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Bridger Tax Services, LLC

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Bozeman, MT
Bridger Tax Services, LLC

We are not taking on new clients for the 2025 Tax Season. Bridger Tax Services, LLC helps small businesses, individuals and nonprofits realize their vision wi

03/12/2025

We are not taking on new clients for the 2025 tax season.

11/30/2022

Year End Tax Moves - This year offers unique opportunities due to the investment market decline in addition to the upcoming energy tax credits. See

11/19/2022

Do you have Traditional IRAs that are taxable upon distribution? Now may be an excellent time to do a ROTH IRA Conversion. Why? The investment market is way down. Convert now while values are low and have the recovery be TAX FREE!

02/12/2021

Credits for Sick and Family Leave for Certain Self-Employed Individuals

For the period beginning April 1 through December 31, 2020, there is a credit relating to sick leave and family leave. The credit for Sick Leave is calculated separate from Family Leave.

For Sick Leave, you could qualify if you were unable to perform services due to one or more of the following:
• Subject to a Federal, State or Local quarantine or isolation order,
• Advised by a health care provider to self-quarantine due to concerns related to Covid-19, or
• You were experiencing symptoms of Covid-19 and seeking a medical diagnosis.

Sick leave would also include caring for another individual due to the first two items above plus relating to a son or daughter whose school or place of care was closed, or the childcare provider was unavailable due to Covid-19.

A son or daughter must generally be under 18 years of age OR incapable of self-care because of a mental or physical disability.

For Family Leave, it covers the number of days you were unable to perform services due to a son or daughter whose school or place of care was closed, or the childcare provider was unavailable due to Covid-19.

02/11/2021

Deferral of Social Security Tax for Self Employed or Household Employees

If you are self employed (sole proprietor or partner) or pay a Household Employee, you pay social security tax of 12.4%. Due to Covid-19 relief, you can elect to defer the payment of up to 50% of the tax. The tax deferral will get paid back on your 2021- and 2022-income tax return.

Caution: In reality, this is a loan. You will be required to pay the tax with the 2021 and 2022 tax return. If you can pay the tax now without economic hardship, it might be the wise thing to do.

Planning Idea: If you elect to defer the tax and do not have an immediate need for the funds, consider depositing the funds into a ROTH IRA. The income earned on the investment is tax free (providing you withdraw after 50 ½ or meet the other exceptions). You can withdraw the original contributions at anytime without penalty or tax.

02/10/2021

Recovery Rebate Credit
Did you get your recovery rebate? Was your rebate limited? Your 2020 1040 enables you to claim a rebate you didn't receive or claim an additional amount if you were limited and now qualify. The two rebates that were already sent out were based upon your 2018 or 2019 income. The tax form now calculates the rebate based upon your 2020 income and if you qualify for more, you will get a tax credit. The good news is if you would qualify for less, you don't have to pay it back.

01/22/2021

What is BETTER? ROTH IRA, Traditional IRA or Regular Investment savings?

The answer is it depends on your specific situation. However, let us take a look at the type of money you want at retirement. I think most would say TAX FREE MONEY is the best. Well, the ROTH IRA is tax free when you distribute after 59 1/2. However, you do not get a current write-off when contributing.

The Traditional IRA gives you a current write-off and the earnings on the account are not taxed until withdrawn. In other words, you will earn income on the money you would have otherwise paid taxes on. Unfortunately, the downside is the distribution is taxable at regular tax rates when withdrawn and at 72 you have required minimum distributions. This is fine if you are in a high tax bracket now and expect to be in a lower tax bracket when you retire.

Lastly is Regular Investment Savings. Here you do not get any current tax benefit. All income earned is taxed immediately unlike the ROTH which is never taxed and unlike the Traditional IRA which is taxed at distribution. However, if you are investing in stocks or mutual funds that you hold for at least a year, you get taxed at long term capital gain rates which are lower than the ordinary rates at retirement.

Bottom line ... for my money, in most cases, the ROTH IRA is the best vehicle if you qualify. The investment and income are never taxed and there are no mandatory distributions at 72.

As mentioned earlier, it really depends upon your specific situation. Before deciding, you should consult with your tax specialist and financial advisor.

01/21/2021

Standard Mileage Allowance

Do you use your car for business, charity or medical purposes? If yes, you can claim a deduction based upon the total number of miles used for that purpose. The allowance is as follows:

2020 2021
Business 57.5 56
Charity 14 14
Medical 17 16

01/20/2021

NEW TAX FORM - 1099-NEC

The IRS has added a new tax form. The 1099-NEC is for non employee compensation. It used to be reported on 1099-MISC. If you received at least $600 in non employee compensation, you will receive this form. In most cases, you will report this income on
Schedule C.

If you are in business and paid at least $600 in non employee compensation you are required to mail a copy to the individual / entity and the IRS by February 1, 2021

01/19/2021

Deduction for TEACHERS

Teachers can deduct up to $250 of qualified expenses on their 2020 tax return. If both spouses are teachers and file a joint return, they can deduct up to $500. Qualified expenses include books, supplies, computer equipment, software and supplementary material. However, there is no additional deduction if you spend more.

01/18/2021

New – Charitable deductions for 2020

New beginning with 2020, anyone who does not itemize their deductions can claim up to $300 in charitable deductions as an adjustment to income. This applies only to cash deductions. Remember, if you give $250 or more to the same organization, they are required to provide you with a written acknowledgement prior to your filing your tax return.

01/16/2021

Is a Weight-Loss Program Expense deductible?

A weight loss program is deductible as a medical expense only if it is a treatment for a specific disease diagnosed by a physician. Examples would include obesity, hypertension or heart disease. This would include fees for membership and attending meetings.

The cost of diet food or beverages is not inaudible in the medical expense because it is merely a substitute of food and beverages that would normally be consumed.

If the weight loss program is for improvement of appearance, general health or well-being, you are out of luck. You really need a specific disease diagnosis!

Address

3359 Blackbird Drive
Bozeman, MT
59718

Telephone

+14253580403

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