Tax

Businesses across the United States are receiving thousands of dollars by taking advantage of the Research and Development (R&D) tax credit. But, unfortunately, there are still many who aren’t fully benefiting from the credit because of misconceptions and uncertainty about applicability. The R&D tax credit is one of the most underutilized tax savings opportunities for taxpayers, so how do you know if you qualify? Background Enacted in 1981 by the Economic Recovery Tax Act, the R&D tax credit rewards companies for investments in developing new or improved products, processes, or techniques, and developing and improving upon production/manufacturing processes...

When the TCJA was passed, the big estate planning news was that the federal gift and estate tax exclusion doubled from $5 million to an inflation-indexed $10 million. It was further indexed for inflation to $11.18 million for 2018 and now $11.4 million for 2019...

Among the many great challenges of parenthood is what to do with your kids when school lets out. Do you keep them at home and try to captivate their attention yourself or with the help of sitters? Or do you send them off to the wide variety of day camps now in operation? There’s no one-size-fits-all answer, but if you choose the latter option, you might qualify for a tax break!..

Many taxpayers learned some tough lessons upon completing their 2018 tax returns regarding the changes brought forth by the Tax Cuts and Jobs Act (TCJA). If you were one of them, or even if you weren’t, now’s a good time to check your bracket to avoid any unpleasant surprises next April. Under the TCJA, the top income tax rate is now 37% (down from 39.6%) for taxpayers with taxable income over $500,000 for 2018 (single and head-of-household filers) or $600,000 for 2018 (married couples filing jointly)...

People interested in Qualified Opportunity Zone (QOZ) investments, which invest capital gains proceeds in economically underdeveloped areas and can earn tax-free returns, are now able to move forward with more certainty. Earlier this month, the U.S. Treasury Department issued more proposed regulations on QOZ investments that helped clarify investor concerns and ease their hesitation...

Most individuals don’t regard themselves as businesses, trying to turn a profit and beat the competition. But, occasionally, it may help to look at your financial situation this way to determine where you might cut expenses and boost cash flow. Here are some tips. Lay out your financials Where an executive might reach for financial statements to get a read on the company’s standing, you can create or update a net worth statement...

Question: Some of our employees are considering buying short-term, limited-duration health insurance policies instead of enrolling in our employer-sponsored health care plan. Will these employees have special enrollment rights in our group plan if they lose eligibility for short-term, limited-duration coverage? Answer: It’s likely that employees who lose eligibility for short-term, limited-duration health insurance will be entitled to special enrollment rights under your company’s group health plan — assuming they’re otherwise eligible to enroll in the plan at that time. Eligible employees (and their eligible dependents) are entitled to HIPAA special enrollment rights under your company’s plan if they lose eligibility for health insurance coverage (or if they lose eligibility for coverage under another group health plan)...

In very late January, the IRS released the 2018 Form 8941, to be used by eligible small employers to calculate their health care tax credits. If you may qualify for this potentially valuable tax break, ask your tax preparer about claiming the credit on your 2018 return or filing an amended return if you’ve already filed. Background on the credit The small business health care tax credit generally is available to employers that: Have fewer than 25 employees, Pay average annual wages of less than $50,000 (indexed), and Contribute a uniform percentage of at least 50% of the premium costs for employee health insurance coverage obtained through a Small Business Health Options Program (SHOP), unless an exception applies. The maximum tax credit is generally 50% of employer-paid premiums (35% for tax-exempt eligible small employers) and can be taken for only two tax years, which must be consecutive...

“If you like your doctor, you can keep your doctor.” President Obama made this controversial and widely quoted statement about a decade ago while he was promoting the Affordable Care Act (ACA) before its enactment. The quote recognizes that most people prefer to choose their own physicians. But health care market dynamics, even before passage of the ACA, were already driving employers to incentivize employees to choose providers that satisfied “preferred provider” criteria — even if doing so meant they’d have to drop their old doctors...

As a business owner, you should be aware of some recent federal tax legislation changes. Many of the changes can affect the bottom line for the business as well as you as the business owner — some in a good way and some in a bad way. The taxable income of a C-corporation is now taxed at a flat 21 percent rate. Previously, the tax rates generally ranged from 15 percent to 35 percent (but some income was taxed as high as 39 percent)...