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The Conundrum of Small Non-Profits and the Small Accounting Professional

One of the topics that comes up often when talking to clients and other accountants is, the accounting service problem that small non-profits are facing. They need help from tax and accounting professionals. They can't [...]

By | January 14th, 2020|Categories: Potpourri of Tax Topics|Comments Off on The Conundrum of Small Non-Profits and the Small Accounting Professional

Contributions to a Roth Account Do Not Reduce Taxes in the Current Year

I try to be "proactive" with my clients, and I think most reputable accountants and tax preparers do too (despite what "experts" might say). One of the sticking points I have found, especially when dealing [...]

By | December 11th, 2019|Categories: Potpourri of Tax Topics|Comments Off on Contributions to a Roth Account Do Not Reduce Taxes in the Current Year

Self-Employment Tax Calculation When Income is Over the Social Security Wage Base

How does the calculation for self-employment tax work when self-employment income is over the Social Security Wage Base? Let's take a look. Basic Calculation When self-employment income is below the Social Security Wage Base, the [...]

By | December 4th, 2019|Categories: Potpourri of Tax Topics|Comments Off on Self-Employment Tax Calculation When Income is Over the Social Security Wage Base

The Iowa Form 130

Iowa Form 130 is used by Iowa residents who pay tax on income to both Iowa and another state. Here are some examples of how it works. Form 130 Example Let's say Alex lives in [...]

By | November 20th, 2019|Categories: Potpourri of Tax Topics|Comments Off on The Iowa Form 130

Do I Lose the Tax Deduction if I Don’t Issue a 1099?

Question: if I don't issue a contractor a 1099-MISC for their work, will I lose the ability to take a tax deduction for that payment on my business tax return? Answer: NO!!! But sometimes IRS [...]

By | November 6th, 2019|Categories: Potpourri of Tax Topics|Comments Off on Do I Lose the Tax Deduction if I Don’t Issue a 1099?

S-Corporation Loans from Shareholders, Or “My Dentist Told Me”

Last fall I was meeting with a prospective client who was starting a small business. The business had just $10,000 of income in 2018, and would maybe have $30,000 of income in 2019. She was [...]

By | October 23rd, 2019|Categories: Potpourri of Tax Topics|Comments Off on S-Corporation Loans from Shareholders, Or “My Dentist Told Me”