Businesses: The Form W-2 and 1099-NEC deadline is coming up fast
The deadline is here for businesses to submit certain information returns to the government and furnish them to workers. By Jan. 31, 2025, employers must file Forms W-2 that show the wages paid and taxes withheld for 2024 for each employee. Employers must also file Form W-3 to transmit Copy A of Form W-2 to the SSA. The Jan. 31 deadline also applies to Form 1099-NEC. Contact the business tax advisors at SEK with questions.
Making cost-allocation decisions for your nonprofit
Nonprofits often struggle with allocating program expenses properly. Yet the process is critical because your supporters want to know how you use financial resources. And you likely must comply with Financial Accounting Standards Board (FASB) guidance. Contact our nonprofit advisors with questions on your nonprofit's cost allocations.
The standard business mileage rate increased in 2025
The optional standard mileage rate used to calculate the tax-deductible cost of operating a business vehicle increased in 2025. The standard mileage rate is adjusted annually and calculated based on driving costs, including the price of gas. Contact the tax advisors at SEK with questions about tax-deductions.
Why you might want to file early and answers to other tax season questions
The IRS will start the 2025 filing season for individual income tax returns on Jan. 27. Even if you usually don’t file until April, you may want to file early. It can potentially protect you from tax identity theft. Another benefit of early filing is that if you’re getting a refund, you’ll get it faster. Contact SEK's CPAs and tax advisors for an appointment to prepare your return.
Moving a trust over state lines can offer tax savings and other benefits
Relocating a trust may offer a tax advantage if the trust is an irrevocable, nongrantor trust, accumulates substantial amounts of ordinary income or capital gains, and can be moved to a state with low or no taxes on accumulated trust income. There also may be other advantages to moving a trust. Contact SEK's estate planning advisors with questions.
Casino nights aren’t all fun and games for nonprofit events
Charitable fundraisers that feature games of chance help nonprofits raise millions of dollars every year. However, if you regularly host gaming fundraisers, you may be subject to unrelated business income tax. And wagering excise and occupational taxes could apply in some circumstances. Contact the nonprofit advisors at SEK for more information.
Estate planning for non-U.S. citizens requires extra care
If you or your spouse is a noncitizen, special rules apply that require additional planning when it comes to your estate. A significant difference between U.S. citizens and noncitizens, and a potential tax trap for the unwary, is that the marital deduction isn’t available for transfers to noncitizens. If you or your spouse is a noncitizen, talk to SEK's estate planning advisors about the potential estate planning ramifications.
Small business strategy: A heavy vehicle plus a home office equals tax savings
Your small business may be eligible for big first-year Section 179 depreciation tax deductions for new and used heavy SUVs, pickups and vans placed in service in 2025. You must use the vehicle more than 50% for business. The write-off will reduce your federal income tax and self-employment tax bill, if applicable. Contact the business tax advisors at SEK with your tax deduction questions.
Answers to your questions about taking withdrawals from IRAs
You can’t keep funds in your traditional IRA indefinitely. You must start taking withdrawals from a traditional IRA (including a SIMPLE IRA or SEP IRA) when you reach age 73. However, if you take money out of a traditional IRA before age 59½, you may be subject to a 10% penalty tax and income tax on the distribution. Contact SEK's tax advisors and retirement planning advisors with any IRA questions.
New annual report requirement for Pennsylvania businesses in 2025
Starting in 2025, Pennsylvania businesses will need to comply with a new annual report requirement introduced by the Pennsylvania Department of State.