If you're an employee, your employer probably withholds income tax from your paycheck and pays it to the IRS in your name. The goal of tax withholding is to have just the right amount withheld — as close as possible to your actual tax liability. The amount of income tax your employer withholds from your regular pay depends on two things - the amount you earn and the information you give your employer on Form W-4. [Read more...]
Nancy J. Winter, CPA – What is an Able Account?
Living with a disability is often associated with significant amounts of extra costs. That’s why individuals and families can contribute to ABLE accounts — tax-advantaged savings accounts that can fund disability expenses. [Read more...]
Nancy J. Winter, CPA – Don’t Miss the Tax Extension Deadline
If you filed for a tax extension this year, be sure to keep the tax extension deadline (Oct. 15) on your calendar. A tax extension gives you until then to file your tax return. It’s not an extension of time to pay your taxes – those were due in May. People who asked for an extension should file on or before the extension deadline to avoid a late filing penalty or late payment penalty. [Read more...]
Nancy J. Winter, CPA – Independent Contractor or an Employee
The distinction between employees and independent contractors is important. The status of someone who works in your business makes a difference in how you pay them and in how they pay taxes.
Employees are individuals who works for an employer that controls the work of the employee – what will be done and how it will be done. [Read more...]
Nancy J. Winter, CPA – Qualifying for Tax Breaks for a Dependent Parent
For many families, the tables may turn, and adult children provide financial support for their parents. For example, you might have moved your in-laws from a long-term care facility into your home during the pandemic for safety and convenience. Or your widowed parent might still live in his or her own home, but you pay the rent and substantial medical costs. [Read more...]
Nancy J. Winter, CPA – Should I Name My Child as a Life Insurance Beneficiary?
Many people take out a life insurance policy for the purpose of providing for their children should they pass away. Ensuring that your children benefit from your life insurance doesn’t necessarily mean they need to be listed as the beneficiary, but if you choose to make a child the beneficiary, there are some important things to remember. [Read more...]
Nancy J. Winter, CPA – Reviewing Your Savings and Financial Strategies
When are you most likely to do a reality check on your overall financial health? Is it when your investments are doing well? Or is it when the markets are down and you're nervous? Chances are, it's the latter, which may not be the optimal time to make investment decisions. That's why taking the time to do an annual review of your investments and other financial matters makes sense. Here are 5 questions to ask when you do a financial review. [Read more...]
Nancy J. Winter, CPA – Summer Activities That Can Affect Your Taxes
If you started a summer/seasonal job, sent the kids to summer camp, or got married, you may qualify for tax credits. The Internal Revenue Service also recommends that taxpayers check the amount of their withholding taxes now to help avoid surprises next filing season if your job or marriage status has changed. [Read more...]