Pasquesi Sheppard LLC

10/31/2023

08/01/2023

The best way to survive an IRS audit is to prepare: The IRS recently released its audit statistics for the 2022 fiscal year and fewer taxpayers had their returns examined as compared with prior years. But even though a small percentage of returns are being chosen for audits these days, that will be little consolation if yours is one of them. Recent statistics Overall, just 0.49% […]
The post The best way to survive an IRS audit is to prepare appeared first on Pasquesi Sheppard LLC.

The IRS recently released its audit statistics for the 2022 fiscal year and fewer taxpayers had their returns examined as compared with prior years. But even though a small percentage of returns are being chosen for audits these days, that will be little consolation if yours is one of them. Recent s...

07/28/2023

Are you married and not earning compensation? You may be able to put money in an IRA: When one spouse in a married couple is not earning compensation, the couple may not be able to save as much as they need for a comfortable retirement. In general, an IRA contribution is allowed only if a taxpayer earns compensation. However, there's an exception involving a “spousal” IRA. It allows contributions to be made […]
The post Are you married and not earning compensation? You may be able to put money in an IRA appeared first on Pasquesi Sheppard LLC.

When one spouse in a married couple is not earning compensation, the couple may not be able to save as much as they need for a comfortable retirement. In general, an IRA contribution is allowed only if a taxpayer earns compensation. However, there’s an exception involving a “spousal” IRA. It a...

07/27/2023

That email or text from the IRS: It's a scam!: “Thousands of people have lost millions of dollars and their personal information to tax scams,” according to the IRS. The scams may come in through email, text messages, telephone calls or regular mail. Criminals regularly target both individuals and businesses and often prey on the elderly. Important: The IRS will never contact you by email, […]
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07/27/2023

When can seniors deduct Medicare premiums on their tax returns?: If you're age 65 and older and have basic Medicare insurance, you may need to pay additional premiums to get the level of coverage you want. The premiums can be costly, especially for married couples with both spouses paying them. But there may be an advantage: You may qualify for a tax break for paying […]
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If you’re age 65 and older and have basic Medicare insurance, you may need to pay additional premiums to get the level of coverage you want. The premiums can be costly, especially for married couples with both spouses paying them. But there may be an advantage: You may qualify for a tax break for ...

07/20/2023

Reduce the impact of the 3.8% net investment income tax: High-income taxpayers face a regular income tax rate of 35% or 37%. And they may also have to pay a 3.8% net investment income tax (NIIT) that's imposed in addition to regular income tax. Fortunately, there are some ways you may be able to reduce its impact. Affected taxpayers The NIIT applies to you only […]
The post Reduce the impact of the 3.8% net investment income tax appeared first on Pasquesi Sheppard LLC.

High-income taxpayers face a regular income tax rate of 35% or 37%. And they may also have to pay a 3.8% net investment income tax (NIIT) that’s imposed in addition to regular income tax. Fortunately, there are some ways you may be able to reduce its impact. Affected taxpayers The NIIT applies to ...

07/18/2023

Freelance Tax Deductions in Illinois: The number of freelancers in the United States is at an all-time high, with 60 million Americans performing freelance work. Last year, they contributed $1.35 trillion to the local economy, a massive rise from $50 billion in 2021. Whether you're a full-time freelancer or one of the 40% of full-time employees with a side hustle, you'll want […]
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Whether you're a full-time freelancer or a full-time employees with a side hustle, you'll want to retain as much earnings as you can.

07/13/2023

Benefits of a living trust for your estate: You may think you don't need to make any estate planning moves because of the generous federal estate tax exemption of $12.92 million for 2023 (effectively $25.84 million if you're married). However, if you have significant assets, you should consider establishing a living trust to avoid probate. Probate is a court-supervised legal process intended to […]
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You may think you don’t need to make any estate planning moves because of the generous federal estate tax exemption of $12.92 million for 2023 (effectively $25.84 million if you’re married). However, if you have significant assets, you should consider establishing a living trust to avoid probate...

07/07/2023

How to Calculate Net Worth Tax: Even if you don't do your own taxes each year, you may have heard about a net worth tax, also known as a wealth tax. A wealth tax is a tax levied by the government based on your net worth. The United States doesn't levy a general wealth tax, but it does collect a payroll […]
The post How to Calculate Net Worth Tax appeared first on Pasquesi Sheppard LLC.

If you'd like to calculate your net worth and hypothetical net worth tax, this information will help you determine which steps to take.

06/20/2023

If you're hiring independent contractors, make sure they're properly handled: Many businesses use independent contractors to help keep their costs down — especially in these times of staff shortages and inflationary pressures. If you're among them, be careful that these workers are properly classified for federal tax purposes. If the IRS reclassifies them as employees, it can be an expensive mistake. The question of whether […]
The post If you're hiring independent contractors, make sure they're properly handled appeared first on Pasquesi Sheppard LLC.

Many businesses use independent contractors to help keep their costs down — especially in these times of staff shortages and inflationary pressures. If you’re among them, be careful that these workers are properly classified for federal tax purposes. If the IRS reclassifies them as employees, it...

06/13/2023

Retirement saving options for your small business: Keep it simple: If you're thinking about setting up a retirement plan for yourself and your employees, but you're worried about the financial commitment and administrative burdens involved, there are a couple of options to consider. Let's take a look at a “simplified employee pension” (SEP) or a “savings incentive match plan for employees” (SIMPLE). SEPs are intended […]
The post Retirement saving options for your small business: Keep it simple appeared first on Pasquesi Sheppard LLC.

If you’re thinking about setting up a retirement plan for yourself and your employees, but you’re worried about the financial commitment and administrative burdens involved, there are a couple of options to consider. Let’s take a look at a “simplified employee pension” (SEP) or a “saving...

06/07/2023

Paperwork you can toss after filing your tax return: Once you file your 2022 tax return, you may wonder what personal tax papers you can throw away and how long you should retain certain records. You may have to produce those records if the IRS audits your return or seeks to assess tax. It's a good idea to keep the actual returns indefinitely. But […]
The post Paperwork you can toss after filing your tax return appeared first on Pasquesi Sheppard LLC.

Once you file your 2022 tax return, you may wonder what personal tax papers you can throw away and how long you should retain certain records. You may have to produce those records if the IRS audits your return or seeks to assess tax. It’s a good idea to keep the actual returns indefinitely. But [...