Scott Cornelius, CPA, P.C.

07/14/2026

📌 Tax Topic Tuesday: Understanding Retirement Accounts

Not all retirement accounts are taxed the same way.
Some accounts may provide a tax deduction today, while others allow for tax-free withdrawals in retirement.

🏦 Traditional IRA
Contributions may be tax-deductible, reducing your taxable income today. Funds grow tax-deferred, and withdrawals in retirement are generally taxed as ordinary income. The deductibility of contributions is subject to income limits.

🌱 Roth IRA
Contributions are made with after-tax dollars, so there is no current tax deduction. However, qualified withdrawals in retirement are generally tax-free. Contributions are subject to income limits.

💼 SEP IRA
Designed for self-employed individuals and small business owners. Contributions are made by the employer and may be tax-deductible. Funds grow tax-deferred until withdrawn.

📋 SIMPLE IRA
A retirement plan for small businesses with 100 or fewer employees. Employees contribute through payroll deductions, and employers generally make matching or required contributions.

📈 401(k)
An employer-sponsored retirement plan that allows employees to contribute pre-tax dollars. Contributions may reduce current taxable income, and earnings grow tax-deferred until retirement.

👤 Solo 401(k)
Designed for self-employed individuals with no employees other than a spouse. Allows for potentially higher contribution limits by contributing as both the employee and employer.

💡 Key Difference: The biggest tax question is often whether you want a tax deduction today (Traditional IRA, SEP IRA, SIMPLE IRA, and Traditional 401(k)) or tax-free income in retirement (Roth IRA).
The right choice depends on your income, employment status, business ownership, and long-term financial goals.

Contact our office if you'd like help determining which retirement account may be most beneficial for your tax situation. We also can refer you to a financial planner.

07/07/2026

📌 Tax Topic Tuesday: When Should Your Business Consider an S Corporation?

An S Corporation may offer tax savings for some business owners, but it's not the right fit for every business.

You may want to consider S Corp status if:
✅ Your business is consistently profitable
✅ You are taking more income than you need as a reasonable salary
✅ Self-employment taxes are becoming significant
✅ You want to separate salary income from business profits
✅ Your net business income is generally $50,000+ (varies by situation)

Potential benefits may include:
✔ Reduced self-employment taxes
✔ Pass-through taxation
✔ Potential tax savings as profits grow

Keep in mind that S Corps also come with additional requirements, including payroll, tax filings, and compliance responsibilities.
Every business is different. Before making the election, it's important to evaluate whether the tax savings outweigh the added administrative costs.

Contact our office to see whether an S Corporation could be beneficial for your business.

06/30/2026

📌 Tax Topic Tuesday: How is Social Security Taxed

Social Security benefits are not always tax-free. Whether they’re taxable depends on your combined income.

1. What is “Combined Income”?
The IRS looks at:
✔ Your Adjusted Gross Income (AGI)
✔ Any nontaxable interest (like municipal bond interest)
✔ Half of your Social Security benefits
This total determines if part of your benefits become taxable.

2. How Much Can Be Taxed?
Depending on your income:
✅ 0% taxable – Lower income may mean none of your benefits are taxed.
✅ Up to 50% taxable – Moderate income levels.
✅ Up to 85% taxable – Higher income levels.
Important: This does not mean you pay 85% tax — it means up to 85% of your benefits may be included as taxable income.

3. Income Thresholds Matter
For Single filers:
• Under $25,000 → Usually tax-free
• $25,000–$34,000 → Up to 50% taxable
• Over $34,000 → Up to 85% taxable
For Married Filing Jointly:
• Under $32,000 → Usually tax-free
• $32,000–$44,000 → Up to 50% taxable
• Over $44,000 → Up to 85% taxable

4. State Taxes May Apply Too
Some states also tax Social Security, but North Carolina does not tax Social Security benefits.

5. Tax Planning Can Help
Things like Roth withdrawals, managing retirement distributions, & timing other income can help reduce how much of your Social Security is taxable.

06/24/2026

We hope you all have a wonderful 4th of July!!!

06/23/2026

📌 Tax Topic Tuesday: What Are Trump Accounts?

A new savings program called Trump Accounts is now available for eligible children under age 18. These tax-advantaged investment accounts are designed to help families save for a child's future. Eligible children born between January 1, 2025, and December 31, 2028, may qualify for a one-time $1,000 government contribution. Contributions from family members can also be made, subject to annual limits. https://www.irs.gov/trumpaccounts

📱 New Trump Accounts App Available
The U.S. Treasury recently launched the official Trump Accounts app, allowing families to register, manage accounts, and track account activity directly from their mobile devices. Account activation is beginning ahead of the program's official launch. https://home.treasury.gov/news/press-releases/sb0508

💡 As with any savings vehicle, it's important to understand the tax rules, contribution limits, and how these accounts compare to other options such as 529 plans. Learn info on Trump accounts: https://trumpaccounts.gov/

Have questions about how this may affect your family? Contact our office to schedule a meeting—we're happy to help!

06/18/2026

We are trying to get more engaged with our clients on Facebook!
Go check out The Dead Pest Society's Father's Day Giveaway! 😄🦟

🎉 Father’s Day Giveaway 🎉

We’re giving away a YETI Roadie 15 + your choice of a Dead Pest Society hat and long sleeve performance fishing shirt! 🔥

To enter:
✅ Like this post
✅ Share this post
✅ Tag 3 friends

Winner will be announced Sunday night — just in time for Father’s Day!

Good luck and thank you for supporting The Dead Pest Society 🕷️💀

06/16/2026

📌 Tax Topic Tuesday: Important Tax Deadlines for Business Owners

Owning a business comes with more than just filing an annual tax return. Here are a few key filings and payments business owners should keep on their radar each year:
✅ Annual Reports
• April 15th (for most NC entities)
Keeps your business active and updated with the NC SOS. Fees: $203 for LLC, $21 for INC.

✅ Franchise Tax Payments
• April 15th (C-Corps & some S-Corps)
A state tax based on your business’s net worth or capital.

✅ Quarterly Estimated Tax Payments
• April 15, June 15, September 15, and January 15
Required if you expect to owe taxes and want to avoid penalties.

✅ Federal & State Tax Return Deadlines
• March 15th – S-Corps & Partnerships
• April 15th – Sole Proprietors & C-Corps
Reports your annual business income and expenses.

✅ Extension Deadlines
• September 15th – S-Corps & Partnerships
• October 15th – Individuals & C-Corps
Gives extra time to file, but not extra time to pay.

✅ Business Personal Property Tax Listings (BPPTL)
• January 31st (Extension dates vary by county.)
Reports business-owned assets like equipment, furniture, untagged vehicles/trailers, and machinery to your county. (Any business that has personal property)

Need help staying on track? Our office can help you navigate filing requirements and keep your business compliant throughout the year.

06/09/2026

📌 Tax Topic Tuesday: W-2 vs. 1099 — What Changes?

Many people hear “W-2” and “1099” but aren’t sure what the difference actually means. Here’s a quick breakdown:

👔 W-2 Employee
- Taxes are automatically withheld from your paycheck
- Employer pays part of Social Security & Medicare taxes
- May receive benefits like health insurance, retirement plans, and paid time off
- Receive a W-2 form at tax time

💼 1099 Contractor / Self-Employed
- Taxes usually are not automatically withheld
- Responsible for paying your own taxes, including self-employment taxes
- May need to make quarterly estimated tax payments
- Can often deduct eligible business expenses
- Receive a 1099 form at tax time

💡 Example:
Two people each make $50,000 a year. One is W-2 and one is 1099. The 1099 worker may receive larger checks throughout the year — but they also need to set money aside for taxes that aren’t being withheld automatically.

🚫 Myth: “1099 workers make more money because their checks are bigger.”
✔️ Fact: Bigger checks can also mean a larger tax bill later if you’re not planning ahead.