IRS: Tax Organization Tips for 2020 Filing

November 28, 2020By Smeriglio Associates LLCNews

Make filing your 2020 federal income tax return easier with some preparation. The IRS is reminding taxpayers to get ready for the 2021 filing season. Steps you can take now include, gathering your W-2, Wage and Tax Statements and Forms 1099 for Misc. Income, notices of unemployment compensation, refund interest, gig economy income and virtual … Read More

Health Savings Accounts for your small business

November 27, 2020By Smeriglio Associates LLCNews

Small business owners are well aware of the increasing cost of employee health care benefits. As a result, your business may be interested in providing some of these benefits through an employer-sponsored Health Savings Account (HSA). Or perhaps you already have an HSA. It’s a good time to review how these accounts work since the … Read More

Do you want to withdraw cash from your closely held corporation at a low tax cost?

November 26, 2020By Smeriglio Associates LLCNews

Owners of closely held corporations are often interested in easily withdrawing money from their businesses at the lowest possible tax cost. The simplest way is to distribute cash as a dividend. However, a dividend distribution isn’t tax-efficient, since it’s taxable to you to the extent of your corporation’s “earnings and profits.” And it’s not deductible … Read More

Taking distributions from a traditional IRA

November 25, 2020By Smeriglio Associates LLCNews

Although planning is needed to help build the biggest possible nest egg in your traditional IRA (including a SEP-IRA and SIMPLE-IRA), it’s even more critical that you plan for withdrawals from these tax-deferred retirement vehicles. There are three areas where knowing the fine points of the IRA distribution rules can make a big difference in … Read More

IRS: Summary Of Tax Return Redactions

November 25, 2020By Smeriglio Associates LLCNews

Business tax transcripts (summaries of tax returns) are a handy tool for taxpayers, their tax professionals and lenders. But they’re also a treasure chest of information for identity thieves. To help protect taxpayer security, the IRS has announced that as of Dec. 13, sensitive data on business tax transcripts will be “masked.” The new tax … Read More

How Series EE savings bonds are taxed

November 24, 2020By Smeriglio Associates LLCNews

Many people have Series EE savings bonds that were purchased many years ago. Perhaps they were given to your children as gifts or maybe you bought them yourself and put them away in a file cabinet or safe deposit box. You may wonder: How is the interest you earn on EE bonds taxed? And if … Read More

IRS: Non-Itemized Charitable Contributions

November 24, 2020By Smeriglio Associates LLCNews

Can you help your tax situation if you donate to charity by Dec. 31? Whether you’re supporting natural disaster recovery, COVID 19 crisis aid or any “qualified” charity, your donations may be tax-deductible, which can reduce your taxable income. Previously, charitable contributions could only be deducted if taxpayers itemized deductions. But, under the CARES Act, … Read More