Author Archives: Chad Lahrmer CPA

Choosing a Retirement Destination: Tax Considerations

retirementWith health care, housing, food, and transportation costs increasing every year, many retirees on fixed incomes wonder how they can stretch their dollars even further. One solution is to move to another state where income taxes are lower than the one in which they currently reside. Continue reading

Taking Early Withdrawals From Retirement Accounts

early withdrawalWhile taking money out of a retirement fund before age 59-1/2 is usually not recommended, in certain cases, it may be unavoidable, especially during times of economic crisis. If you need cash and have a retirement fund you can tap, here’s what you need to know. Continue reading

Six Tips for Starting Your Own Business

new store openingStarting your own business can be an exciting prospect, but there is more to it than simply writing a business plan. Also, if you expect to have employees, there are a variety of federal and state forms and applications that will need to be completed to get your business up and running. That’s where a tax professional can help. With this in mind, let’s take a look at what you need to know before you start a new business. Continue reading

TAX TIPS FOR WORKERS IN THE GIG ECONOMY

Gig Economy

The gig economy, also called sharing or access economy, is defined by activities where taxpayers earn income providing on-demand work, services, or goods. This type of work is often carried out via digital platforms such as an app or website. There are many types of sharing economy businesses including two of the most popular ones: ride-sharing, Uber and Lyft, for example, and home rentals such as Airbnb. Continue reading

TAX CONSIDERATIONS WHEN HIRING HOUSEHOLD HELP

Help

If you employ someone to work for you around your house, it is important to consider the tax implications of this type of arrangement. While many people disregard the need to pay taxes on household employees, they do so at the risk of paying stiff tax penalties down the road. Continue reading

IT’S NEVER TOO EARLY TO CHECK TAX WITHHOLDING

Paycheck

While it might seem like tax season just ended, it is never too early to do a “Paycheck Checkup” to make sure the right amount of tax is withheld from earnings – and avoid a tax surprise next year when filing your 2020 tax return. As a reminder, because income taxes operate as a pay-as-you-go system, taxpayers are required by law to pay most of their tax as income is received. Continue reading

SMALL BUSINESS UPDATE: PAYROLL TAX DEFERRAL

On August 8, 2020, the President of the United States issued a Presidential Memorandum allowing employers to defer withholding and payment of the employee’s portion of the Social Security tax if the employee’s wages are below a certain amount. Medicare taxes are not covered, only FICA taxes (i.e., the 6.2% portion of the federal payroll tax on employees). The deferral also applies to the employee portion of the Railroad Retirement Act Tier 1 tax. Let’s take a look at what this means: Continue reading