Jones & Company LLC

Getting ready to file your 2024 return and finding your tax bill is higher than you’d like? There may still be an opportunity to lower it. If you qualify, you can make a deductible contribution to a traditional IRA up until this year’s April 15 filing deadline and benefit on your 2024 return. An eligible taxpayer can make a 2024 IRA contribution of up to $7,000 ($8,000 if you’re 50 or older). You must meet income requirements to qualify. Business owners can also set up and contribute to SEP plans up until the filing due date, including extensions. For 2024, the most you can contribute to a SEP is $69,000. Contact us for more information about growing your nest egg on a tax-favored basis.

The IRS’s Taxpayer Bill of Rights represents 10 fundamental rights to which taxpayers are entitled when interacting with federal tax authorities. One of these is the right to confidentiality. Any information provided to the IRS can’t be disclosed to third parties unless the taxpayer requests it or the law requires it. If IRS employees or others privy to tax information wrongfully use or disclose it, they’re subject to legal action. The Bill of Rights also includes the right to privacy, which means that IRS inquiries, examinations or enforcement actions must comply with the law and be no more intrusive than necessary. To view the full Bill of Rights: https://bit.ly/4k7dyad

Recently released Gallup data indicates only 31% of U.S. employees are engaged in their jobs, the lowest level in a decade. Such a percentage drives home the fact that employers can’t take employee engagement for granted. Here are three fundamental steps to determine where your employees stand: 1) Conduct employee surveys regularly. Issuing an anonymous survey at least annually is a good way to gather big-picture data. 2) Hold one-on-one engagement-specific check-ins. Be sure these meetings take place outside of annual performance reviews. 3) Track all the right metrics. Examples include turnover rate, absenteeism rate, revenue per employee and task completion rate. Contact us for help.

ALERT: After another federal court ruling, the beneficial ownership information (BOI) reporting requirements under the Corporate Transparency Act are back in effect. The Financial Crimes Enforcement Network (FinCEN) is extending the reporting deadline for most companies to 30 calendar days from Feb. 19, 2025, to allow additional time to comply. The new deadline is March 21, 2025, for the majority of reporting companies, with certain exceptions. During the 30-day period, FinCEN will assess its options to further modify deadlines while prioritizing reporting for those entities that pose the most significant national security risks. Contact us with questions or visit: https://bit.ly/40TtxkP

As a business owner, you may be eligible to claim home office tax deductions that will reduce your taxable income. However, it’s crucial to understand the IRS rules to ensure compliance and avoid potential IRS audit risks. If you’re eligible, there are two ways to claim deductions. With the actual expense method, you claim direct expenses, such as the cost of painting and a share of indirect expenses, such as utilities, insurance and depreciation. With the simplified method, you deduct $5 per square foot of home office space, up to $1,500. Unfortunately, employees can’t deduct home office expenses. We can help you determine if you qualify and how to proceed.

The Child Tax Credit (CTC) is available to eligible taxpayers with children under age 17. For 2024 and 2025, the credit is up to $2,000 for each qualifying child and is partially refundable. You qualify for the full CTC amount if you meet all eligibility factors and your adjusted gross income isn’t more than $200,000 ($400,000 if married and filing jointly). Parents with higher incomes may be eligible to claim a partial credit. You must include the child’s Social Security number on your return. In 2026, the maximum CTC is scheduled to drop to $1,000 per qualifying child unless Congress acts to extend the higher amount. Contact us with any questions about your situation.

Did you receive an unexpected package with no sender listed? If so, the Federal Trade Commission (FTC) urges caution. Scammers are relentless in finding new ways to steal your assets and personal information. Tax season may incentivize them even more. If thieves snag your data, they may file a fraudulent tax return in your name to claim a false refund. At the very least, that can delay your legitimate filing. Beware if you receive an unexpected package without a sender identified and a note instructing you to scan a QR code for details. Scanning it may lead to a phishing website that steals your data and may install malware on your device. For more from the FTC: https://bit.ly/4hXT0PH

Information technology (IT) is constantly evolving. The concept and challenge of keeping business technology current is called “IT modernization.” To stay competitive in most industries today, you’ve got to excel at it. However, you also have to approach IT modernization carefully and cost-consciously. Here are four tips: 1) Begin with an IT audit to get a clear picture of your infrastructure, policies, procedures and usage. 2) Align modernization efforts with strategic objectives; keep return on investment in mind. 3) Take a phased, pragmatic approach to initiatives; don’t try to do everything at once. 4) Train and upskill your users so they can roll with the changes. Contact us for help.

President Trump has pledged to end taxes on tips. But so far, no law eliminating taxes on tips has been enacted. For now, employers must follow existing IRS rules. Here are some employer responsibilities: 1) Send each employee a W-2 that includes reported tips. 2) Keep employees’ tip reports. 3) Withhold taxes, including income taxes and the employee’s share of Social Security and Medicare taxes, based on wages and reported tip income. 4) Pay the employer share of Social Security and Medicare taxes based on the total wages and reported tip income. 5) Report this information to the IRS on Form 941. 6) Deposit withheld taxes according to federal deposit requirements. Contact us with questions.

Many Americans turn their attention to taxes over the President’s Day holiday. According to the IRS, the federal holiday coincides with the peak time for IRS phone traffic. To avoid long hold times, the tax agency encourages taxpayers and tax professionals to use its online tools at irs.gov. The site includes information on everything from gathering documents to eligibility for credits to tracking refunds. In addition, the IRS is reiterating its advice for taxpayers to file electronically and opt for direct deposit (if applicable) to expedite the refund process. Contact us for assistance with tax preparation.