Tax Planning for Wage Earners

Tax Planning for Wage Earners

This time of year, people often ask me, “Frank, it seems like I pay a lot in taxes. What can I do to pay less?” Mostly, they are really asking me, “How can I save on taxes by moving some numbers around on paper?” To save on taxes, our elected representatives strike a...

Special Tax Rules for Rehiring Staff

Special Tax Rules for Rehiring Staff

If you find yourself short-staffed, one quick fix may be calling a former employee who has retired. You won't jeopardize your pension plan's tax status if you rehire retirees, nor is it a problem if you permit distributions of retirement benefits to employees who hit...

Thanks For Helping Us Help You This Tax Season

Thanks For Helping Us Help You This Tax Season

Tax season has come and gone, and we are finally able to take a breath. We would like to extend our deepest gratitude to all our clients for working so quickly and efficiently with us during the 2022 tax season. By thoroughly reading our emails and blog posts,...

Filing the Final Tax Return as an Executor

Filing the Final Tax Return as an Executor

As a survivor, executor or administrator of an estate, you are obligated to file an income tax return reporting all the deceased's income up to his or her date of death. You will need to be aware of all the credits and deductions the deceased is allowed, as if that...

It’s Tax Season – Let’s Get Started

It’s Tax Season – Let’s Get Started

It's Tax Season ... Let's Get Started If you would like us to prepare a C-Corporation, S-Corporation or Partnership return, the best time frame to deliver your paperwork to our office or upload documents to the Client Center is ASAP. Our deadline for receiving...

S&K Sponsors Charity Golf Event, Raises $3,000 for Paws of Honor

S&K Sponsors Charity Golf Event, Raises $3,000 for Paws of Honor

On Thursday, October 21, Stitely and Karstetter CPA’s sponsored our second annual charity golf event. Held at Top Golf in Ashburn, Virginia – the event successfully raised nearly $3,000 for Paws of Honor, a local charity that provides free veterinary care and products...

S&K Hosts Successful Shredding Event

On Saturday, October 16, Stitely and Karstetter hosted another successful shredding event at our offices for more than 50 attendees, including clients and friends of the company. Lunch was served, as well as beer and wine from local breweries and wineries. Hundreds of...

Pension Plans 101 – What You Need to Know

Pension Plans 101 – What You Need to Know

A pension plan is a type of retirement plan where employers promise to pay a defined benefit to employees for life after they retire. This is different from a defined contribution plan, like a 401(k), where employees put their own money in an...

CPA Q&A: Child Tax Credit

CPA Q&A: Child Tax Credit

Now that July is here, many of our S&K clients who are full-time parents or caregivers to school-aged children, have begun receiving their Advance Child Tax Credit payments from the IRS. Most families will receive the first half of the credit in advance monthly...

Which Meals Qualify for the 100 Percent Expense Deduction?

Which Meals Qualify for the 100 Percent Expense Deduction?

In early April, the IRS released guidance explaining when the temporary 100 percent deduction for restaurant meals is available, and when the 50 percent limitation on the deduction for food and beverages continues to apply. Under section 274(n) (1) of the tax code, a...

$3,600 Child Tax Credit: What S&K Clients Should Know

$3,600 Child Tax Credit: What S&K Clients Should Know

Many of our S&K clients are parents of eligible dependents and qualify for the child tax credit which President Biden included in his American Families Plan earlier this spring. This plan offers parents a credit of up to $3,600 per eligible child, and payments...

Need to File Previous Years’ Tax Returns? S&K Can Help

Need to File Previous Years’ Tax Returns? S&K Can Help

Although many businesses are starting to get back on track, with the descent of COVID and an ensuing economic upheaval in our country - your company may not have filed tax returns in a few years. While life DOES happen – NOT filing your required tax returns is serious...

Shuttered Venue Operators Grant Portal Opens on Monday at Noon

Shuttered Venue Operators Grant Portal Opens on Monday at Noon

The U.S. Small Business Administration (SBA) will reopen the Shuttered Venue Operators Grant application portal on Monday, April 26 at 12:00 PM. The application portal for the SVOG program ran into technical difficulties almost immediately on April 8, with venue...

Unemployment Extension Programs for 2021

Unemployment Extension Programs for 2021

On Thursday, March 11, President Biden signed into law the  American Rescue Plan, a bold piece of legislation that is set to create 7 million jobs and ensure our nation’s road to recovery both physically and economically.  Within the package, additional unemployment...

New Stimulus Plan: Employee Retention Credit Changes and PPP Loans

New Stimulus Plan: Employee Retention Credit Changes and PPP Loans

On December 27, 2020, former President Trump signed into law The Consolidated Appropriations Act, 2021 (CAA21), which contains several tax law changes, including expanded eligibility for the Employee Retention Credit (ERC) for businesses whose PPP loan(s) made them...

Pandemic Relief Round Two – What’s in it for Small Businesses?

Pandemic Relief Round Two – What’s in it for Small Businesses?

Congress passed a second round of COVID relief last week - what does this mean for small businesses? Payroll Protection Program (PPP) Loan Forgiveness Last spring, Congress made the forgiveness of PPP loans tax free.  The IRS then misinterpreted the law and made...

Three Keys to Getting a Mortgage for Business Owners

Three Keys to Getting a Mortgage for Business Owners

If you are a business owner who is looking to secure a mortgage, there are a few key concepts to remember. First, apply to a mortgage company that actually makes mortgage loans to business owners.  Most do not, so be sure to ask this question up front.  If you near...

Why Most Internal Bookkeepers Fail

Why Most Internal Bookkeepers Fail

Running a business without financial information is next to impossible.  You can never figure out if you’re making a profit.  You never know how much money is in the bank.  Big tax bills are an annual and unwelcome surprise. You may suspect your bookkeeper is failing,...

How to Avoid Receiving Letters From the IRS

How to Avoid Receiving Letters From the IRS

Every year the IRS issues millions of tax bills for items of income not reported on tax returns.  For example, if a taxpayer received a pension distribution during the year, but did not report the distribution as income, the IRS sends a bill for the taxes on the...

What Tax Planning Can Do for You

What Tax Planning Can Do for You

Last tax season more than a million taxpayers got nasty surprises when filing their income tax returns.  In prior years, they received small refunds or owed just a little.  However, due to changes in the tax withholding tables, many owed $10K or more. Tax planning can...

Three Tax Mistakes Real Estate Agents Make

Three Tax Mistakes Real Estate Agents Make

While many parts of the economy have seen a massive slow-down because of the Coronavirus pandemic, the Washington, DC-area real estate market has hardly faltered. If you are a local real estate agent, chances are you are busier than ever.  Don’t let your busy routine...

Should I File Separately From My Spouse?

Should I File Separately From My Spouse?

Many times each year, clients ask us if they should file separately from their spouses to pay less in income taxes.  To define this issue a bit, married couples can file their tax returns using one of two statuses: Married filing jointly or Married filing separately....

Changes to Paycheck Protection Program: Are You Affected?

Changes to Paycheck Protection Program: Are You Affected?

Just when I thought it was safe to come out of my bunker and start working on PPP forgiveness applications, Congress changed the rules. Thankfully for you, you aren't alone in figuring it out. S&K CPAs is here to help Both houses of Congress have passed the...

COVID 19: Where was your Accountant?

COVID 19: Where was your Accountant?

Luck is what happens when opportunity meets preparation. How many people heard this from their fellow business associates about a month ago: “You are so lucky to get the PPP money, you were so lucky to get the SBA EIDL loan, you are so lucky to be able to stay in...

COVID-19 SBA Disaster Loans

COVID-19 SBA Disaster Loans

’ll save the jokes for later and cut to the chase.  The quickest option to get money fast for your business is from your bank.  They have many more flexible programs than the SBA Disaster Loan Program.  In any event, these are all LOANS, and you must be creditworthy,...

COVID-19 Stimulus Tax Updates

COVID-19 Stimulus Tax Updates

I spent the weekend cooped up with a case of beer and guides to the tax law changes from the stimulus package that just passed Congress and was signed by President Trump. I expect that the fiscal fallout from the crisis will last a decade or more. Here is a pretty...

COVID and This Tax Season

COVID and This Tax Season

    While the world has been losing its marbles this past week, we at S&K CPAs have been bouncing back and forth from feverishly working on our clients’ tax returns and paying attention to what fresh changes there have been to the tax situation this...

Three Mistakes Business Owners Make in Selling Their Businesses

Three Mistakes Business Owners Make in Selling Their Businesses

Take your foot off the revenue gas pedal. Many business owners start retirement before retiring.  Keep growing revenue, profits, and cash flow.  Buyers are buying your customers and the revenue they bring.  Shrinking sales means a shrinking price. Many business owners...

Three Mistakes Business Owners Make Selecting Pension Plans

Three Mistakes Business Owners Make Selecting Pension Plans

Staying with SIMPLE plans.SIMPLE plans are a relic of the 1990’s.  You can consider them the poor man’s 401(k).  They allow for employee salary deferrals and have an employer matching component, but they come from an era when real 401(k) plans were expensive to setup...

To Roth, or not to Roth? – a Taxing Dilemma

To Roth, or not to Roth? – a Taxing Dilemma

For Your 401(k) Retirement Savings Plan, Which Powerful Benefit Would You Prefer? An immediate tax break with a Traditional account Tax-free withdrawals with a Roth account Even better, what if you didn’t have to choose? Roth vs. Traditional 401(k)s: A Taxing Dilemma ...

Why You Should Have a CPA Firm Prepare Your Taxes

Why You Should Have a CPA Firm Prepare Your Taxes

CPA’s and EA’s (Enrolled Agents) at S&K CPAs have a commitment to continuing education on new tax laws. I reviewed the 2018 tax returns for a small construction contractor prepared by an uncertified preparer.  The business was profitable, so I expected...

Three Mistakes Real Estate Agents Make With Their Taxes

Three Mistakes Real Estate Agents Make With Their Taxes

Not having a system to collect their deductions. Real estate agents hustle more than almost any other profession.  In the morning, they might work on promotional materials in the office, show houses to prospective buyers in the afternoon, and attend...

How to Avoid Receiving Letters From the IRS

How to Avoid Receiving Letters From the IRS

Every year the IRS issues millions of tax bills to taxpayers for items of income not reported on tax returns.  For example, if a taxpayer received a pension distribution during the year, but did not report the distribution as income, the IRS sends a bill for the taxes...

Should I File My Taxes Separately From My Spouse?

Should I File My Taxes Separately From My Spouse?

At least a hundred times per year, clients ask us if they should file separately from their spouses to pay less in income taxes.  To define this issue a bit, married couples can file their tax returns using one of two statuses: Married filing jointly, Married filing...

What Different Entity Types Mean for Your Business

What Different Entity Types Mean for Your Business

America is built on entrepreneurial chutzpah. Starting one’s own business may not be for the faint of heart, but knowing how to structure that business does not have to be the stuff of nightmares. The choice of forming a sole proprietorship, a partnership, a...

What Tax Planning Can Do For You

What Tax Planning Can Do For You

Last tax season more than a million taxpayers got nasty surprises when filing their income tax returns.  In prior years, they got small refunds or owed just a little.  However, due to changes in the tax withholding tables, many owed $10K or more. Tax planning can do...

Buying or Selling a Home – How Does This Affect Your Taxes?

Buying or Selling a Home – How Does This Affect Your Taxes?

  Buying or Selling a Home can impact your taxes in several ways Did you know that 673,000 homes were sold last year? That means over a million people had a major life change that most likely affected their taxes. At S&K CPAs, we see this all the time. If you are...

Should Your Business Be an S Corporation?

Here's Something to Think About To answer this question, we should first ask, “What is an S corporation?” An S corporation is a company, that is organized as a corporation or limited liability company (LLC), and elects S corporation status with the IRS by filing form...