Recent News & Blog / Individual Tax
The amount you and your employees can save for retirement is going up slightly in 2025
How much can you and your employees contribute to your 401(k)s next year? The IRS recently announced the 2025 cost-of-living adjustments. Read here for the 2025 401(k) contribution limit, the catch-up contribution limit for employees who are age 50 or over and participate in 401(k), and there will be a new catch-up contribution amount for taxpayers age 60, 61, 62 or 63. Contact the tax advisors at SEK with questions.
The “nanny tax” must be paid for more than just nannies
As a household employer, it’s critical to understand your “nanny tax” obligations. Hiring a household worker who isn’t an independent contractor may make you liable for federal income tax, Social Security and Medicare (FICA) tax, federal unemployment tax and possibly state tax. Contact the CPAs and tax advisors at SEK with you tax questions.
Traveling for business? What can you deduct?
As a business owner, you may travel to visit customers, attend conferences, check on vendors and for other purposes. Understanding which travel expenses are tax deductible can significantly affect your bottom line. Contact the CPAs and tax advisors at SEK to get the most of your tax deductions and remain compliant.
2025 Cost of Living Adjustments
The IRS recently released the 2025 cost of living adjustments for retirement plans and related items. Use the chart below to view the adjustments, or view a printable version.
You don’t have to be in business to deduct certain vehicle expenses
Business driving may come to mind when you think about tax deductions for vehicle-related expenses. However, individuals may also be able to deduct them in certain circumstances. Questions? Contact the tax advisors at SEK.
Maximize your year-end giving with gifts that offer tax benefits
As year end approaches, you may be thinking about tax strategies. One way to reduce potential estate taxes is to give cash gifts before Dec. 31 using the annual exclusion. In 2024, the exclusion amount is $18,000. We can also prepare a gift tax return for you. Contact the CPAs and tax advisors at SEK with questions.
Making defined-value gifts may benefit your estate plan
Making hard-to-value gifts, such as interests in a closely held business, can raise the concern of the IRS. To help avoid an unexpected outcome, consider making a defined-value gift. It’s a gift of assets valued at a specific dollar amount rather than a certain number of stock shares or FLP units or a specified percentage of a business entity. Contact the CPAs and tax advisors at SEK for more estate planning tips.
Is your money-losing activity a hobby or a business?
Let’s say you have a sideline activity that you consider a business. Will the IRS agree that your venture is a business, not a hobby? It’s an essential question for tax purposes. We may be able to help you prove your money-losing activity is really a for-profit business that hasn’t paid off yet. That way, you can deduct the losses. Contact the CPAs and tax advisors at SEK for help.
Unlock your child’s potential by investing in a 529 plan
If you have a child or grandchild planning to attend college, you may wonder about investing in a qualified tuition program or 529 plan. You don’t get a federal tax deduction for contributions, but the earnings aren’t taxed while the funds are in the program. Contact the CPAs and tax advisors at SEK to learn more.
Seller-paid points: Can homeowners deduct them?
Potential homebuyers may now have an opportunity to attain their dreams of purchasing property. If you’re a homebuyer, you may wonder if you can deduct mortgage points paid on your behalf by the seller. The answer is “yes,” subject to some limits. Contact the CPAs and tax advisors at SEK for answers to your tax questions.