Our Blog

Wednesday, the IRS released Notice 2019-59 which provides cost of living adjustments for retirement plans for 2020. 
​
401(k), 403(b), most 457 plans, and Thrift Savings Plan contribution limits have increased $500 to $19,500. The annual catch-up limitation for employees over age also increases $500, to $6,500.
 

Yesterday the IRS released inflation adjustments for the 2020 tax year. 

The standard deduction for married filing jointly taxpayers is increasing $400 to $24,800. It will be $12,400 ($200 increase) and $18,650 ($300 increase) for single and head of household taxpayers, respectively.

Do you have a spouse, child, or a parent working for you? If so, did you know you could be paying more Federal payroll taxes than required? No one wants to pay more taxes than they are required to pay! There are a few different taxes on payroll; Social Security tax (SS), Medicare tax (Medi), and Federal Unemployment Tax (FUTA). Some of these taxes might not apply to you, depending on your relationship type with the employee.

The Social Security Administration (SSA) has recently released their updated fact sheet for 2020:

The updates include:

Lena Rozzi, CPA •

Most sole proprietors are aware that their business activities are reported to the Internal Revenue Service (IRS) on Schedule C, Profit and Loss from Business, of Form 1040, U.S. Individual Income Tax Return, on an annual basis. And while Schedule C businesses get most of the same tax deductions as incorporated businesses, Schedule C business owners (sole proprietors) do not get the benefit of getting a tax deduction on “salaries” paid to themselves. Read on for some common questions sole proprietors have when it comes time to “pay” themselves from their business.

Lena Rozzi, CPA •

If driving a vehicle is part of your trade or business, whether it’s a car, truck, or van, you can deduct the vehicle expenses to lower the taxable income you report on your business tax return. While the costs of operating your vehicle can seem pretty straightforward, there are several considerations you should understand to optimize your deduction depending on your particular situation.

Massachusetts has implemented two new laws in 2019 that could have significant impacts on employees, employers and/or those who rent out short-term property. Massachusetts recently sent out an email detailing who might be impacted by the new laws and included links to learn more about them.

​As hurricane season begins, the IRS is encouraging preparation. Beyond stocking up on food and water you also want to prepare to have your documents safe and your valuables documented in case of disaster.
 

Pollyanna King, CPA, MST •

You may or may not know that there is a tax on gifts you make to others. But don’t panic. 
 
Over your lifetime you can give away over $11 million (yes, I said million), before you incur this federal tax for 2019 and it’s higher for 2020 after the inflation adjustment. 

Yesterday, the IRS launched a new Tax Withholding Estimator. The estimator is similar to the previous Withholding Calculator, but is more user-friendly. 
​