Did You Hire An In-Home Teacher? You Might Be A Household Employer!

With the rise of COVID-19, many families have had to switch to online or home school learning for the safety and wellbeing of their children. Kudos to all of the parents out there right now – I cannot begin to imagine the hardships and challenges this year must have brought. One choice that many parents …

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Filing an Amended Return

If there has been an error on your tax return that has already been filed, there’s a way to fix that! An amended return (Form 1040-X) can be used to correct several errors such as incorrect income, missed credits or incorrect deductions on your personal tax return. Small clerical errors are normally caught by the …

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Taxing legal marijuana – Arizona Prop 207 sales tax

If you are an Arizona resident, you likely know that this year the legalization of marijuana is on our ballot. Proposition 207 would legalize the possession and use of marijuana for adults 21+, allow growing of marijuana plants, licensing of marijuana retailers and expungement of marijuana related crimes. One aspect of the proposition that many …

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4th quarter 2020 check in

Did anyone else feel like this tax season was never-ending? Now that October 15th has come and gone, it is time to shift gears over to 2020 taxes. For many tax professionals, November and December is the time to sit down (likely virtually this year) with clients. It is a great time to see how …

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California exempts LLCs, LPs, and LLPs from first year $800 minimum fee

When California’s Governor Gavin Newsom signed the 2020 budget on June 29, 2020, the first-year exemption from the $800 minimum tax was finally extended to limited liability companies (LLCs), limited partnerships (LPs) and limited liability partnerships (LLPs). California corporations have been exempted from the $800 minimum tax in the initial year for some time. Don’t …

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Arizona Proposition 208

Have you heard that there is an election going on? And while most of the attention has been focused on the presidential election, there are local elections and initiatives, as well. A very interesting proposition in Arizona is Proposition 208 (Prop 208). This is also sometimes known as the Invest in Education Act. (Or Invest …

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The never ending tax season

Tax season, like the rest of 2020, seems to be going on forever this year. I am not sure if it is actually October 15th or March 229th. I think we can all agree that it has been a very long year. We started out 2020 with a bang, just knowing that it was going …

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Tax benefits for members of the military

If you are a member of the U. S. Armed Forces, likely the last thing on your mind is taxes. Be aware though, there are many special tax benefits available to members of the armed forces. Don’t miss: How to report identity theft to the IRS Following are six of those benefits: Deadline Extensions. Some …

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Transfer tax and foreign items adjust for inflation in 2021

Transfer tax and foreign tax figures are among those that are adjusted annually for cost-of-living increases. Thomson Reuters Checkpoint has calculated these figures for the year 2021 using the chained Consumer Price Index from August 2020. Don’t miss: Reasonable compensation for S-Corporation shareholder employees The annual gift tax exclusion will remain at $15,000 and the …

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Reasonable compensation for S-Corporation shareholder employees

S-Corporations have long been popular due to their single level of taxation as a pass-through entity and the shareholder’s share of the corporation’s net income is not considered self-employment earnings, and therefore, not subject to self-employment tax (15.3% in 2020). However, if the shareholder provides services to the S-Corp, he or she must receive reasonable …

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