Prepare Your Business for Anything! More in Our June Newsletter!

JUNE 2021 E-NEWSLETTER

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June Featured News

Charitable Remainder Trusts for Inherited IRAs

With the stretch IRA now a thing of the past, how will you pass on your IRAs? Charitable remainder trusts (CRT) give you some control and options.

Casualty, Disaster and Theft Losses Affect Taxes

As we move closer into summer and the risk of hurricanes and flooding increases, now’s a good time to understand how casualty and disaster losses impact your taxes.

Be Prepared!

Natural and human-made disasters can strike anywhere and anytime. Here are ways your business can be prepared.

Understanding Payroll Taxes

Whether you’re hiring your first employee or already have a few, understanding payroll taxes is a must

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What is a Patent?

Have you ever considered getting a patent for an innovative idea or product? There are different types of patents, so work with a patent attorney.

June 2021 Client Profile

Andrea will start a new job in Spain in a few months and she’s not sure if she will still have to file taxes in the U.S.

June 2021 Q & A

Q: Can I choose my tax filing status?

A: Generally, your marital status on December 31 determines your filing status for that year. And choosing the proper status affects the amount of tax you’ll owe. When multiple filing statuses apply, select the one that results in the least amount of tax due. If you’re unmarried, you’ll generally file as single unless you have a dependent; then you may be able to file as head of household. And if you become a widow or widower, but don’t remarry and have a dependent, you may claim the Qualified Widow(er) status for the two tax years after your spouse passes, which gives you the same tax perks as married filing jointly. Married taxpayers can file a joint return or file separately. Married filing separately can be used when it results in less tax owed or when one spouse wants to be responsible for their own tax.

Q: I am a sole proprietor but need to hire an employee. Are fringe benefits taxable to my employee?

A: As a general rule, all fringe benefits are taxable to your employee unless the IRS has expressly excluded them. Common fringe benefits that are tax free include health insurance, life insurance, employee discounts, employer-provided cell phones, certain commuting benefits, and de minimis (minimal) benefits like small non-cash holiday gifts or office-supplied coffee and drinks.

SHORT BITS

STATE BUDGETS

While many states prepared for a substantial revenue shortfall in 2020 due to the effects of the pandemic, states only saw a 1.6% revenue decline according to the National Association of State Budget Officers. Vermont, Colorado, and Alabama experienced revenue increases of more than 3%, boosting the national average. States are expecting a 4.4% decline for the fiscal year ending on June 30, 2021.

RECORD BREAKERS

Consumer debt totaled $14.6 trillion at the end of 2020 according to the Federal Reserve. Historically low mortgage interest fueled the rise in debt. Mortgage debt passed $10 trillion for the first time and rose at the fastest pace since 2006. Credit card debt declined by $108 billion in 2020, while student loans and auto loans increased slightly.

BACK TAXES

A report from the Treasury Inspector General for Tax Administration revealed that nearly 700,000 taxpayers who earn more than $200,000 annually owed the IRS $38.5 billion as of May 2019. But the majority, 69%, owed less than $25,000 each. And high-income taxpayers, those making at least $1.5 million a year, paid just 30% of the taxes they owed, leaving about $2.4 billion still due.

FINAL NUMBERS

The final 2020 numbers for the airline industry are in. According to the Bureau of Transportation Statistics, U.S. airlines carried 557 million fewer passengers in 2020 than in 2019, a 60% decline. In 2019, U.S. airlines carried 927 million passengers. Passenger air traffic in 2020 was the lowest on U.S. airlines since the mid-1980's, while April 2020 saw the lowest monthly airline fuel usage on record.