Federal budget deficit grew 29%

According to the Congressional Budget Office (CBO), the federal budget deficit grew by 29% ($418 billion) in the first quarter of fiscal year (FY) 2023 over the same period in FY 2022. Meanwhile, receipts declined by 2%, or $26 billion. In its latest report, the CBO drills down on these totals. Individual income and payroll […]

Forms W-2 and 1099-NEC are due to be filed soon

With the 2023 filing season deadline drawing near, be aware that the deadline for businesses to file information returns for hired workers is even closer. By January 31, 2023, employers must file these forms: Form W-2, Wage and Tax Statement. W-2 forms show the wages paid and taxes withheld for the year for each employee. They […]

FICA tax tip credit

House lawmakers have reintroduced proposed legislation to expand the Federal Insurance Contribution Act (FICA) tax tip credit. The bill would expand the credit, currently available to the food service industry, to “employer-based salon and beauty service” establishments. Tips are paid as a gratuity by customers directly to the workers providing the services. Employers are required […]

Debt Limit Reached

Absent congressional intervention, the federal government will soon reach its limit on the amount of money it’s authorized to borrow, according to U.S. Treasury Secretary Janet Yellen. The current limit was set on Dec. 16, 2021. If not raised (or suspended) once again, the limit will be met on Thursday, Jan. 19. “Once the limit […]

5 benefits of outsourcing your accounting needs

CPA firms do more than audits and tax returns. They can also help you with everyday accounting-related tasks, such as bookkeeping, budgeting, payroll and sales tax filings. Should your organization outsource its accounting needs? Here are five potential advantages to consider when evaluating this decision. 1. Professional advice. Outsourcing to an experienced CPA firm provides […]

Changes to Charitable giving documentation recommended

Does current tax law encourage charitable giving? According to National Taxpayer Advocate (NTA) Erin M. Collins in her annual report to Congress, the answer may be “no.” Donations to qualified charities can generally be deducted on the donor’s tax return. However, the donor must have received a written acknowledgement from the charity before filing a […]

How to plan for Higher Social Security Taxes

Higher Social Security cost-of-living adjustments may affect your taxes. Here’s how to plan – CNBC https://bit.ly/3QSQuxP

When is an employee benefit not so beneficial?

Want your tax refund ASAP?

Want your tax refund ASAP? Here are 5 pitfalls that can delay your check. – CBS News https://cbsn.ws/3wiwWcJ

Do you have a profit motive?

Taxpayers who are in business to make a profit can usually deduct related expenses on their tax returns. If the IRS doubts a profit motive exists, the activity may be deemed a hobby, limiting the ability to deduct costs. The burden to prove there’s a profit motive is on the taxpayer. In one case, a […]