Month: December 2022

Tip Income: Is it Taxable?

The short answer is that yes, tips are taxable. If you work at a hair salon, barber shop, casino, golf course, hotel, or restaurant, or drive a taxicab, then the tip income you receive as an employee from those services is considered taxable income. Here are a few other tips about tips:

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Russo CPA Tax Tip Article Image: Mouse Trap snapped closed on U.S. dollar pile

Improperly Forgiven PPP Loans Are Taxable

Recipients of Paycheck Protection Loans (PPP) should be aware that when a taxpayer’s loan is forgiven based upon misrepresentations or omissions, they are not eligible to exclude the forgiveness from income. They must, instead, include in income the portion of the loan proceeds that were forgiven based upon misrepresentations or omissions.

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Tips to Avoid Credit Card Debt During the Holidays 2022 Russo CPA

Tips To Avoid Credit Card Debt This Holiday Season

Typically, credit card balances follow a seasonal pattern, increasing significantly in the fourth quarter and coinciding with holiday shopping. This year is no exception; unfortunately, it coincides with higher credit card interest rates. With more people than ever depending on credit cards to cover basic expenses due to inflation, this could lead to an ever-increasing debt load. In fact, credit card balances are approaching pre-pandemic levels, increasing by $38 billion (a 15 percent increase year-over-year) since the second quarter – the largest increase in more than 20 years (Federal Reserve Bank of New York).

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Golden Nest Egg on blue background: Russo CPA Tax tips article 2022

Take Retirement Plan Distributions by December 31

For many years, IRS rules stated that taxpayers could not keep retirement funds in their retirement accounts indefinitely. They must start taking withdrawals from their IRA, SIMPLE IRA, SEP IRA, or retirement plan account when they reach age 70 1/2. These withdrawals are known as required minimum distributions or RMDs.

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Advertising and Marketing Costs May Be Tax Deductible 2022 Russo CPA

Advertising and Marketing Costs May Be Tax Deductible

As a small business owner, you may be able to deduct advertising and marketing expenses that help bring in new customers and keep existing ones. Even better is that these deductions help small businesses save money on their taxes. Here’s what you need to know about this valuable tax deduction:

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Relief for Drought-Stricken Farmers and Ranchers

Farmers and ranchers forced to sell livestock because of drought conditions may have more time to replace their livestock and defer tax on any gains from the forced sales. If you are a farmer or rancher affected by drought conditions, here is what you need to know about this important tax relief extension.

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Tax Due Dates for December 2022

December 12 Employees who work for tips – If you received $20 or more in tips during November, report them to your employer. You can use Form 4070. December 15 Corporations – Deposit the fourth installment of estimated income tax …

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