Stay Ahead of Law Changes & Protect Yourself Against Being Audited: Corporate Transparency Act and Reasonable Compensation

Why You Shouldn’t Let Your Children File Their Own Taxes

Common Mistake With Children Filing Their Own Tax Return

Hey folks, Kevin Molen with Molen & Associates here. I want to give you a quick update one of the things we’re seeing a lot. It is dependent children who got their first summer job or maybe they’re even college students and they’re working part-time and they get their w-2s and they want to file their tax returns themselves really quickly. It’s important to note for you parents out there, do not let your kids file their own tax return right out of the gate. It may be the most beneficial thing to do to have them file their own tax return or they may be required to file a tax return depending on their income, but don’t let them just jump right into it and do it themselves.

What I tell all of my clients is grab your kids w-2s, bring them to me in your tax appointment and at no additional charge I will do a quick review tell you approximately what refund if any they should be expecting and the best way to file because there’s a lot of implications in regards to: let’s say for example your child is a college student. Your child, if they don’t provide more than half of their own support, may not be able to claim the good education credits so even if it may make sense for them to claim themselves for education credit purposes it may be that you are required to claim them in order to facilitate that credit. That’s a $2500 credit, so don’t miss out on that. If you have questions you guys should reach out to us.

Give us a call at Molen & Associates. My number one piece of advice if you’ve got kids that are working grab their w-2s. Do not let them file a tax return flippantly make sure you consult with a professional.

The Molen & Associates Difference

Mike Forsyth

“Super helpful and timely. This is our first year with them and we look forward to trusting them with our taxes and business books for years to come.”

Caitlin Daulong

“Molen & Associates is amazing! They run an incredibly streamlined process, which makes filing taxes a breeze. So impressed with their attention to detail, organization, and swift execution every year. Cannot recommend them enough!”

Sy Sahrai

“I’ve been with Mr. Molen’s company for few years and I felt treated like family respect and dignity. They are caring, professional and honest, which hard to find these days. Love working with them.”

2024-2025 Tax Updates

2024-2025 Tax Updates: Key Changes, Strategies, and What You Need to Know As we approach the end of 2024, it's essential to stay informed about the tax changes that will impact your upcoming filings. The Internal Revenue Service (IRS) has announced several updates for...

Required Minimum Distributions (RMDs): What Are They and Why Are They Required?

Required Minimum Distributions (RMDs): What Are They and Why Are They Required? As retirement approaches, understanding the rules around Required Minimum Distributions (RMDs) becomes crucial for anyone with a retirement account. RMDs are mandatory withdrawals that...

HRA 105 Reimbursement Plan: A Comprehensive Guide for Businesses

In today's evolving healthcare landscape, businesses of all sizes are searching for cost-effective ways to provide health benefits to their employees. One increasingly popular solution is the HRA 105 Reimbursement Plan. This plan offers flexibility, tax advantages,...

Do I Need to Pay Taxes on Payments Received in Cash?

Receiving payments in cash might seem like a simple and hassle-free way to manage your finances, especially if you're a freelancer, small business owner, or even just doing a few side gigs. However, while cash payments are convenient, they come with responsibilities...

Bonus Depreciation: Maximizing Tax Benefits for Businesses

Bonus depreciation is a powerful tax incentive that allows businesses to accelerate the depreciation of qualified property, thereby reducing taxable income and enhancing cash flow. This article delves into the intricacies of bonus depreciation, its eligibility...

Which Accounting Software to Use – QBD, QBO, Excel, NetSuite, Wave, Xero, etc.

In today's digital age, choosing the right accounting software is crucial for businesses of all sizes. With numerous options available, it can be challenging to determine which software best suits your needs. This article will explore some of the most popular...

Personal Property – Primary Residence Capital Gains Exclusion: How Does This Work?

The capital gains exclusion for the sale of a primary residence is a significant tax benefit available to homeowners in the United States. This exclusion allows taxpayers to exclude a substantial portion of the gain realized from the sale of their primary residence...

Personal Property – Primary Residence Capital Gains Exclusion: How Does This Work?

Personal Property – Primary Residence Capital Gains Exclusion: How Does This Work? The capital gains exclusion for the sale of a primary residence is a significant tax benefit available to homeowners in the United States. This exclusion allows taxpayers to exclude a...

Compensation and K-1 Reporting for Partnership Owners

As a business owner of a partnership, understanding how your compensation and earnings are reported and taxed is crucial for managing your finances and staying compliant with IRS regulations. Unlike S-Corporations (S-Corps), partnerships cannot pay their owners a W-2...

W-2 Salary vs. Distributions vs. K-1 for S-Corp Owners

W-2 Salary vs. Distributions vs. K-1 for S-Corp Owners As an S-Corporation (S-Corp) owner, understanding the distinctions between W-2 wages, distributions, and K-1 profits is essential for managing your tax obligations and business finances. In this article, we will...

Request an Appointment Today

2 + 7 =

Call us at

Pin It on Pinterest

Share This