PWCPA Blog

In navigating income tax, it's crucial to distinguish between taxable and non-taxable sources of money. Here’s a breakdown to help you understand: Non-Taxable Income Sources Certain types of income are generally not subject to income tax: Money received as a loan...

With the recent economic downturn experienced by many taxpayers, there is a tax concept that is very important: cancellation of debt. You would think that the cancellation of debt by a credit card company or mortgage company would be a good thing for the taxpayer. And...

Time is almost up on that six-month extension you filed back in April to give yourself more time to complete your 2011 individual income tax return. What happens if you fail to file your return by October 15, the extended due date? One consequence: Unless a...

If you want to give your tax recordkeeping skills a performance boost, do what accounting professionals do. 1. Maintain a separate bank account for all self-employed business activity. This will greatly minimize confusion come tax time by giving you just one place to...

Consider tax-exempt investments as a means of cutting your income tax. There is an easy way to compare the yield on tax-exempt investments (such as municipal bonds) with the after-tax yield from taxable investments. Subtract your top tax bracket from 100 and divide...

Many sole proprietors and small business owners agree on the following two issues: they pay too much in taxes and they have difficulty attracting and retaining good employees. One way to address both of these issues is to have your business sponsor a retirement...

The “Affordable Care Act of 2010” requires employers to report the cost of coverage under an employer-sponsored group health plan on the employee’s W-2 for 2012. The IRS is easing this requirement for small companies. Employers issuing fewer than 250 W-2s will not...

In recent months there has been a spike in phishing e-mails claiming to be coming from the IRS.  These e-mails are claiming that you had rejected tax transfers and contain a Tax Transaction ID number.  There have been many reported sender e-mails, this one being...

Flexible spending accounts (FSAs) are popular with employees because they permit the use of pretax dollars for payment of medical expenses and dependent care costs. If you use an FSA, be aware that changes are scheduled beginning next year. As part of the health care...