Teaching Tax Flow

Are you taking advantage of the Premium Tax Credit (PTC)? The IRS provides this credit to help eligible individuals and families cover the cost of health insurance purchased through the Health Insurance Marketplace. The Premium Tax Credit is based on your income and family size. If your household income falls between 100% and 400% of the federal poverty level, you may qualify. It’s important to estimate your annual income accurately when applying for the PTC, as it affects the amount of the credit you receive. However, if your income or family situation changes during the year, you should update your Marketplace application. Failing to do so could result in receiving too much or too little credit, potentially affecting your tax return. When filing taxes, you’ll need Form 1095-A from the Marketplace to complete Form 8962. This ensures you claim the correct credit or reconcile any advance payments. Stay compliant and avoid potential repayment by keeping your information up to date! #PremiumTaxCredit #IRS #HealthInsurance #HealthCareMarketplace #TaxCredits #AffordableCareAct #IRSCompliance #TaxPlanning #IRSForm8962 #TaxSavings #IRSForm1095A #TaxTips #HealthCoverage #IncomeTax #TaxSeason #TaxDeductions #PTC #TaxFiling #TaxAdvice #TaxProfessional

When determining whether a worker is an employee or a subcontractor, the IRS uses a set of tests to help businesses make the correct classification. Misclassification can lead to penalties, so it’s crucial to understand the criteria. The IRS primarily evaluates three areas: behavioral control, financial control, and the relationship between the worker and the business. 1. Behavioral Control: If the business has the right to direct and control how the worker performs the tasks, including providing specific instructions, training, or setting work hours, the worker is more likely to be classified as an employee. Subcontractors generally have more independence in deciding how and when to complete their work. 2. Financial Control: This test looks at how the worker is compensated, reimbursed for expenses, and whether they have made a significant investment in their work (e.g., tools or equipment). Subcontractors often have more financial independence, including incurring expenses and the potential for profit or loss. 3. Relationship: The presence of benefits (like vacation pay, retirement plans, or insurance) and the expectation of a continuing relationship suggest an employee classification. A written contract, while helpful, does not override these other factors but can clarify the intent of both parties. Properly classifying workers helps businesses avoid potential IRS audits, fines, and back taxes. If you’re uncertain, consult with a tax professional or consider filing Form SS-8 with the IRS for a determination. #WorkerClassification #EmployeeVsContractor #TaxCompliance #IRSGuidelines #IRSCompliance #BusinessTax #TaxPlanning #TaxPenalties #TaxLaw #Subcontractor #1099VsW2 #SmallBusiness #Freelancers #GigEconomy #SelfEmployed #IndependentContractor #HRCompliance

Changing jobs can be an exciting step in your career, but it also comes with important tax considerations that shouldn't be overlooked. When you switch jobs, there are several key areas where your tax situation might be impacted. First, take a close look at your withholding on your new W-4 form. Your new employer will base your tax withholding on the information you provide, so it’s essential to update it to reflect your current situation. If you had significant changes in income or deductions, you might need to adjust your withholding to avoid a surprise tax bill or a large refund at tax time. Another consideration is how to handle any retirement accounts from your previous employer. You typically have several options: leave the account with your old employer, roll it over into your new employer’s plan, or transfer it into an individual retirement account (IRA). Each option has different tax implications, so it’s crucial to weigh your choices carefully. Additionally, if you receive any severance pay or bonuses during the transition, these amounts are taxable and could push you into a higher tax bracket. Plan for this extra income to avoid an unexpected tax liability. Lastly, don’t forget about any stock options or other equity compensation from your previous employer. The tax treatment of these can be complex, so it might be wise to consult a tax professional to ensure you’re managing them correctly. By paying attention to these tax considerations, you can make your job transition as smooth as possible financially. #JobChange #TaxPlanning #W4Form #RetirementPlanning #CareerTransition #TaxWithholding #IRA #401k #EquityCompensation #SeverancePay #IncomeTax #FinancialPlanning

A living trust is a powerful estate planning tool that offers numerous benefits for those looking to manage their assets and protect their loved ones. Unlike a will, a living trust allows you to transfer assets to your beneficiaries without the need for probate, which can be a lengthy and costly process. By avoiding probate, your estate can be settled more quickly and privately, with minimal court involvement. One of the primary benefits of a living trust is its ability to provide seamless management of your assets if you become incapacitated. If you’re unable to manage your affairs, a successor trustee can step in and handle your finances without the need for a court-appointed guardian. This ensures that your wishes are carried out and that your assets are protected, even if you’re unable to manage them yourself. A living trust also offers flexibility and control. You can specify exactly how and when your assets are distributed to your beneficiaries, which is especially useful if you have young children or beneficiaries who may not be financially responsible. Additionally, a living trust can help reduce estate taxes and provide asset protection, depending on how it’s structured. In summary, a living trust offers peace of mind by ensuring that your assets are managed and distributed according to your wishes, without the complications of probate. It’s a valuable tool for anyone looking to create a comprehensive estate plan. #LivingTrust #EstatePlanning #AssetProtection #Probate #WealthManagement #FinancialPlanning #Inheritance #TrustsAndEstates #FamilyWealth #LegalPlanning

Just in case you missed the podcast episode with Angelina Urquhart on The Corporate Transparency Act (CTA)! Listen Now: https://lnkd.in/gXid9Xqz

Deciding when to work with a financial advisor is an important step in your financial journey. A financial advisor can provide invaluable guidance, especially during major life transitions or when you're looking to achieve specific financial goals. One of the key times to consider working with a financial advisor is when you experience significant life changes. Getting married, having a child, buying a home, or starting a new job are all events that can drastically alter your financial situation. A financial advisor can help you navigate these changes by creating a customized plan that aligns with your new circumstances. Another critical time to seek financial advice is when planning for retirement. Whether you're just starting to save or nearing retirement age, a financial advisor can help you develop a strategy that ensures you have enough to live comfortably in your later years. They can also guide you on investment decisions, tax strategies, and estate planning. If you're facing complex financial decisions, such as managing inheritance, dealing with large amounts of debt, or considering a significant investment, an advisor's expertise can be invaluable. They can provide clarity and help you avoid costly mistakes. Ultimately, working with a financial advisor is about gaining confidence in your financial future. If you find yourself feeling uncertain or overwhelmed by your finances, it might be time to consult with a professional who can guide you toward achieving your goals. #FinancialAdvisor #FinancialPlanning #RetirementPlanning #WealthManagement #InvestmentStrategy #PersonalFinance #FinancialGoals #MoneyManagement #EstatePlanning #DebtManagement

Filling out your W-4 form correctly is crucial to managing your tax liability throughout the year. The W-4 determines how much federal income tax your employer withholds from your paycheck, directly impacting your tax return outcome. Here are some best practices to ensure you’re not left with a surprise bill or a large refund at tax time. First, review your W-4 annually or when you experience major life changes such as marriage, the birth of a child, or a new job. These events can significantly affect your tax situation, and adjusting your W-4 accordingly will help you stay on track. Second, be accurate when estimating your deductions and credits. Use the IRS’s online withholding estimator or consult with a tax professional if you’re unsure about how to fill out the form. Underestimating your withholding could lead to a tax bill in April, while overestimating means giving an interest-free loan to the government. Another tip is to claim the right number of allowances. Fewer allowances mean more tax withheld, while more allowances mean less withheld. If you prefer to avoid owing taxes, it’s safer to claim fewer allowances. Lastly, remember that the W-4 is not a one-size-fits-all form. Your withholding needs might differ from those of your coworkers, so tailor the form to your personal financial situation. #W4Form #TaxPlanning #Withholding #TaxTips #PersonalFinance #TaxSeason #IRS #TaxLiability #TaxStrategy #FinancialPlanning

This Tax Tip Tuesday we discuss BOI (Beneficial Owners Information) and how The Corporate Transparency Act demands business owners comply. Not sure what this is all about - here's your crash course before it's too late w/ our guest Angelina Urquhart. Podcast —> https://lnkd.in/gXid9Xqz #Tax #BOI #CTA #CorporateTransparencyAct #Law

The IRS has recently introduced Form 1099-DA, a new form specifically designed to report income and transactions related to digital assets. As cryptocurrencies, NFTs, and other blockchain-based assets become increasingly integrated into the financial landscape, this form represents a significant step in the IRS’s efforts to ensure accurate tax reporting for these emerging technologies. Form 1099-DA will be used by exchanges, brokers, and other platforms to report the income generated by their users from digital asset transactions. This includes sales, exchanges, and even staking rewards. The goal is to provide the IRS with detailed information about individuals and businesses earning income through digital assets, ensuring that this income is properly taxed. For taxpayers, the introduction of the 1099-DA means greater transparency and more accurate reporting of digital asset income. However, it also means that those involved in digital assets will need to be more vigilant in tracking their transactions and ensuring they report all income correctly. Failure to do so could lead to penalties or increased scrutiny from the IRS. While this new form may create additional paperwork for both taxpayers and platforms, it also brings clarity to the often-murky waters of digital asset taxation. As the IRS continues to refine its approach to digital assets, staying informed about these changes will be crucial for anyone involved in the digital economy. #DigitalAssets #CryptoTax #IRSUpdates #1099DA #TaxCompliance #Blockchain #Cryptocurrency #TaxReporting #NFTs #IRSForm

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