Prism Tax & Advisory

"Hey, quick admin thing! Could you send me your completed W-9 for my records? Thank you!"

That's it. That's the text!

If you're paying contractors, you may need to issue them a 1099-NEC.

To do this, you need their legal name and taxpayer ID... which comes from their W-9.

Ideally, you should get a new contractor's W-9 as part of your onboarding process before you ever pay them (but trust us, we know this isn't always how it works in practice).

If they hesitate or ask why, just let them know it's an IRS requirement for businesses with contractors!

Getting your W-4 right on your first day at a new job is crucial, don't rush through it!

It's not just an onboarding task; it's telling your employer how much federal tax to take from your paycheck.

Filling out your W-4 correctly is the difference between not owing at tax time and getting hit with a surprise bill (or unnecessary refund).

If you want a little extra help, use the IRS's Tax Withholding Estimator to really dial in your W-4 or reach out to us for personalized assistance!

Another busy season in the books, and we're incredibly grateful. Thank you to our amazing clients for your trust, responsiveness, and partnership - you make the long days worth it.

We're proud to support such a hardworking group of business owners, families, and individuals. Your organization, patience and collaboration helped make this one of our best seasons yet.

Now we're shifting gears, catching our breath, and getting ready to continue supporting you beyond tax deadlines. We're always here for planning, strategy, and whatever comes next.

Thank you for being part of our community - we could not do this without you!

Today we celebrate our founder, whose vision, grit and brilliance built what we have at Prism. Her leadership guides our firm with dedication and proves every day that strong leadership looks really good on women.

Happy International Women's Day!

2026 401(k) contributions limits have increased - great news for retirement savers. Make sure you're maximizing your opportunity to defer income and grow tax-advantaged savings this year.

→ Under 50: You can contribute up to $24,500 to most 401(k) plans through elective deferrals.

→ 50 or older: You get an extra $8,000 catch-up contribution ($32,500 total) if your plan allows.

→ If you're between 60-63: You may be eligible for a higher catch-up contribution of $11,250 ($35,750 total).

REMINDER: Double-check with your plan administrator to confirm that your plan allows catch-up contributions. High earners have additional rules that apply to catch-up contributions.

Say goodbye to your paper refund checks of the past!

According to the IRS, they'll now be sending refunds to most taxpayers via direct deposit or other secure electronic methods.

For taxpayers who are unable to use direct deposit, the IRS is working on alternative options like prepaid debit cards and digital wallets.

While this might seem like a huge change, just know that 93% of refunds issued during the 2025 filing season were via direct deposit!

There's one BIG tax move you can still make to reduce your 2025 tax bill.

Until April 15th, 2026, if you qualify, you can contribute to a traditional IRA and reduce your taxable income.

It's a win-win, you're saving for the future, and you're lowering your tax liability!

Check with your tax accountant to figure out how much you qualify to contribute, deduct, and how this will affect your return.

Thankful for you-our clients, who make every season (even tax season!) as sweet as pie.

Did you know we do so much more than tax prep?!

Our team offers year-round bookkeeping services to keep your business organized and tax-ready. We take the time to ask the right questions and make sure our services are the right fit for your needs. Let's see how we can help your books (and business) thrive!

Meet the minds behind the math! At Prism Tax & Advisory, our team blends strategy, precision, and just the right amount of caffeine to keep your finances crystal clear year-round.

If you want to get to know us better, don't hesitate to contact us today! We are still accepting new clients and would love to help you plan ahead for a smooth and successful 2026 tax season.

If you own an S Corp and actively work in your business, you need to be paying yourself a reasonable salary!

I get this question a lot: "Can't I just take all my pay in distributions?"

NOPE! This is exactly what the IRS doesn't want you to do, and here's why:

Salary wages are subject to payroll taxes (and distributions are not), so the IRS wants to avoid losing out on that extra payroll tax income from S Corporation owner-employees.

Your salary must be high enough to count as reasonable compensation for your role, and then you can pay any remaining amount as distributions.

Not sure what's reasonable for your job? Ask your tax accountant about a reasonable compensation report!