Tax Return – DougFreemanCPA.com

Corporate business owners: Is your salary reasonable in the eyes of the IRS?

C Corporation, Compensation, Corporate Business Owners: Is Your Salary Reasonable In The Eyes Of The IRS, Corporations, S Corporation, Tax Return, Tax-Deductible Business Expenses / Douglas Freeman

Determining “reasonable compensation” is a critical issue for owners of C corporations and S corporations. If the IRS believes an owner’s compensation is unreasonably high or low, it may disallow certain deductions or reclassify payments, potentially leading to penalties, back taxes and interest. But by proactively following certain steps, owners can help ensure their compensation is seen […]

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What tax documents can you safely shred? And which ones should you keep?

IRS Audit, Tax Record Retention, Tax Return / Douglas Freeman

Once your 2024 tax return is in the hands of the IRS, you may be tempted to clear out file cabinets and delete digital folders. But before reaching for the shredder or delete button, remember that some paperwork still has two important purposes: Keep the return itself — indefinitely Your filed tax returns are the

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The 2024 gift tax return deadline is coming up soon

Gift Tax, Tax Return / Douglas Freeman

If you made significant gifts to your children, grandchildren or other heirs last year, it’s important to determine whether you’re required to file a 2024 gift tax return. And in some cases, even if it’s not required to file one, you may want to do so anyway. Requirements to file The annual gift tax exclusion

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Can I itemize deductions on my tax return?

Charitable Contributions, Itemized Deduction, Tax Return / Douglas Freeman

You may wonder if you can claim itemized deductions on your tax return. Perhaps you made charitable contributions and were told in the past they couldn’t be claimed because you didn’t have enough deductions to itemize. How much do you need? You can itemize deductions if the total of your allowable itemized write-offs for the

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You may be able to make a deductible IRA contribution for last year this year

Contributions, IRA, Modified Adjusted Gross Income (MAGI), Roth IRA, Simplified Employee Pension (SEP), Small Business Owners, Tax Return, Taxes 2024, Traditional IRA / Douglas Freeman

If you’re getting ready to file your 2024 tax return and your tax bill is higher than you’d like, there may still be a chance to lower it. If you’re eligible, you can make a deductible contribution to a traditional IRA until this year’s April 15 filing deadline and benefit from the tax savings on

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Your guide to Medicare premiums and taxes

Medicare Premium Tax Deduction, Medicare Taxes, Modified Adjusted Gross Income (MAGI), Pass Through Taxation, Self Employed, Tax Return / Douglas Freeman

Medicare health insurance premiums can add up to big bucks — especially if you’re upper-income, married, and you and your spouse both pay premiums. Read on to understand how taxes fit in. Premiums for Part B coverage Medicare Part B coverage is commonly called Medicare medical insurance. Part B mainly covers doctors’ visits and outpatient

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Which leadership skills are essential to strategic planning?

Financial Statements, Small Business, Small Business Owners, Strategic Business Planning, Tax Return / Douglas Freeman

To help ensure continued stability and profitability, businesses need to engage in some form of strategic planning. A recent survey by insurance giant Travelers drives home this point. In its 2024 CFO Study: A Travelers Special Report, the insurer surveyed 610 chief financial officers (CFOs) from companies with 500 or more employees in various industries. One of

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Are you unfairly burdened by a spouse’s tax errors? You may qualify for “innocent spouse relief”

Federal Taxes, Innocent Spouse, Tax Return / Douglas Freeman

Navigating the complexities of tax law can be difficult, especially when faced with an unexpected tax bill due to the errors of a spouse or ex-spouse. The reason for such a bill has to do with the concept of “joint and several” liability. When a married couple files a joint tax return, each spouse is

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Keep these 3 issues in mind after you file your return

Filing an Amended Tax Return, Tax Refund, Tax Return / Douglas Freeman

The tax filing deadline for 2023 tax returns is April 15 this year. If you need more time, you can file for an extension until October 15. In either case, once your 2023 tax return has been successfully filed with the IRS, there may still be some issues to bear in mind. Here are three

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Filing jointly or separately as a married couple: What’s the difference?

Income Tax, Individual Income Tax, Tax Return, Taxes 2023, Taxes 2024 / Douglas Freeman

When you file your tax return, a tax filing status must be chosen. This status is used to determine your standard deduction, tax rates, eligibility for certain tax breaks and your correct tax. The five filing statuses are: Single Married filing jointly, Married filing separately, Head of household, and Qualifying surviving spouse. If you’re married,

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