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 …

Keep Reading

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 …

Keep Reading

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 …

Keep Reading

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 …

Keep Reading

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 …

Keep Reading

Your 2020 tax return and the Recovery Rebate Credit

The 2020 Recovery Rebate Credit (RRC) was implemented during the 2020 tax year on form 1040 as part of the CARES Act which became law in March of that year. The first and second round of stimulus checks were advance payments of the 2020 Recovery Rebate Credit. The RRC ensures that everyone who should have received …

Keep Reading

IRS releases draft instructions for forms K-2 and K-3

On June 29, 2021, the IRS released draft instructions of forms K-2 and K-3, after receiving feedback on the initial instructions that were released in July 2020. These new draft instructions may be found here https://www.irs.gov/pub/irs-dft/i1065s23–dft.pdf. The new forms will be effective for the 2021 tax year. Don’t miss: What are duty free zones? Forms …

Keep Reading

What are duty free zones?

If you’ve caught a flight in an international airport, you’ve likely seen shops in the airport marketing that they are “Duty Free Zones”. While most people may assume this means that goods purchased there are free from some type of tax, have you ever stopped to wonder what a duty is, and why these shops …

Keep Reading

IRS allowing electronic signatures on some non-e-filed forms

In pre-COVID world, clients often came to our office to sign important paper tax filings. After signing, we mailed the forms certified mail/return receipt, so the taxpayer had proof of timely filing. After the pandemic started, clients struggled with getting forms signed and safely mailed. Last August, the IRS began allowing electronic signatures on certain paper …

Keep Reading

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 …

Keep Reading