If your business is structured as an S corporation, not paying yourself an appropriate salary as an owner can torpedo your tax deductions, causing extra taxes and penalties. Tax Cuts and Jobs Act From 2018 to 2025, the Tax Cuts and Jobs Act is offering a 20 percent deduction on pass-through business income, with specific...
An inconvenient rule applies to how S corporation owners deduct the cost of health insurance that a corporation puts on its W-2s. The words that make this an inconvenient rule are “earned income,” and this is unusual because you generally think of earned income as a good thing. But for the S corporation owner who...Continue reading
What Are Self-Employment Taxes? Do I Pay Them? Self-employment taxes are to individual business owners what payroll taxes are to employers and employees. They fund Social Security and Medicare. All individuals with self-employment income must pay self-employment taxes, regardless of their age. When business owners reach retirement age, they’ll be able to collect Social Security...Continue reading