Health Savings Accounts (HSAs): A Small Business Owner’s Cheat Sheet

Dreaming of that perfect getaway but worried about your budget? Here’s a travel hack that’ll make your accountant smile. Believe it or not, your next business trip could be a tax write-off goldmine. But here’s the kicker – you might be leaving money on the table if you’re not maximizing your deductions. Because contrary to popular belief, mixing business with pleasure isn’t just allowed, it’s practically endorsed by the IRS. An Overview of Business Travel Deductions The IRS defines travel expenses as ordinary and necessary costs incurred while traveling away from home for business, profession, or job purposes. These expenses must not be lavish, extravagant, or for personal purposes. To determine if your travel expenses qualify for deductions, consider two key factors: Are these expenses ordinary for businesses in your industry? And are they necessary for your business operations? Deductible Travel Expenses Once you’ve established that your trip meets the IRS criteria, you can deduct a wide range of expenses, including: 1. Transportation costs: This covers air, train, or bus fares, as well as car expenses between your home and business destination.2. Local transportation: Costs for getting to and from the airport and your hotel.3. Accommodation: Hotel expenses for the duration of your business trip.4. Meals: 50% of non-entertainment related meal expenses.5. Communication costs: Internet fees, fax, or printer fees related to business.6. Incidentals: Tips for services, baggage fees, and even dry cleaning or laundry expenses. Non-Deductible Expenses While many travel expenses are deductible, it’s crucial to understand what doesn’t qualify: 1. Family travel costs: Unless your family members are business partners, their expenses are not deductible.2. Extravagant or unreasonable expenses: Stick to what’s ordinary and necessary for your business.3. Personal expenses: Souvenirs, personal shopping, or non-business-related activities are not deductible.4. Home town expenses: Costs incurred in your home city don’t count as travel expenses. Maximizing Your Deductions: Mixing Business with Pleasure The tax code allows for some flexibility in combining business and leisure travel. Here are some strategies to maximize your deductions: 1. Ensure the primary purpose of the trip is business-related.2. Schedule the majority of your travel days for business activities.3. Remember that travel days count as business days.4. If your spouse is a business partner, their travel expenses may also be deductible.5. Consider “sandwiching” vacation days between work days to potentially deduct all lodging expenses. For example, you might fly to a destination on Thursday, work on Friday, enjoy personal time on Saturday, work again on Sunday, and fly back on Monday. In this scenario, all lodging expenses could potentially be deductible. Claiming Travel Expenses on Your Tax Return The method for claiming travel expenses depends on your business structure: 1. Sole proprietors and single-member LLCs: Deduct expenses on Line 24 of Schedule C on your individual tax return.2. Other business entities: Claim deductions on your business tax return under the travel expenses line item. Recordkeeping and Audit Concerns While less than 1% of tax returns are audited annually, it’s crucial to maintain thorough records of all deducted expenses. Keep receipts, itineraries, and business notes to justify your expenses if questioned by the IRS. A simple system, such as making notes on receipts and scanning them into a dedicated folder on your phone, can suffice. Remember, an IRS audit doesn’t necessarily indicate wrongdoing. It simply means the IRS requires additional information or supporting documentation for your claimed deductions. Conclusion Business travel deductions offer a fantastic opportunity to reduce your tax liability while potentially enjoying some leisure time. By understanding what qualifies as a deductible expense, strategically planning your trips, and maintaining proper documentation, you can make the most of these tax benefits. Always consult with a tax professional for personalized advice, especially when dealing with complex scenarios or substantial deductions. Your Next Steps to Tax-Saving Success As you embark on your next business adventure, remember that smart travel isn’t just about finding the best deals—it’s about making every trip work harder for your bottom line. By leveraging these tax-savvy strategies, you’re not just seeing the world; you’re investing in your business’s future. So pack your bags, grab your laptop, and get ready to turn your next business trip into a tax-saving triumph. The world is waiting, and so are the deductions! Ready to Maximize Your Business Travel Deductions? Let’s connect! Find me on LinkedIn for more tax-saving tips and strategies. And if you have any questions or want to explore how these deductions can work for your specific situation, don’t hesitate to reach out. Take Action Today: Schedule your free discovery call: (346) 676-2450 Email us: [email protected]   Your next business trip could be your most profitable yet—let’s make it happen together!

In this digital age, where DIY is just a tap away on our screens, it’s super tempting to tackle tax filing on our own. Seems like a smart move to save a few bucks, right? Especially if your financial life isn’t too complex. But, let me tell you, diving into the tax world solo can be more of a wild ride than you bargained for. Here’s why getting a pro on your team could be the MVP move for your wallet. The Accuracy Maze – Sure, tax software has been a game-changer, making us feel like tax wizards. But even wizards can slip up. You’ve got to punch in your info just right and know where all the hidden treasures (or traps) are. One wrong step and boom, you’re in the land of misfiled taxes, which is no fun at all. The Overpayment Trap – Going DIY can lead to accidentally giving Uncle Sam a bigger tip than he deserves. Tax pros, like us at Chery CPA Firm, have the map to navigate through the dense tax laws and spot those hidden deductions and credits you might miss. Trust me, the savings can often dwarf the cost of getting professional help. Audit Shield – While many tax apps throw in an “audit support” feature, it’s like bringing a toy sword to a dragon fight. Having a tax pro by your side drastically lowers your chances of errors that could wave red flags. And if the audit dragon does show up, you’ll want a seasoned knight, not a toy sword, to deal with it. DIY vs. Pro Tax Filing: The Showdown 🥊 Choosing between DIY and hiring a pro really comes down to how tight your organizational game is, how cozy you feel with tax laws, and how complex your financial life is. Feeling like a tax code ninja? DIY might work for you. But if you’re after peace of mind and keeping more cash in your pocket, going pro is the way to go. The Real Price Tag of DIY Tax Returns 💸 Saving on prep fees is sweet until you realize mistakes in DIY returns can hit your wallet hard. Whether it’s paying too much or too little, messing up can lead to penalties that make those initial savings seem like peanuts. The IRS isn’t known for its chill vibe when it comes to errors. At Chery CPA, we’re about strategizing to boost your savings and making sure you’re playing the tax game like a boss. Our expertise comes from years of training and real-world battles with the tax beast, so we know how to keep more of your money where it belongs – with you. If you’re ready to ditch the stress, save time, and maybe even beef up your refund, why not give Chery CPA Firm a shout? Let’s show you how we can make your financial life a breeze and not a battle. Thinking about leveling up your tax game with professional help? Hit up Chery CPA today for a chat, and let’s take the first step towards securing your financial fortress. #TaxWizard 🧙‍♂️ #AuditShield ⚔️ #OverpaymentTrap 🪤 #DIYvsPro 🥊 #TaxSavings 💰

Yo, fellow S-Corp ballers! If you’re looking to score big on tax savings, I’ve got the play-by-play on a strategy that’s like hitting a three-pointer at the buzzer. We’re talking about the health insurance “double dip” – a move so smooth, even the IRS gives it a nod. Here’s how you can glide through this strategy and dunk on those tax bills: 1. The Double Dip Swish: Picture this: you’re on the court, and you’ve got a chance to score twice with one shot. That’s what S-Corp owners can do with health insurance premiums – save on income taxes and then again on FICA taxes. Talk about a game-changer! 2. IRS High-Five: This isn’t some sneaky move; it’s straight-up endorsed by the IRS. They’re basically setting you up for an assist, encouraging smart plays with your health insurance costs. 3. W-2 is Your MVP: To make this play, your health insurance premiums need to be part of your W-2 lineup. It’s crucial for making sure your premiums are in the right tax position. 4. FICA Tax Breakaway: By including these premiums in your W-2, you’re breaking away from FICA taxes, which means more savings in your pocket. 5. Steer Clear of Fouls: Missing the mark on how you deduct health insurance premiums can draw the wrong kind of attention from the IRS. Keep it clean to avoid audits. 6. Open to All, But Watch the Playbook: Every S-Corp owner has a shot at this, but there are rules and exceptions to navigate to make sure you’re in bounds. 7. Team Coverage Slam Dunk: This strategy isn’t just for you; it covers your spouse and kids under your plan, multiplying the savings. 8. Benchwarmers: If you’ve got another health insurance play through another employer (like your spouse’s game plan), you might be sitting this one out. 9. Last-Minute Layups: Forgot to include premiums in your payroll? There’s still time for a catch-up adjustment within the tax year, so you don’t miss those savings. 10. Consistent Game Plan: To keep the scoreboard ticking in your favor, include health insurance premiums in each paycheck for accurate W-2 reporting. Key Takeaways:

Hey there, fellow entrepreneurs! If you’re only hitting up your CPA when the tax man comes knocking, you might be missing out on a treasure trove of savings and financial wizardry. Let’s dive into why making your CPA your BFF (at least financially speaking) all year round is a smart move for your business’s wallet. 1. Kicking Off a New Venture or Side Gig Got a brilliant idea brewing? Before you set the world on fire with your startup or side hustle, loop in your CPA. From getting your books straight to snagging every deduction possible, early advice is golden. Avoid the classic no-nos like mixing personal and business funds or overlooking juicy deductions by keeping your CPA in the know. 2. Changes in Your Personal Saga (Marriage, Divorce, or Calling It Quits) Life’s big moments don’t just fill your photo albums; they can shake up your taxes too. Whether you’re tying the knot, signing divorce papers, or just need to update your status, a heads-up to your CPA can unlock some serious tax perks. 3. Plunging into Other Ventures All investments aren’t viewed the same through the tax lens. Dropping some cash into a small business or partnership? That’s going to tweak your tax scene. Keep your CPA on speed dial to navigate these waters smoothly. 4. Expanding Your Family Tree Welcoming a new bundle of joy? Beyond the sleepless nights, there’s some financial sunshine – tax credits! Make sure your CPA knows about your newest family member to cash in on credits like the child tax credit or the dependent care credit. 5. Borrowing Some Dough Whether it’s for personal use or fueling your business dreams, the way you structure a loan can have big tax implications. A chat with your CPA before you sign on the dotted line can save you a headache (and some cash) later on. 6. Diving into Real Estate Whether you’re buying, selling, or investing in real estate, it’s a whole different ballgame tax-wise. Partner with a CPA who knows their way around property deals to make the most of your investment. The Bottom Line: It’s All About Staying Connected 📞 Building a proactive partnership with your CPA can seriously level up your financial game. Regular check-ins mean you’re always ready to pivot, plan, and pocket more savings and growth opportunities. On the hunt for a CPA who’s in it for more than just the annual tax tango? At Chery CPA Firm, we’re all about walking this financial journey with you every step of the way. Hit us up to discover how we can help your business thrive and keep your finances in tip-top shape.

Deciding to add your spouse to your business payroll isn’t just a “yes or no” question—it’s a journey through the financial and tax jungle that could impact your pocket and peace of mind. Let’s dive into the nitty-gritty, debunk some myths, and shine a light on what married business moguls need to consider. Understanding Social Security Benefits The Costs of Payroll Inclusion Alternative Compensation Strategies Retirement Planning Opportunities Healthcare and Participation Considerations Key Takeaways: Before you jump into any decisions, having a chat with a tax pro can give you the tailored advice you need. Here at Chery CPA PLLC, we’re all about helping you make the smartest moves for your business and family. Let’s make sure you’re set up for success, shall we? #SmartBusinessDecisions 🧠 #TaxStrategyTips 💰 #MarriedEntrepreneurLife 💍 #RetirementPlanning 🌅 #SeekExpertAdvice 🤝

In the big league of retirement prep, the Roth IRA is like the all-star player that everyone wants on their team. Why? Because it brings to the table tax-free growth and withdrawals, mixing simplicity with a killer investment game that other accounts can’t touch. Here’s the lowdown on why it’s often the top pick for locking down a financially solid retirement.   Tax-Free Growth and Withdrawals: Picture this: your investments in a Roth IRA growing without giving a dime to taxes, and when retirement comes knocking, you’re withdrawing cash tax-free. This feature is a game-changer, potentially saving you a heap in taxes over the years.   Contribution Limits and Eligibility: Sure, the Roth IRA might not let you throw in as much cash annually as some employer-sponsored plans, but what it lacks in limit, it makes up for in benefits. Just keep in mind, there are income caps that might affect your ability to contribute.   Investment Options: With a Roth IRA, you’re free to mix up your investment portfolio with stocks, bonds, and international index funds. This flexibility can lead to bigger growth over time.   Minimal Fees and No RMDs: Roth IRAs are cool like that, often coming with low fees and a wide array of investment choices compared to employer plans. And forget about required minimum distributions (RMDs) – they’re not a thing here, giving you full control over your retirement stash.   Considerations and Strategies: While the Roth IRA is packed with perks, it’s smart to remember its quirks, like no instant tax breaks for contributions and those pesky income limits. If you’re earning big, a backdoor Roth IRA could be your secret play.   Maximizing Retirement Savings: To make the most of your retirement savings game plan, first hit up your employer’s 401(k) to snag any match they offer, then pivot to maxing out your Roth IRA contributions. This strategy ensures you’re grabbing all the free money on the table while enjoying the Roth IRA’s standout benefits.   Conclusion: The Roth IRA’s unique advantages make it a standout choice for retirement savings. Its tax-free perks, flexibility, and investment options make a strong case for why it should be part of your retirement playbook. However, it’s key to weigh all factors, including eligibility and contribution strategies, to fully capitalize on this valuable account.   Thinking about how a Roth IRA can play into your retirement plan? Holler at Chery CPA PLLC today for expert advice that’s tailored to your financial dreams.   #RetirementMVP 🏆 #TaxFreeGrowth 🌱 #InvestmentDiversity 🔄 #NoRMDs 🚫 #FinancialFreedom 💸