As the year comes to a close, it’s important for businesses to consider their tax planning strategies. While common strategies like accelerating expenses and deferring income can be effective, there are also outside-of-the-box tactics that can provide significant tax savings. You can dramatically affect the amount of taxes you owe at year’s end depending on the amount of planning and preparation you put into business tax management. Proper planning can help you take advantage of timely tax breaks. Here are several strategies to consider as you plan for 2023 business taxes ..read more

The world of business structures can be complex and overwhelming, with various categories and nomenclature to keep track of. For business owners, it’s important to understand the differences among these structures, as they have significant implications for taxes, liability, and business operations. Many business owners have inquired with our team regarding the difference between the most used business structures: the C-corporation or “C-Corp” and the limited liability company or “LLC.” Let’s dive in.   A C-Corp is a type of corporation that is taxed separately from its owners. It is req ..read more

Small businesses face unique challenges when it comes to managing their payroll. Inaccurate or delayed payments can create serious problems for both employers and employees. That’s why it is crucial for small businesses to invest in effective and accurate payroll software that is not a hassle to use. Some of the most critical reasons to invest in superior payroll software, include: Compliance with regulations: Small businesses must comply with a variety of federal, state, and local payroll regulations. Effective payroll software can help ensure that all requirements are met, including tax fili ..read more

If you are a parent saving for college tuition or going back to school to earn another degree, you know that college tuition has skyrocketed over the last few decades. State funding cuts, expanding administrative staffs, and increased construction and facility costs all play a role in the reasoning behind soaring tuition costs. As a result, the average student debt among college graduates is now close to $28,000. From tuition hikes to higher student loan borrowing costs, inflation is making college even more expensive. Fortunately, many have found 529 Plans to be a great tax-advanta ..read more

With the recent passage of the Inflation Reduction Act of 2022, the electric vehicle credit has undergone some major changes. Although most of the changes take effect in this year, to qualify for the current credit, vehicles purchased after August 15, 2022, are required to meet the final assembly requirement of the new law. If you’re shopping for an electric vehicle (EV) or plug-in hybrid electric vehicle (PHEV), it’s important to be aware of the changes to federal EV tax credits. Highlights include: Qualifying vehicles must be assembled in North America. Starting in March 2023, increasing pe ..read more

Now’s the time to take advantage of year-end moves to cut your next tax bill—before it’s too late. Whether you make a charitable donation, fund your retirement account or take advantage of helpful tax deductions, implementing these steps now can make a big difference at tax time. We have created two checklists— a Business Owners Checklist and an Individual Checklist that you can work through over the next few weeks to get organized for tax season. Download here -> The post Tax Strategies Checklist appeared first on Jeanine Hemingway CPA ..read more

It may seem early to talk about year-end tax planning, but with only roughly sixty days left in 2022, it’s important to take action now to favorably impact your tax bill this year, and to put yourself in good financial footing for the year ahead. End-of-year taxes are a significant part of tax planning for any business.  You can dramatically affect the amount of tax you owe at year’s end depending on the amount of planning and preparation you put into business tax management. Proper planning can help you take advantage of timely tax breaks. Here are several strategies to conside ..read more

You may have heard that President Biden recently signed the Inflation Reduction Act of 2022, a sweeping piece of legislation that is designed to address some of the significant issues that the U.S. is facing. Some of those issues include the high cost of prescription drugs, healthcare availability, climate change, and, yes, hopefully inflation. Proponents of the new law say that its various provisions for fighting climate change, supporting clean energy production, and raising tax revenue, will reduce the deficit and in turn, combat inflation. And some of the expanded tax credits in the legisl ..read more

For most business owners, once September rolls around thoughts turn away from summer vacations to the reality of tax deadlines and IRS requirements. One deadline just weeks away is September 15th, the due date of the prior three months of estimated taxes.  At Jeanine Hemingway, CPA, we receive many inquiries about estimated taxes, what they are, why they are important, and who should be concerned. This article will shed some light on your top questions and help you get organized for upcoming payment due dates. What Are Estimated Taxes? Taxes must be paid as you earn or receive income du ..read more

Are you familiar with the First-Time Homebuyer Tax Credit?  This tax credit, (as of June 2022) is still a bill and has not yet been passed into law. The bill was introduced by lawmakers in 2021 as an IRS tax code, that if it passes, will grant first-time home buyers up to $15,000 in refundable federal tax credits! The credit is aimed to help low-and middle-income Americans attain homeownership. Rather than having to wait until you file your return to see the funds, the funds would be advanced to the homebuyer at the time of closing. Experts say that this bill could pass by the end o ..read more