Dana McGuffin CPA Blog

Navigating the New 2021 Child Tax Credit: What you need to know

By Dana McGuffin | April 20, 2021 | Comments Off on Navigating the New 2021 Child Tax Credit: What you need to know

  The whirlwind of tax changes just keeps going. Now if you have children 17 or under there is a new, higher child tax credit in place for 2021. Here is what you need to know: Age matters. The old credit was for children under the age of 17. The new credit goes through age 17…

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Tax Return Review Hints

By Dana McGuffin | March 17, 2021 | Comments Off on Tax Return Review Hints

  Prior to e-filing your tax return, you will need to review it. Here are some suggestions to ensure everything looks right. The Basics Confirm the basics for you, your spouse and your dependents: Double check the name, address, Social Security Numbers and proper identification of dependents that are under age 17 Double check filing status.…

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Starting a Business Now Could Make a Lot of Sense

By Dana McGuffin | March 1, 2021 | Comments Off on Starting a Business Now Could Make a Lot of Sense

    The same factors that we’ve been dealing with for the past 12 months during the pandemic can also create an opportunity if you are considering starting a small business.  Problems create opportunity For one thing, fewer businesses in the marketplace can mean fewer potential competitors. For a start-up company, that can be good…

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Don’t Run the Risk of a High Tax Bill! Know when you should ask for professional help.

By Dana McGuffin | October 1, 2020 | Comments Off on Don’t Run the Risk of a High Tax Bill! Know when you should ask for professional help.

  Before taking action talk to your tax adviser. How many times have you seen this legal disclaimer? Unfortunately, all too often taxpayers do not follow this advice and then must pay the price with an unnecessarily high tax bill. Here are some of the most common situations that can save you money by seeking…

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Is a Tax Time Bomb Lurking in Your Paycheck?

By Dana McGuffin | September 22, 2020 | Comments Off on Is a Tax Time Bomb Lurking in Your Paycheck?

      Does your paycheck look a little higher than normal? If so, it could be a tax time bomb.   The Problem A payroll tax deferral beginning September 1 was recently signed via a presidential executive order. The potential deferral of your portion of Social Security as an employee could raise your take…

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A Gift of Stock: Information is key when using this tax planning strategy

By Dana McGuffin | September 1, 2020 | Comments Off on A Gift of Stock: Information is key when using this tax planning strategy

  You own some stock that has increased in value. To avoid a possible taxable gain by selling the stock, you wish to give it directly to a child or grandchild. This simple idea has some interesting tax consequences to consider.   Value of the Gift When you gift stock there are not one, but…

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Tax-Free Roth IRA Withdrawal Options: What every Roth IRA account holder should know

By Dana McGuffin | August 13, 2020 | Comments Off on Tax-Free Roth IRA Withdrawal Options: What every Roth IRA account holder should know

  Withdrawing funds from your retirement accounts must be done carefully to avoid a potential 10% early withdrawal penalty. Unfortunately, each retirement account type has different rules. Here are some tips for Roth IRAs. Roth IRA basics Roth IRA accounts differ from other IRAs in that your contributions are made in after-tax dollars. If you…

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Understanding Tax Terms: Wash Sales Surprise! Your stock loss is not deductible.

By Dana McGuffin | July 30, 2020 | Comments Off on Understanding Tax Terms: Wash Sales Surprise! Your stock loss is not deductible.

  You may be considering booking stock losses due to recent market drops in order to save on your bill from Uncle Sam. Selling losers can be a great strategy when these losses can offset stock gains and up to $3,000 in excess stock losses can offset your ordinary income. However, there is a little…

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Tax Surprises for the Newly Retired

By Dana McGuffin | July 21, 2020 | Comments Off on Tax Surprises for the Newly Retired

    You’ve got it all planned out. Your retirement savings accounts are full, you have started receiving Social Security benefits and your pension is ready to go. Everything is planned. What could go wrong? Here are five surprises that can turn your plan on a dime. 1. Health emergencies and long-term care. When a simple…

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Deducting Summer Activity Expenses: Don’t forget to save receipts

By Dana McGuffin | June 30, 2020 | Comments Off on Deducting Summer Activity Expenses: Don’t forget to save receipts

  The kids are out of school and summer is well underway. Make sure you understand the rules regarding the tax deductibility of summer activities and related daycare expenses through the use of the Child and Dependent Care Credit. Collecting those receipts now can save plenty during tax time. What is deductible? 20 to 35%…

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