Health Savings Accounts

Health savings accounts can be a useful tax savings tool. They were first created around 10 or 12 years ago. Essentially they allow individuals to set money aside to pay for doctor co-pays, prescriptions, dental visits, eyeglasses, and other medical expenses tax-free. In order to qualify, you must have health insurance that qualifies as “high […]

Gay Marriage

It’s been a pretty huge week for Supreme Court decisions. Yesterday the court upheld the Affordable Care Act, and just this morning they ruled that same-sex marriage is now a legal right across the US. Here at Padgett South Austin, we pretty much always try to keep politics out of our work. But suffice it […]

Extended Due Dates

For those of you that haven’t yet filed your 2013 tax return(s), I thought I’d let you know that the extended due dates are fast approaching. Assuming that you filed an extension request (Form 4868 for individual or 7004 for business) by the original due date (back in March or April), you have until September […]

Health Insurance Reimbursement Plans

Before the new health care law, small businesses were allowed to offer health insurance reimbursement plans, in which the company could give each employee a certain amount of money (pre-tax) that the employees could use to purchase insurance on their own. The IRS has recently clarified that these kinds of arrangements are no longer permitted. […]

Installment Plans

Except for the few of our clients who are C-Corp shareholders, the profits from most small businesses flow through to the owners’ personal returns, and are taxed at the individual level. For anyone who was stuck with a higher than expected tax bill, it’s worth mentioning that the IRS is fairly accomodating with installment agreements. […]

Quarterly Estimated Payments

Since 2014 is already well underway, I thought a quick primer on quarterly estimated tax payments would be appropriate this month. Who needs to make quarterly payments? Theoretically anyone who owes more than $1k in tax at the end of the year should be making quarterly estimates. The idea is that if you owe too […]

Retirement Plans

This month I wanted to give just a quick overview of some common retirement plans for small businesses, with a few pros and cons of each. This is certainly not comprehensive, but rather meant to give you a feel for some of the options out there. If you have any questions about these plans, including […]