Apicella Testa & Company logo

680 Bridgeport Avenue

Shelton, CT 06484

 

Phone: 203-925-9494

 

Website: www.ctcpa.com

July 2024

July 2024 Client Profile

Young asian business woman discussing about financial planning with small business owner at cafe coffee shop, Business meeting corporate partnership, financal loan for start up business

Small business owners Jack and Ally are considering one of them being an at-home parent to their expected baby.


Talking to their tax advisor about the financial aspects, they’ve learned that annual childcare costs average more than $7,500* per child, up to $3,000 of which may be offset using the dependent tax credit. They also may gain a child tax credit (up to $2,000), regardless of whether they both continue working.


The advisor also emphasized the importance of insurance. The business’s health care insurance would continue, however, their only life insurance is what the company offers, so they should evaluate how much coverage they will now need, keeping in mind that if they sell the company, they will lose that coverage. Personally owned life insurance remains in effect, as long as the premiums are paid.


With professional guidance, they learned that Ally can work fewer hours from home, which would provide a paycheck and keep her current in her field. Her family, who lives nearby, is willing to provide in-home childcare when needed.


*The Harris Poll, Dec. 2023
Client Profile is based on a hypothetical situation. The solutions discussed may or may not be appropriate for you.


SUBSCRIBE

Enter your Name and Email address to get
the newsletter delivered to your inbox.

Please include name of person that directed you to my online newsletter so I can thank them personally.


CONTACT US

Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.

The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.