On July 4, President Trump signed into law the far-reaching legislation known as the One, Big, Beautiful Bill Act (OBBBA). As expected, it extends and enhances many of the tax breaks from the Tax Cuts and Jobs Act (TCJA). It also includes several of Trump’s campaign promises — though many are only temporary — and […]
If your federal tax withholding isn’t enough to cover your total tax liability, you may need to make estimated tax payments. This typically applies if you earn income from sources such as interest, dividends, self-employment, capital gains, or other taxable income. The following rules explain how to make these payments without incurring an underpayment penalty. […]
Market volatility may have shrunk your traditional IRA, but that could be an opportunity. A lower account value means you can convert to a Roth IRA and pay less tax on the conversion. Traditional vs. Roth IRAs Traditional IRA contributions may be deductible (depending on income and employer-sponsored retirement plan participation). Funds grow tax-deferred, but […]
When it comes to taxation, partners in a business may find the math a bit puzzling. You may discover that the amount of partnership income you’re taxed on is more than the amount that was distributed to you. That’s a quirk of taxation that lies in the way partnerships and partners are taxed. Pass-through taxation […]
The One Big Beautiful Bill Act (OBBBA) introduces a notable, though temporary, revision to the federal State and Local Tax (SALT) deduction cap. Originally imposed by the 2017 Tax Cuts and Jobs Act (TCJA), the SALT cap limited the amount of state and local income, sales, and property taxes that taxpayers could deduct from their […]
July 31 Employers must file the second quarter Form 941, Employer’s Quarterly Federal Tax Return. (If your tax liability is less than $2,500, you can pay it in full with a timely filed return.) Also, employers must deposit FUTA taxes owed through June if the liability is more than $500. Employers that provide a retirement plan […]