Anthony Sykes & Company

        As more people begin to gain a real understanding about how the Tax Cuts and Jobs Act ( TCJA ) will affect their taxes, some are unhappy with the changes. As a result, certain states have taken action to get around some of the provisions laid out in the TCJA . One key issue that has come up is in the area of State and Local Tax ( SALT ) deductions. In states with a high income tax, Taxpayers were able to deduct that from their Federal income tax for the full amount. This ability is now limited to $10,000, but some states are responding with their own laws.                     A few states feel they have been impacted the most and three of them were first in line to write some very unique legislation. New Jersey signed their law on May 4. It gives cities in that state the ability to start their own charitable funds. Since limit for SALT deductions does not cover charitable donations, the plan is to donate to these municipal charities to be able to make up the difference

        In the ever-changing business world, there is a new and growing area of the workforce. There are more job opportunities set up with the premise of being able to set you own schedule and fit that job into your life however you want to. This certainly has its appeal for many people. A key aspect of this equation for the business is that it would categorize people in these jobs as Independent Contractors. That time may be coming to an end.           In a ruling by the California Supreme Court, the classification standards to determine if a worker is an Independent Contractor or Employee have changed. The method used in this case is the same that is used in Massachusetts and New Jersey. The consequences of a Contractor becoming an employee are substantial. For a business, this means that they will have a greater Payroll Tax responsibility among other things. An individual will see that taxes are withheld when they are made an employee. This is just the beginning of the tax cha

        One aspect of US tax law deals with the subject of American citizens who have taxable income in other countries. This was directly addressed in 2010 by the Foreign Account Tax Compliance Act . The goal was to keep US Taxpayers from being able to hide money overseas. This is accomplished by making foreign banks responsible for reporting all accounts held in the name of US citizens to the IRS.           The United States has a citizenship-based tax system. This means that an American must pay US taxes on their income, no matter where they live. This is similar to the way US based corporations are taxed. However, there are many people who inherited this citizenship from a parent, or were born in the US and raised in another country but feel they have no real ties to this country. Their income is still subject to US taxation. For many of them, there are years of penalties and interest that have accumulated over a lifetime.           These fees can come from the IRS when they b

          There are some critical details that should be important to every Small Business Owner. No matter what industry the business may be a part of, there are necessary decisions that must be made. This certainly makes the case for using a qualified tax and accounting professional to assist with the bookkeeping. This will give peace of mind in a variety of ways.           Keep finances up to date. When there is an eye on the cash flow of the business, problems can be caught soon. This will make issues easier to fix instead of waiting until the end of the quarter or year. This will also allow for the business to make sure they are current with all of their tax obligations. When this is achieved, the multiple Tax Deadlines that are required for businesses will not arrive as a surprise.           With these essential tasks being cared for, a business owner can focus on how to grow their company. They will be able to decide on whether or not to hire new employees or contracto