Can Tariffs replace income tax?

President Trump has talked about bringing jobs back to the U.S. and replacing income tax revenue with foreign tariffs. However, income tax revenues average approximately $2 trillion annually, while the U.S. imports about $4 trillion in goods. This means that tariffs would need to be high or imports would need to increase significantly. The nonprofit […]

Happy Birthday to the EITC

Happy 50th birthday to the Earned Income Tax Credit (EITC)! The credit became effective in 1975 when President Ford signed it into law (as part of the Tax Reduction Act) to provide financial assistance to working families. Then, the maximum EITC amount was $400. In 2024, eligible taxpayers can claim a credit of up to […]

FAQs about reporting subsequent events

Subsequent events are in the spotlight these days. The Public Company Accounting Oversight Board (PCAOB) recently initiated a project to modernize outdated auditing standards related to these events. The PCAOB says the audit guidance hasn’t kept pace with changes in financial reporting frameworks, risk assessment methodologies and technological advancements. This has resulted in inconsistencies in […]

Is it ordinary and necessary?

Business owners can generally deduct ordinary and necessary expenses paid or incurred during the taxable year, provided they can substantiate them. In one case, the U.S. Tax Court denied depreciation deductions claimed by an engineering firm owner for the value of his own time spent developing a program. Self-performed labor isn’t “paid or incurred,” the […]

Tracking the Economic Impact of the Trump Tariffs

Tracking the Economic Impact of the Trump Tariffs https://bit.ly/3Qr67Ni

How to avoid tax mistakes when renting to family

Recreational Marijuana Taxes by State, 2025

Recreational Marijuana Taxes by State, 2025 https://bit.ly/3U2YaQK

Changes ahead for student loan interest deduction?

Are changes ahead for the student loan interest tax deduction? It’s possible. Republicans in Congress are currently considering ending this deduction as a way to help offset the cost of extending many provisions in the Tax Cuts and Jobs Act. Ending the deduction could result in savings of $30 billion over 10 years, according to […]

IRS letter?

Receiving a letter from the IRS requesting a meeting to discuss a tax issue can be a taxpayer’s biggest nightmare. The good news is you can authorize a third-party representative to communicate with the IRS on your behalf. Before this can happen, you must grant the representative formal permission. There are several ways to do […]

The 2024 gift tax return deadline is coming up soon

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 […]