March 2022 E-Newsletter

MARCH 2022 E-NEWSLETTER

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March Featured News

Business Credits That Cut Your Tax Bill

Tax credits reduce the amount of tax you owe, whereas deductions lower your taxable income. There are several highly valued business tax credits you might not know about that could cut your tax bill.

How Are Social Security Benefits Taxed

While the general rule is that Social Security benefits are taxable, things like filing status and other sources of income determine how much tax you'll pay.

Understanding Inflation

Inflation affects all aspects of the economy, from consumer spending, business investment, and employment rates to government programs, tax policies, and interest rates.

Hiring Your Kids to Lower Company Taxes

If you are self-employed, hiring your children as legitimate employees is a tax-saving strategy.

March 2022 Q & A

Q: How do I report my fantasy sports league winnings?

A: With the Super Bowl over and March Madness in full swing, winning the betting pool means paying taxes. Gamblers must report all winnings as taxable income. That includes the fair market value of any prizes won, such as cars or trips. Generally, you'll receive an IRS Form W-2G if your winnings are at least $600 and the payout is at least 300 times the amount of your wager.

If you itemize deductions on your taxes, you can deduct any gambling losses incurred during the year on Schedule A. But you are limited to deducting only to the extent you have winnings. So if you won $1,000 from your fantasy football team but lost $1,500 on your basketball brackets, you'll only be able to deduct $1,000 of those losses.

SHORT BITS

The True Cost of The Great Resignation

38% of employees leave their jobs as a result of inadequate salary and benefits.

Replacing an employee can cost between 50% - 60% of that employee's salary with overall costs ranging anywhere from 90% - 200%.

Salary accounts for 70.1% of total employee compensation.

Are You Above Average?

Here's a snapshot of the average U.S. household's finances. See how your finances compare.

Gross Household Income: $87,864

Checking Account Balance: $10,618

Monthly Spending: $5,102

Household Debt: $145,000

Social Security Monthly Retirement Benefit: $1,514

Credit Card Debt: $6,194

FICO® Score: 711

Savings Rate: $13.7%