You maybe know this. But under current federal tax law, your itemized deduction for state and local taxes gets limited. That limit? $10,000. For example, say you own a home and pay $10,000 of property taxes. And then also say you earn income in a state that taxes income and pay $20,000 of state income […]
Individual tax returns
Avoiding Biden Tax Increases on Small Corporations
Right now, no one knows whether President Biden’s business tax proposals will become law. Which means planning for any changes is tricky. Yet the proposed tax laws change vast parts of the Internal Revenue Code. Especially for entrepreneurs and active investors. And then the real issue here: By the time we do know all the […]
WA Cares Fund and Small Business
Starting in 2022, most Washington state employees pay a new WA Cares Fund payroll tax. That new payroll tax supports a new long-term care insurance plan. Which sounds good. But the new tax will cost some workers large amounts of tax. And then this planning reality: people often can wriggle out of the tax. Accordingly, […]
Washington State Capital Gains Tax Planning
In the spring of 2021, Washington State enacted a 7 percent capital gains tax on some taxpayers’ long-term capital gains starting in 2022. Accordingly, individuals living or investing in Washington state need to learn how the law works. And also how to minimize its impact. A caution? The new law burdens both the state and […]
Covid-19 Relocations and Your Tax Return
If due to the Covid-19 pandemic, you moved out of your usual neighborhood or community, that move may impact your taxes. You may get some travel-related deductions in some special cases, for example. But you may also find yourself paying new state and local income taxes. Accordingly, you want to understand—at least in a general […]
Covid-19 Home Office Deductions
The Covid-19 pandemic pushed many to work from home. And that reality begs an obvious question: Do any of these people get a Covid-19 home office deduction? In many cases, the answer is “yes.” But the rules get tricky… The Home Office Deduction in a Nutshell Section 280A(c)(1) of the Internal Revenue Code creates the […]