287 High Street, Suite 319, Holyoke, Massachusetts 01040, United States
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¡Nuestro décimo año!
Holyoke Tax Service is honored to have sponsored this great community event for all 10 years!
updates
When is an IRA not an IRA (but actually is)?
When it's a “Trump” account, the rules of which are (not to offend anyone or get too political) about as coherent as the man who named it after himself. The tables in the following section attempt to make some sense of them, although of course they are somewhat of an oversimplification, and we are always glad to assist you with the finer points.
We look at this only from the perspective of the account holder (“Beneficiary”), not the trustee, except to say that the requirements to be a trustee are the same as for any other type of IRA, and that investments are limited to funds that track a “qualified index,” such as the Standard & Poor's 500 stock market index.
These accounts do not become available until July 4, 2026, however they may be elected when filing the 2025 tax return. While we cannot give investment advice, in our opinion these are probably not the best choice, other than of course to get the “free money” from the U.S. Treasury or the Dells.
Waiters, Waitresses, Bartenders Who Make Good Tips: Don't get Married to Each Other
At least not for the next four years... That is because you can deduct up to $25,000 on each of your single returns, but on a joint return – which must be filed to receive the deduction if you are married – you can only deduct up to $25,000 between the both of you.
On the other hand, this would be a great time to marry someone who works a lot of overtime. That is because on a single return only up to $12,500 of overtime pay – which, to be clear, is just the ½ in time and a half – can be deducted, but up to $25,000 can be deducted on a joint return, so you and your spouse could potentially have up to $50,000 of deductions, in addition to your standard deduction (although if you make too much money those deductions become subject to income limitations and are phased out).
Of course there are many finer points to all this, especially when it comes to self-employed people in customarily tipped occupations, but at Holyoke Tax Service we are here to help you navigate them. We are also planning future installments discussing the recently enacted new tax law.
Do Sole-Proprietors Get Paid?
The short answer is no, at least not in the sense of getting a weekly paycheck, as one does from a job. The reason for this is that, while a sole-proprietorship can certainly hire employees, the business and the owner herself are indivisible, one-in-the-same, and cannot be split into employer and employee. This is true even if there is an LLC, but, as is often the case, the owner chooses to disregard it for tax purposes. In order pay herself a salary the business owner must establish a separate entity, such as a corporation, to do so (notwithstanding she is still the only one controlling the other entity).
Of course the real answer is that a sole-proprietor's pay is as much, or as a little, as the business's net income, regardless of whether she uses it for personal purposes, which some call a “draw,” or leaves it in the business bank account. No matter what some eager payroll services may tell you, that money is already yours, no intermediary necessary. While some prefer the security of a regular paycheck, it can never beat the upside of when your business is profitable, and you are rewarded for your own hard work. And from a tax perspective, for a small-business owner it is almost always preferable to be self-employed rather an employee, most notably due to the 20% Qualified Business Income Deduction, which only applies to self-employment earnings, not wages.
Since we mentioned Limited Liability Companies, will take the opportunity to remind everyone that while they limit the business's liability, you are still personally liable for your own actions, so, particularly when you're providing personal services, and it is only you, the LLC will not save you.
There are of course many more nuances to all of this, and at Holyoke Tax Service, we are always happy to help you with any of them.
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About Us
Our Office
- 287 High Street, Suite 319, Holyoke, Massachusetts 01040
- Conveniently located near Holyoke City Hall and the Holyoke Transportation Center
- Please call, text, or message us for an appointment (please see our policy above)
David Yos
- Over fifteen years of tax preparation experience.
- Holyoke resident since 1999.
- Married to Jacqueline Yos, with two daughters and six grandchildren.
Our Services
- Preparation of all 1040 series tax forms
- Form 990 - Tax-Exempt Organizations
- Form 1120(-S) - Corporations
- Form 1041 - Estates & Trusts
- Form 1065 - Partnerships
- 94_ series returns
- 1099 & W-2 Forms
- Authorized IRS e-filer
- Small business returns
- Rental property returns
- Multi-state returns
- Your proactive adviser: W-4's, estimates, etc.
- Please ask about other services we may provide.