All employees, including household employees, use the Form W-4 to direct the employer on how to calculate Federal income tax deductions from their paycheck. The responsibility for the accuracy of this form rests with the nanny or other employee.
All employees, including household employees, use the Form W-4 to direct the employer on how to calculate Federal income tax deductions from their paycheck. The responsibility for the accuracy of this form rests with the nanny or other employee.
Individuals can deduct some vehicle-related expenses in certain circumstances. Rather than keeping track of the actual costs, you can use a standard mileage rate to compute your deductions. For 2017, you might be able to deduct miles driven for business, medical, moving and charitable purposes. There are significant changes to some of these deductions under the Tax Cuts and Jobs Act (TCJA), so we've outlined the most important things you need to know in claiming mileage on taxes in 2018.
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Topics: CPA
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