Harless Tax Blog

Harless Tax Blog

Why that secret cash payment to your nanny could backfire on your taxes

Tuesday, February 26, 2019

Source from cnbc.com | If you're paying your nanny cash under the table, you might catch heat from the IRS.

It's no secret that child-care costs are a massive expense for working parents. Families with infants pay a nanny an average of $580 a week, according to Care.com — or $30,160 annually.

To put things into perspective, average tuition, fees, room and board adds up to $21,370 at a public four-year school and $48,510 at a private four-year school for the 2018-2019 tax year, according to the College Board.

It may be tempting to slip your caregiver some cash off the books, but you're taking a chance with the IRS for failure to pay the appropriate employment taxes.  See More

IRS Withholding Calculator

Tuesday, February 05, 2019

Source from irs.gov | The IRS encourages everyone to use the Withholding Calculator to perform a quick “paycheck checkup.” This is even more important following the recent changes to the tax law for 2018 and beyond.

The Calculator helps you identify your tax withholding to make sure you have the right amount of tax withheld from your paycheck at work.

There are several reasons to check your withholding:  See More

Small-business owners look to grab this 20 percent tax break

Monday, February 04, 2019

Source from cnbc.com | Small-business owners filing their 2018 taxes may be able to take advantage of a brand-new 20 percent tax break.

One of the new features of the Tax Cuts and Jobs Act is the introduction of the qualified business income deduction, which went into effect last year.

This tax break allows owners of “pass-through” entities, including sole proprietorships, S-corporations and partnerships, to deduct up to 20 percent of their qualified business income. See More