If you discover a mistake on your tax return after you’ve already filed it, don’t panic. In most cases, all you have to do is file an amended tax return.

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In most cases, gains from sales are taxable. But did you know that if you sell your home, you may not have to pay taxes? Here are ten facts to remember if you sell your home this year.

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When choosing a payroll service provider to handle payroll and payroll tax, employers need to make sure they choose a trusted payroll service that can help them avoid missed deposits for employment taxes and other unpaid bills. Typically, these clients remain legally responsible for paying the taxes due, even if the employer sent funds to the payroll service provider for required deposits or payments.

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Contributions to a Health Savings Account (HSA) are used to pay the account owner’s current or future medical expenses, their spouse, and any qualified dependent and are adjusted annually for inflation. For 2023, the annual inflation-adjusted contribution limit for a Health Savings Account (HSA) increases to $$3,850 for individuals with self-only coverage (up $200 from 2022) and $7,750 for family coverage (up $450 from 2022).

To take advantage of an HSA, individuals must be covered by a High Deductible Health Plan (HDHP) and not be covered by other health insurance with the exception of insurance for accidents, disability, dental care, vision care, or long-term care. Medical expenses such as deductibles, copayments, and other amounts (but excluding premiums) must not be reimbursable by insurance or other sources and do not qualify for the medical expense deduction on a federal income tax return.

For the calendar year 2023, a qualifying HDHP must have a deductible of at least $1,500 for self-only coverage or $3,000 for family coverage (up $100 and $200, respectively, from 2022) and must limit annual out-of-pocket expenses of the beneficiary to $7,500 for self-only coverage and $15,000 for family coverage, an increase of $450 and $900, respectively, from 2022. As with contribution limits, deductibles and out-of-pocket expenses are adjusted for inflation annually.

Please call if you have questions about Health Savings Accounts.

San Jose: (408) 252-1800

Watsonville: (831) 726-8500

When creating a budget, it’s essential to estimate your spending as realistically as possible. Here are five budget-related errors commonly made by small businesses and some tips for avoiding them.

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With teen employment expected to be plentiful this summer, with better pay and more opportunities, chances are good that your high school or college student will have a job this summer. Here’s what they should know about summer jobs and taxes:

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Many businesses hire part-time or full-time workers, especially in the summer. The IRS classifies these employees as seasonal workers, defined as an employee who performs labor or services on a seasonal basis (i.e., six months or less). Examples of this seasonal work include retail workers employed exclusively during the holidays, sports events, or during the harvest or commercial fishing season. Part-time and seasonal employees are subject to the same tax withholding rules that apply to other employees.

All taxpayers fill out a W-4 when starting a new job. Employers use this form to determine the amount of tax to be withheld from your paycheck. Taxpayers (including students) with multiple summer jobs will want to ensure all their employers withhold an adequate amount of taxes to cover their total income tax liability.

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We are thrilled to welcome another WCPA baby this month! Senior accountant Frances Meng gave birth to her newborn son, Buyi, on May 29th.

Congratulations to Frances and her family!

This quarter’s employee spotlight is shared by senior accountant Cristina Villalobos and administrative assistant Sandra Baron. Both Cristina and Sandra went to great lengths to see the Wheeler team through this tax season.

Cristina played a crucial role in assisting both the tax and attest side this quarter. She provided tremendous administrative support to the newest partners and quickly adapted to the firm’s new processes. Cristina also temporarily filled the role and managed the many client relationships of fellow senior accountant Frances Meng while she has been away on maternity leave.

Sandra also stepped up to the plate of a very challenging busy season, putting in significant overtime hours to keep the firm steady while we experienced a lot of admin team turnover with temps. She made a great effort to bridge the processes between Wheeler Accountants and Just Gurr & Associates following the merge, helping the folks that were new to our firm learn our processes while keeping the client experience as undisturbed as possible. Sandra also provided valuable feedback to the long-time preparers to ensure a smooth client experience.

A big congratulations to Cristina & Sandra for being selected as Q2 2022’s Employees of the Quarter!

One of the most important decisions you’ll make when starting a business is choosing the right business entity. It’s a decision that impacts many things–from the amount of taxes you pay to how much paperwork you have to deal with and what type of personal liability you face.

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