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When you buy an asset that provides value over the course of a year, you may need to capitalize the asset and claim depreciation expense over the useful life of the asset. However, sometimes it makes more sense to claim accelerated depreciation. This simply means that you claim more depreciation expense in the year of …
Offset Those Winnings! Michigan gambling taxes are getting clarifications. If you hit it big at a Michigan casino (or while playing blackjack from your phone) in 2021, here’s some good news. Historically, the IRS has allowed gambling losses to offset gambling winnings so that taxpayers are not paying tax on the money they don’t have. …
Tax season can send terror through the hearts of the bravest citizens. You want your tax return to follow the law, but you also want to keep as much money as possible away from the IRS, that unpopular entity with so much power over your finances. This process can be like walking a tightrope between …
Year-End Tax Tips for a Successful Tax Season There are always changes going on in the tax world, legislation always making things interesting for us. Here are some things you can do NOW that will make your tax return go smoother. Record Keeping There are many different aspects of a tax return that depend on …
There are two components of FICA tax that are withheld from your payroll check, Social Security and Medicare. You’ll want to know how to calculate the withholdings on your payroll taxes. Both employees and employers equally split this mandatory payroll tax. FICA taxes differs from the federal and state income tax by taking a percentage …
Learn More About the Advance Child Tax Credit Heya folks! This summer, the IRS will help families by sending out advance payments of the Advance Child Tax Credit. We’re here to share the news and let you know how to claim your payments. If you are still reading this, then you probably have a qualifying …
Don’t give the IRS more money than you’re supposed to Key Provisions of Biden’s COVID Stimulus Bill Labeled as the “American Rescue Plan Act”, this bill will affect a lot of individuals and businesses. Unemployment Compensation, retroactive to 2020 tax year. The first $10,200 of unemployment benefits will be nontaxable per taxpayer, assuming their adjusted …
The IRS has posted a statement on its website acknowledging that it mistakenly sent non-filer notices to thousands of taxpayers regarding their 2019 returns (“CP59 notices”). The IRS shouldn’t have sent the CP59 notices because it hasn’t finished processing all the 2019 returns that were filed. The IRS sends CP59 notices to taxpayers who failed …
2020: The Year of Unemployment Did your child collect unemployment this year? Your family may be impacted by a lesser-known piece of the Internal Revenue Code aptly labeled the “Kiddie Tax”. The Kiddie Tax was implemented by the Internal Revenue Code to stop parents from shifting their investment income to their kids to avoid paying …
2020 is finally over and we all know what that means! It’s time for tax season! The COVID-19 pandemic has changed the economic landscape for just about everyone, and some of these changes may directly affect your 2020 income tax returns. No worries though, we won’t leave you hanging! The CPA Nerds have prepared our …
