January 2024 – DougFreemanCPA.com

Update on IRS efforts to combat questionable Employee Retention Tax Credit claims

Employee Retention Tax Credit (ERTC), Internal Revenue Service (IRS), Small Business, Small Business Owners, Small Business Tips, Tax Credits / Douglas Freeman

The Employee Retention Tax Credit (ERTC) was introduced back when COVID-19 temporarily closed many businesses. The credit provided cash that helped enable struggling businesses to retain employees. Even though the ERTC expired for most employers at the end of the third quarter of 2021, it could still be claimed on amended returns after that. According […]

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Seeing the big picture with an enterprise risk management program

(ERM) Enterprise Risk Management Program, Risk Management, Small Business, Small Business Stock, Small Business Tips / Douglas Freeman

There’s no way around it — owning and operating a business comes with risk. On the one hand, operating under excessive levels of risk will likely impair the value of a business, consume much of its working capital, and could even lead to bankruptcy if those risks become all-consuming. But on the other hand, no

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IRAs: Build a tax-favored retirement nest egg

Federal Taxes, IRA, IRA Early Withdrawal, Modified Adjusted Gross Income (MAGI), Roth IRA, Simples, The Secure Act 2.0, Traditional IRA / Douglas Freeman

Although traditional IRAs and Roth IRAs have been around for decades, the rules involved have changed many times. The Secure 2.0 law, which was enacted at the end of 2022, brought even more changes that made IRAs more advantageous for many taxpayers. What hasn’t changed is that they can help you save for retirement on

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Should your business offer the new emergency savings accounts to employees?

(PLESA) Pension-Linked Emergency Savings Account, 401K, 403 (b), 457 (b) (2), Employees, Small Business, Small Business Owners, Small Business Tips, The Secure Act 2.0 / Douglas Freeman

As part of the SECURE 2.0 law, there’s a new benefit option for employees facing emergencies. It’s called a pension-linked emergency savings account (PLESA) and the provision authorizing it became effective for plan years beginning January 1, 2024. The IRS recently released guidance about the accounts (in Notice 2024-22) and the U.S. Department of Labor

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Account-based marketing can help companies rejoice in ROI

Account-Based Marketing Campaigns, Marketing, Sales & Marketing, Small Business Owners, Small Business Tips / Douglas Freeman

When it comes to marketing, business owners and their leadership teams often assume that they should “cast a wide net.” But should you? If your company is looking to drive business-to-business (B2B) sales, a generalized approach to marketing could leave key customers and optimal prospects feeling like they’re receiving vague messages from a provider that

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Answers to your tax season questions

2024 Income Tax Return Filing Season, Federal Taxes, Income Tax, Tax Deadlines, Tax Identity Theft / Douglas Freeman

The IRS announced it will open the 2024 income tax return filing season on January 29. That’s when the tax agency will begin accepting and processing 2023 tax year returns. Here are answers to seven tax season questions we receive at this time of year. 1. What are this year’s deadlines? The filing deadline to

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Tax-favored Qualified Small Business Corporation status could help you thrive

C Corporation, Federal Income Tax, LLC, Partnerships, Qualified Small Business Corporation (QSBC), S Corporation, Small Business Tax Tips, Small Business Tips / Douglas Freeman

Operating your small business as a Qualified Small Business Corporation (QSBC) could be a tax-wise idea. Tax-free treatment for eligible stock gains. QSBCs are the same as garden-variety C corporations for tax and legal purposes — except QSBC shareholders are potentially eligible to exclude from federal income tax 100% of their stock sale gains. That

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The kiddie tax could affect your children until they’re young adults

Captial Gains, Federal Income Tax, Kiddie Tax / Douglas Freeman

The so-called “kiddie tax” can cause some of a child’s unearned income to be taxed at the parent’s higher marginal federal income tax rates instead of at the usually much lower rates that a child would otherwise pay. For purposes of this federal income tax provision, a “child” can be up to 23 years old.

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Does your business have employees who get tips? You may qualify for a tax credit

Federal Tax Credit, FICA, Restaurant Owners, Small Business Tax Tips, Small Business Tips, Uncategorized / Douglas Freeman

If you’re an employer with a business where tipping is routine when providing food and beverages, you may qualify for a federal tax credit involving the Social Security and Medicare (FICA) taxes that you pay on your employees’ tip income. Credit fundamentals. The FICA credit applies to tips that your staff members receive from customers

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It’s possible (but not easy) to claim a medical expense tax deduction

Federal Taxes, Itemized Deduction, Medical Deductions, Medical Expenses, Qualified Medical Expenses / Douglas Freeman

One of your New Year’s resolutions may be to pay more attention to your health. Of course, that may cost you. Can you deduct your out-of-pocket medical costs on your tax return? It depends. Many expenses are tax deductible, but there are several requirements and limitations that make it difficult for many taxpayers to actually

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