The Planner Blog
Pros and Cons of Getting a Tax Extension
There are many reasons you can choose to file an extension for your income taxes. Most likely, you simply need more time to gather all of your information or meet with your accountant. But is there a downside to filing an extension?
2021 Advanced Child Tax Credits and How it Works
For tax year 2021, the Child Tax Credit increased from $2,000 per eligible child to $3,600 per child ages five and younger and $3000 for children ages six to 17. The amount of Advanced Child Tax Credits is half of the new credit amounts. So, starting July 2021, if you are eligible, you will start to receive monthly Advanced Child Tax Credit payments. If your child is five years old or younger, the payment would be $300 per month through December. That is $1,800, or half of the new Child Tax Credit amount. If you have children between the ages of six and 17, your monthly payment will be $250 per month through December, or $1,500 total.
Tax Credits vs Tax Deductions: Understanding the Difference
Tax deductions are great, but tax credits are even better! So what's the difference? Glad you asked!
When to File an Amended Tax Return
You filed your return, and you forgot something, or you realize the return was wrong. How do you fix?
Often Missed Small Business Expenses
You are forgiven for not being able to keep up with all of the changes in small business taxes. It has been a chore to digest everything even for professionals. Here is a recap of recent small business expense changes.
Why You Need a Profit First Professional
Profit First can truly change your business, and it is 100% effective when implemented. But there's the catch! You have to implement it.
The Vital Pros and Cons of an S Corporation
An S corporation is a type of corporation that meets the specified requirements of the Internal Revenue Code (IRS). An S corporation passes through most of its business income and loss to its shareholders like a sole proprietor. The owners are not liable to pay double tax, at the corporate level and then on the individual shareholder level.
Capital Improvements
Accountants are weird. They use funny words and use lots of spreadsheets. One common word is Capital Improvements. Similar words that they use to describe the same things: Capital Assets, Fixed Assets, Property, Real Estate, FF&E (Furniture, Fixtures, & Equipment). In the accounting tax world, all of these terms describe something with an economic benefit beyond one year.
What Kind of Education Qualifies as a Business Expense?
You're not really getting paid to learn, but it definitely pays to learn.
Growing Profitably at All Stages
Ask any entrepreneur about their business goals and the No. 1 or No. 2 answer is going to be something around growth. In my entrepreneurial circles, the questions are, “How much revenue do you have?” or “How many employees do you have?” Never, not once, have I asked the question, “Yeah, but how much money did you make?”
Your Business is Probably Eligible for the Employee Retention Credit
We've written about the Employee Retention Credit (ERC) expansion in the American Rescue Plan Act of 2020, but our experience is that most small businesses don't realize they are probably eligible for large refunds. Eligible businesses can receive up to $14,000 PER EMPLOYEE, so it is worth revisiting to see if your business is eligible.
Hobby vs. Business: What are the Tax Implications
During lean times, people find opportunities to turn their hobby into a few extra bucks. Sometimes those opportunities explode into more possibilities than expected. It doesn’t take long before you ask yourself a reality-check question.
Bunching Tax Deductions
Lots of the old tax rules have changed in the last few years. If you haven't reviewed and adapted, you are likely paying your rich Uncle Sam too much. The Tax Cut and Jobs Act (TCJA) combined the amounts for standard deductions and exemptions into one number. The Act also eliminated deductions entirely. This effectively removed itemized deductions for many tax payers since the standard deduction/exemption for 2020 is $24,800 (married filing jointly).
Small Business Tax Strategies for 2021
2020 brought a lot of unique challenges to entrepreneurs, and 2021 is shaping up for a wild ride as well. It is easy to miss tax planning when you're trying to keep your proverbial head above water. I've created a quick check list of the most impactful small business tax strategies for 2021.
Benefits and Disadvantages of a Single Member LLC
Are you thinking about becoming a single-member LLC?
American Rescue Plan Act of 2021
Congress is keeping the printing presses rolling. This is a summary of the American Rescue Plan Act of 2021 (Act) and its impact on small business owners. We will update with more detail after the IRS has had a chance to promulgate their rules, so stay tuned!
Tax Tips for Small Business Owners Facing Divorce
We will not mince words here: getting divorced can be a long, drawn-out, and complicated process — both personally and professionally. But since we are not therapists, we will be focusing on how to handle your taxes when both parties have a stake in a small business. Keep reading for advice on future tax implications, retirement accounts, and more from our experts at Core Group.