My take home pay won’t even take me home!

Congress is working on the American Jobs and Closing Tax Loopholes Act. Yes that is the actual name. I will say this; at least they are clear as to what their motives are.

The tax bill extends some existing tax credits but it also closes a loophole that benefits subchapter S corporation owners. In the past I have written about the advantage of using an S Corp to minimize the social security and Medicare tax bite. This loophole will be closed if this bill becomes law. Business owners need to prepare now for what will be an increase in their tax burden.