and create tax deductions for the business. There are a variety of fringe benefits that businesses can offer to employees. These include but are not limited to: • Accident, health and

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Posted December 04, 2019in Accounting

How do S corporation shareholders deduct health insurance premiums?

More than 2 percent owner of S corporations are allowed to deduct 100 percent of the owners health insurance premiums as long the owner pays him(her)self a reasonable salary. To correctly report and deduct the owner’s health insurance premiums, the annual health insurance premiums are added to the owner’s box

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Posted November 06, 2019in Accounting

What are the 1099 filing requirements for payments to subcontractors?

Any business that pays $600 or more in any calendar year to an individual, LLC or partnership for services provided has a 1099 filing requirement. These services can include subcontractor work, extra labor or repairs. Generally, payments to corporations or LLCs taxed as corporations are exempt from the 1099 filing

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Posted October 02, 2019in Accounting

How does the College Savings Iowa Plan help people plan for education costs?

The College Savings Iowa Plan is a great tool for people to use in planning for their child’s education costs. The interest, dividends, and capital gains earned on plan funds are tax free income when they are used to pay for qualified education costs. Qualified education costs include: K-12 tuition;

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Posted September 04, 2019in Accounting

Do you know about Iowa’s Tuition and Textbook Credit?

The Iowa Tuition and Textbook credit is a state income tax credit for 25 percent up to $1,000 ($250) for each Kindergarten – 12th grade child’s qualified tuition, textbooks and certain extra-curricular activity costs. You must be able to claim the child as a dependent on your income tax return

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Posted July 31, 2019in Accounting

How much does a medical flexible spending account really save you?

Under the new tax law, it is difficult for many people to have enough medical costs to get a tax deduction on their income tax returns. Utilizing a medical flexible spending account gives employees the opportunity to get a tax deduction on medical costs that they wouldn’t otherwise normally get

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Posted July 03, 2019in Accounting

How much does a daycare flexible spending account really save you?

The IRS allows employees to designate up to $5,000 of wages to be tax free to pay for qualified daycare costs when employers have a qualified cafeteria plan set up. Cafeteria plans are a tax savings win/win for both the employer and the employee. Employers save roughly $382.50 per employee

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Posted June 05, 2019in Accounting

What is an LLC and how is it taxed?

LLC stands for Limited Liability Company and is a business entity form thatgenerally grants protection for the business owner personally from the business’s legal issues. Organizing as an LLC does not replace the need for business insurance. Interestingly, the Internal Revenue Service does not have a separate tax return form

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Posted April 15, 2019in Accounting

How does the new tax law help my business?

Undeniably, businesses and business owners were the big winners under the new tax law. For large C corporations, the highest corporate tax rate dropped from 35% down to 21%. All businesses can deduct 100% of the purchase price of equipment or assets and heavy vehicles in the first year. For

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