SSK ACCOUNTING SERVICES, LLC
The Tax Cuts and Jobs Act (TCJA) made it harder to benefit from your donations. Let’s say you donate $10,000 to a church, school, or other 501(c)(3) charity:
1. Will you get a tax deduction—in other words, will you itemize?
2. Will you benefit from the entire $10,000 as an itemized deduction? In other words, did the $10,000 simply put you over the hump that beat the standard deduction?
3. Say you can deduct all $10,000 as an itemized deduction. Would making it a business deduction increase the tax benefit value to you?
The TCJA made two big changes that make it less likely that you will itemize. First, the TCJA set a $10,000 limit on your state and local income and property tax deductions. Second, it increased the 2023 standard deductions (adjusted for inflation) to
• $27,700 for married couples filing jointly.
Even if you make a big donation, think about the problem this creates—suppose you are married and donate $17,000 to charity. If this is your only itemized deduction, your donation does you no good because it’s less than $27,700. Fortunately, there’s a much more tax-savvy way to give.
As a business owner, you can make a few modifications and convert your church, school, and other 501(c)(3) donations to a different type of deduction—an ordinary business expense—which, as you’ll see below, increases the tax savings that land in your pocket year after year.
If you think this applies to you and would like to discuss further please give me a call.
SSK Accounting Services, LLC
SSK Accounting Services is your number one source for professional service. We surpass the competition, in not only price, but value as well. We provide a full range of services from your traditional bookkeeping and tax needs to forensic analysis.
SSK Accounting Services believes in providing the best possible service. Most meetings will be held at your home or place of business, making it unnecessary to travel with your documents. All phone calls, texts and emails will be returned within 24 hours.
We have over 30 years of knowledge and experience in the field of accounting. In addition, we have over 15 years of experience in the specialties of fraud and litigation support. There is considerable stress involved in litigation and we can help alleviate your fears and confusion. Please take the time to review our services and see the many ways we can help you.
STACY SEIDEN, CPA, CFE, FCPA, CCFC
Owner
ACCOUNTING SERVICES
INDIVIDUALS
- PERSONAL BUDGETS: In these economic times it is vital to create and follow a budget
- TAXES: Preparation of your Federal, State and Local Income Tax Returns; Preparation of your quarterly estimates; Help in resolving delinquent tax situations
- BILL PAYMENT: We can help you simplify and streamline your bill payment system, i.e. set up recurring payments and online BillPay
SMALL BUSINESS
- BOOKKEEPING: I can advise and help train your staff in the use of Quickbooks
- TAXES: Preparation of the annual corporate tax return (S-Corp and LLC)
- INTERNAL CONTROL: Fraud is a concern of every company, often it is difficult in small companies to provide adequate internal controls. I evaluate your company’s system and discuss ways to improve procedures.
- BUDGETS, FORECASTS AND PROJECTIONS: Every company needs a business plan, including forecasts and projections. Budgets are a tool to help you evaluate your business’ performance. I can prepare these reports and help you use them.
- CONSULTING:
Meet with you monthly, quarterly, annually or on an as needed basis, including but not limited to forming a new business; financing options; buy/sell agreement; expansion plan; succession plan; etc.
Meet with you monthly, quarterly, annually or on an as needed basis, including but not limited to forming a new business; financing options; buy/sell agreement; expansion plan; succession plan; etc.
LITIGATION SUPPORT
DIVORCE
- Divorces frequently require the services of a forensic accountant. In the dissolution of a marriage a thorough review to determine the income and assets of the parties is necessary to calculate alimony, child support and equitable distribution. We investigate financial information by examining documents, develop questions and consult in depositions, investigative interviews and conduct lifestyle analyses.
FRAUD
- Fraud is on the rise in the current economic climate. If you or your company is the victim of fraud and would like to pursue the perpetrator SSK Accounting Services can help to quantify your financial loss. We will review your company’s financial data and discuss with you our findings. A comprehensive report will be provided, which you can submit to the authorities.
OTHER
- The area of litigation support is not limited to divorce and fraud. We also provide services including but not limited to damage analysis, shareholder disputes, buy-sell agreements and solvency review
TAX TIPS
Alimony- is it taxable?
The Tax Cuts and Jobs Act changed the treatment of alimony for federal taxes. In prior years alimony was taxable to the recipient and deductible by the payor. Now unless your divorce agreement was dated before December 31, 2018 alimony is not taxable to the recipient and not deductible by the payor. Regarding the taxation of alimony on the state level, it varies depending on which state the recipient resides. It important to consult with your tax accountant.
Traditional IRA versus Roth IRA
The basic difference between a traditional IRA and and a Roth is when they are taxed. Contributions to a traditional IRA are made with “before tax dollars” whereas contributions to a Roth IRA are made with “after tax dollars.” Contributions to a traditional IRA will reduce your taxable income in the year the contribution was made and reduce your taxes that year. When funds are withdrawn from your traditional IRA at retirement age they are taxed (both the contributions made and the appreciation). Withdraws from a Roth IRA at retirement are tax free, both the contributions made and the growth within the account. There are other rules associated with each type of IRA and well as many other retirement options. Please contact me to review your individual circumstances and the best options for you.
Income is more than a W-2
Income available for support is one of the key financial items in a divorce. This number is the basis for child support and alimony. Due to the complexity of this calculation a forensic accountant is often retained. The spouse receiving support will want to make sure all elements of income have been captured.
Business Owners-what is their income
Some business owners don’t take their salary in the form of W-2 income. They may make draws periodically throughout the year. They may pay for personal expenses, i.e. cell phones, cars, meals using company funds. It is the job of the forensic accountant to review these expenses and determine if they are business or personal.
Where’s the money?
Additional bank accounts may be set up to hide funds. There are various ways these accounts may be titled. The important thing to determine is where the money came from to fund these accounts. Was the money removed from a joint account? Was the money from the sale of a marital asset? Forensic accountants are trained to trace the path these funds take.
Protect yourself-Retain your team of advisors
Divorce is an emotional and life changing event. Most individuals going through divorce are not at their best mentally. Do not make decisions about your financial future without the best information. Let those who are trained help you make informed and educated decisions. You think you feel betrayed now, imagine how you’ll feel if after you are divorced you are barely making ends meet and your ex is taking a vacation every couple months because you lacked necessary income information.
Documents Needed to Prepare Tax Return
Personal Information
· Copy of driver’s license
· Your social security number or tax ID number
· Your spouse's full name and social security number or tax ID number
· Amount of any alimony paid and ex-spouse's full name and social security number
· Date of Divorce
- Divorce Agreement
· Your tax returns for the previous year- if you are a new client
Information About Other People Who May Belong on Your Return
· Dates of birth and social security numbers or tax ID numbers
· Childcare records (including the provider's tax ID number) if applicable
· Income of other adults in your home
· Form 8332 showing that the child’s custodial parent is releasing their right to claim a child to you, the noncustodial parent
Education Payments
· Forms 1098-T from educational institutions
· Receipts that itemize qualified educational expenses
· Records of any scholarships or fellowships you received
· Form1098-E if you paid student loan interest
Income
· Forms W-2
Self-Employment Information
· Forms 1099-(MISC, NEC), Schedules K-1, income records to verify amounts not reported on 1099s
· Records of all expenses — check registers or credit card statements, and receipts, Access to Quickbooks or other accounting software
· Business-use asset information (cost, date placed in service, etc.) for depreciation
· Office in-home information please discuss with me
Business Use of Vehicle Information
· Log showing total miles driven for the year (or beginning/ending odometer readings), total business miles driven for the year (other than commuting), and the business purpose of the mileage
· Amount of parking and tolls paid
· If you want to claim actual expenses, receipts or totals for gas, oil, car washes, licenses, personal property tax, lease or interest expense, etc.
Rental Property Income
· Records of income and expenses
· Rental asset information (cost, date placed in service, etc.) for depreciation
Retirement Income
· Pension/IRA/annuity income (1099-R)
· Social security/RRB income (1099-SSA, RRB-1099)
Savings and Investments
· Interest, dividend income (1099-INT, 1099-OID, 1099-DIV)
· Income from sales of stock or other property (1099-B, 1099-S)
· Dates of acquisition and records of your cost or other basis in property you sold (if basis is not reported on 1099-B)
Virtual Currency (i.e. Bitcoin)-At any time during the year, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?
Other Income
· Unemployment, state tax refund (1099-G)
· Gambling income (W-2G or records showing income, as well as expense records)
· Amount of any alimony received
· Health Savings Account and long-term care reimbursements (1099-SA or 1099-LTC)
· Jury duty records
· Hobby income and expenses
· Prizes and awards
· Other 1099
Other Deductions and Credits
· Form 1095-A Health Insurance Marketplace Statement
· Receipts for classroom expenses (for educators in grades K-12)
· Form 5498-SA showing HSA contributions
· Forms 1098 or other mortgage interest statements
· Amount of state/local income tax paid (other than wage withholding), or amount of state and local sales tax paid
· Real estate and personal property tax records
· Invoice showing amount of vehicle sales tax paid
· Cash amounts donated to houses of worship, schools, other charitable organizations
· Records of non-cash charitable donations
· Amounts paid for healthcare insurance and to doctors, dentists, hospitals
· Amounts of miles driven for charitable or medical purposes
· Employment-related expenses (dues, publications, tools, uniform cost and cleaning, travel)
· Receipts for energy-saving home improvements
· Record of estimated tax payments made
· Record of IRA or SEP contributions
MONTHLY NEWSLETTER
As you may already know, there have been some major changes to the business meal deduction for 2023 and beyond. The deduction for business meals has been reduced to 50 percent, a significant change from the previous 100 percent deduction for business meals in and from
restaurants, which was applicable only for the years 2021 and 2022.
Health Savings Accounts (HSAs) are designed for use alongside high-deductible health plans, assisting you in covering your medical expenses. They can also function as an incredible retirement account due to their triple tax benefit:
You can deduct contributions from your taxes.
Your account balance grows without being taxed.
Withdrawals for medical expenses are tax-free.
And after age 65, you can use the monies for non-medical purposes, the same as you can with a traditional IRA, and pay taxes at ordinary income rates but without penalties.
We recommend that you fully fund your HSA each year until you enroll in Medicare and that you ideally minimize distributions. By doing so, even if you start at age 50, you could accumulate $200,000 or more by the time you reach age 65.
To assist in funding your HSA, there is a special, lesser-known rule: you can roll over funds from your IRA to your HSA once in your lifetime through a qualified HSA funding distribution.
The rollover amount is limited to your HSA contribution limit for the year. In 2023, this amounts to $3,850 for individual coverage and $7,750 for family coverage. If you are over age 55, you can add a $1,000 catch-up contribution.
The rollover amount doesn’t count as income, isn’t deductible, and reduces the amount you can contribute to your HSA for the year. The big benefit is that you turn this otherwise taxable money into tax-free money when you use it for medical expenses.
For more information, submit a request for information on services below.
Stacy Seiden, CPA, CFE, FCPA, CCFC
SSK Accounting Services, LLC
215-622-8955
Fax 877-580-2093
PO Box 122
Spring House, PA 19477