Blog – Page 2 – Angel Financial Services LLC

Tax Deductions with Section 127 – Tuition Reimbursement for Children/Grandchildren

Here’s an advantage to being in business for yourself: create a tax-favored educational assistance program. Hire your child age 21 or older. Grant the education program to all your employees, including your employee-child. Now, you may deduct up to $5,250 of your employee-child’s college tuition and book fees. The $5,250 is the annual, per-employee limit …

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Expense Reporting for Corporations

Tax Guidance / By Angie Toney

Failure to use an accountable plan for your employee expense reimbursements (including yourself if you operate as a corporation) turns those improperly reimbursed expenses into taxable wages. In other words, by failing to comply with the accountable plan rules, you turn the tax-free reimbursement into taxable W-2 wages. That’s about as dreadful as it can …

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Roth IRA versus traditional IRA: Which is better for you?

Financial Planning, Tax Guidance / By Angie Toney

Roth IRAs tend to get a lot of hype, and for good reason: Because you pay the taxes upfront, your eventual withdrawals (assuming you meet the age and holding-period requirements—more on these below) are completely tax-free. While we like “tax-free” as much as the next person, there are more times than you would imagine when …

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