2023 Guidelines for Determining Resident Status in California
What’s New? The Federal Veterans Auto and Education Improvement Act (VAEIA) of 2022 was enacted on January 5, 2023, and has made important amendments to the Servicemembers Civil Relief Act (SCRA). California conforms to these new provisions: Spouse of a Servicemember: A spouse of a servicemember will neither gain nor lose residency or domicile for taxation purposes […]
Credit for Small Employer Health Insurance Premiums
As a small business owner, you may be eligible for a tax credit that helps cover the cost of health insurance for your employees. The Credit for Small Employer Health Insurance Premiums, detailed in the Internal Revenue Code and specifically relevant for the 2023 tax year, is designed to encourage small employers to provide health insurance […]
529 Plan vs. Custodial Account: Choosing the Best Option for Your Child’s Future
Congratulations on the new addition to your family! Planning for your child’s financial future is a significant step, and two popular options to consider are 529 plans and custodial accounts. Below, we break down the key benefits and drawbacks of each option to help you make the best decision for your growing family. 529 Plan […]
Beneficial Ownership Information Reporting for Small Businesses
In recent years, regulations around corporate transparency have become stricter, and small business owners need to be aware of new requirements. One key area of focus is Beneficial Ownership Information (BOI). What is Beneficial Ownership Information? Beneficial ownership information refers to the identifying details of individuals who directly or indirectly own or control a company. This […]
Abating the IRS Underpayment of Estimated Tax Penalty
The Underpayment of Estimated Tax by Individuals Penalty applies to individuals, estates, and trusts who do not pay enough estimated tax throughout the year or pay it late. This penalty can apply even if you ultimately receive a refund when you file your tax return. This post breaks down how you know you owe the […]
Simplify Your S-Corporation Taxes with Hedgi AI
As a small business owner, navigating the complex world of S-Corporation taxes can be daunting. The good news is that technology is evolving to make this process more manageable. One such innovation is Hedgi AI, an app that leverages artificial intelligence to streamline your tax preparation, minimize errors, and identify critical tax deductions. What is […]
Understanding Business Income for Small Business Owners
Navigating the world of business income and taxation can be complex, but as a small business owner, understanding how to account for business income on your tax return is essential. This article will help you comprehend key aspects of business income, distinguishing what is considered income, and specific guidelines for various occupations. What Is Business […]
Understanding Shareholder Loss Limitations for S Corporations
Welcome back to the Hedgi AI blog! Today, we’re discussing a crucial topic for S corporation shareholders—loss limitations. Knowing how these limitations work can help you make the most out of your S corporation’s tax benefits. What is an S Corporation?An S corporation is a type of corporation that elects to pass corporate income, losses, […]
How to Allocate Your Covered CA Health Insurance (Form 1095-A)
Welcome back to the Hedgi AI blog! Today, we’re talking about how to allocate your Covered CA Health Insurance, specifically when dealing with Form 1095-A. Knowing how to properly allocate this form can help you ensure accurate tax filings and potentially maximize your tax credits. What is Form 1095-A?Form 1095-A is a health insurance Marketplace […]
Understanding Employee Pay
Welcome back to the Hedgi AI blog! Today, we’re covering a crucial topic for any small business owner: Employee Pay. Whether you’re paying salaries, bonuses, or other types of compensation, it’s essential to understand how these expenses affect your business and taxes. Deducting Employee PayYou can generally deduct the amount you pay your employees for […]