News & Tech Tips

Discover if you qualify for “head of household” tax filing status

When we prepare your tax return, we’ll check one of the following filing statuses: single, married filing jointly, married filing separately, head of household, or qualifying widow(er). Only some people are eligible to file a return as a head of household. But if you’re one of them, it’s more favorable than filing as a single taxpayer.

To illustrate, the 2025 standard deduction for a single taxpayer is $15,000. However, it’s $22,500 for a head of household taxpayer. To be eligible, you must maintain a household that, for more than half the year, is the principal home of a “qualifying child” or other relative of yours whom you can claim as a dependent.

Tax law fundamentals

Who’s a qualifying child? This is one who:

  • Lives in your home for more than half the year,
  • Is your child, stepchild, adopted child, foster child, sibling, stepsibling (or a descendant of any of these),
  • Is under age 19 (or a student under 24), and
  • Doesn’t provide over half of his or her own support for the year.

If the parents are divorced, the child will qualify if he or she meets these tests for the custodial parent, even if that parent released his or her right to a dependency exemption for the child to the noncustodial parent.

Can both parents claim head of household status if they live together but aren’t married? According to the IRS, the answer is no. Only one parent can claim head of household status for a qualifying child. A person can’t be a “qualifying child” if he or she is married and can file a joint tax return with a spouse. Special “tie-breaker” rules apply if the individual can be a qualifying child of more than one taxpayer.

The IRS considers you to “maintain a household” if you live in the home for the tax year and pay over half the cost of running it. In measuring the cost, include house-related expenses incurred for the mutual benefit of household members, including property taxes, mortgage interest, rent, utilities, insurance on the property, repairs and upkeep, and food consumed in the home. Don’t include medical care, clothing, education, life insurance, or transportation.

Providing your parent a home

Under a special rule, you can qualify as head of household if you maintain a home for your parent even if you don’t live with him or her. To qualify under this rule, you must be able to claim the parent as your dependent.

You can’t be married

You must be single to claim head of household status. Suppose you’re unmarried because you’re widowed. In that case, you can use the married filing jointly rates as a “surviving spouse” for two years after the year of your spouse’s death if your dependent child, stepchild, adopted child, or foster child lives with you and you maintain the household. The joint rates are more favorable than the head of household rates.

If you’re married, you must file jointly or separately — not as head of household. However, if you’ve lived apart from your spouse for the last six months of the year and your dependent child, stepchild, adopted child, or foster child lives with you and you “maintain the household,” you’re treated as unmarried. If this is the case, you can qualify as head of household.

Contact us. We can answer questions about your situation.

Fight corporate corruption with robust accounting systems

Financial losses from corruption are on the rise, according to “Occupational Fraud 2024: A Report to the Nations,” published by the Association of Certified Fraud Examiners (ACFE). Nearly half the cases in the latest version of this report involved corruption. Even more alarming is the finding that the median loss for corruption cases grew by 33%, from $150,000 in 2022 to $200,000 in 2024.

Spotlight on corruption

The ACFE divides fraud schemes into three primary categories: 1) asset misappropriation (theft), 2) financial misstatement, and 3) corruption. Its 2024 report defines corruption as “a scheme in which an employee misuses their influence in a business transaction in a way that violates their duty to the employer in order to gain a direct or indirect benefit.” Examples include:

• Conflicts of interest, such as purchasing and sales schemes,
• Bribery, including invoice kickbacks and bid rigging,
• Illegal gratuities, and
• Economic extortion.

Which industries and departments are at high risk for corruption? The ACFE report found that corruption was the most prevalent scheme across all industry sectors — and in all departments where fraud perpetrators commonly work.

Anti-corruption measures

Given corruption’s universal threat, consider these four steps to fortify your organization’s defenses:

1. Strengthen internal controls.

While physical security measures — such as locks, passwords, and video cameras — can thwart asset theft, other control procedures may reduce opportunities for workers to engage in corrupt behaviors. For instance, formal vendor management policies can be particularly effective against kickbacks. Key elements to cover are:

  • A formal vetting process to ensure only legitimate vendors are approved,
  • Competitive bidding requirements to prevent favoritism and inflated pricing,
  • Conflict-of-interest policies that require employees to disclose personal relationships with vendors, and• Payment controls that match invoices with purchase orders and delivery receipts to confirm the legitimacy of transactions before they’re processed.

Other examples of cost-effective internal controls that can help counter corruption schemes are job segregation and rotation, dual authorizations for large payments, mandatory time-off policies, employee training programs, and written job descriptions and ethics policies.

2. Leverage automated accounting software.

Modern accounting software can be a powerful tool against corporate corruption. These systems track financial transactions in real time, providing visibility and control over where money is going — and whether it’s going where it should. Automation reduces human error and minimizes opportunities for manipulation by ensuring consistent data entry, processing, and reporting. Many platforms offer built-in alerts for unusual activity, such as duplicate invoices or unauthorized vendor payments.

For example, expense tracking systems can automatically categorize spending patterns and flag anomalies, such as out-of-policy purchases, high-dollar transactions just below approval thresholds, or spending spikes in specific departments. AI-driven fraud detection tools go a step further by learning from historical data to identify subtle patterns of suspicious behavior that traditional systems might miss, such as repeated transactions just under approval limits (a red flag for invoice splitting), frequent payments to new or inactive vendors, round-dollar transactions, and transactions outside normal business hours.

Many accounting systems integrate with enterprise resource planning software. This gives managers a holistic view of operations and allows cross-referencing between purchasing, payroll, and inventory systems. Integration helps uncover conflicts of interest, fraudulent billing, and other corporate corruption schemes that might otherwise go undetected when data is siloed. Additionally, some platforms allow for role-based access controls and automated audit trails, ensuring only authorized personnel can initiate, approve, or modify transactions, and that any changes are fully documented.

3. Proactively manage financial data and employee activity.

Managers should adopt a hands-on approach to detecting and preventing corporate corruption practices. This includes regularly reviewing financial reports generated by your accounting systems for inconsistencies and monitoring high-risk employees with access to company funds and accounting records.

All employees must follow strict approval and documentation procedures to prevent unauthorized transactions. Detailed invoices ensure clarity on the goods and services provided. Business justifications for significant expenses add an extra layer of accountability. Limiting cash transactions in favor of electronic payments maintains transaction records and enhances financial transparency.

4. Audit your financials.

External audits provide independent reviews of financial transactions, helping managers identify and address irregularities. You don’t necessarily have to wait until year-end for an external audit, however. Consider conducting periodic surprise audits throughout the year as an added measure of protection — or hiring a forensic accounting specialist to investigate suspicious activity.

 

Let’s assess your risks

When did your organization last update its systems against the mounting risk of corporate corruption? Too often, business owners and managers assume that corruption only happens in foreign countries or large multinational companies. But the recent ACFE report provides a sobering reminder that corruption can affect any company, regardless of size, location, or industry.

Contact us to help ensure your organization is protected against these schemes. We can assess vulnerabilities, implement robust controls to strengthen your accounting systems, and investigate anomalies or suspicions of corrupt behavior.

Planning for the future: 5 business succession options and their tax implications

When it’s time to consider your business’s future, succession planning can protect your legacy and successfully set up the next generation of leaders or owners. Whether you’re ready to retire, you wish to step back your involvement or you want a solid contingency plan should you unexpectedly be unable to run the business, exploring different succession strategies is key. Here are five options to consider, along with some of the tax implications.

 

1. Transfer directly to family with a sale or gifts

One of the most common approaches to business succession is transferring ownership to a family member (or members). This can be done by gifting interests, selling interests or a combination. Parents often pass the business to children, but family succession plans can also involve siblings or other relatives.

 

Tax implications:

Gift tax considerations. You may trigger the federal gift tax if you gift the business (or part of it) to a family member or if you sell it to him or her for less than its fair market value. The annual gift tax exclusion (currently $19,000 per recipient) can help mitigate or avoid immediate gift tax in small, incremental transfers. Plus, every individual has a lifetime gift tax exemption. So depending on the value of the business and your use of the exemption, you might not owe gift taxes on the transfer. Keep in mind that when gifting partial interests in a closely held business, discounts for lack of marketability or control may be appropriate and help reduce gift taxes.

Estate planning. If the owner dies before transferring the business, there may be estate tax implications. Proper planning can help minimize estate tax liabilities through trusts or other estate planning tools.

Capital gains tax. If you sell the business to family members, you could owe capital gains tax. (See “5. Sell to an outside buyer” for more information.)

 

2. Transfer ownership through a trust

Suppose you want to keep long-term control of the business within your family. In that case, you might place ownership interests in a trust (such as a grantor-retained annuity trust or another specialized vehicle).

Tax implications:

Estate and gift tax mitigation. Properly structured trusts can help transfer assets to the next generation with minimized gift and estate tax exposure. Trust-based strategies can be particularly effective for business owners with significant assets.

Complex legal framework. Because trusts involve legal documents and strict rules, working with us and an attorney is crucial to ensure compliance and optimize tax benefits.

 

3. Engage in an employee or management buyout

Another option is to sell to a group of key employees or current managers. This path often ensures business continuity because the new owners already understand the business and its culture.

Tax implications:

Financing arrangements. In many cases, employees or managers may not have the funds to buy the business outright. Often, the seller finances part of the transaction. While this can provide ongoing income for the departing owner, interest on installment payments has tax consequences for both parties.

Deferred payments. Spreading payments over time can soften your overall tax burden by distributing capital gains across multiple years, which might help you avoid being subject to top tax rates or the net investment income tax. But each payment received is still taxed.

 

4. Establish an Employee Stock Ownership Plan (ESOP)

An ESOP is a qualified retirement plan created primarily to own your company’s stock, and thus it allows employees to own shares in the business. It may be an appealing choice for owners interested in rewarding and retaining staff. However, administering an ESOP involves complex rules.

Tax implications:

Owner benefits. Selling to an ESOP can offer potential tax deferrals, especially if the company is structured as a C corporation and the transaction meets specific requirements.

Corporate deductions. Contributions to an ESOP are usually tax-deductible, which can reduce the company’s taxable income.

 

5. Sell to an outside buyer

Sometimes, the best fit is outside the family or current employees or management team. You might decide to sell to an external buyer — for example, a competitor or private equity group. If you can find the right buyer, you may even be able to sell the business at a premium.

If your business is structured as a corporation, you may sell the business’s assets or the stock. Sellers generally prefer stock (or ownership interest) sales because they minimize the tax bill from a sale.

Tax implications:

Capital gains tax. Business owners typically pay capital gains tax on the difference between their original investment in the business (their “basis”) and the sale price. The capital gains rate depends in part on how long you’ve held the business. Usually, if you’ve owned it for more than one year, you’re taxed at the applicable long-term capital gains rate.

Allocation of purchase price. If you sell the assets, you and the buyer must decide how to allocate the purchase price among assets (including equipment and intellectual property). This allocation affects tax liabilities for both parties.

 

Focus on your unique situation

Business succession planning isn’t a one-size-fits-all process. Each option has unique benefits and pitfalls, especially regarding taxes. The best approach for you depends on factors including your retirement timeline, personal financial goals and family or employee involvement. Consult with us to ensure you choose a path that preserves your financial well-being and protects the business. We can advise on tax implications and work with you and your attorney to structure the deal advantageously. After all, a clear succession plan can safeguard the company you worked hard to build.

Oral Health 2025: Top Trends and Expert Advice for a Healthier Smile

As we step further into 2025, the world of oral health is evolving at an exciting pace. Groundbreaking technologies and innovative products are making their way from the lab to our daily routines, yet the timeless fundamentals of oral care remain as essential as ever. In this article, we explore the top trends shaping oral health this year and share expert advice to help you maintain a radiant, healthy smile.

Top Oral Health Trends for 2025

1. Smart Oral Hygiene Devices

Technology is revolutionizing the way we care for our teeth. Today’s smart toothbrushes and other oral care devices are equipped with advanced features that elevate your daily routine:

  • Monitor Your Brushing Technique:
    Equipped with sensors and artificial intelligence, these devices offer real-time feedback to help you improve your brushing technique and ensure you clean every surface of your teeth effectively.
  • Track Oral Hygiene Habits:
    Linked to dedicated apps, smart oral devices track your brushing frequency, flossing, and even dental checkup schedules, sending you timely reminders so you never miss a beat in your oral care routine.
  • Customize Routines:
    By analyzing your oral care data, these smart devices provide personalized advice. Whether it’s recommending a slight change in your brushing technique or suggesting when to replace your toothbrush head, the goal is to optimize your oral hygiene for the best possible outcomes.

 

2. Eco-Friendly and Natural Oral Care Products

Sustainability has become a key factor in consumer choices, and oral care is no exception. This year, an increasing number of consumers are opting for products that are both effective and environmentally responsible:

 

  • Natural Ingredients:
    There’s a growing shift toward herbal or naturally derived toothpastes and mouthwashes that are free from harsh chemicals. These products aim to support your oral health while being gentler on your body.
  • Biodegradable Products:
    Eco-friendly toothbrushes, often crafted from bamboo, and sustainable packaging solutions are helping reduce environmental impact. By choosing these products, you can contribute to a greener planet with every brush.
  • Green Certifications:
    Look for products that not only meet high oral care standards but also carry green certifications and the ADA Seal of Approval. These certifications indicate a commitment to sustainability and ethical production practices, giving you peace of mind with every use.

 

Leading Advice for Taking Care of Your Oral Health

While 2025 brings exciting new options and innovative products, the core principles of oral health remain vital. Here are the top tips from dental experts to keep your smile healthy and bright:

  • Brush Twice Daily:
    Use a fluoride toothpaste and spend at least two minutes each time. Make sure you reach all surfaces of your teeth to effectively remove plaque and prevent decay.
  • Floss Daily:
    Flossing removes plaque and food particles from between your teeth—areas where your toothbrush can’t reach—helping to prevent gum disease and cavities.
  • Adopt a Balanced Diet:
    Limit sugary and acidic foods and beverages. Instead, incorporate a variety of fruits, vegetables, and dairy products into your diet to strengthen your teeth and maintain overall oral health.
  • Stay Hydrated:
    Drinking water not only helps wash away food particles but also keeps your mouth moist, reducing the risk of decay.
  • Use Mouthwash:
    Complement your brushing and flossing routine with an antimicrobial or fluoride mouthwash. This can help reduce plaque, freshen breath, and provide additional protection against oral diseases.
  • Regular Dental Checkups:
    Visit your dentist at least twice a year for professional cleanings and routine exams. Early detection of potential issues can prevent more serious problems down the road.
  • Embrace Smart Tools:
    Consider integrating smart toothbrushes or oral care apps into your routine. These tools offer personalized feedback and help ensure that you’re following the best practices for your oral hygiene.
  • Stay Informed About Innovations:
    As new products and therapies emerge, stay updated by reading trusted health sources and consulting your dentist about what might benefit your oral health. Knowledge is power when it comes to making informed decisions about your care.

Conclusion

Oral health in 2025 is a dynamic blend of traditional care and modern innovation. While smart oral hygiene devices and eco-friendly products are paving the way for a smarter, greener approach to daily routines, the fundamentals—brushing, flossing, and regular dental checkups—remain the cornerstone of a healthy smile. By embracing these emerging trends and following expert advice, you can ensure that your oral health keeps pace with the future, resulting in a bright, confident smile for years to come.

Celebrate the advancements in oral health this year, and take proactive steps today to secure your smile tomorrow!

Harness the power of QuickBooks for your business

Accurate financial records help business owners manage cash flow, tax obligations, and strategic planning. QuickBooks® is one of the most widely used bookkeeping software solutions for small and midsize businesses, offering a comprehensive suite of tools designed to simplify financial management and support business growth.

Why QuickBooks stands out

QuickBooks offers several advantages over other accounting software solutions. It’s affordable and adaptable to the needs of businesses across various industries. QuickBooks offers tailored solutions whether you’re a professional services provider, contractor, manufacturer, nonprofit, retailer, wholesaler, or distributor.

QuickBooks is also user friendly and robust. It enables businesses to track income and expenses, create professional invoices and generate insightful financial reports. With its project and job costing capabilities, businesses can estimate and monitor expenses associated with specific jobs, ensuring that profitability remains on track.

For businesses dealing with payroll and tax obligations, QuickBooks simplifies the process by handling payroll, sales tax, and income tax calculations. It also includes inventory and fixed asset management, helping businesses maintain accurate records and streamline operations. Additionally, QuickBooks empowers business owners with data-driven decision-making through financial reporting and forecasting tools. By analyzing past performance and predicting future trends, companies can create more accurate budgets and adjust their strategies as needed.

Another key feature is QuickBooks’ seamless integration with other business platforms, such as e-commerce sites and payroll management platforms. QuickBooks connects with these systems to ensure smooth data synchronization. This connectivity reduces the risk of errors and minimizes the time spent on manual data entry, freeing up valuable resources for more critical business functions.

Collaboration made easy 

Beyond its bookkeeping capabilities, QuickBooks serves as a valuable collaborative tool for business owners and financial professionals. The software houses real-time financial data, which your external accounting team can securely access to review your company’s latest records without constant back-and-forth communication. This real-time access enhances financial accuracy and allows accountants to provide timely advice.

By collaborating through QuickBooks, you’ll gain deeper financial insights, optimize tax planning strategies, and ensure compliance with federal and state regulations. Your accountant can also review financial reports to identify potential discrepancies, errors, and areas of improvement. This helps you to focus on day-to-day operations while your accounting team manages the complexities of reporting and compliance.

Is QuickBooks right for your bookkeeping needs?

Whether you’re launching a startup or managing an established enterprise, choosing the right bookkeeping software solution is crucial for maintaining efficiency and profitability. There are many off-the-shelf options available today. Our team has extensive experience guiding business owners and managers through the selection process. We can help you choose the right solution for your situation and optimize the software’s features to maximize its benefits. Contact us for more information.