Category: Featured

Since Oct 1, 2023, the Internal Revenue Service (IRS) increased the interest on tax underpayments to 8%, parading a consistent surge since 2021 with only 3% penalty rate before rising to 6% in 2022.   And just recently, the IRS announced that the 8% underpayment penalty rate will be kept until the first quarter of 2024. … Continue reading Caution: Huge Underpayment Penalty Alert! 

Tis the season of giving and sharing! But did you know that giving gifts during your lifetime may subject you to a federal tax? But don’t be discouraged to give because it would take millions worth of gifts before the Internal Revenue Service (IRS) will go running after you for taxes.  Although you may not… Continue reading Gifts: Limits and Taxes 

Last November 21, the Internal Revenue Service (IRS) announced another delay in the implementation of the $600 reporting threshold for Form 1099-K.   According to IRS Commissioner Danny Werfel, this year’s delay was in response to the feedback received from taxpayers, tax professionals, and payment processors, making it clear to them that they need more time… Continue reading IRS Delays (Again) the New Reporting Threshold for Form 1099-K 

Solo 401(k) and Individual Retirement Arrangement (IRA) are just some of the retirement plans that self-employed individuals, small business owners, or independent contractors may want to have for self-initiated savings for the future. And there will be more savings opportunity for your retirement as the Internal Revenue Service (IRS) announced an increase in these plans’… Continue reading IRS Changes in Retirement Plans: Solo 401(k) and IRAs 

The Internal Revenue Service (IRS) makes yearly adjustments on several tax provisions to mitigate the effect of inflation. Last November 9, 2023, the IRS released the yearly inflation adjustments under Revenue Procedure 2023-34. Listed below are some of its highlights.  2024 Tax Table  One of the adjustments is the updated income tax margins for the… Continue reading What’s New for Tax Year 2024? 

Donating is a way to give back to the community and express one’s gratitude for the help they received in the past. Some people donate to charitable organizations with the same set of ideals and beliefs as they do. Donating can give you a sense of fulfillment by supporting their programs and activities in ways… Continue reading Charitable Donations: Deductibility Rules 

Business gifts are usually given to promote goodwill, to strengthen business relationships, or as a token of gratitude. If you are a small business owner, self-employed, or an independent contractor, you may want to strategize and give gifts to your customers, suppliers, hired consultants, or freelancers. Benefits of business gifts include customers and suppliers feeling… Continue reading Business Gifts: Rules and Limitations 

In general, medical insurance may be deductible only if it exceeds 7.5% of your Adjusted Gross Income (or AGI) and you choose to itemize your deductions. This would mean that your medical insurance premiums must be relatively high to avail this deduction and you have evaluated that itemizing your deduction will provide more tax savings… Continue reading Health Insurance Deduction for the Self-Employed