May 2023 – DougFreemanCPA.com

Keep these DOs and DON’Ts in mind when deducting business meal and vehicle expenses

Business Expenses, Business Meals and Entertainment, Business Vehicle, IRS Audit, Tax Code, US Tax Court, Vehicle Expenses / Douglas Freeman

If you’re claiming deductions for business meals or auto expenses, expect the IRS to closely review them. In some cases, taxpayers have incomplete documentation or try to create records months (or years) later. In doing so, they fail to meet the strict substantiation requirements set forth under tax law. Tax auditors are adept at rooting […]

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Being a gig worker comes with tax consequences

Federal Taxes, Gig Economy, Independent Contractors, Individual Income Tax, Side "Gig", Small Business Tax Tips, Taxes 2023 / Douglas Freeman

In recent years, many workers have become engaged in the “gig” economy. You may think of gig workers as those who deliver take-out restaurant meals, walk dogs and drive for ride-hailing services. But so-called gig work seems to be expanding. Today, some nurses have become gig workers and writers in Hollywood who recently went on

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The IRS has just announced 2024 amounts for Health Savings Accounts

Health Savings Account, High Deductable Health Plan, HSA, Inflation, Tax Deduction / Douglas Freeman

The IRS recently released guidance providing the 2024 inflation-adjusted amounts for Health Savings Accounts (HSAs). HSA fundamentals An HSA is a trust created or organized exclusively for the purpose of paying the “qualified medical expenses” of an “account beneficiary.” An HSA can only be established for the benefit of an “eligible individual” who is covered

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Questions you may still have after filing your tax return

2022 Tax Return, Federal Tax Credit, Tax Deduction, Tax Record Retention, Tax Refund, Tax Return / Douglas Freeman

If you’ve successfully filed your 2022 tax return with the IRS, you may think you’re done with taxes for another year. But some questions may still crop up about the return. Here are brief answers to three questions that we’re frequently asked at this time of year. When will your refund arrive? The IRS has

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4 tax challenges you may encounter if you’re retiring soon

Federal Taxes, Required Minimum Distributions (RMD), Retirement, Social Security, Tax Considerations of Selling Your Home, Tax Planning, Tax Rules for Selling Your Home / Douglas Freeman

Are you getting ready to retire? If so, you’ll soon experience changes in your lifestyle and income sources that may have numerous tax implications. Here’s a brief rundown of four tax and financial issues you may contend with when you retire: Tax planning is still important As you can see, you may have to make

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If you’re hiring independent contractors, make sure they’re properly handled

Employee Benefits, Employee Tax Audit, Employees, Form 1099-NEC, Independent Contractors, Small Business, Small Business Tax Tips / Douglas Freeman

Many businesses use independent contractors to help keep their costs down — especially in these times of staff shortages and inflationary pressures. If you’re among them, be careful that these workers are properly classified for federal tax purposes. If the IRS reclassifies them as employees, it can be an expensive mistake. The question of whether

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6 tried-and-true strategies for improving collections

Accounts Receivable, Billing and Collections, Small Business, Small Business Tax Tips, Tax Deduction / Douglas Freeman

Businesses that operate in the retail or restaurant spheres have it relatively easy when it comes to collections. They generally take payments right at a point-of-sale terminal and customers go on their merry ways. (These enterprises face many other challenges, of course.) For other types of companies, it’s not so easy. Collections can be particularly

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Use the tax code to make business losses less painful

Business Deductions, Net Operating Loss (NOL), Small Business, Small Business Owners, Small Business Tax Tips, Tax Code, Tax Cuts and Job Acts (TCJA) / Douglas Freeman

Whether you’re operating a new company or an established business, losses can happen. The federal tax code may help soften the blow by allowing businesses to apply losses to offset taxable income in future years, subject to certain limitations. Qualifying for a deduction. The net operating loss (NOL) deduction addresses the tax inequities that can

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The IRS clarifies what counts as qualified medical expenses

AGI (Adjustable Gross Income), Federal Income Tax, FSA, HSA, Itemized Deduction, Medical Deductions, Medical Expenses, Qualified Medical Expenses / Douglas Freeman

If you itemize deductions on your tax return, you may wonder: What medical expenses can I include? The IRS recently issued some frequently asked questions addressing when certain costs are qualified medical expenses for federal income tax purposes. Basic rules and IRS clarifications. You can claim an itemized deduction for qualified medical expenses that exceed

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Education benefits help attract, retain and motivate your employees

Employee Benefits, Fringe Benefits For Employees, Qualified Educational Assistance Program / Douglas Freeman

One popular fringe benefit is an education assistance program that allows employees to continue learning and perhaps earn a degree with financial assistance from their employers. One way to attract, retain and motivate employees is to provide education fringe benefits so that team members can improve their skills and gain additional knowledge. An employee can

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