As we approach the 2024 presidential election, tax policy is set to be a critical issue. Voters should pay close attention to the candidates’ positions on tax matters, as their policies will […] The post Tax Policy Questions 2024 Presidential Candidates Should Address and What They Will Most Likely Stand For and Why? appeared first on Paragon Accountants ..read more

The Mega Backdoor Roth IRA stands out as a powerful strategy for high-income earners looking to supercharge their tax-advantaged savings. While the traditional Roth IRA and 401(k) plans offer valuable benefits, the Mega Backdoor Roth IRA takes retirement planning to the next level by allowing individuals to contribute substantial amounts of after-tax dollars and enjoy tax-free growth potential. The Mega Backdoor Roth IRA leverages a lesser-known provision in certain employer-sponsored retirement plans, such as a 401(k) or 403(b). This strategy only works under unique circumstances which is why ..read more

Medical expenses can put a serious dent in anyone’s budget, and especially during uncertain times, it’s crucial to know how they impact your taxes. So, let’s dive into a question you might be too afraid to ask your tax accountant: Are medical expenses tax deductible? Fortunately, the IRS does offer some relief. If you find yourself with medical bills not fully covered by insurance, you might be eligible for deductions to lighten your tax load. But what exactly can you deduct, and how does it work? Well, the IRS allows deductions for a range of medical expenses, including preventative care, sur ..read more

Planning a renovation project? Let’s talk about some tax-saving tips that could make your home improvements even more rewarding. Today, we’ll explore both Federal and California-specific incentives that could save you money on your renovation journey. Federal Energy Efficiency Tax Credits Residential Renewable Energy Tax Credit. This credit allows homeowners to claim a portion of the cost of qualifying renewable energy equipment installed in their primary residences. This includes solar panels, solar water heaters, small wind turbines, and geothermal heat pumps. The credit is currently set at ..read more

California, renowned for its scenic beauty and vibrant economy, also carries the reputation of imposing high taxes on its residents. For those contemplating a departure from the Golden State, there’s an additional financial consideration that might catch them off guard: the California exit tax.  What exactly is the California Exit Tax? The California exit tax is a levy imposed on individuals and businesses who opt to move out of California. It forms a part of the broader California wealth tax strategy, aimed at taxing the wealth of state residents. Individuals with annual incomes exceedin ..read more

Taxes are an essential aspect of any modern society, serving as the primary source of revenue for governments to fund public services and infrastructure. However, navigating the intricacies of the tax system can often feel daunting and confusing for many individuals. In this blog post, we will delve into the fundamentals of how taxes work in the United States, shedding light on the different types of taxes, how they are calculated, and their significance in the functioning of the economy. In the United States, taxes can be broadly categorized into three main types: Income Taxes Income taxes ..read more

As an entrepreneur or business owner, the drive to grow your company is likely one of your primary goals. However, amidst the excitement of expansion, it’s crucial not to overlook the importance of managing your cash flow effectively. After all, cash flow is the lifeblood of any business, and improper management can lead to serious financial instability, hindering your growth ambitions.  So, how can you navigate the delicate balance between growth and cash flow management? Let’s explore some strategies. Forecasting and Planning: The first step in managing cash flow effectively is to creat ..read more

There’s no way around it I know, the commute to work combined with the lack of parking in big cities is frustrating to many. Some employers have the ability to set up a Parking Reimbursement fund for their employees.  So let’s get into it!  Parking reimbursement is a perk where employers compensate their staff for parking expenses incurred during work duties. This perk is free from taxation.  Employees cover the initial costs for eligible expenses, complete a claim form, and subsequently receive reimbursement through their payroll. Eligible expenses include: Parking fees, such ..read more

Understanding the IRS Rule Effective  in 2024, the SECURE 2.0 Act permits employers to contribute to an employee’s retirement plan, such as a 401(k) or 403(b), based on the employee’s student loan payments. This innovative approach means that even if employees are financially unable to contribute to their retirement accounts due to the burden of student loans, they can still receive employer contributions, fostering both student debt repayment and retirement savings growth. How the Plan Works Employee Enrollment: Employees with student loans opt into this benefit, allowing their student ..read more

The whirlwind of personal income tax return season has finally subsided for another year – or so you thought, until you realize there’s information you forgot to include. Whoops!  Now what? Your next steps depend on the nature of the overlooked information. For example, let’s say you reported all your income on the return you sent to the IRS… but then you realize you forgot to attach a copy of your wage statement. In this scenario, it’s best to take no immediate action. The IRS will eventually send you a notice requesting the missing form. However, other errors, such as leaving out income ..read more