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With rising health care costs, claiming whatever tax breaks related to health care that you can is more important than ever. Adding to the complexity, there’s a threshold for deducting medical expenses that may be hard to meet. Fortunately, the Tax Cuts and Jobs Act (TCJA) has temporarily reduced the threshold.
Topics: CPA
Many of our partners take advantage of working from their homes. It makes a lot of sense for convenience and cost. But just because you have a home office space doesn’t mean you can deduct expenses associated with it. For 2018, even fewer taxpayers will be eligible for a home office deduction.
Topics: filing taxes, nanny, nanny tax, Senior Caregiver Payroll, agency, senior, CPA
Tax credits reduce tax liability dollar-for-dollar, potentially making them more valuable than deductions, which reduce only the amount of income subject to tax. Maximizing available credits is especially important now that the Tax Cuts and Jobs Act has reduced or eliminated some tax breaks for businesses. Two still-available tax credits are especially for small businesses that provide certain employee benefits.
Our client, John M. came to us after working with a nanny that he thought could work as an independent contractor.
Along with tax rate reductions and a new deduction for pass-through qualified business income, the new tax law also brings reduction or elimination to some popular business deductions. Two expense areas where the Tax Cuts and Jobs Act (TCJA) changes the rules — and not to businesses’ benefit — are meals/entertainment and transportation. In effect, the reduced tax benefits will mean these expenses are more costly to a business’s bottom line.
At the Federal level, private employers are not required to offer sick leave - whether paid or unpaid - to their employees. Most household employers voluntarily offer some paid time off to their nanny, senior caregiver or housekeeper in their work agreement.
Topics: senior care, nanny, agency, CPA
The Tax Cuts and Jobs Act (TCJA) enhances some tax breaks for businesses while reducing or eliminating others. One break it enhances — temporarily — is bonus depreciation. While most TCJA provisions go into effect for the 2018 tax year, you might be able to benefit from the bonus depreciation enhancements when you file your 2017 tax return.
Topics: CPA
California has some of the most complex household employment labor laws in the country! So complicated in fact that the California Household Employers Guide, published by the state, runs 70 pages of explanation, and that is just for the taxation component!
For employers, managing payroll smoothly and properly is a delicate, critical matter. There may be no quicker way to turn a happy employee into a disgruntled one than by mishandling his or her paycheck (exactly why many household employers use us).
This year, employers have an additional challenge with which to contend. When Congress passed, and the President signed into law, the Tax Cuts and Jobs Act (TCJA) late last year, it meant the IRS withholding tables would have to be updated. And now they have been.