Make Your Child's Summer Break a Tax Break!
As a busy working parent, you may be on the lookout for activities that are available for your kids this summer. There may be a solution that’s also a tax break: Summer camp!
Ordinary and Necessary Business Expenses
All businesses can deduct ordinary and necessary business expenses from their tax return. But be careful — it’s not black and white...
Ideas to Save Money this Summer
Summertime is often the best time of the year to spend time with family and plan something fun. With the kids out of school, plenty of vacation time accrued at work and a fully funded travel budget, you may even be able to book a getaway somewhere tropical, historic or particularly appealing to your family’s interests and tastes.
Roll Over Excess 529 Funds to a Roth IRA
Starting in 2024, 529 educational savings plans will become even more attractive with enhanced tax benefits. If your student receives scholarships or joins the military, there is a new option for handling excess 529 plan funds.
Shield Your Emergency Fund From Inflation
Most financial experts suggest keeping three to six months worth of household expenses in savings to help in case of emergency. But with record inflation, that task just got a lot harder to accomplish as virtually every safe place to put your emergency funds will not provide interest rates that keep pace with inflation. But that does not mean you cannot increase the rate of return on these funds.
JUNE 2023 Q & A
Q: What is the U.S. debt ceiling?
A: The debt ceiling is the maximum amount of money the United States can borrow cumulatively by issuing bonds.
The debt ceiling has been raised or suspended numerous times over the years to avoid the worst-case scenario:
Employee Payroll Deductions
Deductions from your staff's pay are made at the employees' discretion.
Voluntary deductions: include things like 401 (k) contributions, health and disability insurance premiums. Secure written authorization from your employees for any voluntary deductions.
Involuntary deductions: include things like income tax, court-ordered garnishments, and FICA tax. While taxes are an automatic involuntary deduction, you should require a written court order supporting the amount and duration of the deduction for garnishments.
The Shrinking Dollar
Inflation effectively makes every dollar worth less, which impacts your spending power. That is why it is important to position your investments so they outpace inflation. To see what inflation does to the value of your money, compare the increasing cost of a $1,000 purchase over the decades.