DHW Certified Public Accountants and Strategic Advisors

02/03/2025

Welcome to the DHW Team, Andrew, Nick, & Joseph!

02/02/2025

Punxsutawney Phil sees his shadow, predicts more winter

Watch live coverage of Groundhog Day 2025 as Punxsutawney Phil makes his prediction at Gobbler's K**b.

01/30/2025

BOI Reporting Still on Hold Despite Supreme Court Ruling: Even though the U.S. Supreme Court stopped a federal district court's order (McHenry v. Texas Top Cop Shop) barring enforcement of the Corporate Transparency Act (CTA), beneficial ownership information (BOI) reporting is still on hold due to another second district court injunction currently in place (Smith v. U.S. Department of the Treasury). If the Smith case is appealed to the Supreme Court, the stay would likely be lifted, however, some believe that the new administration will not appeal the case in an effort to keep the CTA on hold indefinitely. The Financial Crimes Enforcement Network (FinCEN) will continue to accept BOI reports submitted on a voluntary basis. There is much uncertainty regarding the fate of the CTA, but having the necessary information ready to go is a good idea.

01/29/2025

Congratulations to these 5 employees on their recent promotions! Keep up the great work!

01/28/2025

Business owners may travel to visit customers, attend conferences, check on vendors and for other purposes. Managing tax-deductible travel costs can help ensure compliance and maximize tax savings. Assuming you meet the tax law requirements, there are a number of deductible business travel expenses. They include: air, train or bus fare to the destination; baggage fees; car rental expenses or the cost of using your vehicle; tolls; parking; transportation at the destination (such as taxis); lodging; tips and dry cleaning. Meal expenses are generally 50% deductible. The business travel deduction rules can be complicated. If you’re uncertain about the tax treatment of your expenses, contact us.

01/23/2025

Are you age 70½ or older and want to give to charity? You can make cash donations directly from your IRA to IRS-approved charities free of federal income tax. These are called qualified charitable distributions (QCDs). In contrast, other traditional IRA distributions are wholly or partially taxable. Unlike regular charitable donations, you can’t claim itemized deductions for QCDs. But they aren’t included in your adjusted gross income (AGI). That lowers the odds that you’ll be affected by unfavorable AGI-based rules or hit with the 3.8% net investment income tax. The annual QCD limit is now adjusted for inflation. In 2024, the limit is $105,000. In 2025, it will increase to $108,000.

01/20/2025

Today, we honor the legacy of Dr. Martin Luther King Jr. His vision of equality, justice, and unity continues to inspire us all. Let's reflect on his values and commit to creating a future where everyone is treated with dignity and respect.

01/17/2025

Medicare Part B medical insurance mainly covers doctors’ visits and outpatient services. Eligible individuals pay monthly premiums for the benefit. The premiums for the current year depend on the modified adjusted gross income (MAGI) reported on your Form 1040 for two years earlier. For 2025, most covered persons will pay the base monthly Part B premium of $185. Higher-income individuals pay a surcharge on top of that. For 2025, a surcharge applies if you: 1) filed unmarried for 2023 and reported MAGI above $106,000 that year or 2) filed jointly for 2023 and reported MAGI above $212,000 that year. For 2025, Part B monthly premiums and surcharges can be found on this web page.

01/15/2025

Some of our Morganton employees recently participated in the annual Burke Giving Day, volunteering at the Toy Store. Two groups of employees volunteered over two days, some of whom are pictured here. DHW is happy to support this great cause!

01/15/2025

Two tax breaks help eligible parents offset the costs of adopting a child. In 2025, adoptive parents may be able to claim a credit against their federal tax for up to $17,280 of “qualified adoption expenses” for each eligible child. This is up from $16,810 in 2024. A credit is a dollar-for-dollar reduction of tax. Also, employees may be able to exclude from gross income up to $17,280 in 2025 ($16,810 in 2024) of qualified expenses paid by an employer in an adoption assistance program. The credit and the exclusion are phased out if the parents’ income exceeds certain limits. Parents can claim both a credit and an exclusion for the costs of adopting a child but not for the same expenses.

01/09/2025

When new nonprofits apply to the IRS for approval to be 501(c)(3) tax-exempt organizations, which form should they use, Form 1023 or 1023-EZ? The first is much longer and more costly to file. However, not all nonprofits qualify to use the shorter, less expensive-to-file Form 1023-EZ. You first must answer all questions on the IRS’s 1023-EZ eligibility worksheet. In general, eligible nonprofits have assets valued at no more than $250,000 and don’t expect to have asset gross receipts of more than $50,000 during the three-year period following the filing. But additional limits apply. Contact us for help selecting and filing a form.

01/07/2025

Congratulations to these stellar employees on reaching these milestones! We are grateful for their dedication and commitment to DHW!

01/01/2025

12/30/2024

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. (There may be a state deduction in your state.) You can change the beneficiary without income tax consequences. Distributions are tax-free up to the amount of the qualified higher education expenses. These include tuition (up to $10,000 for an elementary or secondary public school), fees, books, supplies and required equipment. Room and board are also qualified expenses if enrolled at least half time. Contact us to learn more.

12/27/2024

The IRS recently announced next year’s inflation-adjusted tax amounts. The 2025 standard deduction will increase to $15,000 for single taxpayers, $30,000 for married couples filing jointly and $22,500 for heads of household. This is up from the 2024 amounts of $14,600 for singles, $29,200 for joint filers and $21,900 for heads of household. For 2025, the highest tax rate of 37% will affect singles and heads of households with income exceeding $626,350 ($751,600 for joint filers). This is up from 2024 when the 37% rate affects single taxpayers and heads of households with income exceeding $609,350 ($731,200 for joint filers). The 2025 gift tax exclusion is $19,000, up from $18,000 in 2024.

12/25/2024

Wishing a joyful day to you and your loved ones!

12/19/2024

DHW's offices will be closed December 23-27 for our employees to enjoy Christmas with their families. We wish you all a happy holiday week!

12/18/2024

Do you own a growing, unincorporated small business, and are you concerned about high self-employment (SE) tax? The SE tax is how Social Security and Medicare taxes are collected from self-employed individuals. The maximum 15.3% SE tax rate hits the first $168,600 of 2024 net SE income. The 15.3% rate is made up of 12.4% for Social Security tax plus 2.9% for Medicare tax. In 2025, the maximum 15.3% SE tax rate will hit the first $176,100 of net SE income. Above that, the 12.4% Social Security tax goes away, but the 2.9% Medicare tax continues for all income. Contact us if you have questions or want more information about the SE tax and ways to reduce it by operating as an S corporation.