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 […]
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 […]
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 […]
How Much Can I Deduct?
Welcome back to the Hedgi AI blog! Today, we’re going to talk about something every small business owner needs to know: how much can you deduct on your business expenses? What is a Business Expense?Business expenses are the costs you incur while operating your business. These can significantly reduce your taxable income, saving you money […]
