Bankruptcy is a big choice to make for several reasons. The biggest challenge with filing for bankruptcy is that it does not take away your Federal and State obligations. Another challenge with filing for bankruptcy is that when your debt is cancelled you will get a 1099-C.  This means that the I.R.S. gets one too.  […]

Medicare has a flat tax rate of 2.9%.  Half is paid by your employer. The other half is paid by you. This tax pays for your hospital insurance when you turn 65.  It also covers hospital stays, skilled nursing facilities, and some health care services.   Social Security is a flat tax rate of 12.4%.  Half

In 2017, the Senate passed the Tax Cuts and Jobs Act.  This resulted in doubling the Standard Deduction for Individuals.  What does this mean for homeowners? Homeowners who want to itemize using the Schedule A need to exceed the Standard Deduction of $30,000.00 for married filing joint or $15,000.00 filing single.  Most software programs will

Can a tax preparer fine tune your business? The problem with expecting your tax preparer to give you good input on how to take advantage of tax breaks is that you only see your tax preparer once a year for approximately one hour. How can one reasonably expect anyone to provide a quality assessment of

Is it too early to start planning for your tax year? No, we are already into the 2nd Quarter of the year.  Business owners have made their first quarterly payment.   Did you get a big refund?  That was not a refund!  That was a return.  A return of your hard earned tax dollars that you

Ahh… The American Dream. To own your own business.  In California if you do not comply with a new government code initiated back in 09/30/2020 and you employ one or more in your company you are mandated to provide a Retirement Savers Program.  You can elect to do this on your own or to do

Audit rates are highest for ones who claim the largest adjusted gross incomes.  Ironic, since most social media platforms are trying to get you to write just about everything off. After all, why shouldn’t we?  Lots of reasons. While the IRS does not have the labor to analyze every return it does utilize triggers that

What’s in a name?  Everything.   Does the name on your Social Security Card match your W-2 or 1099? Does the name match your ID?  Does your name match what the IRS has on file? If there are any discrepancies, it is in your best interest to rectify these before you file.   Did you file MFS? 

I will never forget the time my grandmother was found unconscious in her front yard.  She was gardening and passed out.  She and her family spent the next two weeks in the hospital by her bedside.  She passed quietly.  This left the siblings in a very bad state.  Not only were they mourning they also

Audit rates are highest for ones who claim the largest adjusted gross incomes.  Ironic, since most social media platforms are trying to get you to write just about everything off. After all, why shouldn’t we?  Lots of reasons. While the IRS does not have the labor to analyze every return it does utilize triggers that