Understanding the Earned Income Tax Credit (EITC) can be a daunting task. With so many variables involved, it’s easy to get lost in the weeds. However, it’s important to understand the EITC because it can be a significant benefit for low-to-moderate-income individuals and families.
Posts in the Bob Steele CPA Article category:
Deduction Amount, Depreciable Basis & more Income Tax 2023
If you’re a business owner or a tax professional, you know that depreciation can be a valuable tool to reduce your tax liability. Depreciation is the gradual write-off of the cost of a business asset over its useful life. The IRS has rules that dictate how much you can depreciate in any given year. However, there are situations where you can take a special depreciation allowance to accelerate your depreciation deductions. In this blog post, we’ll go over the details of the special depreciation allowance and how it can benefit your business.
Expenses Credit for Child & Dependent Part 2 Income Tax 2023
As the tax season is upon us, it’s essential to stay up-to-date on the latest changes and updates to tax laws and regulations. The IRS has made several changes to tax laws for the 2022 tax year, including changes to dependent care benefits, personal exemptions, and more. In this blog, we will dive into some of these changes and what they mean for taxpayers
Long Production Period Property, Aircraft, Excepted & Special Rules Income Tax 2023
To qualify for the 80% special depreciation allowance, non-commercial aircraft must meet the following requirements:
Expenses Credit for Child & Dependent Part 1 Income Tax 2023
The Child and Dependent Care Expenses credit is an important part of the income tax formula, which is used to calculate the tax liability of individuals. The credit is based on expenses related to the care of a qualifying child or dependent, and can be claimed on up to $3,000 of qualifying employment-related expenses for one qualifying person, or up to $6,000 for two or more qualifying persons.
How to Claim Child & Dependent Expenses Credit Flowchart Part 1 Tax 2023
The Child and Dependent Care Expenses Tax Credit is designed to help offset the cost of child or dependent care for working taxpayers. This credit can be a significant financial benefit, but it’s important to understand the rules and qualifications in order to determine whether you qualify. In this blog post, we will take a closer look at the details of the credit, as outlined in publication 503 for tax year 2022.
Child Tax Credit & Other Dependents Part 1 Income Tax 2023
The US tax code is complex, and understanding it can be daunting. However, by breaking it down into smaller pieces, we can begin to comprehend how it works. In this blog post, we’ll focus on the income tax formula, specifically the credits section, which is located at the bottom of the formula.
Qualified Reuse & Recycle Property, Property Acquired Income Tax 2023
Depreciation is an important concept in income tax accounting. It is a way of recognizing the cost of property, plant, and equipment over its useful life. The IRS provides guidelines on how to depreciate property in Publication 946, which can be found on the IRS website.
Pension Plans & Expenses for the Business Part 2 Income Tax 2023
As a self-employed individual, planning for retirement can be challenging, especially when it comes to deciding which retirement plan to choose. Two popular options available are Simplified Employee Pension (SEP) and Savings Incentive Match Plan for Employees (SIMPLE).
Non- Employee Compensation & Other Business Income – Income Tax 2023
Income tax can be a complex topic, but it is essential for anyone who runs a business to have a basic understanding of the rules and regulations. In this blog post, we will be focusing on line one income of the income tax formula, which is essentially an income statement. We will also be looking at the Schedule C, which is an income statement in and of itself, and how it relates to the overall income tax formula.