Eviction Moratoriums in 2020

Bradford Tax Institute • October 2, 2020

Dear Client:


During this COVID-19 pandemic, landlords have two big possible problems:


  1. Tenants who can’t pay the rent.
  2. Tax losses they can’t deduct.


We’ll start with the tenants and then move on to the rental property tax-loss issues.


For the first time in U.S. history, residential landlords are subject to a sweeping nationwide federal moratorium on evictions for nonpayment of rent through the end of 2020.


There is no moratorium on landlords’ responsibility to pay their bills. Thus, landlords need to prepare for some of the rockiest times in decades.


The Federal Moratorium on Residential Evictions


The Centers for Disease Control and Prevention (CDC) and the Department of Health & Human Services issued the latest federal moratorium on evictions. It is an emergency health measure intended to help prevent the spread of COVID-19.


The CDC order is effective September 4, 2020, through December 31, 2020. The order replaces an eviction moratorium put in place on March 27, 2020, by the Coronavirus Aid, Relief, and Economic Security (CARES) Act that expired July 24, 2020.

 

The CDC order generally bars residential landlords from evicting tenants for nonpayment of rent if a tenant’s estimated 2020 income is no more than $99,000 (single) or $198,000 (married, filing jointly).


Unlike the CARES Act moratorium, which applied only to multifamily rental properties with rental subsidies or federally backed mortgages, the CDC order applies to all types of residential rentals: houses, duplexes, apartment buildings, mobile homes, and mobile home spaces. There is no requirement that the rental be federally financed or rent subsidized.


The CDC order does not apply to commercial properties, including motels and hotels. Nor does it apply to guesthouses rented to temporary guests or seasonal tenants—this presumably excludes most Airbnb and similar short-term rentals.


To prevent an eviction, a tenant need only give the landlord a declaration signed under penalty of perjury providing that the tenant


·        has used his or her best efforts to obtain all available government assistance for rent or housing;

·        falls within the income restrictions ($99,000 or $198,000 in income for 2020);

·        is unable to pay the full rent due to substantial loss of household income, loss of work or wages, or extraordinary out-of-pocket medical expenses;

·        is using his or her best efforts to make partial payments that are as close to the full rental payments as the tenant’s circumstances permit; and

·        would likely become homeless or forced to move into and live in close quarters or a shared living space.


Tenants need not provide their landlord with any proof that the statements in the declaration are true. The CDC has created a form declaration for tenants to use.


There is no time limit on when tenants must provide this declaration to their landlord—they can do so anytime before or after receiving a termination notice.


Individual landlords who violate the CDC order are subject to a fine of up to $100,000 and up to one year in jail, if the violation does not result in a death.


The fine goes up to $250,000 if the violation results in a death (it’s unclear how the government could prove an eviction caused a tenant’s death).


The fines are doubled for organizations such as LLCs, corporations, and REITs.


Help Tenants Get Help


The CDC order requires tenants to seek government aid to help pay their rent. But they need not seek help from nongovernment sources such as churches or private charities.


It is to your advantage to help your tenants obtain such aid. After all, you would like the rent to get paid. And you likely would want to keep the tenant—assuming this is a good tenant. Links to government programs providing financial assistance for renters are available at https://legalfaq.org.


Work Out a Payment Plan


Try to work out payment plans with struggling tenants. This is in their best interests as well as your own. Be sure to get the terms in writing.


For example, if a tenant’s income has declined by 20 percent, you could agree to accept a 20 percent rent reduction through the end of the year and require the tenant to pay the balance due over 2021. Make it clear that this is a partial rent payment and does not satisfy the tenant’s full rental obligation.


You are under no obligation to offer a tenant a permanent rent reduction or any form of rent forgiveness.


And keep in mind that your government is not going to reward your generosity. You get no tax deduction or other tax benefit for reducing or forgiving rent. This doesn’t mean you shouldn’t do it. Just don’t expect the tax code to reward your generosity.


Unpaid Rent Is Not Tax-Deductible


Bad news. Unpaid rent is not a tax-deductible rental expense. Rather, it is a debt owed to you by your tenant. You get no tax deduction for the unpaid rent even if tenants never pay the rent they owe.


Good news. On the plus side, unpaid rent is not taxable as income, is not reported on your tax return, and increases the chances that you will have a rental property tax loss (deductible, we hope). This assumes you are a cash-basis taxpayer, as virtually all residential landlords are.


Deducting Rental Property Tax Losses


You have a rental loss if the total annual expenses you incur for your rentals (mortgage interest, taxes, utilities, insurance, maintenance, depreciation, and other expenses) exceed your total rental income (which does not include unpaid rent).


It’s likely that many landlords who ordinarily have profitable rentals will suffer rental losses for 2020 because their tenants failed to pay all or part of their rent.


The dreaded passive activity loss rules prevent many landlords from deducting all or part of their rental losses from their non-rental income.


Rental losses are always classified as passive losses. Subject to two important exceptions, the general rules are as follows:


  • Passive losses are deductible only from passive income—income from rental activities and from businesses in which you do not materially participate.
  • Passive losses are not deductible either (a) from ordinary income such as salary and self-employment earnings, or (b) from investment income such as dividends or interest.


Exception 1. $25,000 Allowance for Rental Real Estate


The tax law takes pity on landlords with a relatively modest income and permits them to deduct a limited amount of rental losses from non-rental income.


If your modified adjusted gross income for the year is under $100,000, you may deduct up to $25,000 in total annual rental losses from your nonpassive income, provided that you actively participate in the management of your rentals (an easy standard to meet).


Exception 2. Real Estate Professional Exemption from Passive Loss Rules


There’s another way you may be able to deduct your rental losses from non-rental income no matter how high your income: the real estate professional exemption from the passive loss rules.


If you qualify as a tax law–defined real estate professional and materially participate in your rental activity, you may treat rental losses as nonpassive and deduct them from all other nonpassive income without limit for 2020.


Either you or your spouse will qualify as a real estate professional for the year if one of you spends


  • more than half your personal service work time in real property trades or businesses in which you materially participate, and
  • more than 750 hours of your personal service work and investment analysis time in real property trades or businesses in which you and/or your spouse materially participate.


In addition to the standard described above, you and/or your spouse must materially participate in a rental activity to enable the tax loss deduction against your other income. There are various methods for establishing material participation. The two most common are working more than 500 hours in a tax law–grouped multi-rental activity and working more than 100 hours more than anyone else on individual non-grouped properties.


People with a full-time job outside the tax law–defined real estate industry can rarely qualify as real estate professionals.


Non-deductible Rental Losses Become Suspended Passive Losses


You don’t lose rental losses you can’t deduct because of the passive loss rules. Instead, the losses become suspended passive losses. They are carried forward indefinitely and deducted from passive income each year until they are used up.


You may also deduct your suspended passive losses if you sell or otherwise dispose of substantially all your interest in your rental property in a taxable transaction.


If you would like my help with your rental properties, please call me at the office at 216-859-7001.


Sincerely,


Jeffrey Beder

National Nonprofit Day: Celebrating Impact & Supporting Organizations That Make a Difference

By Amanda Beder • August 15, 2025
At Acumen MB LLC, we believe every dollar has the potential to make a difference — especially when it’s directed toward causes that transform communities. On National Nonprofit Day, we’re honoring the dedication, vision, and impact of nonprofit organizations, both here in Northeast Ohio and across the nation. Nonprofits aren’t just about goodwill — they’re economic engines, employers, and vital service providers. From food security programs to educational initiatives, these organizations improve lives every day. And as accountants, we know that supporting nonprofits can also bring important tax benefits to individuals and businesses who give wisely. The Tax Advantage of Giving  While the heart of charitable giving is generosity, there are also tangible financial benefits to consider: Itemized Deductions – If you itemize your deductions on your federal return, donations to qualified 501(c)(3) organizations can reduce your taxable income. Appreciated Assets – Donating stocks or other appreciated assets may allow you to avoid capital gains tax while still deducting the fair market value. Corporate Giving – Businesses can deduct charitable contributions (within certain limits), and strategic giving can strengthen community ties while lowering taxable income. Tip: Always keep detailed records and receipts, and confirm the organization’s IRS-qualified status before donating. Spotlight on Local Nonprofits Here in the Cleveland area, we’re fortunate to have nonprofits making a difference in every corner of the community: Greater Cleveland Food Bank – Fighting hunger across Northeast Ohio by providing meals, resources, and advocacy. Cleveland Metroparks Zoo’s Future for Wildlife – Supporting global conservation efforts and wildlife protection. Providence House – Offering crisis nursery services to protect at-risk children and support families in need. Cleveland Play House – America’s first regional theater, enriching our community through arts and education. Connecting for Kids – Providing education and support to families with children facing developmental, behavioral, or learning concerns. BlueWater Chamber Orchestra – Bringing world-class classical music performances to Cleveland audiences and promoting music education. National Nonprofits Making a Global Impact Beyond our local borders, these national organizations inspire change worldwide: American Red Cross – Providing disaster relief, blood donation services, and humanitarian aid. Habitat for Humanity – Building affordable housing and stronger communities across the U.S. and abroad. Feeding America – Connecting surplus food with families in need through a nationwide network of food banks. Charity: Water – Bringing clean and safe drinking water to people in developing countries. How You Can Help — and Track It for Tax Purposes Giving is more than writing a check — you can also volunteer time, donate goods, or offer professional services. While the value of your time isn’t deductible, out-of-pocket expenses related to volunteering (like mileage) can be. The key is documentation — something we at Acumen MB LLC can help you organize so you get the full financial benefit of your generosity. Let’s Keep the Giving Going National Nonprofit Day is just one day, but the impact of your generosity can last a lifetime. Whether you give locally or globally, your contribution is part of a bigger story — one where community, compassion, and financial stewardship work hand in hand. If you’d like guidance on maximizing the tax benefits of your charitable giving or ensuring your records are audit-ready, contact Acumen MB LLC today. Let’s work together to make sure your generosity goes further — for you and for the causes you care about.

Celebrating National Financial Awareness Day: Smart Moves for Your Wallet and Your Taxes

By Amanda Beder • August 13, 2025
August 14th marks National Financial Awareness Day, and here at Acumen MB LLC, we believe it’s the perfect moment to pause, take stock of your finances, and make sure your tax and accounting strategies are working for you—not against you. Whether you're managing a household, running a business, or planning for retirement, financial awareness isn't just about budgeting—it’s about building a tax-savvy, future-focused plan. Use Tax Awareness to Build Financial Strength Being financially aware means knowing not only where your money is going, but also where it could be going—if you make smarter tax decisions. Have you checked your withholdings lately? If you're getting a large refund or surprise bill each year, it's worth reevaluating. Are you taking advantage of deductions and credits? From education expenses to home energy improvements, there are ways to reduce your tax liability legally and effectively. Are your business records audit-ready? Clean books aren't just good practice—they can save you serious time and money during tax season. Financial awareness also means being proactive—not reactive—about your accounting. That’s where we come in. Our team helps clients across Ohio and beyond stay on top of their tax planning, budgeting, and reporting, so they can make informed decisions year-round. Today’s Bonus Tip: Ohio’s Sales Tax Holiday Ends Tonight! If you’ve been meaning to stock up on school supplies or grab that extra pair of shoes, today’s your last chance to take advantage of Ohio’s Sales Tax Holiday. Qualifying clothing, school supplies, and instructional materials are sales tax-free through midnight tonight. Not only does this provide immediate savings at checkout, but it’s also a great example of using tax knowledge to stretch your dollars—one of the many small, intentional choices that add up to greater financial control. Want to learn more before time runs out? Check out our full blog post on the Ohio Sales Tax Holiday: https://www.acumenmb.com/ohio-sales-tax-holiday Let’s Talk About Your Financial Future Financial awareness doesn’t happen in a day—but today is a great day to start. If you’re ready to get more intentional about your money, taxes, or business accounting, let’s have a conversation. Give us a call or reach out via our contact page . From all of us at Acumen MB LLC—happy National Financial Awareness Day, and here’s to a more empowered financial future!

Honoring the Hands That Feed Us: Financial Advocacy for Farmworkers on Farmworker Appreciation Day

By Amanda Beder • August 6, 2025
Every August 6th, we pause to recognize the incredible contributions of farmworkers across the country. At Acumen MB LLC, we understand that appreciation goes beyond words—it includes advocating for the financial well-being of those who labor to keep our communities nourished. Farm work is one of the most physically demanding and essential jobs in our economy, yet many farmworkers face unique challenges when it comes to navigating the U.S. tax system. This Farmworker Appreciation Day, we want to shine a light on the financial side of farm work and explore how accounting professionals can support and empower this vital workforce. The Tax Realities of Farm Labor Farmworkers—many of whom are seasonal or migrant workers—often deal with: Unfamiliarity with U.S. tax laws , especially if English is not their first language. Complex income reporting , especially when income is paid in cash or by multiple short-term employers. Misclassification as independent contractors , which can shift the burden of employment taxes unfairly onto the worker. Limited access to tax credits and refunds they may be eligible for, like the Earned Income Tax Credit (EITC) or Child Tax Credit (CTC). These issues can lead to overpayment, underpayment, or missed opportunities for financial stability. Our firm believes tax literacy and ethical accounting practices are essential tools in advancing equity for farmworkers. Our Role: Advocacy Through Accuracy At Acumen MB LLC, we believe that one way to truly honor farmworkers is by supporting fair and accurate financial practices in agriculture. That means: Helping agricultural employers stay compliant with payroll tax laws and proper worker classification. Partnering with organizations that offer multilingual tax preparation assistance or free filing services to farmworkers. Educating small farms and agribusinesses about the benefits of responsible bookkeeping and employee tax reporting. Highlighting tax incentives for farms that invest in their workforce, such as those that provide housing, transportation, or educational programs. We’ve worked with a number of agricultural clients and small farms, and we know firsthand how clear, ethical financial management benefits everyone—from the farm owners to the people in the fields. Celebrating with Purpose Farmworker Appreciation Day isn’t just about gratitude—it’s about action. If you run a farm or agribusiness, consider using this day to: Review your payroll systems for compliance. Set up a meeting with your accountant to discuss year-end tax planning. Donate to organizations that provide legal and financial aid to farmworkers. Ask your tax professional how to support workforce development through compliant, tax-savvy strategies. At Acumen MB LLC, we are proud to support the backbone of our agricultural system by helping employers do right by their workers and helping workers understand their rights. Because behind every basket of produce is a person—and they deserve not just our thanks, but also our advocacy.

Ohio Sales Tax Holiday

By Amanda Beder • August 1, 2025
Ohio’s Sales Tax Holiday runs for a full 14 days in 2025—from 12:00 AM on Friday, August 1 through 11:59 PM on Thursday, August 14. During this period, all tangible personal property priced at $500 or less per item is exempt from Ohio state sales tax (5.75%) and most local taxes. What's Covered—and What's Not Eligible items include (but aren’t limited to): Back‑to‑school supplies and clothing Electronics (tablets, TVs, computers) Furniture, kitchenware, home décor, and indoor/outdoor plants Sporting goods, books, pet supplies, and even dine‑in food and beverages—as long as each item is under $500 Not eligible for the exemption: Items priced over $500 Motor vehicles, watercraft/outboard motors, alcohol, tobacco, vapor products, and items containing marijuana Services—except when repair or installation parts are individually itemized under $500 Tax Savings in Practice Residents of Cuyahoga County usually face a combined sales tax of around 8%. That means, on a $500 eligible purchase, you can save about $40 in tax alone. If you make multiple purchases under $500, each fully qualifies, so total savings can significantly stack—especially for bulk items or multiple family members. How to Plan Effectively From a tax-wise standpoint, here's how to get the most value during the holiday: Identify eligible purchases: Review your back‑to‑school or household shopping list and ensure each item is priced at $500 or less. Use discounts smartly: Apply coupons or in‑store promotions to bring a product under the $500 threshold—it then qualifies for exemption Track item-by-item pricing: If items are bundled but exceed $500, the bundle is fully taxable—even if shopped separately Buy online or offline freely: Purchases made and paid for during the holiday qualify—even if shipping or delivery happens later. If your order combines exempt and non-exempt items, shipping charges need proportional allocation. Keep receipts and monitor returns: Save proof in case a retailer improperly charges tax. Exchanges within the window should remain tax-free for eligible items. However, returns after the holiday or exchanges for non-eligible items could trigger sales tax Why It Matters from a Tax Perspective As an accounting firm, we see families and small businesses struggle with rising costs—from inflation to rising tariffs. The expanded Ohio Sales Tax Holiday helps alleviate some of that burden by offering direct tax relief on everyday purchases. It’s a one-time tax benefit—not a deferral—meaning consumers keep more of their earnings. For families doing back‑to‑school shopping, launching college, or updating household essentials, this holiday offers immediate savings. How Businesses Should Prepare Ensure POS systems are ready to automatically exempt qualifying items Train staff on the $500-per-item rule and eligible vs. excluded categories Communicate policies clearly around layaways, exchanges, and how tax is allocated when mixed baskets are purchased Prepare UST‑1 forms properly during tax filings to report exempt vs. taxable sales accurately Final Tips from Acumen MB LLC Plan purchases ahead, especially if multiple family members are involved. Maximize exemptions by breaking larger bundles into smaller units under $500. Shop for essential items early—especially electronics, clothing, or school gear. Document everything—save receipts, note exchanges, and if incorrectly taxed, ask for a refund or contact the Ohio Department of Taxation.

Supporting Those with Chronic Illness: Tax Tips & Financial Strategies for National Chronic Disease Day

By Amanda Beder • July 9, 2025
At Acumen MB LLC, we believe that good accounting goes beyond numbers—it supports real people navigating real challenges. Today, on National Chronic Disease Day, we want to recognize the strength and resilience of those living with chronic illnesses and shed light on how thoughtful tax planning and financial strategies can provide some much-needed relief. Understanding the Financial Impact of Chronic Illness Chronic diseases—such as diabetes, heart conditions, arthritis, and autoimmune disorders—can take a serious toll not just physically, but financially as well. Between ongoing medical appointments, treatments, prescriptions, assistive devices, and sometimes even necessary changes in employment, the cost of managing a chronic condition can quickly add up. How the Tax Code Can Help Fortunately, there are several tax benefits and deductions available that may help ease the burden: 1. Medical Expense Deductions If your unreimbursed medical expenses exceed 7.5% of your adjusted gross income (AGI), you may be eligible to deduct them. Qualifying expenses may include: Doctor visits and hospital care Prescription medications Medical equipment (wheelchairs, hearing aids, etc.) Travel costs for medical appointments Home modifications for accessibility We can help determine which of your expenses qualify and how to properly document them. 2. Health Savings Accounts (HSAs) If you’re enrolled in a high-deductible health plan (HDHP), contributing to an HSA allows you to set aside pre-tax dollars for medical expenses. HSAs offer triple tax benefits: contributions are deductible, growth is tax-free, and withdrawals for qualified medical expenses are also tax-free. 3. Disability and Income Considerations If a chronic condition limits your ability to work, you may receive Social Security Disability Insurance (SSDI) or other income support. These benefits may have tax implications depending on your total income. Our team can help you navigate how this affects your tax return and ensure you're not overpaying. 4. Itemizing vs. Standard Deduction Many individuals with chronic illnesses find that itemizing their deductions—particularly for medical expenses—yields more tax savings than the standard deduction. We can help evaluate which option is best for your specific situation. Planning Ahead Chronic conditions often come with unpredictable costs. That’s why proactive tax planning is essential. At Acumen MB LLC, we work closely with our clients to: Create budgets that account for ongoing medical needs Track deductible expenses throughout the year Plan for future care needs through tax-advantaged savings tools You're Not Alone National Chronic Disease Day reminds us that many in our community face daily health battles that often go unseen. If you or a loved one is managing a chronic illness, know that you're not alone—and that there are financial tools available to support your journey. Let us help you make the most of what the tax code has to offer. If you have questions or need help navigating deductions or planning for long-term care, contact us today. At Acumen MB LLC, we're here to support your financial health every step of the way.

Investing in Knowledge: How Higher Education and Smart Tax Planning Go Hand in Hand

By Amanda Beder • June 4, 2025
At Acumen MB LLC, we believe that education is one of the most valuable investments a person can make. That’s why we’re proud to recognize National Higher Education Day —a day dedicated to promoting the importance of higher learning and expanding access to educational opportunities. But beyond the personal and professional growth that comes from a college education, there’s another angle we think is worth highlighting: the financial and tax benefits tied to higher education . Whether you're a student, a parent, or a graduate repaying loans, the tax code offers several incentives that can ease the cost of investing in your future. 1. Education Tax Credits Two of the most common tax breaks for students and families are the American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC) . AOTC allows up to $2,500 per year for qualified education expenses during the first four years of higher education. LLC offers up to $2,000 per year for post-secondary education, with no limit on the number of years you can claim it. Each credit has specific eligibility requirements, so it’s important to consult with your tax professional to determine which one is right for you. 2. Student Loan Interest Deduction If you’ve started repaying your student loans, you may be able to deduct up to $2,500 in interest paid on qualifying student loans— even if you don’t itemize deductions . This deduction can be a welcome relief, especially for recent graduates managing new financial responsibilities. 3. 529 College Savings Plans For families saving for a child’s education, 529 plans offer a tax-advantaged way to build an education fund. Earnings grow tax-free, and withdrawals are also tax-free when used for qualified education expenses. In many states, contributions to a 529 plan are deductible on your state income tax return. 4. Tax Planning for Scholarships and Grants While most scholarships and grants are tax-free when used for tuition and required expenses, portions used for room and board or other non-qualified expenses may be taxable. Understanding how these funds are reported can help avoid surprises at tax time. We’re Here to Help You Make the Most of Every Educational Opportunity At Acumen MB LLC, we’re not just your accounting team—we’re your financial partners. Whether you're applying for college, repaying loans, or planning for your child’s future, our team is here to help you navigate the tax implications and maximize every available benefit. Have questions about how higher education impacts your taxes? Contact us today to schedule a consultation. Because smart education choices deserve smart tax strategies.

National Fibromyalgia Awareness Day: Understanding the Tax Benefits of Medical Deductions

By Amanda Beder • May 12, 2025
May 12 is National Fibromyalgia Awareness Day—a time to raise awareness, show support, and recognize the daily challenges faced by millions living with fibromyalgia. At Acumen MB LLC, we understand that chronic illnesses like fibromyalgia don't just take a toll on the body and mind—they can also place a heavy burden on your finances. That's why it's important to understand how the tax code may offer some relief through medical expense deductions . What Is Fibromyalgia? Fibromyalgia is a chronic condition that causes widespread pain, fatigue, cognitive difficulties, and sleep disturbances. Because it’s often an “invisible illness,” those who live with it may struggle not only with physical symptoms but also with the emotional and financial weight of managing long-term care. Tax Relief for Medical Expenses If you or someone in your household is being treated for fibromyalgia, certain medical costs may be deductible on your federal tax return , provided they exceed 7.5% of your adjusted gross income (AGI). This deduction applies whether you have been formally diagnosed or are undergoing evaluation and treatment for symptoms consistent with fibromyalgia. Common Deductible Expenses for Fibromyalgia Patients Eligible expenses may include: Doctor and specialist visits (including rheumatologists, neurologists, and pain management clinics) Prescription medications Physical therapy and occupational therapy Mental health services such as therapy or counseling Travel expenses related to medical treatment (e.g., mileage, bus fare, parking fees) Alternative treatments recommended by a medical provider (such as acupuncture or chiropractic care) Medical equipment and supplies (e.g., TENS units, braces, ergonomic furniture) Don’t Forget About FSAs and HSAs If you’re enrolled in a Flexible Spending Account (FSA) or Health Savings Account (HSA) , you may be able to pay for many of these expenses with pre-tax dollars—providing another layer of financial relief. How We Can Help Navigating chronic illness is difficult enough without the added stress of figuring out what you can and cannot claim on your taxes. At Acumen MB LLC, we’re here to guide you through the process. If you or someone you care about is managing fibromyalgia and you'd like to better understand the tax implications, reach out to our team. We can help you track eligible expenses, maximize deductions, and keep your financial health strong. Let’s work together to ease some of the burden—because no one should have to face chronic illness alone, especially at tax time.

Thank You, Teachers – You Deserve All the Credit (And Some Tax Deductions Too!)

By Amanda Beder • May 5, 2025
At Acumen MB LLC, we know firsthand how much of a difference one person can make—and no one proves that more clearly than our teachers. From shaping young minds to creating safe and supportive learning environments, teachers wear countless hats: educator, mentor, counselor, cheerleader, and sometimes even superhero. You spend your own time (and often your own money) to make sure your students succeed. And today, on National Teacher Appreciation Day , we want to say thank you. Thank you for showing up, even on the tough days. Thank you for turning classrooms into communities. Thank you for investing in the future—child by child, lesson by lesson. A Little Tax Tip as Our Thanks While we can never repay everything you do, we can make sure you know about a small way the tax system tries to show appreciation: the Educator Expense Deduction . If you're a teacher, instructor, counselor, principal, or aide for students in kindergarten through grade 12—and you work at least 900 hours a school year—you may qualify to deduct up to $300 ($600 if married filing jointly and both spouses are eligible educators) of out-of-pocket classroom expenses. This includes: Books, supplies, and classroom materials COVID-19 protective items (like masks and sanitizers) Educational software and subscriptions Professional development courses related to your field It's an above-the-line deduction, which means you don’t need to itemize to take it. We're Here to Help At Acumen MB LLC, we love helping educators understand their tax benefits and financial options. Whether you're navigating deductions or planning for your future, we're just a call or click away. To all the incredible teachers out there: we see you, we appreciate you, and we’re here to support you—during tax season and all year long. With gratitude, The Team at Acumen MB LLC

Celebrating National Self-Employed Day: Tips for Mastering Your Taxes and Accounting

By Amanda Beder • May 4, 2025
At Acumen MB LLC, we proudly celebrate the drive, creativity, and resilience of self-employed individuals—especially today, on National Self-Employed Day ! Whether you're a freelancer, gig worker, independent contractor, or small business owner, your role in our economy is invaluable. But with the freedom of self-employment also comes the responsibility of managing your own taxes and finances. That’s where we come in. Understanding Self-Employment Taxes Unlike traditional employees, self-employed individuals are responsible for both the employer and employee portions of Social Security and Medicare taxes—collectively known as self-employment tax. This often comes as a surprise to new entrepreneurs, and it can significantly impact your annual tax liability. Being prepared—and proactive—can make all the difference. Tax Tips for the Self-Employed 1. Know Your Quarterly Estimated Tax Deadlines If you expect to owe at least $1,000 in taxes for the year, you're likely required to make estimated payments quarterly. Missing these deadlines can result in penalties, so mark your calendar and plan ahead. 2. Track All Income and Expenses Diligently Whether you use accounting software or work with a professional, having organized records makes tax time less stressful and helps ensure you're claiming all the deductions you’re entitled to. 3. Take Advantage of Deductions From your home office and internet bill to business mileage and equipment, there are numerous tax deductions available to self-employed individuals. Every dollar you can deduct reduces your taxable income. 4. Consider an SEP IRA or Solo 401(k) Self-employment doesn’t mean you have to miss out on retirement savings. These plans not only help secure your future, but they also offer current-year tax advantages. 5. Don't Overlook the QBI Deduction The Qualified Business Income (QBI) deduction may allow you to deduct up to 20% of your business income. This can be complex depending on your industry and income level, so it’s wise to consult with a tax professional. Why Accounting Support Matters Running your own business is a full-time job (and then some!). Managing your finances and taxes shouldn’t be something you do alone. At Acumen MB LLC , we specialize in helping self-employed individuals build smart financial systems, stay compliant with tax laws, and make informed decisions year-round—not just during tax season. We understand the unique challenges and opportunities that come with being your own boss. Our team is here to help you simplify your finances so you can focus on what you do best—running and growing your business. Are you self-employed and ready to take control of your finances? Reach out to Acumen MB LLC today and let’s make sure your business is on solid financial ground—this National Self-Employed Day and beyond.

Spreading Kindness: How Small Acts Make a Big Difference

By Amanda Beder • February 12, 2025
Celebrating Random Acts of Kindness Week with Acumen MB LLC