It’s obvious that something is going to pass. Exactly what that will be in size or impact is impossible to know, at this point. Whenever there’s a significant tax increase, those who are affected need to rethink their tax planning strategies.
An Increase In Personal Income Taxes
Our new president has been saying that he will again raise the top personal income tax rate from 37% to 39.6%. It’s probably safe to say that this will occur. As such, we should probably increase either the withholding on your W-2 or your estimated tax deposits if this will affect your return.
C-Corp Tax Increase
The President wants to increase this tax from 21% to 28%. The House wants to reinstate a graduated income tax system with a top rate at 25%. Either way, if this is going to affect your circumstance, it needs to be addressed.
Cap Gains Tax Increases
The President’s proposal increases the top tax rate from 20% to 39.6% on individual returns over $1M. No matter what actually happens, there will probably be an increase given the fact that the top rate on collectibles is already 28%.
Elimination Of The Qualified Business Income Deduction
The new administration’s tax plan has proposed phasing out this deduction for taxpayers above the $400K mark. Other proposals have it phasing out over $500K. Either way, there will probably be an adjustment.
As all of our clients know, tax planning is a hallmark of our firm. Now is the time. Please contact us today.
Let me leave you with this.
It’s October, and time for us to complete your 3rd Quarter 2021 Payroll Tax Returns.
If you’re an Employee Retention Credit client and you have already made arrangements for us to electronically file your 941 so that you can receive the credit refund in four to five weeks, then nothing needs to be done.
If you have a payroll service and would like to receive your credit quickly, then please make arrangements with your service to allow us to electronically file your 941.
If we prepare your payroll tax returns for paper filing, then we need to know exactly how to file them. There are three situations to consider.
1 – If you received the 2nd Draw PPP, then we need to determine how much payroll is necessary to receive full forgiveness on your loan.
2 – If you were claiming unemployment, we would certainly need to know.
3 – If this is just a regular payroll period, we’ll need to know this as well.
Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. Whether you need Employee Retention Credits, PPP Loan Forgiveness, Payroll Services, or Bookkeeping and Tax Work, you have but to ask. I’m here and I remain,
Accounting Solutions Ltd.
Note that the only professional services provided by Accounting Solutions Ltd. are those specified in a written communication from our office detailing the scope of services to be rendered and the terms and conditions applicable to the engagement.