2024 | DuPage Tax Solutions

Income Tax Laws: Federal vs. State

Navigating the complexities of income tax is essential for effective financial planning and compliance. In the United States, taxpayers face both federal and state income taxes, each with unique rules and implications. These tax systems interact in ways that impact taxable income, deductions, credits, and filing requirements, particularly for individuals earning income across state lines. This article provides a comprehensive overview of the key differences between federal and state income taxes, explores how they impact taxpayers, and highlights potential benefits for cross-state workers.

Retirement

How Seniors Can Reduce Their Taxes

For seniors, managing taxes effectively is essential, especially as retirement often brings changes to income. The IRS provides several ways for seniors to reduce their tax liabilities. From higher standard deductions to tax benefits for charitable giving, understanding these opportunities can help you keep more of your hard-earned money. Let’s explore the key tax-saving strategies tailored for seniors.

Individuals

Non-Taxable Income: Earn Money Tax-Free

Did you know that not all income is subject to taxation? Certain types of income can be earned without the worry of tax liability. Understanding what qualifies as non-taxable income can help you optimize your earnings and avoid unnecessary tax burdens. From municipal bonds to employer benefits, this guide covers several ways to earn money tax-free, helping you make more informed financial decisions.

Business

BOI Reporting Requirements

The Financial Crimes Enforcement Network (FinCEN) Beneficial Ownership Information (BOI) report, which became effective on January 1, 2024, is a regulatory requirement of the Corporate Transparency Act (CTA) of 2021. Specifically, the report specifically aims to combat financial crimes and ensure transparency in financial transactions by containing identifying information about the company’s beneficial owners.

Individuals

Gift Tax 101: How to Give Tax-Free

As the year comes to a close, it’s an ideal time to blend estate planning with tax-saving strategies by leveraging the annual gift exclusion and lifetime exemption. These provisions could allow you to potentially make large gift amounts tax-free. Consequently, it’s a great opportunity to support loved ones while also reducing your taxable estate.

Business

Achievement Awards for Employees

Employee morale can be a challenge for small businesses. One affordable way to boost your team’s spirits is by implementing an achievement awards program. Not only can this motivate your employees, but it may also provide valuable tax benefits for your business.

Real Estate

House Hacking: What It Could Do for You

House hacking can generate additional cash flow to cover expenses while building equity. This strategy allows you to leverage your home to earn rental income. In this guide, we will explore what house hacking is, its tax advantages and disadvantages, and other critical considerations.

Business

Audit Triggers for Small Businesses

As the IRS has received increased funding, the agency will have more resources to conduct audits. Although the IRS audits only 1% to 2% of small business, you do not want to risk an audit. Avoid certain items that can possibly raise red flags for the IRS.

Retirement

Retirement Plans for Business Owners

Planning for retirement is crucial for business owners who want to secure their financial future while maximizing tax advantages. Whether you’re self-employed or managing a growing team, the right retirement plan can provide both savings and tax benefits. This guide explores retirement plans for business owners and key features to help you choose the best fit.

Deduction and credits

Qualified Business Income Deduction

The Qualified Business Income Deduction (QBI) is a valuable tax benefit that can significantly reduce taxable income for eligible business owners. This deduction, introduced by the Tax Cuts and Jobs Act, allows many taxpayers to deduct up to 20% of their business income. However, understanding the rules and limitations is essential to maximize this opportunity. In this guide, we’ll break down everything you need to know, from eligibility requirements to calculation methods and income limits.