Plan Ahead for the 3.8% Net Investment Income Tax

RogerRossmeisl

High-income taxpayers face a 3.8% net investment income tax (NIIT) that’s imposed in addition to regular income tax. Net Investment Income Tax appeared first on Roger Rossmeisl, CPA. Individual Tax Briefs 3.8%

How is Disability Income Taxed?

RogerRossmeisl

Many Americans receive disability income. if, and how is disability income taxed? As is often the case with tax questions, the answer is … it depends. If the income is paid directly to you by your employer, it’s taxable to you as ordinary salary would be.

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Wayfair: Sales Tax and State Income Tax Implications

TaxConnex

Wayfair created enormous changes for businesses making remote sales into the states related to sales tax. Could Wayfair have also impacted the way you manage your state income tax obligations? Sales Tax Perspective. Sales tax nexus can be physical or economic – or both.

Income Tax Planning as Part of Your Estate Plan

RogerRossmeisl

As a result of the current estate tax exemption amount ($11.58 million in 2020), many estates no longer need to be concerned with federal estate tax. Now, because many estates won’t be subject to estate tax, more planning can be devoted to saving income taxes for your heirs.

Keeping Pace With Corporate Income Tax Filing Season

ThomsonReuters

A new episode of Thomson Reuters Tax & Tech Talks podcast shares tips and best practices for streamlining operations and navigating this unprecedented tax season. Beneficial tax technology features and functions.

Plan ahead for the 3.8% Net Investment Income Tax

Marlogin,Winer&Evens

High-income taxpayers face a 3.8% net investment income tax (NIIT) that’s imposed in addition to regular income tax. Fortunately, there are some steps you may be able to take to reduce its impact.

What is a provision for income tax and how do you calculate it?

ThomsonReuters

What is a tax provision? Simply put, a tax provision is the estimated amount of income tax that a company is legally expected to pay to the IRS for the current year. How provision for tax is calculated. Current income tax expense.

How to Pay Federal Income Tax Online

xendoo

They offer several ways to pay your tax online. Tax Return or Notice. 1040, 1040A, 1040EZ, health care Form 1040, retirement plan 5329 or tax-favored account 5329. Estimated Tax 1040ES. Proposed Tax Assessment. Electronic Federal Tax Payment System.

Businesses to Face Expansion of Income Tax Nexus

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April Fool’s Day Blog: Income Tax Rates Increased to 94%… or Possibly Vox Pop

Withum

The top income tax rates have varied from 2% to 94% since the first United States income tax was instituted in 1862. Right now the top rate is 37%.

The Next Frontier in State & Local Tax After Wayfair: Expansion of Income Tax via P.L. 86-272

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Payroll Taxes vs. Income Taxes | What’s the Difference Between Payroll and Income Tax?

LyfeAccounting

I mean…there’s federal taxes, state taxes, sales taxes, Medicare taxes, social security, unemployment, and so on. As a business owner, understanding how to navigate taxes can be extremely overwhelming. With that said, let’s talk about taxes. 3 Tax Plan.

A Checklist For Skagit County Business Owners’ For 2020 Personal Income Taxes

SkagitCountyTaxServices

So, last week I ran through the (rather incredible) selection of NEW and/or extended tax credits available for Skagit County business owners. A Checklist For Skagit County Business Owners’ For 2020 Personal Income Taxes “Don’t wait.

State Income Tax Considerations Related to PPP Funds

Withum

Articles Coronavirus Stimulus Package

Tax-Free States? Pay No Income Tax in These 9 Tax-Friendly States!

LyfeAccounting

US taxpayers pay over $1 trillion in state income taxes every year. But what if you could pay $0 in state taxes? You can pay absolutely nothing in state taxes, just by packing up your bags and moving to a tax-free state. What are State Taxes?

IRS Intends to Greenlight Full State Income Tax Deduction for Pass-Throughs

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Extensions of Timelines by India’s Income Tax Authority Due to the Pandemic

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Hurricane Ida Tax Relief – New Jersey Provides “Big Apple-like” Relief While New York State and City “Cherry Pick” Taxpayer Relief

Marlogin,Winer&Evens

As noted in our recent alert , IR-2021-179 {“Tax Relief”} as initially issued and updated, provides comprehensive relief to business and individual taxpayers affected by Hurricane Ida in the Tri-State area.

Illinois Enacts Elective Pass-through Entity Tax and Enters the PTET Highway

Marlogin,Winer&Evens

2531 ), Laws 2021 {“Bill”}, that establishes an elective Pass-through Entity Tax (PTET) for partnerships and S corporations. The Bill permits PTEs to pay an elective tax on income earned or received in the state. On August 27, 2021, Illinois governor J.B. Pritzker signed P.A.

IRS Postpones Deadline for Federal Income Tax Returns, 2020 HSA Contributions, and Certain Retirement-Related Filings

ThomsonReuters

In response to the continuing COVID-19 emergency, the IRS has offered deadline relief for 2020 federal income tax returns that also extends the deadline for 2020 contributions to HSAs, IRAs, and certain other accounts. Tax Refunds and Credits. Tax Return Preparers.

New York Issues Formal PPP Guidance for Personal Income Tax Purposes

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New York Pass-through Entity Tax Guidance – A Complex Roadmap for Those Considering Venturing Into New York’s PTET Highway

Marlogin,Winer&Evens

The TSB is New York’s initial guidance in addressing the myriad of technical and procedural issues since New York adopted its elective Pass-through Entity Tax (PTET). Just in time for Labor Day, on August 25, 2021, New York State (NYS) issued Technical Memorandum TSB-M-21(1)C, (1)I , {“TSB”).

Owners of Pass-Through Entities Electing the NY PTE Tax – Your NY Personal Estimated Tax Payments Must Be Calculated Without a PTET Credit

Marlogin,Winer&Evens

New York State (NYS) second quarter Personal Income Tax Estimated Payments are due on June 15, 2021. As… The Bottom Line Featured Post State & Local Strategies Corporate Income Tax Personal Income Tax Featured Content

New York’s Pass-through Entity Tax – Potential Lower Federal Tax Benefits to S Corporation Shareholders

Marlogin,Winer&Evens

New York’s Pass-through Entity Tax (PTET) may result in significantly lower Federal tax benefits for certain electing S corporations. The PTET provisions’… The Bottom Line Featured Post State & Local Strategies Corporate Income Tax Income and Franchise Personal Income Tax

New York’s Budget Decouples From Federal Opportunity Zone Tax Benefits – Is It a Big Swing and Miss for New York Taxpayers?

Marlogin,Winer&Evens

The Budget contains numerous tax provisions that have broad implications to New York taxpayers. As detailed in our previous post , Governor Cuomo signed the 2021-22 New York State (NYS) Budget (The Budget) last month with little fanfare.

Batter up – The NYS 2021-22 Budget – Will It Be a Home Run or Strike Out for New York State Taxpayers and Businesses?

Marlogin,Winer&Evens

This year, Albany has been quite engaged in its attempt to enhance New York State’s tax “platform.” Spring is in the air, baseball has begun, and we await Governor Cuomo’s signature of the 2021-22 New York State (NYS) fiscal year budget.

Bitcoin Daily: S Korea Eyes New Crypto Income Tax; Less Network Traffic Causes Drop In Bitcoin Fees

PYMNTS

South Korea is pondering a modification to its tax law which could place taxes on cryptocurrencies. But individuals’ profits from virtual currency is not listed as income, they don’t end up falling under income taxes.

New York State Provides Hurricane Ida “Big Apple” Relief for 10/15 – But No Relief for NYS PTET Election Date

Marlogin,Winer&Evens

The Notice adds guidance with respect to specific New York State tax filings and payments due on or before… Featured Post State & Local Strategies Corporate Income Tax Income and Franchise Sales and Use Tax Featured Content

The New Jersey BAIT Due Date Extensions – A Potential “Bait and Switch” for the Unwary

Marlogin,Winer&Evens

The New Jersey BAIT As many may be aware, in early 2020, New Jersey enacted P.L.2019, c.320 the Pass-Through Business Alternative Income Tax (BAIT) Act, effective for tax years beginning on or after January 1, 2020.

What is state tax apportionment and how do you calculate it?

ThomsonReuters

State income tax is a direct tax on business income you’ve earned in a state. It sounds straightforward, but this is a complex topic: States have various ways of calculating how much of your corporation’s business income is attributable to its presence and activity there.

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Here’s How Your Tax Day Stacks Up

PYMNTS

Tax season, that is. Curious to know how your taxes stacked up? million tax returns last year, some 88 percent of which were filed electronically. trillion in adjusted gross income — meaning a total tax liability of $1.52 percent federal tax rate. While that looks to mean the average taxpayer forked over $9,655, Motley Fool pointed out that this data is skewed by the Earned Income Tax Credit (EITC). states don’t charge residents income tax.

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Q3 2021 Tax Deadlines for Businesses

RogerRossmeisl

Here are some of the key tax-related deadlines affecting businesses and other employers during the third quarter of 2021. Monday, August 2 Employers report income tax withholding and FICA taxes for second quarter 2021 (Form 941) and pay any tax due.

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Hire Your Minor Children for Tax and Non-Tax Benefits

RogerRossmeisl

If you’re a business owner and you hire your children this summer, you can obtain tax breaks and other non-tax benefits. A legitimate job If you hire your child, you get a business tax deduction for employee wage expenses. Small Business Tax Briefs Hiring Your Children

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Key Q4 2021 Tax Deadlines for Businesses

RogerRossmeisl

Here are some of the key tax-related deadlines affecting businesses and other employers during the fourth quarter of 2021. Note: Certain tax-filing and tax-payment deadlines may be postponed for taxpayers who reside in or have a business in federally declared disaster areas.

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All About Limited Liability Companies(LLC)

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Single-member LLCs have one owner, although spouses who jointly own an LLC in a community property state can elect treatment as a single member LLC for federal income tax purposes. Single-Member LLC Tax Basics. Multimember LLC Tax Basics. Small Business Consulting Taxes

Tax Consequences of Employer Provided Life Insurance

RogerRossmeisl

However, if group term life insurance is part of your benefit package, and the coverage is higher than $50,000, there may be undesirable income tax implications. But the employer-paid cost of group term coverage in excess of $50,000 is taxable income to you.

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UK Government Won’t Delay ‘Loan Charge’ Policy

PYMNTS

who are facing a tax charge they have been avoiding for 20 years, according to a report by the Financial Times. The HMRC said an estimated 50,000 contractors took advantage of loan-based tax dodging maneuvers it refers to as “disguised remuneration.” All of those offenders will have to pay, and the HMRC will tax income on all of the received loans in a single financial year. Genuine loans are repaid; if loans are not repaid, they are income and tax is payable.”.

California Small Business Hiring Credit FAQs

RogerRossmeisl

Overview Taxpayers can use the credit against income taxes (personal income tax, corporation franchise or income taxes), or can make an irrevocable election to apply the credit against sales and use taxes.

California AB-150 Provides SALT Cap Work-Around

RogerRossmeisl

On 7/16/2021, Governor Newsom signed into law AB-150, which provides a means by which certain pass-through entities (Qualified Entities) can make an election to pay California income tax (at the entity-level) on behalf of their owners, for which their consent must be given.

“Stepped-Up Basis” on Inherited Property – Will it Last?

RogerRossmeisl

If you’re planning your estate, or you’ve recently inherited assets, you may be unsure of the “cost” (or “basis”) for tax purposes. Individual Tax Briefs Inherited Property Stepped-Up Basis

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California Main Street Small Business Tax Credit II Begins 11/1/21

RogerRossmeisl

50 (AB-50) established the California Main Street Small Business Tax Credit II, which will provide COVID-19 financial relief to qualified small business employers. Small Business Tax Credit. California Assembly Bill No.

Will you Owe Tax on Profits from Selling Your Personal Residence?

RogerRossmeisl

Be aware of the tax implications if you’re selling your home or you sold one in 2021. You may owe capital gains tax and net investment income tax (NIIT). The post Will you Owe Tax on Profits from Selling Your Personal Residence?

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Should I File My 2020 Tax Return Early?

RogerRossmeisl

The IRS opened the 2020 individual income tax return filing season on February 12. You can potentially protect yourself from tax identity theft — and there may be other benefits, too. How is a person’s tax identity stolen? The post Should I File My 2020 Tax Return Early?