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It's clear to me (a non-lawyer) that the intent of most of the program rules are so that the program benefits people with a real financial need. One of the tests that excludes "highly compensated employees" is the 5% ownership rule (see the green highlights in the link below). I think there is this bad assumption that if you own a large share of ...


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Therefore, the 2-month period where I received W-2 income cannot be included because that technically makes me an employee so no longer self-employed. Is this true? If they are giving you a W-2, and had you fill out a W-4, then you are not a freelancer, you are an employee. That means the state and federal government require them to provide benefits if you ...


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It doesn't work the way that you think it does. Spending does not necessarily reduce your taxable income. When you earn money and retain something of value, whether money or something else, you owe taxes on it. Expenses that you can write off are only those things that are truly gone. Gas for you car, internet service, an insurance payment, etc. If you buy a ...


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Perhaps it is better to purchase services from an other LLC which terms and conditions are stipulated in an agreement. Such as you could become a branch or a subsidiary of the service provider and hence gain assets. AFAIK management and license fees are also deductible therefore I would seek something immaterial like consulting, which is difficult to ...


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Here's an option for you: For an Expense account for which you might be reimbursed (say, "Travel") create an account called "Travel Reimbursements", with an account type of Income. Attach "Travel Reimbursements" as a child account of "Travel". (You may need to repeat this process for a number of different expense ...


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The 145kUSD tax cut assumes that the SALT deduction cap is removed, and not increased to 72.5kUSD as Fox News incorrectly wrote. Source (mirror 1, (mirror 2): Who would benefit from removing the cap on the SALT deduction? The rich – especially the very rich. Almost all (96 percent) of the benefits of SALT cap repeal would go to the top quintile (giving an ...


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If it's a traditional pension scheme, then the money you pay in is automatically deducted from your salary every month. Most employees in the UK are on PAYE (Pay As You Earn), where the employer also takes the tax out of your pay on behalf of the tax man. If so, then when calculating your income tax, the money you pay into your pension is not counted as ...


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Just some basics - you mention that you're talking about expenses for both contractor and employee clients at the beginning.. is the whole question about both sets? Or is your invoicing question just in relation to your contractor clients? I'll assume that. If you are claiming the expenses as a tax deduction, then you do also need to include the ...


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Health Plan Before you get too far looking into the HSA, you definitely want to be sure that your health plan is an HSA-eligible High Deductible Health Plan (HDHP). There are minimum deductible amounts that your health plan needs to meet to be an HDHP, but there are also maximum deductible amounts. The maximum family deductible amount for 2021 is $14,000, ...


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The answer by mhoran_psprep has the major reason why QCDs might be preferred over taking the RMD in cash and making donations to charities directly and writing off the charitable donations as itemized deductions, but there are other considerations too. The OP has cited one reason in his question itself: QCDs reduce AGI and thus might reduce or eliminate the ...


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The big reason that somebody would do this is to turn a non-tax-deductible contribution into a tax-deductible contribution. Ignoring the special charity deduction rules of 2020 and 2021 where a standard deduction tax payer could claim a $300 or $600 charitable deduction, the taxpayer who uses the QCD (Qualified Charitable Distributions) process can have some ...


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Many state payroll taxes are considered state income taxes for the purposes of the federal itemized deductions. See 2020 Form 1040 Schedule A instructions for line 5a: If you don't elect to deduct general sales taxes, include on line 5a the state and local income taxes listed next. [...] Mandatory contributions you made to the California, New Jersey, or ...


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