LST Tax Services

11/05/2022

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All tips totaling $20 or more in a month are subject to federal income tax and F**A tax, just like all other income (social security and Medicare taxes). You must obtain information about the tips while the employee is receiving them so you can include them on the employee's W-2 form.

For higher-earning employees, tip money is additionally subject to the supplementary Medicare tax. When employee salary hits $200,000, you must begin withholding the additional 0.9 percent Medicare tax.

Employee service fees are taxable as normal earnings for the purposes of federal income tax and F**A.

If you’d like to learn more about our tax & accounting services, please feel free to send us a message or click the link in our bio for more info!

11/05/2022

Tax season is around the corner, now is the time to get ready. Call us today with any questions or to book an appointment today!

06/24/2022

You may not realize it, but you can deduct your vehicle expenses if they are utilized for business purposes. How much of your car's mileage can be attributed to your business? You can add that % to your auto expenses for the year, whatever it is.

This deduction can be calculated in two ways, according to the IRS. To begin, keep note of your actual spending. Then subtract the portion of your use that is related to your business. Second, keep track of your actual mileage and deduct it from your taxes.

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06/22/2022

If you're one of the fortunate few who still has a traditional pension, congratulations. However, once you've retired, keep in mind that pension payments are usually taxed as ordinary income.

Is your state going to tax your pension income as well? This depends on your location. The majority of states tax at least a percentage of the income generated by private sector defined benefit plans. There may be a pension exclusion in your state, but it's likely to be limited based on your age and/or income. However, no matter how old you are or how much money you have, a few states don't tax pension income at all.

Yet, just because your pension isn't taxed doesn't imply it won't be taxed if you have other sources of income in retirement.

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06/20/2022

Excise taxes are charged on the use or consumption of specific products such as gasoline, ci******es, and alcohol, as well as services and activities such as sports betting. The federal government, as well as state and municipal governments, may apply excise taxes in order to earn income, remain competitive, and encourage or discourage use.

- Excise taxes are imposed on ci******es, gasoline, and gambling, among other products, services, and activities.
- The federal government, states, cities, and towns can all set the items and tax rates that are subject to excise taxes.
- Businesses are required to collect these taxes from payees and keep track of them.
- Federal excise taxes are required to be reported and paid on a quarterly basis.

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06/17/2022

The IRS has rigorous guidelines on how to use 529 funds without incurring a penalty.

If you want to avoid taxes and a penalty for retiring from a 529 plan for your college-aged student, utilize the money only for:

- Tuition/fees.
- Textbooks.
- Supplies.
- Equipment.
- Those seeking a degree or certificate at least half-time receive room and board.
- Internet, computer.
- Special-needs equipment.

529 plan holders can spend up to $10,000 each year for K-12 tuition. Online, by phone, or by mail, you can withdraw money from your plan's account.

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06/15/2022

The lifetime learning credit is a tax credit that can be used to offset the cost of college costs, fees, and other charges. 20% of your first $10,000 in costs, up to $2,000 every return. Tuition and fees qualify.

You can't double-dip on perks like scholarships, fellowships, Pell Grants, employer tuition assistance, school refunds, etc. Same with 529 plans, Coverdell accounts, and savings bonds.

The lifelong learning credit is a beneficial tax advantage for undergraduate students who return to graduate school. You don't need a degree to use the lifelong learning credit. You can deduct expenses to gain a certificate or develop employment skills at a qualifying institution.

If you’d like to learn more about our tax & accounting services, please feel free to send us a message or click the link in our bio for more info!

06/13/2022

If you find yourself rushing this tax season to put your hands on all of the receipts for your expenses and the records related to your income and tax payments, make it a resolution to establish a reliable record-keeping system going forward so that you don't have to go through the same ordeal again next year.

It will save you time and stress in the long term, especially if your company expands to the point where you require the assistance of a tax professional.

If you’d like to learn more about our tax & accounting services, please feel free to send us a message or click the link in our bio for more info!

06/08/2022

All tips totaling $20 or more in a month are subject to federal income tax and F**A tax, just like all other income (social security and Medicare taxes). You must obtain information about the tips while the employee is receiving them so you can include them on the employee's W-2 form.

For higher-earning employees, tip money is additionally subject to the supplementary Medicare tax. When employee salary hits $200,000, you must begin withholding the additional 0.9 percent Medicare tax.

Employee service fees are taxable as normal earnings for the purposes of federal income tax and F**A.

If you’d like to learn more about our tax & accounting services, please feel free to send us a message or click the link in our bio for more info!

06/06/2022

No one deducts taxation or self-employment tax from the money you take out of the business since you are the owner.

Since the IRS demands that these taxes be paid throughout the year, you must pay estimated taxes every three months. The first payment of the year is due on April 15, followed by payments on June 15, September 15, and January 15.

Business and personal income and taxes, including self-employment taxes, are combined on the estimated tax form for business owners.

If you’d like to learn more about our tax & accounting services, please feel free to send us a message or click the link in our bio for more info!