Year-round tax planning: Part 1

 All taxpayers should understand eligibility for credits and deductions Tax credits and deductions can help lower the amount of tax owed. All taxpayers should begin planning now to take advantage of the credits and deductions they are eligible for when they file their 2022 federal income tax return next year. Here are a few facts that can help […]

Options for taxpayers who need help paying their tax bill

Taxpayers who can’t pay the full amount of federal taxes they owe should file their tax return on time and pay as much as possible. This will help reduce penalties and interest. If they can’t pay their full bill, they have some other options. Get a loan In many cases, loan costs may be lower […]

Small business rent expenses may be tax deductible

Rent is any amount paid for the use of property that a small business doesn’t own. Typically, rent can be deducted as a business expense when the rent is for property the taxpayer uses for the business. Here are some things small business owners should keep in mind when it comes to deducting rental expenses: […]

Report tip money as income on your tax return

For those working in the service industry, tips are often a vital part of their income. Like most forms of income, tips are taxable. Therefore, it’s also vital that people understand the tax obligations that come with tip income. Here’s some information to help taxpayers report tip income so they don’t receive a surprise tax […]

Social Security benefits may be taxable

A new tax season has arrived. The IRS reminds taxpayers receiving Social Security benefits that they may have to pay federal income tax on a portion of those benefits. Social Security benefits include monthly retirement, survivor and disability benefits. They don’t include supplemental security income payments, which aren’t taxable. The portion of benefits that are […]

Remember all your documents when filing tax return

With 2022 Tax season now on its way, Tax Associates is here to remind you about the most important things to do and not do when filing a tax return. Read the following suggestions and if any questions arise, feel free to contact our offices by phone or email. Phone: 847-566-3010 E-mail: Don’t file […]

How to deduct home office from your taxes

The home office deduction allows qualified taxpayers to deduct certain home expenses when they file taxes. To claim the home office deduction on their 2021 tax return, taxpayers generally must exclusively and regularly use part of their home or a separate structure on their property as their primary place of business. Here are some details about this deduction to help taxpayers […]

IRS sending information letters to Taxpayers

  IRS sending information letters to recipients of advance child tax credit payments and third Economic Impact Payments The IRS started issuing information letters to advance child tax credit recipients in December. Recipients of the third round of the Economic Impact Payments will begin receiving information letters at the end of January. Using the information […]

What’s new and what to consider when filing in 2022

The Internal Revenue Service today encouraged taxpayers to take important actions this month to help them file their federal tax returns in 2022, including special steps related to Economic Impact Payments and advance Child Tax Credit payments. Here are some key items for taxpayers to consider before they file next year. Check on advance Child […]

Special tax deduction for people who give up to $600 to charity

The Internal Revenue Service today reminded taxpayers that a special tax provision will allow more Americans to easily deduct up to $600 in donations to qualifying charities on their 2021 federal income tax return. Ordinarily, people who choose to take the standard deduction cannot claim a deduction for their charitable contributions. But a temporary law […]