Passive income is money you earn without actively working for it — as opposed to earned income from a job. In general, passive income comes from putting something you own to work — like property, money, and expertise that you share. The revenue you collect are all forms of passive income. Of course, passive income doesn't materialize on its own; it requires an up-front investment of money and time, but it can reap many benefits. [Read more...]
With the beginning of the school year already in full swing, the Internal Revenue Service reminds teachers and other educators that they'll be able to deduct up to $300 of out-of-pocket classroom expenses for 2023 when they file their federal income tax return in 2024. If filing a joint tax return and both taxpayers are educators, you can each claim up to $300 in expenses for a total of $600. Prior to 2022, the deductible amount was $250. [Read more...]
Starting a small business is no small feat. You must be resilient and dedicated if you want to build a business that makes a profit and stands the test of time. If you have a great business idea and want to try your hand at entrepreneurship, weigh the pros and cons first. [Read more...]
Thinking about securing your financial future with a Roth IRA? While Roth IRAs offer some fantastic tax benefits, they're not available to everyone. Following is some information to help you understand who is eligible for a Roth IRA. [Read more...]
In today’s competitive job market, giving gifts and other fringe benefits to employees can be an effective way for employers to show appreciation. But generous employers should understand that most gifts and bonuses have tax implications.
Employee recognition awards that involve money are taxable, both as income for the employee and as compensation for the employer. Other kinds of awards are tax deductible, such as non-cash awards for length of service to the company or for achievements in safety. Determining whether or not an award is tax deductible is important, in part because understanding what constitutes a tax- deductible award can make rewarding employees easier. [Read more...]
Every year, hundreds of taxpayers fall victim to tax fraud. Scammers file false returns using your name and Social Security number, and collect refunds from the federal and state governments. The IRS has taken additional steps every year, trying to educate taxpayers and help them protect themselves from these scams.
One of the most effective programs for preventing tax frauds is the Identity Protection Personal Identification Number, or IP PIN. Here’s what you need to know about IP PINs and how they protect you from tax fraud. [Read more...]
Is your child a college student? Are you still allowed to claim your college student as a dependent on your tax return? Who provides over one-half of your college student's support? Who is allowed to claim the education credits? All of these questions should be answered to determine if you can properly claim your college student as a dependent on your tax return. [Read more...]
As part of the Consolidated Appropriations Act (2021), the deductibility of business meals temporarily changed. Food and beverages were 100% deductible if purchased from a restaurant in 2021 and 2022. As of January 1, 2023, the meals and entertainment deduction has reverted back to the limits placed under the Tax Cuts and Jobs Act. Following is a list of expenses you can deduct either by 50 or 100 percent for the tax year 2023: [Read more...]