Paragon Accountants
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As the head accountant and founder, Erica is the driving force behind Paragon. Building on her wealth of experience, she turns every legacy-building interaction into a future-focused financial strategy that supports your continued growth. As a founder herself, Erica knows how to navigate the complexities that come with every "what if" and help you turn them into a plan of action...
Paragon Accountants
1w ago
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
Paragon Accountants
1w ago
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
Paragon Accountants
1w ago
If you’re wondering about your commuting expenses and whether or not they are potentially deductible we have all your information.
Unfortunately, commuting expenses, such as driving between your house and your office, are not eligible for tax deductions. This applies to any costs incurred while traveling between your home and your primary workplace, regardless of the distance.
Personal commuting expenses, such as driving a car or paying for transportation like buses, trolleys, subways, or taxis to and from work, cannot be deducted on your taxes.
However, there are exceptions. You can ded ..read more
Paragon Accountants
2M ago
The Internal Revenue Service (IRS) made an announcement this week that has provided much-needed tax relief for individuals and businesses grappling with the aftermath of severe storms and flooding that struck parts of California starting January 21, 2024.
The IRS has extended various federal tax deadlines, offering breathing room for recovery efforts.
San Diego County residents and businesses are among those eligible for tax relief following the disaster declaration issued by the Federal Emergency Management Agency. This relief grants taxpayers until June 17, 2024, to file certain federa ..read more
Paragon Accountants
3M ago
The rules for most domestic businesses have undergone a major change that business owners can’t afford to ignore. Effective January 1st, 2024, the Corporate Transparency Act now mandates that alongside state filings and article approvals, most businesses will require registration with the federal government through a Beneficial Ownership Information (BOI) report.
This blog post aims to break down the complexities of this new requirement, its implications for existing and new domestic businesses, and what steps business owners need to take to ensure compliance.
Understanding the Corporate ..read more
Paragon Accountants
5M ago
While tax season can be hectic for some people, it doesn’t always have to be. We have a comprehensive guide to help business owners prepare for tax season.
Step 1: Organize Your Financial Records
Gather all financial documents, including income statements, expense records, receipts, invoices, and bank statements. A lot of errors are made because files weren’t organized or someone misplaced a record. Be sure to make sure all of your transactions are categorized properly. Be sure to make sure your books are balanced, if you can’t do this yourself be sure to talk to a tax professional.
Step 2: Un ..read more
Paragon Accountants
5M ago
If you receive income via Venmo, PayPal, or CashApp then you’re in luck! The IRS chose to delay its 2021 law that required those who use payment platforms to send in tax forms if they received over $600 in that current year.
The Update
The IRS has postponed implementing the new regulation for another year, following last year’s decision to defer it until 2023. In an announcement on Tuesday, the agency stated it would extend the delay by another year “to reduce taxpayer confusion.”
An estimated 44 million 1099-K forms would have been dispatched to numerous taxpayers in the ongoing tax year, if ..read more
Paragon Accountants
6M ago
Before you go into debt with your business, you’re going to want to read this.
Today, we’re going to share with you the pros and cons of getting a loan or line of credit for your business.
Loan vs. Line of Credit vs. Credit Cards
There are two main ways that a business can get money from a lender: a loan or a line of credit.
A loan has a non-revolving credit limit. So you get a chunk of cash once and then you make interest and principal payments until it is paid off by a certain date. Because loans are more fixed, they often have better interest rates and terms, but that varies depending ..read more
Paragon Accountants
6M ago
Think all credit card rewards are great, think again!
Credit card companies love to tout their reward programs, from cash back on purchases to free travel and exclusive perks. These rewards are enticing, but behind the shiny facade of reward points, there are some important truths that consumers should be aware of.
Value Varies Depending on Redemption Options
The bottom line is: credit card reward points are not created equal.
The value of each point can vary depending on how you choose to redeem them.
Some credit card issuers allow points to be redeemed for cashback, merchan ..read more
Paragon Accountants
6M ago
Confused by where student loans lie right now? The government seems to be too!
What’s Happening Now
Your student loan payments were on pause, but they resumed a little over a month ago.
The Biden-Harris administration proposed a student loan forgiveness program that would wipe out up to $20,000 for certain debtors. However, in June of 2023, the The U.S. Supreme Court struck down Biden’s student loan forgiveness plan. Congress also passed a law preventing further payment pauses on student loan payments. You should have started repayment October 1st.
To help you remember, the government will sen ..read more