Frequently Asked Tax Questions! Q: We have been living together for a while. We bicker, are not married. How should we file?A: Grace and Frankie, interesting question! Only a handful of states, including Rhode Island, still recognize some form of common-law marriage. Thus, if you meet the state requirements you can file a joint return for Rhode Island AND the IRS.
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Hello Rich,Happy New Year! Tax season is upon us — okay, ME. Here are some brief suggestions, reminders and cautions. My aspiration for 2020 — not to give up, on my community, country, planet. Best wishes — Rich Not Every Meal Is Deductible! Not every meal or beverage you take in during business hours is deductible. If
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SUN-SET! Thinking about going solar? The current, lucrative 30% Federal tax credit will decrease to 26% in 2020 and then to 22% for units “put into service” during 2021. Then ZERO for residential units, and a reduced rate for commercial properties for a couple of years. Even with the credit, it can be an expensive —
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Do you provide free parking for your employees? Thanks to a change made by the Tax Cuts and Jobs Act (TCJA), this may no longer be tax free. Essentially, the TCJA amended Section 274(a)(4) to provide that expenses paid or incurred by employers to provide employee parking are (generally) no longer deductible by for-profit companies.
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NOTE: This article predates the tax law changes that went into effect January 1, 2018. While the structures of the various entities have not changed, there have been important changes to relevant tax rates and deductions. Originally published on Jun 11, 2014. My company, ALSD, incorporates businesses and organizes LLC’s. This year Triple Hcame to me
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HIDDEN CREDIT! Almost forgotten in the new tax law is an expansion of the Child Tax Credit beyond age 17. Now,you may be eligible for a (nonrefundable) $500 credit for certain dependents who you claim on your tax return. Specifically, any child who meets the dependency tests is eligible if under age 19 or if
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Happy New Year! With the major changes in the income tax law, I wanted to highlight some existing provisions you might not know about or understand. Did You Know? The change in the itemized/standard deductions in no way affects your ability to claim business or rental deductions. If you receive health insurance subsidies through Obamacare, you will receive Form 1095-A, used
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This issue of Dispatches discusses the impact the new tax law has on charitable contributions. I hope it is useful to you. What’s Changed The tax law that took effect this year nearly doubled the standard deduction, making it likely that only about 10% of taxpayers will now be itemizing deductions. Therefore, unless your state
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The tax law that went into effect 1/1/18 contains a major new business deduction (“199-A”) for self-employed folks and pass-through entities. The broad strokes are clear, the details are mind-boggling. Highlights: Applies to sole proprietors, S-Corps, partnerships… The net income of the business subject to tax at the individual owner level is reduced by
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Marsha is a Yoga Teacher, fully self-employed, had never taken a college course in her life. She is now being audited by the IRS. They are saying her W-2’s were not reported correctly. She has no W-2’s. They want proof of the higher education credit she claimed. There is no such claim on her tax
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© 2024 Aaronson Lavoie Streitfeld Diaz
