Entries by Joanna Castle

Understanding Tax Lingo

Article Highlights Filing status Adjusted gross income (AGI) Taxable income Marginal tax rate Alternative minimum tax (AMT) Tax Credits Underpayment of the estimated tax penalty When discussing taxes, reading tax-related articles, or interpreting instructions, it’s helpful to understand the lingo and acronyms used by tax professionals. It can be difficult to understand tax strategies if […]

Divorced, Separated, Married or Widowed This Year? You May Face Complications at Tax Time

Article Highlights: Separated Taxpayers Divorced Taxpayers Recently Married Taxpayers Widowed Taxpayers Filing Status Joint and Several Liability Who Claims the Children Alimony Community Property States Affordable Care Act Taxpayers are frequently blindsided when their filing status changes because of a life event such as marriage, divorce, separation or the death of a spouse. These occasions […]

Will Independent Contractors Become Extinct?

Article Highlights: New California Legislation Employee or Independent Contractor Dynamex ABC Test Impact on Employers Impact on Workers Safe Harbor The California legislature recently passed landmark labor legislation that essentially makes it very difficult, if not impossible, to legally classify an employee as an independent contractor (self-employed). Governor Newsom was quick to sign it into […]

Congress Allowing Higher Medical Deductions for 2019 and 2020

Article Highlight: Appropriations Act of 2020 Medical AGI Limitations Sometimes Overlooked Deductions Deductible Health Insurance Above-the-Line Health Insurance Deduction for Self-Employed On December 20, 2019, President Trump signed into law the Appropriations Act of 2020, which included several tax law changes. The changes include extending specific tax provisions that expired after 2017 or were about […]

Do I Have to File a Tax Return?

Article Highlights: When You Are Required to File Self-Employed Taxpayers Filing Thresholds Benefits of Filing Even When Not Required to File Refundable Tax Credits Around this time of year, taxpayers often find themselves wondering whether or not they have to file a tax return. Determining this can be quite complicated. To fully understand, we need […]

Repairing Your Business’s Bad Credit Score

The creditworthiness of your business is measured by its credit score. This number is issued by Dun & Bradstreet, Experian, Equifax, and FICO SBSS, and is an essential reflection of your company’s payment reliability and timeliness. Why is Your Business Credit Score Important? Your company’s overall financial health is of key importance to any lenders, […]

Understanding Your Annual Social Security Letter

Article Highlights: Medicare B Premiums Medicare D Premiums Modified AGI 2020 Premiums Table Effect of Recreational Gambling Appealing the Social Security Administration’s Decision If you are receiving Social Security, then you have just recently received your annual letter from the Social Security Administration letting you know that your Social Security benefits for 2020 have increased […]

The 1099-MISC Filing Date Is Just Around the Corner – Are You Ready?

Article Highlights:  Independent Contractors Non-employee Compensation 1099 Filing Requirement Due Dates Penalties Form W-9 and 1099 Worksheet If your business engages the services of an independent contractor, and you pay them $600 or more for the calendar year, then you are required to issue that person a Form 1099-MISC to avoid penalties and the prospect […]

Congress Passes Last-Minute Tax Changes

Article Highlights:  Discharge of Qualified Principal Residence Indebtedness Mortgage Insurance Premiums Above-the-Line Deduction for Qualified Tuition and Related Expenses Medical AGI Limits Residential Energy (Efficient) Property Credit Employer Credit for Paid Family and Medical Leave Maximum Age Limit for Traditional IRA Contributions Penalty-Free Pension Withdrawals in Case of Childbirth or Adoption Increase in Age for […]

How to Clean Up QuickBooks for 2020

The new year is here, and you may still have a lengthy to-do list full of tasks from 2019. There’s one task, or rather, a series of tasks that you should definitely add to that list: QuickBooks cleanup for 2020. Following the guidelines provided here will do three things. It will:  Ensure that you’ve processed […]