Uncle Sam may provide relief from college costs on your tax return
We all know college is expensive. Fortunately, there are two sizable federal tax credits for higher education costs that you may be able to claim. The American Opportunity credit generally provides the biggest benefit to most taxpayers. It offers a maximum benefit of $2,500. But it phases out based on modified adjusted gross income (MAGI). For 2019, the MAGI phaseout ranges are between $80,000 and $90,000 for single taxpayers, and between $160,000 and $180,000 for married joint filers. There’s also the Lifetime Learning credit, which equals 20% of qualified education expenses for up to $2,000 per tax return. There are requirements to qualify for both credits. Contact us for more information.
How to research a business customer’s creditworthiness
Extending credit to business customers can be an effective way to establish goodwill and nurture long-term buyers. But customer credit also brings financial risks. For this reason, it’s critical to thoroughly research a customer’s creditworthiness. Start by contacting the potential customer’s trade references to get background on its payment history. Also check its banking info to ascertain financial stability. Order a credit report to obtain its business credit score. To glean some insights beyond dollars and cents, explore traditional media (newspapers, magazines, trade publications) and social media to get a better sense of the company. Contact us for additional tips.
5 ways to withdraw cash from your corporation while avoiding dividend treatment
Do you want to withdraw cash from your closely held corporation at a low tax cost? The easiest way is to distribute cash as a dividend. However, a dividend distribution is taxable to you as a shareholder but it’s not deductible by the corporation. But there are several alternatives that may allow you to withdraw cash from a corporation and avoid dividend treatment. For example, you might be able to receive capital repayments, or obtain reasonable compensation for you (or family members), as well as certain fringe benefits. If you’re interested in discussing these or other ideas, contact us. We can help you get the maximum out of your corporation at a minimum tax cost.
For best results, start your strategic planning early
Although it’s probably too early to start chilling a bottle of bubbly for New Year’s Eve, it’s not too early for business owners to start their strategic planning for next year. Begin with your financial statements. They’ll tell you whether to be strategically ambitious or cautious. Calculate key performance indicators such as gross profit and current ratio. Also look at certain areas of your company, including human resources, sales and marketing, and production and operations. High turnover, slumping sales or too many dissatisfied customers is each a red flag that should shape strategic goals for the year ahead. We can help you crunch the numbers and put together a solid plan.
Getting a divorce? There are tax issues you need to understand
In addition to the difficult personal issues that divorce entails, several tax concerns need to be addressed to ensure that taxes are kept to a minimum and that important tax-related decisions are properly made. For example, if you sell your personal residence or one spouse remains living there while the other moves out, you’ll want to make sure you’ll be able to avoid tax on up to $500,000 of gain. You also must decide how to file your tax return for this year (single, married filing jointly, married filing separately or head of household). There are several other issues you may have to deal with. We can help you work through all of the financial issues involved in divorce.
2019 Q4 tax calendar: Key deadlines for businesses and other employers
Here are a few key tax-related deadlines for businesses and other employers during Quarter 4 of 2019. OCT. 15: If a calendar-year C corp. that filed an extension, file a 2018 income tax return. OCT. 31: Report income tax withholding and FICA taxes for Q3 2019 (unless eligible for Nov. 12 deadline). DEC. 16: If a calendar-year C corp., pay the fourth installment of 2019 estimated income taxes. Contact us for more about the filing requirements and to ensure you’re meeting all applicable deadlines.
CashMD launches price transparency tool
Users can search for the price of a procedure at providers in their area and then book an appointment through the app.
Healthcare revenue cycle management market projected to be worth $104 billion by 2025
Increasing government spending is partially driving the market’s growth, along with initiatives to encourage adoption of third-party solutions.
Healthcare cloud computing growth due in part to curbing infrastructure costs
Cloud solutions help organizations reduce infrastructure costs and interoperability issues, and aid in complying with regulatory standards.
