Split wages and withholdings in a community property state

Going back in its long history, state community property laws were justified by the pragmatic recognition that such joint ownership recognizes the theoretically equal contributions of both spouses to the creation and operation of the family unit, as a basic component of a civil society. Currently there are only nine states which are considered “community …

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Accountable plans save you taxes and benefit employees

When the Tax Cuts and Jobs Act (TCJA) was put into place at the end of 2017, one of the biggest disadvantages to taxpayers was the removal of miscellaneous itemized deductions for employee expenses. Employees used to receive a deduction on their schedule A for unreimbursed expenses incurred as an employee, but that is no …

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Who can I claim as a dependent

If you have children in their teenage years, you may have found yourself wondering how long they can be claimed as a dependent on your tax return. While the benefit for claiming dependents on your tax return pales in comparison to the cost of supporting a child, most parents will gladly take the help when …

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Don’t forget the expanded child and dependent care credit

The Child and Dependent Care credit might not be getting as much attention as the monthly child tax credit payments that recently started hitting parent’s back accounts, but its’ expansion could greatly impact millions of Americans and their 2021 tax returns. The enhancement of the Child and Dependent Care credit, included as a provision of …

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Pandemic remote working tax relief is ending

As we begin to see an end in sight for the pandemic in the United States, some states have started eliminating their temporary pandemic remote working tax relief programs related to employees working remotely. This could lead to your business being subject to additional state taxes, which may require you to file state tax returns …

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Tax method changes can provide beneficial opportunities

Last week I was visiting with a friend of mine who runs a family-owned business in Colorado. I have historically removed myself from any financial or tax discussions with him as they have used the same local advisor for many years. However, as we were visiting the new local brewery the topic of taxation came …

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How to use the IRS’s Identity Verification Service

In an effort to tamp down on fraud, the Internal Revenue Service has repeatedly reminded Americans it will never contact taxpayers by telephone. When the IRS needs to talk to you, it will send you a letter, directing you to call a telephone number or log in online. Now, the agency has gone a step …

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Free eBook offers details on COVID economic resources

Looking for all finance related COVID-19 information? Since the onset of the pandemic, multiple aid packages, legislation, guidance, deadlines, caps and more have been issued, changed or suspended. It’s enough to make your head spin. Henry+Horne has stayed on top of the changes so you don’t have to and we’ve compiled it all into a …

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Experienced an operating loss? Consider impairments of long lived assets.

The COVID-19 pandemic made 2020 a challenging year for restaurant operators. For many restaurants, the difficulties caused by the pandemic will require management to review the carrying amounts of long-lived assets for potential impairment. Impairment is the write-down of value for assets on your balance sheet. Annual review of asset carrying amounts is standard for …

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Do you qualify for the Employee Retention Credit?

With all the changes 2020 has brought us, the IRS figured why not add another to the seemingly never-ending list. Here comes the Employee Retention Credit (“ERC”). The ERC is a refundable payroll tax credit for qualified wages paid and health coverage provided by an employer whose operation was fully or partially suspended from the …

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