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Tax Treatment of Legal Settlements and Judgements for Individuals

If you're involved in a lawsuit or a court case (except as a juror), you may want to get up to speed on how court settlements and judgements are taxed. Settlements and judgements are taxed the same-if you win a judgement or settle a case, the same tax rules apply. In most cases, the IRS will consider the settlement/judgement as taxable income, unless it falls within certain guidelines. If you... Read More

1099-NEC: A New Way to Report Non-Employee Compensation

In July 2019, the IRS released a draft of form 1099-NEC, which is designed to report non-employee compensation. While this may seem like a new form to many, it's actually a revival of a form used until the early 1980's, which was eventually replaced by form 1099-MISC. What will be reported on the new 1099-NEC? The 1099-NEC will only report non-employee compensation…nothing else. Instead of... Read More

The New "Other Dependent" Credit

Under the 2018 Tax Cuts and Jobs Act guidelines, a taxpayer may be able to claim a $500 credit for household dependents that don't meet the definition of a qualifying child or qualifying relative. Provided that the individual has income of less than $4,150 and meets the criteria listed below, you may be entitled to receive the non-refundable credit. You may be able to take the new Other Dependent... Read More

Depreciation Under the New Tax Law

When a business acquires an asset that will last longer than a year, the cost of the asset must be expensed over time to match the asset's life instead of being deducted all at once. This treatment increases taxes in the short term, and the tax code has evolved to create many exceptions for the business owner to try to expense more of the asset's cost sooner rather than later. Depreciable Assets - An... Read More

Automatic Individual Taxpayer Estimated Tax Relief

The IRS announced that the relief that it announced earlier this year, with respect to the individual taxpayer estimated tax penalty for 2018, will be automatically applied to taxpayers who filed their 2018 returns but did not claim the relief. Background-the individual taxpayer estimated tax penalty, generally. Code Sec. 6654 imposes a penalty on individuals who underpay estimated tax. To avoid the... Read More

Get Started Now on Year End Tasks

Year-end is just around the corner, and that means a couple of administrative tasks are necessary to take care of bookkeeping and tax chores. Here are a couple of tips to make year-end go smoother. Cleaning up Things will go a lot smoother if you reach out to your vendors and employees and get their help to update your records. Send a notice to all employees, asking them to verify their... Read More

HLB Named Finalist for Network of the Year

HLB, the global advisory and accounting network, has been selected as one of the finalists in the category of 'Network of the Year' at this year's Digital Accountancy Awards, to be held in London on October 3. To be considered for this award, nominees had to demonstrate the execution of profitable growth strategies, be recognized by the industry as a reputable brand and have excelled in a number of key... Read More

Oct/Nov 2019 Dates to Remember

October deadlines Oct. 1 - 2018 Income tax return for Estates and Trust( form 1041) filing deadline. Oct. 10 - Form 4070- Employees use form 4070 to report tips to the employer. This includes cash tips, tips received from other employees, and debit and credit card tips for tips received more than $20 during September. October 15- Deadline to file extended 2018 individual tax return(form 1040);... Read More

Sept/Oct Dates to Remember

Sept 10 - Form 4070- Employees use form 4070 to report tips to the employer. This includes cash tips, tips received from other employees, and debit and credit card tips for tips received more than $20 during Aug. Sept 16 Employers - For Social Security, Medicare, withheld income tax, and nonpayroll withholding, deposit the tax for payments in Aug if the monthly rule applies. Individuals- If you... Read More