self-employed

State Income Tax – Quick Tip

Sharon M. Simeone

If you’re self-employed in the state of Massachusetts, you’re probably in the habit of paying quarterly state income taxes. This year, the MA income tax rate for 2019 has been reduced to 5.05% down from 5.10%. A small savings but one to take note when budgeting and completing your quarterly Form 1-ES for Mass DOR this calendar year.

The good news is if this tax trend continues, the rate is expected to drop to 5% by the tax year 2020.

See the following link for more info:

https://www.mass.gov/news/income-tax-rate-to-drop-to-505-on-jan-1

Mileage Rate – Quick Tip

Sharon M. Simeone

Welcome to 2019! It’s that time again; January is a good time to go through your recurring expenses and make adjustments as needed. In addition to the increase in the minimum wage rate for 2019, the standard business mileage rate deduction has also increased.

Effective 1/1/2019, the new rate is 58 cents per mile, up from 54.5 cents in 2018. Take advantage of these pennies. They add up to significant savings at year-end.

See the following link for more info:

https://www.irs.gov/newsroom/irs-issues-standard-mileage-rates-for-2019

https://www.mass.gov/news/ag-healey-advises-public-about-2019-minimum-wage-increase

Mileage Rate – Quick Tip

Sharon M. Simeone

Happy new year!

Many of us are wrapping up the past year by closing out our books. At the same time, we’re preparing for the new year by upgrading our accounting software, reviewing new budgets, and establishing new and improved ways to grow our small business.

Be ahead of the game by making even the smallest applicable adjustments to your bookkeeping now for 2018. One change that may affect your employee expense reimbursements and your deductions at year-end is the new mileage rate of 54.5 cents per mile up from 53.5 cents in 2017.

These pennies add up!

See the following link for more info:

https://www.irs.gov/newsroom/standard-mileage-rates-for-2018-up-from-rates-for-2017