INDIVIDUAL TAX

Considering a Conversion from Traditional IRA to Roth? Think Twice.

The COVID-19 pandemic has certainly caused havoc in global markets and the U.S. economy throughout 2020. Along with the continued impact of the pandemic, the changing economic policies of a new presidential administration have added more uncertainty to the mix. It’s always important to stay on top of your financial status, but economic “crossroads” moments [...]

2021-02-25T13:44:34-06:00February 24th, 2021|INDIVIDUAL PLANNING, INDIVIDUAL TAX|

Federal Tax Filing Deadline Extended for All 254 Texas Counties

As a result of the recent winter storm, the IRS announced on February 22, 2021, that residents of all Texas counties and/or taxpayers who have a business in Texas would generally have until June 15, 2021, to file and pay their federal income tax. This extension includes income tax returns due on March 15 and [...]

2021-02-24T15:31:38-06:00February 23rd, 2021|BUSINESS TAX, DISASTER RECOVERY, INDIVIDUAL TAX|

Could the COVID-19 Pandemic Raise Your Tax Bill?

In response to widespread social and economic hardship during the COVID-19 pandemic, sweeping legislation and relief programs sought to aid struggling Americans and businesses. Meanwhile, millions of Americans temporarily (if not permanently) turned to remote work and freelance opportunities from the comfort of their homes. Even into 2021, the unpredictable impacts of COVID-19 continue to [...]

2021-02-19T10:56:50-06:00February 19th, 2021|COVID-19, INDIVIDUAL TAX|

Exempt Organizations: IRS Issues Final Rules on 21% Excise Tax on Excess Compensation

The IRS has issued final regulations under Internal Revenue Code Section 4960 regarding the 21% excise tax on excess executive compensation paid by certain tax-exempt organizations, such as nonprofit hospitals. The excise tax applies to an applicable tax-exempt organization (ATEO) that pays a covered employee more than $1 million in remuneration during a year or [...]

2021-02-12T11:04:27-06:00February 12th, 2021|BUSINESS TAX, INDIVIDUAL TAX|

Does Your Home Office Qualify for a Tax Deduction?

With so many business owners working from home this year, it’s important to remember how the home office deduction might apply to designated workspaces within your residence. Who Qualifies The Tax Cuts and Jobs Act suspended the “business use of home” deduction from 2018 through 2025 for employees, which means that if your sole source of income [...]

2021-01-12T11:35:30-06:00January 12th, 2021|INDIVIDUAL TAX|

The Consolidated Appropriations Act (CAA) Includes COVID-19 Relief to Individuals

Congress passed, and the President signed, the nearly 5,600-page Consolidated Appropriations Act (CAA), which includes COVID-19 and economic relief. The CAA includes over $900 billion in wide-ranging COVID-19 and economic relief. We’ve compiled some of the key provisions that affect individuals and their tax situations: Direct Payments of $600 to Americans Individuals making up to [...]

2021-01-11T14:38:42-06:00January 11th, 2021|COVID-19, INDIVIDUAL TAX|

Lending Money to Family? Be Sure to Stay on the Right Side of the IRS

In times of need, family steps up. It’s just what you do. But beware: While loaning money to family might seem like a good idea, if not properly executed, an intrafamily loan can lead to unexpected taxable income, gift tax, or both. Here are five tips to help avoid any unwelcome tax surprises: Document everything. [...]

2021-01-07T12:09:35-06:00January 7th, 2021|INDIVIDUAL PLANNING, INDIVIDUAL TAX|

New COVID-19 Relief Provisions for Individuals and Businesses

In the waning days of 2020, the latest of a series of COVID relief provisions were signed into law. This most recent round of stimulus and tax relief was tied to the Consolidated Appropriation Act. Not only does this bill provide additional economic aid in response to the pandemic, but it also avoids a federal [...]

2021-01-06T07:47:14-06:00December 30th, 2020|BUSINESS TAX, COVID-19, INDIVIDUAL TAX|

What Qualifies You to Receive the Second Stimulus Payment?

Congress passed, and the President signed a $900 billion COVID-19 relief bill providing $600 direct stimulus payments to individuals, $300 to extended weekly unemployment benefits, and more than $300 billion in aid for small businesses, among other COVID-19 relief benefits.   $600 Direct Payments to Americans The bill includes a $166 billion provision for direct payments [...]

2020-12-28T13:08:41-06:00December 22nd, 2020|COVID-19, INDIVIDUAL TAX|

2020 Election – Just How Different Are the Trump and Biden Tax Plans?

With so much election news in the air, small business owners are focused on something other than the coronavirus for a change: tax plans. President Donald Trump’s and former Vice President Joe Biden’s proposed tax policies both have the potential to change the playing field for small business owners. With so much riding on [...]

2020-11-10T15:33:46-06:00October 29th, 2020|BUSINESS TAX, INDIVIDUAL TAX|

How Does Year-End Tax Planning Look Different for 2020?

Will year-end tax plans look different this year? Absolutely. “The future is uncertain” maxim holds true every election year, but the coronavirus has amplified the uncertainties inherent in this year’s election. Regardless of who controls the White House and Congress, we cannot avoid change; in the months that follow, government leaders will need to determine [...]

Implications of the Employee vs. Independent Contractor Decision

Business growth, especially growth during economically trying times, is a great success and should be celebrated. But new growth can also bring a certain level of stress. To deliver promised products and services to new customers, most leaders will need to hire more workers. This responsibility can feel overwhelming, especially when leaders are unsure how [...]

2020-09-28T13:51:38-05:00September 28th, 2020|BUSINESS TAX, INDIVIDUAL TAX|

Kiddie Tax Rules on the Move Again

The Tax for Certain Children Who Have Unearned Income, informally known as the Kiddie Tax, has been a hot topic in legislative circles these days. Congress altered the Kiddie Tax rules when they enacted the Tax Cuts and Jobs Act (TCJA) at the end of 2017 but reversed those changes when they passed the Setting [...]

2020-08-24T14:25:54-05:00August 24th, 2020|INDIVIDUAL PLANNING, INDIVIDUAL TAX|

IRS Provides Coronavirus-Related Relief for Qualified Opportunity Funds, Investors

The IRS has provided new relief for qualified opportunity zone (QOZ) investors and qualified opportunity funds (QOFs) in response to the ongoing COVID-19 pandemic. 180-Day Investment Window Opens Wider On April 9, 2020, the Department of the Treasury and the IRS provided relief to taxpayers affected by the COVID-19 emergency by postponing due dates with [...]

Tax Concerns for Self-Employed Individuals

Today’s workforce is structured differently than it was 10 or 20 years ago. The gig economy began to take hold in the early 2000s, and today, almost a third of working Americans are self-employed or work for the self-employed. Self-employment can be a great opportunity for workers who want to chart their own path, ditch [...]

COVID-19 Impacts: Mid-Year Changes to Health Coverage and Dependent Care FSAs

On May 12, 2020, the IRS issued a notice permitting employers to allow the increased flexibility to make mid-year changes to their employer-sponsored health coverage, flexible spending accounts (FSAs), and dependent care assistance programs. Due to the impacts of the novel coronavirus, workers' needs and access to health care and childcare have vastly changed, thus [...]

Three Big Tax Relief Changes Due to Coronavirus

The Coronavirus Aid, Relief, and Economic Security (CARES) Act enacted on March 27, 2020, provides a number of tax changes that offer relief during the Coronavirus crisis. Three significant changes include: 1. Rollback of restrictions on using tax losses to recover taxes paid in profitable years, 2. Cash payments to individuals and families, and 3. [...]

2020-04-28T15:40:56-05:00April 28th, 2020|BUSINESS TAX, CONSTRUCTION, COVID-19, INDIVIDUAL TAX|

COVID-19: CARES Act Retirement Plan Relief Opportunities

The CARES Act, which was signed into law on March 27, 2020, allows a “qualified individual” to take $100,000 in distributions from an IRA, 401k, or other qualified retirement plan during 2020 and reap the following benefits: You will not have to pay the 10% early distribution penalty if you are under the age of [...]

IRS Expands Tax Deadline Deferrals to Cover Individuals, Trusts, Estates, Corporations, and Other Non-Corporate Tax Filers

To further aid taxpayers affected by the COVID-19 outbreak, the U.S. Department of Treasury and the IRS have elected to extend further critical tax deadlines affecting individuals and businesses. This notice expands the relief announced in March that allows most taxpayers until July 15, 2020, to file and pay federal income taxes that were originally [...]