Hebden Consulting Limited’s Post

Last minute tips to cut your tax bill this financial year. As the end of the financial year approaches, Australians are looking for effective strategies to cut their tax bills. With the deadline looming on June 30th, it’s essential to act swiftly and strategically. Here are some last-minute tips to help you save on your tax bill and make the most of the deductions and offsets available. #EOFY #taxplanning #taxdeductions

Beware of a stealth tax on Social Security benefits: Some people mistakenly believe that Social Security benefits are always free from federal income tax. Unfortunately, that's often not the case. In fact, depending on how much overall income you have, up to 85% of your benefits could be hit with federal income tax. While the truth about the federal income tax bite on Social […] https://bit.ly/3WhtsW4

Some people mistakenly believe that Social Security benefits are always free from federal income tax. Unfortunately, that’s often not the case. In fact, depending on how much overall income you have, up to 85% of your benefits could be hit with federal income tax. While the truth about the federal income tax bite on Social Security benefits may be painful, it’s better to understand it. Here are the rules. #socialsecurity https://lnkd.in/dHfc7jMN

Did you know that Social Security benefits may not be completely tax-free? Depending on your provisional income, you could be hit with federal taxes on a portion of your benefits. If your provisional income exceeds certain thresholds, you may need to report up to 85% of your benefits as income on your tax return. Let us help you calculate any potential tax on your benefits and ensure you're prepared come tax season. #SocialSecurity #TaxSeason #FinancialPlanning https://hubs.ly/Q02pHxnk0

For 2024, the Social Security tax ceiling increased to $168,600, resulting in a maximum Social Security tax of $20,906 for high-earners. The Social Security Administration projects this ceiling to rise annually, reaching $242,700 or more by 2033. Additionally, the government adds a 2.9 percent Medicare tax to all wages and self-employment income, with an extra 0.9% for high-income earners. If you’re self-employed, these taxes can be particularly burdensome. Here are three strategies that can potentially reduce your tax liability: 1. Operate as an S corporation. This structure allows the corporation to pay you a reasonable salary and distribute the remaining profits to you, exempt from self-employment taxes. 2. Leverage community property rules. Married filers living in community property states can use IRS rules to eliminate or create a spouse partnership in order to reduce self-employment taxes. 3. Avoid the husband-wife partnership classification. With close attention to partnership attributes, you can avoid the husband-wife partnership classification and reduce overall self-employment taxes. If you need assistance implementing this within your organization or have other tax related questions, get in touch with us today!

Many retirees are surprised to find out that some of their Social Security benefits are hit with federal income tax. Will you be one of them? Here are the rules. https://bit.ly/3TmJ5Zl #IndividualTax #SocialSecurityTax #SocialSecurityBenefits #CPA #AccountingFirm #StealthTax #TaxTips

For 2024, the Social Security tax ceiling increased to $168,600, resulting in a maximum Social Security tax of $20,906 for high-earners. The Social Security Administration projects this ceiling to rise annually, reaching $242,700 or more by 2033. Additionally, the government adds a 2.9 percent Medicare tax to all wages and self-employment income, with an extra 0.9% for high-income earners. If you’re self-employed, these taxes can be particularly burdensome. Here are three strategies that can potentially reduce your tax liability: 1. Operate as an S corporation. This structure allows the corporation to pay you a reasonable salary and distribute the remaining profits to you, exempt from self-employment taxes. 2. Leverage community property rules. Married filers living in community property states can use IRS rules to eliminate or create a spouse partnership in order to reduce self-employment taxes. 3. Avoid the husband-wife partnership classification. With close attention to partnership attributes, you can avoid the husband-wife partnership classification and reduce overall self-employment taxes. If you need assistance implementing this within your organization or have other tax related questions, get in touch with us today!

The next time you think about retiring in another state... Ten States that Tax Social Security Source: RSSA Tax season officially begins next week on January 29th and it’s crucial to be aware that your Social Security income may be subject to both federal and state taxation. Referred to by some as the Social Security “stealth” tax, many individuals are unaware of this potential tax implication and fail to incorporate it into their financial planning. https://lnkd.in/e9Q3nHhJ

Rachel Reeves will deliver her first Autumn Statement on 30 October 2024. But what announcements are likely? Read our breakdown of what the statement may contain. #AutumnStatement #tax #business

As a Social Security beneficiary, you’ll get bigger monthly checks this year because of the annual cost-of-living adjustment (COLA). What might come along with that increase? A tax bill. Find out why some will pay taxes on these benefits for the first time: #SocialSecurity #taxes