At Checked & Balanced Inc., we assist you in maximizing your personal tax deductions. There are two types of tax credits: A nonrefundable tax credit means you get a refund only up to the amount you owe. A refundable tax credit means you get a refund, even if it's more than what you owe. Family & Individual Tax Credits Earned Income Tax Credit Child and Dependent Care Credit Adoption Credit Child Tax Credit Credit for the Elderly or Disabled ____________ Income & Savings Tax Credits Earned Income Tax Credit Saver's Credit Foreign Tax Credit Excess Social Security and RRTA Tax Withheld [...]
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Below are some highlight of the new tax reform and how it may impact you. Changes have been made to both individual and corporate tax rates, these are set to expire by the end of 2025. Most of the corporate changes provisions are permanent and will not expire. The nonpartisan joint committee claims the deficit will increase by 1.46 trillion over the next decade. There are seven tax brackets ranging from 10, 12, 22, 24, 32, 37 percent. The standard deduction has doubled but the personal exemption is gone. This will not be good for larger families. Example a family of 5 filing married gets [...]
IRS: Home Office Deduction Often Overlooked by Small Business Owners The Internal Revenue Service today reminded small business owners who work from a home office that there are two options for claiming the Home Office Deduction. The Home Office Deduction is often overlooked by small business owners. As part of National Small Business Week (April 30-May 6), the IRS is highlighting a series of tips and resources available for small business owners. Regular Method The first option for calculating the Home Office Deduction is the Regular Method. This method requires computing the business use of the home by dividing the expenses of operating the home [...]
According to IRS statistics, about six million corporation returns are filed every year Of those returns about 70 percent of these are Forms 1120S, showing that an S corporation is the preferred choice among corporations.1 To qualify as an S corporation, a corporation must satisfy specific requirements and must file an election. It is not uncommon to find that a corporation has not filed its election. This was a common audit issue when I worked for the IRS many years ago. If a corporation hasn’t filed its S election, there can be undesirable income tax consequences. The corporation is treated as a C corporation, which [...]