Many plaintiffs in lawsuits worry that they will be taxed on their gross lawsuit settlement, not on their net settlement after legal fees. Some call it a tax on legal settlements, but the situation is often solvable. Indeed, there are still ways to deduct your legal fees. The deduction for legal fees in employment, whistleblower [...]
As small businesses navigate an uncertain economic environment, many are still looking to expand or maintain their health benefit offerings, according to a new report from Chase. The report surveyed 563 small business owners in June for the annual midyear check-in on their business and found that 80% currently offer health coverage for their employees, with half [...]
Most defendants routinely issue IRS Forms 1099 for legal settlements, which may be directed to the attorney, the client, or both. It is common practice for both the client and attorney to each receive Forms 1099 reporting 100% of the settlement proceeds. This can create the impression that double the settlement amount was paid, but [...]
Disaster victims get big tax benefits from federal disaster declarations. In fact, it can make your wildfire settlement tax-free. As such, you might logically assume that it is always 100% whether your particular disaster gets the helpful federal nod from the Federal Emergency Management Agency. But in the case of wildfires, is it always so [...]
Are you starting a business with partners and deciding on the right entity? An S corporation might be the best choice for your new venture. One benefit of an S corporation One major advantage of an S corporation over a partnership is that shareholders aren’t personally liable for corporate debts. To ensure this protection, it’s crucial to: Adequately [...]
When it’s time to consider your business’s future, succession planning can protect your legacy and successfully set up the next generation of leaders or owners. Whether you’re ready to retire, you wish to step back your involvement or you want a solid contingency plan should you unexpectedly be unable to run the business, exploring different [...]
Suppose that your uncle loans you money, but later tells you not to worry about paying him back? Or suppose that you take a business loan, but the lender eventually gives up on trying to collect and tells you that your debt is forgiven? Can either one somehow be taxed? Yes, they can. With the [...]
On this Tax Day, the Internal Revenue Service marks a major milestone: the 70th Anniversary of the April 15 federal income tax filing deadline. Since 1955, April 15 has served as a consistent annual deadline for millions of Americans to file their federal income tax returns, becoming a fixture in the nation’s financial calendar. The deadline [...]
Suppose that your uncle loans you money, but later tells you not to worry about paying him back? Or suppose that you take a business loan, but the lender eventually gives up on trying to collect and tells you that your debt is forgiven? Can either one somehow be taxed? Yes, they can. With the [...]
For South Carolinians who wait until the last minute to file their taxes, don’t worry — you have a lot more time this year. South Carolina taxpayers have until May 1 to file both their federal and state taxes this year. The typical deadline to file is April 15. The IRS announced the extension late [...]