What small business owners should know about the depreciation of property deduction
Depreciation is an annual tax deduction that allows small businesses to recover the cost or other basis of certain property over the time they use the property. It is an…
IRS provides guidance on per diem rates and the temporary 100% deduction for food or beverages from restaurants
The Internal Revenue Service recently issued Notice 2021-63 to make clear how the temporary 100% business deduction for food or beverages from restaurants applies to taxpayers properly applying the rules…
IRS announces changes to retirement plans for 2022
Next year taxpayers can put an extra $1,000 into their 401(k) plans. The IRS recently announced that the 2022 contribution limit for 401(k) plans will increase to $20,500. The agency…
Teachers can deduct out-of-pocket classroom expenses including COVID-19 protective items
Fall is here and another school year is in full swing. Many teachers are already dipping into their own pockets to buy classroom supplies that will help set their students…
Foreign Earned Income and Housing Exclusion
If a taxpayer is a U.S. citizen or resident alien, the rules for filing income tax returns and paying estimated taxes are generally the same whether he or she is…
IRS announces 401(k) limit increases to $20,500
The Internal Revenue Service announced recently that the amount individuals can contribute to their 401(k) plans in 2022 has increased to $20,500, up from $19,500 for 2021 and 2020. The…
Bona Fide Residence or Physical Presence Test
A resident alien is generally taxed by the United States on worldwide income, just like a U.S. citizen. A U.S. citizen or resident alien who earns income in a foreign…
Find legitimate charities using the Tax Exempt Organization Search tool
When you decide to support a cause you care about, you want your donation to do as much good as possible. Doing some research can help ensure donations go to…
What employers need to know when classifying workers as employees or independent contractors
It is critical for business owners to correctly determine whether the individuals providing services are employees or independent contractors. An employee is generally considered anyone who performs services, if the…
Reporting Qualified Sick and Family Leave Wages Paid to Employees
The IRS issued guidance to employers on reporting the amount of qualified sick and family leave wages paid to employees on Form W-2 for leave taken in 2021. The notice…
