New baseline tariff announced

President Donald Trump has announced a new 10% baseline tariff on all goods imported into the United States. In addition, he announced custom tariffs of up to 49% on more than 50 countries. For example, there’s a new 20% tariff on imports from the European Union and a new 46% tariff on Vietnam. As part […]

Are you eligible for the Child Tax Credit?

If you have a dependent who doesn’t meet the criteria for the Child Tax Credit, you may qualify for the Credit for Other Dependents. The $500 nonrefundable credit can be claimed for eligible dependents of any age. This includes college students, parents you support financially and unrelated people who live with you. The dependent must […]

Riding the tax break train: Maximizing employee transportation fringe benefits

There are some nice tax breaks for transportation-related employee fringe benefits. If your employer offers these tax-favored fringes, you should probably take advantage of them by signing up. Here’s a quick summary of the current federal tax treatment of transportation-related benefits. Mass transit passes For 2025, employer-provided mass transit passes for train, subway and bus […]

Employer provided childcare

Are you an employer seeking ways to attract and retain top talent? The IRS Taxpayer Advocate Service (TAS) recently highlighted a tax-smart strategy for employers that provide childcare services to their staff members. They may qualify for a credit of up to $150,000. Qualifying expenditures include the purchase, construction, expansion, or rehabilitation of a childcare […]

Exploring business entities: Is an S corporation the right choice?

Are you starting a business with partners and deciding on the right entity? An S corporation might be the best choice for your new venture. One benefit of an S corporation One major advantage of an S corporation over a partnership is that shareholders aren’t personally liable for corporate debts. To ensure this protection, it’s crucial to: Adequately […]

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