If your business uses independent contractors as part of its work force, depending on the circumstances, the IRS might reclassify these workers as employees. Such a reclassification would expose your business to employment taxes and penalties. In addition, your business might be responsible for retroactive fringe benefits for any reclassified workers.
If you take a business trip during which you also vacation, you can take allowable deductions for travel expenses (i.e., airfare, hotel, cab fare, meals – subject to limitation, etc.) as long as the main purpose of the trip is for business. 
For many, Medicare open enrollment is an opportunity to fine tune their healthcare coverage needs and assess (or anticipate) what coverage may be needed in the coming year. 
Open enrollment may also allow you to save money as plans are reevaluated and adjusted and in some instances, improve coverage where you recognize you may have gaps. While the open enrollment plan changes may seem confusing, it is your opportunity to switch Medicare health and prescription drug plans to better suit your needs.
The Medicare open enrollment period is the time during which people with Medicare can make new choices and pick plans that work best for them. Each year, Medicare plans typically change what the plans cost and cover. In addition, your health-care needs may have changed over the past year.
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The Journal of Accountancy recently published an interesting article addressing the issue of ‘gray divorce.’ Gray divorce refers to couples divorcing later in life and while a 30-something divorcing couple may be squabbling over custody, visitation, and credit card bills, those couples divorcing over age 50 are facing battles over retirement funds, the long-term residence, and a diverse portfolio of assets. 
Oftentimes, divorcing couples believe that because the court suggests a particular division of assets, that it is what they must do. Couples may not realize that the court will decide in the absence of either party striking an agreement. When the court makes a decision for the couple, this may not be in the best interest for either.
Learn more about retirement and estate planning in Gary’s blogs
Meeting with your CPA, whether as a couple or individually, will allow you to take a closer look at the reality of the tax and financial implications depending on how the assets are ultimately divided. Also, your CPA will run scenarios, especially if one spouse was the higher earner or if one spouse did not work, which will greatly affect the financial future of both.
While many entrepreneurs find satisfaction in owning their business and others simply love their jobs, most do not necessarily want to work for the rest of their lives. 
If you are such an entrepreneur, you are not alone. Many look forward to the idea of never having to work again, yet, the concern about whether there will be enough income to survive can’t be overlooked. This leads to the all-important question: How much does one need to save for retirement?
The pros and cons of Roth IRAs, which were introduced 20 years ago, are well understood. All money flowing into Roth IRAs is after-tax, so there is no upfront tax benefit.
As a tradeoff, all qualified Roth IRA distributions can be tax-free, including the parts of the distributions that are payouts of investment earnings.
To be a qualified distribution, the distribution must meet two basic requirements:
So you’ve finally had enough of the hype and are determined to score a pair of tickets to see “Hamilton” for Lin-Manuel Miranda’s final performance as the lead. Tickets selling through ticket brokering sites are going for outrageous prices, and you’re a bit short on cash. Should you embark on a personal revolution and loot your retirement accounts to go?
In a recent article, we addressed the exceptions to the early withdrawal penalty on IRA distributions taken prior to an individual reaching age 59 1/2. In such a case, the IRA distribution would still be subject to federal income tax and, potentially, state income tax, and would result in permanently removing those assets from the IRA, having a negative impact on the availability of future retirement income. 
So, if you need a quick cash infusion and do not want to suffer the income tax ramification of an IRA distribution, what can you do? One option would be to take a loan from your retirement account. While an advisor may not typically recommend that an account owner borrow from their retirement account, a loan from one’s retirement can have both benefits and costs, as discussed below:
Almost all of us put money into some type of retirement plan with the goal of one day being able to retire and live comfortably.
Sometimes, though, you find yourself in need of a little extra money for things such as attending college, buying a home, assisting with medical expenses, and the list goes on. So, you decide to take an early IRA distribution to help pay for these expenses. While these are all very important and necessary expenses, understand that once a distribution has been made from an IRA, a taxable event has occurred. 
Taxable Event – What it will cost you
In addition to paying income tax on the distribution, there may be an additional 10% penalty on an early distribution that could apply to taxable distributions made before one reaches age 59 ½. Fortunately, there may be some good news; there are a number of circumstances that can result in an exception to the 10% penalty.
Let’s take a look at the exceptions to the 10% IRA withdrawal penalty for a distribution prior to age 59 ½ and the circumstances that must occur :
The Internal Revenue Service recently announced anyone, who already took a required minimum distribution (RMD) in 2020 from certain retirement accounts, now has the opportunity to roll those funds back into a retirement account following the CARES Act RMD waiver for...
In late June, the Internal Revenue Service issued Revenue Procedure 2020-32, in which they set Health Savings Account contribution limits for calendar year 2021, along with minimum deductible and maximum out-of-pocket expenses for the High Deductible Health Plans,...
Having been a CPA for over 30 years, I can honestly say that the last three months of my career have been some of the most challenging, but also some of the most rewarding. The coronavirus pandemic has changed the way that all of us work and also how we see the...
During the COVID-19 pandemic, the need to plan for taxes has become even more important due to all the changes from recently passed coronavirus relief legislation and especially for those businesses seeking forgivable loans through the Paycheck Protection Program...
Since April, Zinner & Co. staff members have held weekly Zoom meetings. As part of the discussion, staff members talked about the “silver linings” that they have found during the COVID-19 pandemic. Here are a few of the notable positive actions and thoughts to...
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