IRS Issues Guidance on Tax Treatment of Energy Efficiency Rebates

The IRS has recently provided guidance regarding the tax treatment of energy efficiency rebates introduced by the Inflation Reduction Act. With nearly $9 billion allocated for home energy rebates, it is crucial for taxpayers to understand the implications of these rebates to maximize their financial benefits. This article reviews how the rebates will impact taxable income and the interplay of the rebates with the Energy Efficient Home Improvement Credit.

Hiring Your Minor Children for Summer Jobs

Small business owners may be able to hire their minor children this summer and get tax breaks and other nontax benefits. While eligible owners can save on payroll taxes and lower some costs, their kids also benefit. They gain on-the-job experience, develop practical skills and learn how to manage money. This article will explore the tax benefits of hiring your child and offers a sidebar on how that earned income can also help young workers get an early start on funding a retirement plan.

Three Ways Your Business Can Uncover Cost Cuts

Every business wants to cut costs, but it sure isn’t easy. We’re talking about clear and substantial ways to lower expenses, thereby strengthening cash flow and giving you a better shot at strong profitability. Obvious places to slash costs — such as wages, benefits and overhead — often aren’t viable options because the very stability of the operation may depend on them. But there might be other ways to lower expenses if a business owner digs deeply enough. Here are three ways to perhaps uncover some cost-cutting opportunities.

To Get an “Early” Refund, Adjust Your Withholding

Taxpayers who received a large tax refund this year may want to adjust their withholding. Each year, millions of taxpayers claim an income tax refund. That can represent a pleasant influx of cash. But it’s probably not the best use of cash for taxpayers, as it’s similar to giving the government an interest-free loan for nearly a year. Fortunately, there’s a way taxpayers can begin collecting their 2024 tax refunds now. In this article, you will learn how to adjust your withholdings and estimated payments and get the money in your pockets during the year instead of getting a refund the following year.

The “Nanny Tax” Must Be Paid for Nannies and Other Household Workers

Many taxpayers employ household workers such as a cleaners or nannies who aren’t independent contractors. These employers may be required to withhold from their workers’ wages and pay Social Security and Medicare taxes, and possibly other taxes. This short article gives a rundown of what the employer of a household worker needs to know to withhold taxes, what taxes the employer is responsible for and how to report the taxes.

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About Dannible & McKee, LLP

Dannible & McKee, LLP has been providing audit, tax, accounting and financial management consulting services to clients nationwide since 1978. Throughout this forty-five-year history, we have been wholly dedicated to the success of our clients. Every aspect of our business has been guided by our values and our commitment to putting each client's interests first. In a complex profession, we have found our greatest rewards in the simplicity of helping good people prosper. Delivering confidence in every financial decision is our goal for our clients, and it's also the most significant way we can contribute to their long-term success.

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To learn more about Dannible & McKee, visit us at: www.dmcpas.com.