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Did you receive a Form 1099-NEC that overstates your income? You’re not alone—and it could mean you’re paying more taxes than you owe. This problem often arises at year-end when a business issues a 1099-NEC based on what it paid rather than what you received. For example, if you...

How would you like to owe the IRS a $150,000 penalty because you failed to file a simple two-page form? It can happen all too easily if you have a solo 401(k) or another self-employed retirement plan. If you’re self-employed and you have a qualified retirement plan, such as...

As you plan for 2025, it’s crucial to understand how recent tax law changes may impact your ability to deduct business losses. One such provision, the excess business loss disallowance rule, could limit how much of your business loss you can deduct in a given year—and delay the tax...

If you are required to take minimum distributions from your traditional IRA and are charitably inclined, you might benefit from a qualified charitable distribution (QCD).  A QCD allows you to transfer funds directly from your IRA to a qualified charity—excluding that amount from your taxable income. This can lower...

According to recent Federal Trade Commission data, consumers reported losing more than $12.5 billion to fraud in 2024. They reported losing more money to investment scams—$5.7 billion—than any other category. Older people are particularly prone to being scammed.  If you’re the victim of a scam, can you deduct your...

If you’re involved in a real estate or investment venture with one or more other parties—perhaps co-owning property or collaborating on a business project—you might think you’re simply sharing ownership.  But the IRS may see it differently. Without proper precautions, your arrangement could be classified as a partnership for...

When it comes to IRS audits, one of the most common reasons taxpayers lose deductions is the lack of proper documentation.  While your credit card or bank statements prove you spent money, they don’t show what you purchased. Without supporting receipts or invoices, these records are considered “naked”—and during...

It can cost you a bundle if you misclassify a worker as an independent contractor instead of an employee for federal employment tax purposes.  The IRS can make you pay back payroll taxes plus penalties—in some cases, these can equal 40 percent of gross payroll or more. That’s the...

Because you operate your business as a solely owned corporation (C or S) with no employees, several excellent retirement plans are available to you that can provide significant tax deductions and help you build wealth for retirement. Some of the best options include: Each of these plans comes with...

Disasters are all over the news these days. Severe calamities that cause widespread damage, such as large wildfires, floods, hurricanes, and earthquakes, ordinarily result in a disaster declaration by the U.S. president.  There’s nothing good about a disaster, but at least the tax law can help disaster victims in...

Here’s a short note on your payments of corporate expenses. Your Corporation Is a Separate Legal Entity As a business owner operating through a corporation, you need to remember that the corporation is a distinct legal entity separate from you. Avoiding Costly Mistakes If you incur expenses related to...

Are you looking for ways to reduce your 2024 tax bill while securing your financial future? Setting up a self-employed retirement plan could be your solution—and it’s not too late! You have several options that can provide significant tax savings, including the following: Each plan has unique benefits depending...