A job loss is bad but the tax implications could make it worse
Unemployment has been holding steady recently at 3.7%. But there are still some people losing their jobs — particularly in certain industries including technology and media. If you’re laid off or terminated from employment, taxes are likely the last thing on your mind. However, there are tax implications due to your altered employment circumstances. Depending on your situation, the tax aspects can be complex and [...]
Keep these 3 issues in mind after you file your return
The tax filing deadline for 2023 tax returns is April 15 this year. If you need more time, you can file for an extension until October 15. In either case, once your 2023 tax return has been successfully filed with the IRS, there may still be some issues to bear in mind. Here are three considerations. 1. Waiting for your refund? You can check on [...]
The tax deadline is almost here: File for an extension if you’re not ready
The April 15 tax filing deadline is right around the corner. However, you might not be ready to file. Sometimes, it’s not possible to gather your tax information by the due date. If you need more time, you should file for an extension on Form 4868. An extension will give you until October 15 to file and allows you to avoid “failure-to-file” penalties. However, it [...]
Be careful what you post!
Can posting on social media be evidence in a tax dispute? In one case, the U.S. Tax Court said yes. The court allowed the IRS to present a woman’s blog posts as evidence. The taxpayer and her husband allegedly underpaid tax for multiple years. After the husband died, the wife sought “innocent spouse” relief, which the IRS denied. The blog posts were relevant because they [...]
Plan now to reimburse staffers, board members and volunteers
Even if your not-for-profit organization rarely needs to reimburse staffers, board members or volunteers, reimbursement requests almost certainly will occasionally appear. At that point, will you know how to pay stakeholders back for expenses related to your nonprofit’s operations? If you have a formal reimbursement policy, you will. Plus, you’ll be able to direct individuals with reimbursement questions to your formal document and minimize the [...]
Arm your nonprofit against financial threats
Whether it’s inflation, trouble finding staffers in a tight labor market or cybersecurity, nonprofit leaders have a lot to worry about. If making financial forecasts is more difficult than usual, consider taking measures that will fortify your not-for-profit’s position, regardless of the challenges. Keep an eye on cash Your organization may still be struggling following the pandemic. Or perhaps tax law changes have led to [...]
Why it’s important to get your company’s financials done on time
Have you completed your company’s year-end financial statements yet? Most calendar-year entities issue their year-end financials by March of the following year. Lenders and investors may think the worst if a company’s financial reports aren’t submitted in a timely manner. Here are three assumptions your stakeholders could make when your financial statements are late. 1. Negative financial results No one wants to be the bearer [...]
Will SS still be around?
The long-term solvency of the Social Security trust fund has been a topic of concern for both Congress and individual taxpayers for years. Congress often puts forth bills to address the program’s projected financial shortfall. Some proposals aim to achieve financial balance by reducing costs (such as benefit amounts) while other proposals aim to achieve financial balance by raising revenues (such as payroll taxes). The [...]
New option for unused funds in a 529 college savings plan
With the high cost of college, many parents begin saving with 529 plans when their children are babies. Contributions to these plans aren’t tax deductible, but they grow tax deferred. Earnings used to pay qualified education expenses can be withdrawn tax-free. However, earnings used for other purposes may be subject to income tax plus a 10% penalty. What if you have a substantial balance in [...]
Fiscal Deficit
The Congressional Budget Office (CBO) has reported that the estimated federal budget deficit for the first four months of fiscal year 2024 reached $531 billion. That amount is $71 billion more than the deficit recorded during the same period during fiscal year 2023. Although revenues this year were $112 billion (8%) higher, outlays rose by $183 billion (9%). Note that a significant portion of the [...]
Make sure your ITIN is current!
If you have an Individual Taxpayer Identification Number (ITIN), make sure it’s current before you file your taxes. In general, certain nonresident and resident aliens, their spouses and dependents who aren’t eligible for Social Security Numbers use ITINs to file income tax and information returns. The IRS can still accept your return if your ITIN has expired, but the expiration may result in processing delays [...]
Inflation Reduction Act helping farmers
One of the provisions of the Inflation Reduction Act is intended to provide financial help to farmers, ranchers and forest landowners who experienced discrimination from the U.S. Dept. of Agriculture (USDA) prior to 2021. Applications for the USDA Financial Discrimination Assistance Program were due Jan. 17, 2024. The IRS recently released FAQs (https://bit.ly/42RXbWI ) about the tax treatment of program payments taxpayers received. Payments generally [...]
If you didn’t contribute to an IRA last year, there’s still time
If you’re gathering documents to file your 2023 tax return and you’re concerned that your tax bill may be higher than you’d like, there might still be an opportunity to lower it. If you qualify, you can make a deductible contribution to a traditional IRA right up until the April 15, 2024, filing date and benefit from the tax savings on your 2023 return. Who [...]
Another reason to use direct deposit
If you’re due a tax refund and are reluctant to receive it by direct deposit, here’s a reason to reconsider. The Financial Crimes Enforcement Network (FinCEN) has reported a surge in check fraud schemes using the U.S. mail. The latest available figures from FinCEN show that from 2020 to 2022, the number of suspicious activity reports related to check fraud nearly doubled, to over 680,000. [...]