Did you receive Educational benefits from your employer?

If you receive education assistance fringe benefits from your employer, you may be able to exclude up to $5,250 of the benefits annually from your taxable income. This means your employer can reimburse you for eligible expenses and won’t include those benefits with your wages, tips, and other compensation shown on your Form W-2. You […]

Do you qualify for a home office?

If you work from home, you may wonder if your workspace qualifies for a home office tax deduction. To qualify for the deduction, there are specific requirements you must meet. For example, if you’re an employee and your employer requires you to work remotely, your home office currently doesn’t qualify. If you’re self-employed, to qualify, […]

What are retained earnings — and why do they matter?

Owners’ equity is the difference between the assets and liabilities reported on your company’s balance sheet. It’s generally composed of two pieces: capital contributions and retained earnings. The former represents the amounts owners have paid into the business and stock repurchases, but the latter may be less familiar. Here’s an overview of what’s recorded in […]

First estimated tax payment deadline for the 2025 tax year

IRS issues automatic payments for Recovery Rebate Credit from 2021

The IRS announced plans to issue automatic payments to eligible taxpayers who didn’t claim the Recovery Rebate Credit on their 2021 tax returns. IRS data showed that many taxpayers filed a return but didn’t claim the credit. The Recovery Rebate Credit is a refundable credit for taxpayers who didn’t receive one or more Economic Impact […]

Did you get Married in 2024?

Did you or someone you know get married in 2024? The IRS has provided a checklist to help newlyweds avoid mistakes that could cost them at tax time. How you file depends on your marital status on Dec. 31. The married-filing-jointly status is typically the most beneficial for married couples. Still, taking a what-if look […]

Another court ruling on BOI reporting: Requirements are halted again

In a surprising turn of events, a federal appeals court has issued another ruling that suspends a requirement for businesses to file reports about their beneficial ownership information (BOI). This came just days after the same court issued a ruling that resulted in the federal government announcing that millions of small businesses did have to […]

2025 Mileage Rates

The IRS has issued the 2025 cents-per-mile rates that can be used to calculate tax-deductible vehicle operating costs. Effective Jan. 1, 2025, the standard mileage rate for the business use of a car, van, pickup truck or panel truck is 70 cents per mile. (This is up from 67 cents per mile for 2024.) The […]

Gift Tax Exclusion begins anew for 2025

Wealthy taxpayers can reduce the size of their taxable estates by giving strategic holiday gifts to family members. For example, under the annual gift tax exclusion, you can give up to $18,000 ($36,000 from married couples) per recipient in 2024, with no federal tax implications. Such gifts don’t deplete your lifetime gift and estate tax […]

When can you deduct business meals and entertainment?

You’re not alone if you’re confused about the federal tax treatment of business-related meal and entertainment expenses. The rules have changed in recent years. Let’s take a look at what you can deduct in 2024. Current law The Tax Cuts and Jobs Act eliminated deductions for most business-related entertainment expenses. That means, for example, that […]