Tax Brackets For 2021: Are You Withholding Enough?

If you are a W-2 employee, you can change the amount of your Federal withholding at any time to ensure you aren’t hit with a big tax bill when you file your return in April. For anyone who does contract work and receives a 1099-NEC, that income is subject to a 15.3% self-employment tax + Federal withholding. See the table …

w-9

COLLECT W9s from contractors and vendors NOW

The start of a new year can be hectic for business owners. The last thing you should be doing in January is trying to collect W-9s from your contractors and vendors so you can issue them a 1099-NEC. The new 1099-NEC (non-employee compensation) must be issued by January 31, 2022 to any contractor or vendor to whom you pay $600.  …

capital gains - money in house sale

Lifetime Capital Gains Exclusion on Primary Residence

Everyone who owns a home that is their primary residence is entitled to a lifetime exclusion on taxable gains from the sale of their primary residence of $250,000 for individuals and $500,000 for a couple. The taxable gain exclusion requirements are: The home was your primary residence for two out of the last 5 years You’ve owned the home for …

house costs

Home Improvement Tracking for Primary Residence

Reduce the taxable gains when you sell your primary residence by tracking your home improvements.  The improvements you make plus the purchase price (adjusted basis) will increase the cost basis of your home and reduce your taxable gain.  Home improvement tracking, along with the lifetime capital gains exclusion can save you a significant amount of money come tax time. The …

Homestead Exemption

Do you own the home you are living in and it is your primary residence?  If so, have you filed/confirmed your Homestead Exemption to reduce your property taxes? A homestead exemption can reduce school and county taxes and certain groups are eligible for a 100% exemption.  A homestead can be a house, condo, or manufactured home, as long as you …