If you want to take advantage of the new 20-percent tax deductions under tax code Section 199A, you need to follow certain important IRS rules.
For example, you’ll need to calculate your business’s W-2 wages if they meet certain important criteria.
What exactly are they? How can you comply with the law and stay out of the IRS’s gun sights?
You’ll find out when you read my new article titled Tax Tips: IRS Updates Defined Wages for New Section 199A Tax Deductions.
Three ways our fact-filled article can help you:
- You’ll learn how your Section 199A tax deduction will benefit from W-2 wages paid to you and your employees. You’ll come out a winner if you meet three extremely important criteria. We’ll list them and explain them thoroughly when you read the full article.
- You’ll learn why you must use one of three IRS created methods for determining your Section 199A wages. You’ll need to choose from the “unmodified box method,” the “modified box 1 method,” or the “tracking wages method.” How do these work? Which one is right for you? You’ll find the answers when you read the full article.
- We’ll explain what to do if you operate an S corporation. The answer is clear. You’ll likely want to avoid the unmodified box method (method 1) because your S corporation could lose either the wage deduction or your retirement plan deferrals. Does this sound complicated? It is. That’s why we’ll explain all the important issues and ramifications in language you can understand when you read the full article.