Reporting Requirements for Tips and Service Charges
Employers who run a service business, particularly small “mom and pop,” restaurants, often make the mistake of believing that tips earned by wait staff are nontaxable gifts. According to the IRS, it is the employer’s responsibility to report both tips and service charges as income. However, it is important that operators of service business understand the difference between the two as defined by the IRS.
What You Need to Know About Identity Theft
Reports show identity theft is on the rise. In 2016, losses from fraud and identity theft reached an all-time high of nearly $16 billion, up 16% from 2015. This article explains how to deal with the very real possibility of identity theft, by using a three-pronged approach of: Prevention, Monitoring and Response.
Reminder: E-file Is Only Available Until November 18th
The IRS issued a reminder that anyone who still has to file a 2016 return–even those who were affected by the recent hurricanes–can only make use of the e-file program until November 18th. After that, all 2016 tax returns will have to be filed on paper.
Federal Tax Reform: The Tax Cuts and Jobs Act
H.R. 1, the Tax Cuts and Jobs Act, is a wide-ranging proposed tax bill addressing many different aspects of the Internal Revenue Code. This advisory highlights what is included in this proposed legislation for individuals and families as well as businesses.
Republican Tax Proposal Could End the Estate Tax in Six Years
Under the current tax code, taxpayers can pass on, up to $5.49 million to their heirs, tax-free. For married couples, it’s nearly $11 million. Under the proposed Tax Cuts and Jobs Act, the federal estate tax exemption will first double, and then be repealed as of 2024.
Tax Credits or Deductions – Which Is Right For You?
Many people prize tax deductions. The promise of a deduction can affect decisions in many areas, including charitable contributions, home buying, and investing in rental property. However, tax deductions offer partial relief because they reduce income, not the tax bill.
What’s Your Retirement Number?
A staple in retirement planning is the search for “your number.” That is, how much money do you need to accumulate in savings and investment accounts so you can afford to stop working? Life expectancy is increasing, so the amount you have when you retire might have to last for decades.