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A trust can be a valuable tool for estate planning and a variety of other purposes. However, when it comes to taxes for a trust, throwing a trust into the mix can sometimes create a bit of confusion. Whether you’re setting up a trust or you’re a beneficiary, it’s important to understand your potential tax liability. This quick guide provides an overview of the basics you need to know about...

If you’re a beneficiary, grantor, or trustee of an irrevocable trust, it’s important to understand the specifics of how trust disbursements work and who is liable for the taxes. Following, you’ll find a quick overview of the important details and a few examples for clarification. Taxation of Irrevocable Trust Disbursements When an irrevocable trust disburses funds, the trust takes a taxable...

The question of whether or not a beneficiary pays trust distribution taxes on the income received from a trust comes up quite often. The answer depends on your particular situation. In the sections below, we will explain the circumstances when you, as a beneficiary, must pay tax and when it’s not required. But first, let’s start with the basic definitions. What is a Trust? A trust is a legal...

One of the most common questions we hear about the administration of trusts is, “Are trust funds taxed?” Like so many other financial matters, the answer is, it depends. Many people get confused that the taxable income of trusts and trust income are not the same things. Typically, a beneficiary (and sometimes a trust itself) is subject to income tax. Income distributions are also subject to...

As a business owner, it’s essential to know what expenses are business tax-deductible. Otherwise, you risk paying more in taxes than necessary or potentially getting into trouble with the IRS for taking inappropriate deductions. Here are some tax-deductible expenses every business owner should know about. ⦁ Utilities If there’s a utility that you use solely for your business, it’s completely...

Student loans have become a necessary aspect of earning a college degree for millions of students and graduates. For the last several years, college costs have continued a steady climb, leading to a need to rely heavily on borrowing to cover expenses. Student loans can be easy to get, evidenced by the more than 44 million borrowers who owe a collective $1.5 trillion. However, they aren’t always a...

The IRS just released the new Tax Withholding Estimator that is intended to replace the old Withholding Calculator. The new Tax Withholding Estimator includes user-friendly features that is tailored to help retirees quickly and easily calculate the correct amount of tax that should be taken from their pension payments and Social Security benefits. The new Tax Withholding Estimator will also...

Which accounting professional does your business need? No matter how small your business is, every business needs a financial and tax advisor. The terms bookkeeper, accountant and CPA have been used interchangeably, but there are vast differences on the value they can bring to your business. Below are the tasks preformed by accounting professionals so you can determine whether your business needs...

According to the Association of Certified Fraud Examiners, nearly 30 percent of businesses are victims of payroll fraud. That’s an unsettling percentage, with smaller businesses being twice as likely to be victimized by payroll fraud than larger businesses. Here are four alarming payroll fraud schemes every business owner should be aware of: Common payroll schemes Ghost employee fraud. A ghost...

Taxes are an inevitable part of everyone’s financial life, and they are often one of the more confusing topics to understand. The tax code is complex, consisting of many rules and guidelines for what’s taxable, what’s not, and what can be used to help reduce tax liabilities each year. However, it is essential to recognize what strategies you can use to save money on taxes each year. The student...