by The MDTAXES Network | Jul 8, 2025 | 2025 July
IRS Tax Tip 2025-37, June 5, 2025
Summer is a time for fun but it’s never the wrong time to be thinking about taxes – and some summer activities could have an impact. Here are a few summertime activities and tips on how taxpayers should consider them for tax season.
Marriage
Wedding season is upon us, and newlyweds can make their tax filing easier by taking two simple steps now:
- First, report any name change to the Social Security Administration www.ssa.gov).
- Next, notify the United States Postal Service, employers and the IRS of any address change. To officially change their mailing address with the IRS, taxpayers must complete and submit Form 8822, Change of Address. See page 2 of the form for detailed instructions.
Summer day camp
If a taxpayer is sending a child to summer day camp, the cost may count toward the Child and Dependent Care Credit. Overnight camps don’t qualify for this tax credit.
Business travel
Kids may have the summer off, but parents generally don’t – and business travel happens year-round. Tax deductions are available for certain people who travel away from their home or main place of work for business reasons. Whether a business traveler is away for a few nights or all summer long, it’s important for them to remember the tax rules related to business travel.
Part-time work
While summertime and part-time workers may not earn enough to owe federal income tax, they should file a tax return to get any refund they may be owed. Part-time and seasonal workers can visit IRS.gov to learn more about who should file a tax return.
Some taxpayers earn summer income with a side hustle or doing gig work. They can visit the Gig economy tax center at IRS.gov to learn how participating in the gig economy can affect their taxes. If taxpayers are paid through payment apps for goods and services during the year, they may receive an IRS Form 1099-K for those transactions. For more information, go to IRS.gov/1099k.
Home improvements
The IRS has information to help taxpayers take advantage of tax credits for home improvements. If taxpayers make qualified energy efficient improvements to their home after Jan. 1, 2023, they may qualify for a tax credit up to $3,200.
These types of improvements include energy efficient home improvement credits for things like water heaters, exterior windows and doors and heating and air conditioning installations. Residential clean energy credits are available for taxpayers who install solar water heaters, fuel cells and battery storage or solar, wind and geothermal power generation. Taxpayers can visit the Home energy tax credits page on IRS.gov to learn more.
More information
How to claim these credits can be found in these step-by-step guides:
by The MDTAXES Network | Jul 8, 2025 | 2025 July
Tips on completing your child’s W-4 Form.
When your child begins their summer job and will be paid as a W-2 employee, their new employer will require them to complete a Form W-4, Employee’s Withholding Certificate. The purpose of the form is to instruct the employer how to withhold income taxes from your child’s weekly paycheck. However, if your child’s expected wages will be modest (less than $15,000 in 2025), then he or she should claim to be exempt from federal tax withholdings this year.
To claim this exemption, a child must meet the following qualifications:
- Last year your child had no federal income tax liability, and
- This year your child expects to have no federal tax liability again.
To claim this special exemption on the Form W-4:
- Complete Step 1 (name and address).
- Leave blank Steps 2, 3 and 4.
- In the space below Step 4(c), your child will write “Exempt” and no federal income taxes will be withheld from your child’s pay. The same can be done on the state’s W4 as well.
Please remember that your child still pays Social Security and Medicare taxes on wages earned. To learn more about how our child should claim Exempt on their W2, please watch this 3-minute video that we prepared: Andrew Schwartz CPA on Kids Claiming Exempt on Their W4 Form – YouTube.
Opportunity to teach your kids about financial responsibility.
Earning a weekly paycheck is a great tool for children to learn about financial responsibility. Receiving a weekly paycheck presents parents with the opportunity to teach their children about money management and savings goals, including:
- Setting up financial objectives with your child based upon their weekly wages.
- Opening a savings account at your bank for your child that will be funded each week with a set percentage or set dollar amount of each paycheck received.
- Teaching the importance of building a small “nest egg” to be used for college or other personal expenses at a later date (books for school, a first car, entertainment, school related trips, etc.).
- And maybe adding a “parent matching component” to your child’s savings objective to entice your child to save more – such as for every dollar they add to their savings account, you add 50 cents to their savings account as well.
Getting an early start on retirement savings.
If your child has earned income from a summer job, he or she will be eligible to contribute to an IRA under their name, even if no tax return is required to be filed by your child. The maximum IRA contribution amount for 2025 is limited to the lesser of the child’s earned income or $7,000.
In most cases, the income earned by your child will be free from income taxes, assuming total income for your child will be less than the standard deduction of $15,000; thus, in this situation there would be no tax benefit in contributing to a traditional deductible IRA. For that reason, the most effective long-term strategy would be to make the IRA contribution into a Roth IRA to benefit from decades of tax-free growth.
Please note that the Roth IRA contribution can be funded by the parents (or grandparents) as a gift to your child but must be funded into an IRA under the child’s name. The due date to fund your child’s Roth IRA for 2025 is 4/15/26.
by The MDTAXES Network | Jul 8, 2025 | 2025 July
By Pouya Andalib, Managing Partner Evox365
Is AI truly a game-changer for dentistry—or just another tech buzzword destined to fizzle out like yesterday’s trends? Many dentists are understandably skeptical. After all, not every new tool lives up to the hype, and most small practices are already juggling tight budgets and limited staff. But AI is proving to be different. According to a 2024 survey by the U.S. Chamber of Commerce, nearly 1 in 4 small businesses have already adopted at least one form of AI to streamline operations, and over 40% plan to adopt AI tools within the next year. The message is clear: this wave isn’t going away—and those who ride it early should benefit the most.
In dentistry, rising operational costs are a growing concern—from staffing to scheduling, marketing, and insurance processing. Waiting to adopt AI may seem like the safe route, but it’s increasingly expensive. Those who act now can take control of these costs. AI isn’t just a tool—it’s a strategic shift that allows practices to function more efficiently and profitably.
One major breakthrough has been AI receptionists. These systems can now handle appointment scheduling, follow-ups, and even basic patient communication without missing a beat. Many practices have already seen measurable improvements and even removed a full-time role thanks to the technology. It’s not just about cutting costs—it’s about optimizing workflows and improving patient experience.
Marketing is another area where AI is rewriting the rules. Dentists have historically spent thousands on agencies to manage SEO, social media, and ad campaigns. Today, AI can create content, schedule posts, and analyze results in real-time—saving time and thousands of dollars each month. With the right tools, even a solo practice can run a lean and powerful marketing operation.
Insurance is often the most time-consuming and frustrating part of the business. Verifications, submissions, and follow-ups can drain hours of productive staff time. But AI is now automating much of this process, speeding up approvals and reducing human error. It’s not about replacing your staff—it’s about giving them the bandwidth to do what humans do best: provide care.
To help practices start their AI journey, the state of Massachusetts is funding short, high-impact workshops led by Evox365. These are ideal for both decision-makers and employees to learn how to leverage AI tools effectively. And let’s be clear—AI isn’t scary, and it isn’t replacing humans. But practices and professionals that embrace AI will outpace those who don’t. Evox365 also offers complimentary strategy sessions to review your needs and build a smart, realistic roadmap. In the coming months, we’ll also be sharing practical case studies, ROI breakdowns, and deployment tips tailored for dental offices.
Learn more about how Evox 365 can help you incorporate AI at your practice at www.evox365.com.
by The MDTAXES Network | Jul 8, 2025 | 2025 July
Making an 83(b) election when receiving founder’s stock generally makes a lot of sense. When you have the opportunity to purchase restricted stock for a start-up company at a nominal price, if you do NOT make the 83(b) election, you are taxed on the value of the shares as of the date the restrictions lapse based on what the shares are worth that day. And that income is reported as ordinary income the year the restrictions lapse instead of as tax-advantaged capital gain income.
When you make the 83b election, you are taxed on the difference between what the shares are worth when you receive them and their true value. In many cases, the person receiving the founder’s shares ends up paying $1 to purchase shares currently worth $1, so there would be no income to report. And going forward, there would be no income to report as the restrictions lapse. Instead, when you sell the shares later, they would qualify for long-term capital gain treatment (provided you held them for at least a year from the date you paid the $1 for the shares.)
You have 30 days from the receipt of these shares to prepare and sign the 83b election, and return one copy to the company and mail in one copy to the IRS. Sometimes the finance people at the company issuing the shares will help with this. Other times they tell the new shareholders to have their accountant help.
Regardless, here is the mailing address to send the 83b election form if you live in New England:
Department of the Treasury, Internal Revenue Service, Kansas City, MO 64999-0002
by The MDTAXES Network | Jul 8, 2025 | 2025 July
Just a reminder that if your practice had a 401k/Profit Sharing Plan in place during 2024, you are required to file a Form 5500 by 7/31/25 (Form 5500 Corner | Internal Revenue Service (irs.gov). If you aren’t able to submit this paperwork prior to 7/31, please file for an extension using the Form 5558, https://www.irs.gov/pub/irs-pdf/f5558.pdf, giving yourself until 10/15 to file.
There are no taxes due with this form. Instead, the 5500 is an informational filing only. Practices with SEPs and SIMPLEs are exempt from this annual filing requirement. While no taxes are due, the PENALTIES FOR FILING THE FORM 5500 LATE ARE DISGUSTING – A WHOPPING $250 PER DAY!!!
As a practice owner with a retirement plan, it’s up to you to follow up with your TPA to be completely sure that all the filing deadlines are met. No one is certain how flexible the IRS will be to reduce or waive this onerous late filing penalty.Please do what you can to not need to find out.
Remember, no one cares more about your practice avoiding this $250 per day late-filing penalty than you do. If you need help with your 5500, please email practicehelp@schwartzaccountants.com.
by The MDTAXES Network | Jul 8, 2025 | 2025 July
Q: What happens when an employee leaves and how does it affect your MA Unemployment taxes?
- When an employee is terminated, the day they leave they must be paid for all wages they are owed plus any PTO or Vacation hours accrued. Sick hours typically do not have to be paid out. When an employee resigns instead, you may pay them with the next regularly scheduled payroll.
- As far as unemployment, you must let the employee know (whether they were terminated or resigned) that they are eligible to apply for unemployment. Being eligible to apply does not mean they will be granted unemployment. You must give them this pamphlet about how to apply.
- After the employee applies, MA DUA will send the employer a Monetary Determination Letter, which tells the “Total Potential Benefit” amount the employee can receive if approved for unemployment. The notice is not a bill or a determination, it is only a notice.
- Sometimes there are questionnaires sent to the employer for more information about the separation. It is very important to reply to the notices before the due date. Otherwise, you are giving up your right to provide information about the separation and contesting the claim.
- Ensure you have your Employer MA Unemployment Login so you can reply quickly and easily online. https://unemployment.mass.gov/Employers/_/ Click Login, enter your email and PW. If you have forgotten your PW, click Forgot PW.
- How is your Unemployment account affected when someone is approved for unemployment?
- Every payroll you are charged a certain assigned percentage for unemployment on the first $15,000 (MA) in gross wages that each employee earns in a year.
- Each payroll you pay into your MA unemployment account as part of your employer taxes.
- If an employee is granted unemployment, then the payments come out of the monies in your MA Unemployment account. You do not immediately pay additional taxes.
- Each year, the MA DUA calculates what your balance should be in your account. If your account is low due to terminated staff collecting, then expect the percentage that you pay the next year to rise. If your account is high, then the rate usually stays the same or close to the same for the next year.
EXAMPLE: Let’s say you have a 2.5% SUTA rate for the year. That means your practice is paying $375 (2.5% x $15,000) for the year per employee for MA SUTA. If an employee is approved for unemployment and your account goes low, then MA may raise your rate. Assuming your rate increases to 3.5% for the next year, then your practice will pay a maximum of $525 (3.5% x $15,000) for the year per employee.
by The MDTAXES Network | May 27, 2025 | 2025 May
By George Baker, Executive Coach, Fortune Management Northeast
Breathe Your Way to Less Stress and More Focus
During a recent coaching call, a dentist sighed, “If I only had a minute to breathe.” That hit home.
Your day is packed—patients, procedures, staff issues, business challenges. It feels like there’s never time to pause.
But guess what? You breathe over 23,000 times a day. The real question is: Are you doing it mindfully?
The Power of the Pause
Mindful breathing is a proven strategy to reduce stress and sharpen focus. It’s used by high performers everywhere—from elite athletes to Oprah.
Science backs it up: Mindfulness increases brain function in areas that manage stress and emotional regulation.
And you don’t need a yoga mat or retreat in the woods. You just need a few seconds.
My First Breathing Coach? My Mom.
As a kid, when I got upset, she’d say: “Take ten deep breaths.”
Later, as a firefighter in training, breath control became a survival skill. Slow breathing = calm thinking = better decisions under pressure.
Now, as a dental coach, I teach the same principle: Master your breath. Master your moment.
Try This Between Patients
- Plant your feet flat on the floor
- Sit tall, shoulders relaxed
- Inhale slowly for 5 seconds
- Exhale slowly for 5 seconds
- Repeat 3 times
That’s it. Instant clarity. More focus. Less stress.
And it works whether you’re in the operatory, the break room, or the parking lot.
Breathe. Lead. Grow.
You are more than a doctor. Your best is yet to come.
by The MDTAXES Network | May 27, 2025 | 2025 May
Whether you are a practice owner, work as an associate and get paid as a 1099 contractor, or do some consulting on the side, keeping track of your allowable business expenses to write off against that income is an important step towards minimizing your taxes.
Each year, we hear from clients wondering whether they can claim some or all of the costs associated with their great summer trips. Generally, visiting a friend’s office for a few hours during a weeklong trip won’t meet the threshold to make the trip fully deductible. There are different rules whether your trip is within the US or you travel abroad.
Let’s take a look at the IRS rules for deducting travel from their IRS Publication 463, Travel, Gift and Car Expenses.
For travel within the US:
The following discussion applies to travel in the United States. For this purpose, the United States includes the 50 states and the District of Columbia. The treatment of your travel expenses depends on how much of your trip was business related and on how much of your trip occurred within the United States. See Part of Trip Outside the United States, later.
Trip Primarily for Business
You can deduct all of your travel expenses if your trip was entirely business related. If your trip was primarily for business and, while at your business destination, you extended your stay for a vacation, made a personal side trip, or had other personal activities, you can deduct only your business-related travel expenses. These expenses include the travel costs of getting to and from your business destination and any business-related expenses at your business destination.
Example.
You work in Atlanta and take a business trip to New Orleans in May. Your business travel totals 900 miles round trip. On your way home, you stop in Mobile to visit your parents. You spend $2,165 for the 9 days you are away from home for travel, non-entertainment-related meals, lodging, and other travel expenses. If you hadn’t stopped in Mobile, you would have been gone only 6 days, and your total cost would have been $1,633.50. You can deduct $1,633.50 for your trip, including the cost of round-trip transportation to and from New Orleans. The deduction for your non-entertainment-related meals is subject to the 50% limit on meals mentioned earlier.
Trip Primarily for Personal Reasons
If your trip was primarily for personal reasons, such as a vacation, the entire cost of the trip is a nondeductible personal expense. However, you can deduct any expenses you have while at your destination that are directly related to your business.
A trip to a resort or on a cruise ship may be a vacation even if the promoter advertises that it is primarily for business. The scheduling of incidental business activities during a trip, such as viewing videotapes or attending lectures dealing with general subjects, won’t change what is really a vacation into a business trip.
For Travel Outside the US:
If any part of your business travel is outside the United States, some of your deductions for the cost of getting to and from your destination may be limited. For this purpose, the United States includes the 50 states and the District of Columbia.
How much of your travel expenses you can deduct depends in part upon how much of your trip outside the United States was business related.
Travel Entirely for Business or Considered Entirely for Business
You can deduct all your travel expenses of getting to and from your business destination if your trip is entirely for business or considered entirely for business.
Travel entirely for business.
If you travel outside the United States and you spend the entire time on business activities, you can deduct all of your travel expenses.
Travel considered entirely for business.
Even if you didn’t spend your entire time on business activities, your trip is considered entirely for business if you meet at least one of the following four exceptions.
Exception 1—No substantial control.
Your trip is considered entirely for business if you didn’t have substantial control over arranging the trip. The fact that you control the timing of your trip doesn’t, by itself, mean that you have substantial control over arranging your trip.
You don’t have substantial control over your trip if you:
- Are an employee who was reimbursed or paid a travel expense allowance, and
- Aren’t related to your employer, or
- Aren’t a managing executive.
“Related to your employer” is defined later in chapter 6 under Per Diem and Car Allowances.
A “managing executive” is an employee who has the authority and responsibility, without being subject to the veto of another, to decide on the need for the business travel.
A self-employed person generally has substantial control over arranging business trips.
Exception 2—Outside United States no more than a week.
Your trip is considered entirely for business if you were outside the United States for a week or less, combining business and nonbusiness activities. One week means 7 consecutive days. In counting the days, don’t count the day you leave the United States, but do count the day you return to the United States.
Check out the IRS Publication 463, Travel, Gift and Car Expenses for additional travel related rules.
by The MDTAXES Network | May 27, 2025 | 2025 May
For taxpayers making energy efficient home improvements in their main home, a federal tax credit is allowed to be claimed on their tax return. The maximum allowed tax credit in a year for qualified energy improvements is $3,200 and is comprised of two separate portions:
- A general credit capped at $1,200 for costs that include exterior doors, windows and skylights, home energy audits, as well as specified HVAC items that include water heaters, boilers and central air conditioning units.
- A second energy property credit capped at $2,000 for costs that include heat pumps and biomass stoves and boilers.
Beginning in 2025, to claim energy efficient home improvement tax credit, items must be purchased from an IRS registered Qualified Manufacturer (QM) and each item purchased must be labeled with a qualified product identification number (PIN). Taxpayers will be required to report the item’s PIN on their tax return, otherwise this tax credit will be disallowed.
by The MDTAXES Network | May 27, 2025 | 2025 May
In and effort to reduce fraud and waste, effective September 30, 2025, paper checks issued by the government will cease. After that date, all government departments and agencies will be required to only accept and pay out funds via electronic means, such as electronic funds transfer (EFT), debit & credit cards, digital wallets and other real time fund transfers. An exception for individuals without banking or EFT access will be allowed. Assuming that there are no delays in implementing this new financial policy, taxpayers will no longer be allowed to send in a check for balance due tax returns nor receive a check if expecting a cash refund from the IRS for 2025 tax returns being filed in 2026. This change will also impact taxpayers that have filed an extension for their 2024 federal tax return and who will file that tax return after the date of September 30, 2025.
