Employee Spotlight – Susan Conners

Susan Conners, EA and Senior Tax Specialist, has been chosen as Employee of the Quarter. Sue joined Wheeler in 2016 as part of our merger with Leonard Williams, CPA. Sue brought a wealth of experience to Wheeler and has been a welcome addition to our team. Sue has provided a great deal of support for our Estate and Trust department, is responsive and is very thorough with her work. Our clients enjoy her calm, reassuring communication style and our Partners, Managers and staff appreciate that she is always willing to pitch in and help others wherever needed. Congratulations to Sue and thank you for all the hard work!

Tax-Saving Strategies that Reduce your Tax Liability

If you’re looking to save money on your taxes this year, consider using one or more of these tax-saving strategies to reduce your income, lower your tax bracket, and minimize your tax bill.

Max Out Your 401(k) or Contribute to an IRA

You’ve heard it before, but it’s worth repeating because it’s one of the easiest and most cost-effective ways of saving money for your retirement.

Many employers offer plans where you can elect to defer a portion of your salary and contribute it to a tax-deferred retirement account. For most companies, these are referred to as 401(k) plans. For many other employers, such as universities, a similar plan called a 403(b) is available. Check with your employer about the availability of such a plan and contribute as much as possible to defer income and accumulate retirement assets.Continue reading

Deducting Business-Related Car Expenses

Whether you’re self-employed or an employee, if you use a car for business, you get the benefit of tax deductions.

There are two choices for claiming deductions:

  1. Deduct the actual business-related costs of gas, oil, lubrication, repairs, tires, supplies, parking, tolls, drivers’ salaries, and depreciation.
  2. Use the standard mileage deduction in 2017 and simply multiply 53.5 cents by the number of business miles traveled during the year. Your actual parking fees and tolls are deducted separately under this method.

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Now is the Time to Review Withholding Allowances

With less than three months remaining in the calendar year, now is a good time to double check your federal withholding to make sure enough taxes are being taken out of your pay.

Most people have taxes withheld from each paycheck or pay taxes on a quarterly basis through estimated tax payments. But each year millions of American workers have far more taxes withheld from their pay than is required. In fact, according to the IRS, the average individual income tax refund for Fiscal Year 2016 was about $3,050. As such, taxpayers might want to consider adjusting their tax withholding to bring the taxes they must pay closer to what they actually owe–and put more money in their pocket right now.Continue reading

Understanding CP2000 Notices

The CP2000 is a notice commonly mailed to taxpayers through the United States Postal Service. It is generated by the IRS Automated Underreporter Program when income reported from third-party sources such as an employer does not match the income reported on the tax return.

What to do if you Receive a CP2000 Notice:

The CP2000 is not a tax bill, it merely informs you about the information the IRS has received and how it affects your tax; however, it is important to pay attention to what your CP2000 Notice states because interest accrues on your unpaid balance until you pay it in full. If you cannot pay the full amount that you owe, then you can set up a payment plan with the IRS.Continue reading

Tax Tips for Hobbies that Earn Income

Millions of people enjoy hobbies such as stamp or coin collecting, craft making, and horse breeding, but the IRS may also consider them a source of income. As such, if you engage in a hobby that provides a source of income, you must report that income on your tax return; however, taxpayers (especially business owners) should be aware that the way income from hobbies is reported is different from how you report income from a business. For example, there are special rules and limits for deductions you can claim for a hobby.Continue reading