The IRS recently released guidance providing the 2024 inflation-adjusted amounts for Health Savings Accounts (HSAs).
Many businesses use independent contractors to help keep their costs down — especially in these times of staff shortages and inflationary pressures. If you’re among them, be careful that these workers are properly classified for federal tax purposes. If the IRS reclassifies them as employees, it can be an expensive mistake.
Did you know that there is a tax advantage to taking money out of a C corporation as compensation rather than as dividends? A corporation can deduct the salaries and bonuses that it pays executives, but not dividend payments. If funds are paid as dividends, they’re taxed twice, once to the corporation and once to the recipient. Money paid out as compensation is only taxed once — to the employee who receives it.
The Federal Reserve recently announced the launch of FedNow, a new real-time payments service that will enable faster and more secure financial payments for consumers and businesses. This system has the potential to revolutionize how people make payments in the US by providing instantaneous transfer of funds between banks in a matter of seconds, available 24 hours a day, 365 days a year.
“What’s yours is mine and what’s mine is yours” is a typical mantra of married couples. But when it comes to debt, that saying can be scary. Fortunately, the general rule is that spouses are not responsible for each other’s debts (in the legal sense, of course). Therefore, when agreeing to assume a liability, the borrower’s spouse can usually rest assured he or she will not be held responsible if the borrower is unable to meet his or her obligations.