SEYMOUR & PERRY, LLC | BLOG

As the capabilities of AI have expanded, users have begun to utilize it for increasingly complex tasks. Today, we are posed with a few questions–how AI can assist with tax preparation, how well it does so, and how it can be most wisely used, if at all.

If you own an accrual-based business, you may be eligible to claim a bad debt expense deduction for accounts receivable that become partially or totally worthless during the tax year. The term “bad debt” refers to an outstanding balance that is no longer considered recoverable. If a client or customer owes you money that you have been unable to collect, it is considered a bad debt. Bad debts may also result from loans to suppliers, employees, or distributors.

Did you know that you may be able to deduct rent as a business expense? Read on for more information.

In addition to other types of expenses, certain federal, state, local, and foreign taxes also qualify as deductible business expenses. Which taxes can I deduct as business expenses? When can I deduct taxes as a business expense?

Tax season is upon us once again. As you prepare to file your 2021 tax return, watch out for important dates, changes, and correspondence fr

With the new year comes yet another tax season! As you gather your 2021 tax information, be on the lookout for correspondence from the IRS. If you received advance payments of the child tax credit during 2021, you should receive a letter that will help simplify your tax return and maximize any remaining amount owed to you. The American Rescue Plan Act (ARPA) of 2021 revised and expanded the child tax credit for the 2021 tax year, increasing the maximum credit amount and aut

If you are self-employed, you may be eligible to deduct certain insurance premiums on your tax return. Business owners can generally deduct premiums paid for the following types of insurance: [..]

Have you heard of the home office deduction? If you are self-employed and use part of your home for business purposes, you may be able to deduct a portion of your expenses associated with working from home. This tax break is available to eligible small business owners and freelancers, regardless of whether your rent or own your home.

Can you believe it’s almost time to file your taxes? As the year comes to a close, another tax season awaits just around the corner [...]

Are you planning to sell your home? If you make a profit on the sale, it may be subject to capital gains tax on your federal tax return...

Homeownership comes with a great deal of financial responsibility. If you own your home, you're already familiar with the costs of mortgage payments, property taxes, and other expenses associated with general home maintenance and upkeep. Owning property can certainly be a costly investment! There are certain tax benefits designed to help mitigate the financial strain of homeownership, such as the Home Mortgage Deduction and the Residential Energy Credit. In addition to thes

If you are contemplating becoming a homeowner, you may be surprised by the myriad of expenses associated with owning your own home [...]

All United States taxpayers must file an annual income tax return. Completing your tax return determines your tax liability, or how much you owe in taxes for that year. Your tax liability takes into account your income, any taxes that have already been paid in advance or withheld from your wages, tax deductions or credits that you are eligible to claim, and any other relevant information. There are three main sections of your tax return: [...]

Depending on your type of employment, level of income, and the previous tax year, you may be required to make estimated payments. Estimated payments are essentially a series of pre-payments made toward an individual or corporation’s tax liability for the current tax year. Usually paid on a quarterly basis, estimated payments help taxpayers avoid unnecessary penalties and prevent an unexpectedly high tax bill come tax season.

Contrary to popular belief, your income is not taxed at a single rate determined by your tax bracket. Instead [...]

If you spent money on education-related expenses for yourself or a dependent this year, you are likely eligible for a tax benefit on your 2019 return. Continue reading for answers to common questions regarding education-related tax deductions and credits [...] If your modified adjusted gross income is $65,000 or less (or $130,000 if married filing jointly), you may claim a deduction of up to $4,000. If your MAGI is between $65,001 and $80,000, you may claim [...]

Did you know that you may be able to deduct local and state taxes on your 2019 tax return? This option is available to taxpayers who choose to itemize deductions on their tax return; if you choose to take the standard deduction, you may not deduct state or local taxes. If you are eligible to itemize state and local taxes on your return, you may only deduct taxes that were imposed on you and that you have paid during the tax year. This means that you cannot deduct taxes paid

If you’re wondering whether you can deduct medical or dental expenses on your 2019 tax return, the answer is...maybe. If you take the standard deduction on your federal tax return, you may not deduct any medical or dental expenses. If you choose to itemize your deductions instead, you may deduct eligible medical/dental expenses that exceed 7.5% of your adjusted gross income (AGI) for 2019. For tax year 2020, this threshold will increase from 7.5% to 10% of your AGI. [...]

Whether you freelance or own a small business, being self-employed comes with a host of challenges and responsibilities, including unique tax requirements. If you are considered self-employed for tax purposes, it is up to you to accurately track and report your income and make any required tax payments. Maintaining a clear understanding of your tax responsibilities will give you peace of mind during tax season and throughout the rest of the year. [...]

As the decade comes to an end, tax season draws near. If you are looking for ways to reduce your taxable income, you may be surprised at just how easy it can be to lower your tax bill. Follow these suggestions to help you save this tax season. If your last tax bill was larger than expected, you can avoid another unpleasant surprise next tax season by adjusting your withholding amount. You can change your withholding amount at any time by filing a new W-4 form with your empl