As a business owner in South Carolina, understanding the state’s sales tax system is crucial to maintaining compliance and avoiding potential penalties. Whether you’re a local retailer, a service provider, or both, having a solid grasp of South Carolina’s sales tax rules will help you make informed decisions and keep your business running smoothly.

At Peavy and Associates, we work with South Carolina entrepreneurs to navigate the complexities of local tax systems. Here’s what you need to know about South Carolina’s sales tax regulations, including who must collect sales tax, which products and services are taxable, and how to properly manage your sales tax responsibilities.

What Is Sales Tax in South Carolina?

Sales tax in South Carolina is a tax imposed on the sale of tangible personal property and certain services. As a retailer or service provider, you are responsible for collecting and remitting this tax to the South Carolina Department of Revenue (SCDOR). The state’s sales tax rate is 6%, but local municipalities may impose additional local taxes, raising the overall rate depending on where you’re located.

For example, in cities like Charleston or Columbia, the total sales tax rate can exceed 8%, including state, county, and local tax rates.

Who Needs to Collect Sales Tax?

Generally, any business engaged in the sale of tangible personal property, certain services, or digital goods is required to collect sales tax in South Carolina. Here’s a breakdown:

• Retailers: If your business sells goods or products, such as clothing, electronics, furniture, or other tangible items, you’re likely required to collect sales tax.
• Service Providers: Certain services in South Carolina are subject to sales tax, including:

◘  Admission to entertainment events

◘ Certain repair and installation services

◘ Personal services (e.g., fitness or beauty services)

◘ Digital products, such as downloadable software or digital music

• However, some services, like professional services (accounting, legal, etc.), are generally not taxable in South Carolina.

Taxable and Exempt Goods and Services

Knowing which products and services are taxable is essential for your business. Here’s a breakdown:

Taxable Goods:

• Tangible personal property, including merchandise, furniture, electronics, and clothing
• Prepared food and beverages sold at restaurants
• Digital products, such as software, e-books, and movies for download

Exempt Goods:

• Groceries (subject to certain conditions)
• Prescription medications
• Some agricultural products
• Certain types of clothing (e.g., back-to-school exemptions)

Taxable Services:

• Repair and maintenance services (e.g., auto repair, appliance repair)
• Admission to events (e.g., concerts, sports events)
• Cleaning services (e.g., dry cleaning)

Exempt Services:

• Professional services such as accounting, law, and medical services
• Education services (e.g., private tutoring)

It’s important to stay updated on changes to what is and isn’t taxable. South Carolina’s tax system can evolve, and occasional adjustments are made to exempt certain items or services from sales tax.

How to Collect and Remit Sales Tax

Once you understand your obligations, the next step is collecting and remitting sales tax. Here’s what you need to do:

1. Register for a Sales Tax Permit:

Before collecting sales tax, you must obtain a sales tax permit from the South Carolina Department of Revenue (SCDOR). This is required for any business selling taxable products or services.

2. Collect Sales Tax at the Point of Sale:

Sales tax must be collected from customers at the time of the sale. The tax rate depends on where the sale occurs, so it’s important to be familiar with both state and local tax rates in your area.

3. File Sales Tax Returns:

After collecting sales tax, your business is required to file regular sales tax returns with SCDOR. Returns are typically filed monthly, quarterly, or annually, depending on the volume of your sales.

4. Remit Collected Tax:

The collected tax must be submitted to SCDOR on time. Failure to remit sales tax can result in fines, interest, and other penalties.

Sales Tax Reporting Deadlines

The frequency of your sales tax filings depends on your business’s gross receipts and how much sales tax you collect. Here are the general filing requirements:

• Monthly: If your business collects more than $200 in state sales tax per month, you must file monthly.
• Quarterly: If your business collects between $100 and $200 in state sales tax per month, you’ll file quarterly.
• Annually: If your business collects less than $100 in state sales tax per month, you may be eligible to file annually.

Keep Detailed Records

To comply with South Carolina’s sales tax regulations, it’s critical to maintain detailed records of your sales transactions, tax collected, and tax remitted. This documentation will help you during tax audits and ensure you are paying the correct amount of sales tax.

Work with a Professional to Stay Compliant

Sales tax can be complex, especially for businesses with multiple product lines or service offerings. At Peavy and Associates, we can help you understand South Carolina’s sales tax system, ensure you’re collecting and remitting the correct amount, and help you avoid costly errors.

If you have any questions about your sales tax obligations or need assistance filing your sales tax returns, don’t hesitate to contact us today.

If you’re a small business owner or entrepreneur in South Carolina, choosing the right business structure is one of the most important decisions you’ll make. Among the many options available, the S-Corporation—commonly referred to as an S-Corp—is a popular choice for those looking to save on taxes and streamline operations.

But is an S-Corp right for your business? At Peavy and Associates, we work with entrepreneurs throughout South Carolina to evaluate entity structures and optimize tax strategies. Here’s what you should know before making the switch.

What Is an S-Corp?

An S-Corp is not a type of business entity in itself but a special tax election made with the IRS. It allows eligible corporations or limited liability companies (LLCs) to pass their income, losses, deductions, and credits through to shareholders for federal tax purposes. In simpler terms, it avoids the double taxation associated with traditional corporations (C-Corps) while providing more favorable treatment than a sole proprietorship or standard LLC in certain cases.

Key Benefits of an S-Corp

 1. Tax Savings on Self-Employment Income
One of the most attractive features of an S-Corp is the potential to save on self-employment taxes. As an S-Corp owner, you can pay yourself a reasonable salary   (which is subject to payroll taxes) and take the remaining profits as distributions, which are not subject to self-employment tax.

2. Pass-Through Taxation
Unlike a C-Corp, an S-Corp is not taxed at the corporate level. Instead, profits and losses are passed through to the owner’s personal tax return, avoiding double taxation.

3. Liability Protection

Like other corporate structures, an S-Corp provides limited liability protection. This means your personal assets are generally protected from business debts and legal actions.

4. Credibility and Professional Image

Operating as an S-Corp can give your business added credibility with clients, vendors, and lenders by signaling a more formal structure.

Potential Drawbacks of an S-Corp

While S-Corps offer several advantages, they’re not ideal for every business. Some limitations include:

• Ownership Restrictions
  S-Corps are limited to 100 shareholders, all of whom must be U.S. citizens or residents. Certain entities, such as partnerships and corporations, cannot be shareholders.
• Strict IRS Compliance
  S-Corps must follow strict operational requirements, including issuing stock, holding shareholder meetings, and maintaining formal records.
• Reasonable Compensation Requirement
  The IRS requires S-Corp owners who work in the business to receive a reasonable salary. If you underpay yourself and take the rest in distributions to avoid payroll taxes, it could trigger an audit and penalties.

Is an S-Corp Right for Your South Carolina Business?

The S-Corp structure can be a smart move for South Carolina entrepreneurs who:

• Are currently sole proprietors or LLCs with increasing profits
• Want to reduce self-employment tax liability
• Don’t plan to take on non-resident or foreign shareholders
• Are ready to meet the compliance and reporting requirements

However, it’s not a one-size-fits-all solution. Factors such as the nature of your business, income level, number of owners, and long-term goals should all be considered before making the switch.

Let Peavy and Associates Guide You

Deciding on the right business structure is a strategic choice with long-term consequences. At Peavy and Associates, we help entrepreneurs throughout South Carolina understand their options, weigh the tax implications, and make the best decision for their financial future.

If you’re wondering whether an S-Corp is right for you, contact our office today to schedule a consultation. We’ll take the guesswork out of the process and help you build a structure that supports your success.

As the midpoint of the year approaches, it’s the perfect time for South Carolina business owners to pause and evaluate their financial performance. A mid-year financial review is more than just a check-in—it’s an opportunity to assess progress, uncover inefficiencies, and adjust course before year-end.

At Peavy and Associates, we help businesses across South Carolina make informed decisions based on accurate financial data. Here’s how you can prepare for a productive and meaningful mid-year financial review.

Update Your Financial Records

The first step in any review is making sure your books are up to date. Ensure that all income, expenses, bank reconciliations, payroll entries, and tax filings are properly recorded through the first half of the year. Clean and current records provide the foundation for any financial analysis.

If you’re behind on bookkeeping or unsure about your records, our accounting team can help bring everything current and accurate.

Review Your Profit and Loss Statement

Your profit and loss statement (P&L) tells the story of your business’s financial health. During a mid-year review, compare this year’s numbers to the same period last year to spot growth, stagnation, or decline. Identify where revenue is strong, where costs may be rising, and which areas are underperforming.

Ask yourself whether your current margins align with your goals and whether your expenses are truly supporting business growth.

Evaluate Your Cash Flow

Cash flow is often more critical than profits when it comes to daily operations. A business can be profitable on paper but still face cash shortages. Analyze your cash inflows and outflows to determine if you have enough liquidity to meet upcoming expenses, invest in new opportunities, or cover unexpected costs.

We recommend preparing a cash flow forecast for the remainder of the year to anticipate potential shortfalls and plan accordingly.

Check Budget vs. Actual Performance

If you created a budget at the start of the year, now is the time to compare your actual results against those projections. Identify variances and explore the reasons behind them. Were sales lower than expected? Did marketing costs run over? Understanding these gaps helps refine your approach for the next six months.

If you don’t yet have a budget in place, consider creating one now to guide your spending and strategy for the rest of the year.

Assess Tax Position and Estimated Payments

A mid-year review is an ideal time to check your current tax situation. Based on your earnings so far, you may need to adjust your estimated quarterly tax payments to avoid underpayment penalties or surprises come tax season.

Peavy and Associates can help you project your year-end tax liability and suggest adjustments to your payments or tax strategy.

Revisit Business Goals and KPIs

Financial reviews should be tied to your overall business goals. Are you meeting your sales targets? Has customer retention improved? Are new initiatives producing a return on investment? Tracking key performance indicators (KPIs) alongside your financial data gives a more complete picture of how your business is truly performing.

If necessary, refine your goals or shift your focus to ensure that your business stays on track.

Plan for the Remainder of the Year

Use the insights from your review to guide strategic decisions for the rest of the year. Consider hiring needs, equipment purchases, marketing efforts, or financing options. A mid-year review is your chance to be proactive rather than reactive.

Partner with a Trusted Advisor

Peavy and Associates offers comprehensive mid-year financial review services for South Carolina businesses. Whether you’re a solo entrepreneur or managing a growing team, we’ll help you uncover opportunities, mitigate risks, and make confident decisions.

Schedule a mid-year review with us today and take control of your business’s financial direction.

Tax season may be over, but your financial responsibilities don’t stop there. At Peavy and Associates, we believe the time immediately after filing is one of the most important periods for thoughtful planning. Whether you’re an individual taxpayer or a business owner in South Carolina, taking a few simple steps now can save time, reduce stress, and put you in a better position for next year.

Here’s your essential post-tax season checklist.

1. Review Your Return for Accuracy and Opportunities

Even if your taxes have already been filed and accepted, it’s worth taking a second look. Review your return with your accountant to ensure everything was reported correctly. This is also a good opportunity to identify potential tax-saving strategies for the year ahead, such as adjusting your withholdings or increasing retirement contributions.

2. Organize and Store Your Tax Documents

Keep copies of your filed return and all supporting documents in a safe and secure location. This includes W-2s, 1099s, receipts for deductions, and any other relevant paperwork. You may need these documents for future reference, audits, or loan applications. At Peavy and Associates, we recommend maintaining digital backups in addition to physical copies.

3. Adjust Withholding or Estimated Payments

If you owed more than expected or received a large refund, it might be time to adjust your paycheck withholdings or quarterly estimated tax payments. The goal is to avoid surprises at tax time and better manage your cash flow throughout the year. Our team can help you recalibrate your numbers based on your current financial situation.

4. Plan for Next Year’s Deductions

Now is a great time to start organizing your finances with next year in mind. Think about charitable donations, home improvements, education expenses, or business investments you may want to make in the coming months. Documenting these as you go will make next year’s filing process smoother and more accurate.

5. Schedule a Mid-Year Tax Planning Session

Waiting until the end of the year to address your tax strategy can limit your options. A mid-year tax planning session with Peavy and Associates allows us to evaluate your current income, deductions, and goals—helping you make proactive decisions before the year is over.

6. Consider Retirement Contributions

If you haven’t yet maxed out your contributions to retirement accounts like an IRA, 401(k), or SEP IRA, now is a good time to revisit your plans. Increasing your contributions not only helps secure your future but can also provide meaningful tax benefits.

7. Stay Alert for IRS Correspondence

Even if everything went smoothly, keep an eye out for any mail from the IRS. Occasionally, the IRS may follow up with questions or notices related to your return. Don’t panic—just reach out to your accountant right away to review and respond appropriately.

Let Peavy and Associates Help You Stay Ahead

Tax filing may be complete, but smart financial management is a year-round effort. At Peavy and Associates, we’re here to help you plan ahead, make informed decisions, and keep your financial life on track long after April 15.

Contact us today to schedule a post-tax season review or mid-year planning session. We proudly serve individuals and businesses across South Carolina with trusted, personalized accounting support.

Tax season can be hectic, and sometimes life doesn’t go according to schedule. If you’re not quite ready to file your tax return by the April deadline, the IRS allows you to request an extension. While a tax extension can offer some breathing room, it’s important to understand what it does—and what it doesn’t—do.
Here’s a simple breakdown of how to file for a tax extension and what it really means for your tax obligations.

What Is a Tax Extension?

A tax extension gives you an additional six months to file your federal income tax return. For most taxpayers, that means the deadline moves from April 15 to October 15. However, an extension to file is not an extension to pay. If you owe taxes, the IRS still expects payment by the original April deadline.

Why File an Extension?

There are several valid reasons why individuals or businesses may need more time to file:

• You’re waiting on important tax documents or corrected forms
• You need additional time to organize complex finances
• You’ve experienced a personal hardship or emergency
• You want to ensure accuracy and avoid errors that could lead to an audit

Whatever the reason, filing for an extension is better than rushing and making mistakes—or worse, missing the deadline entirely.

How to File for a Tax Extension

Filing for an extension is relatively simple, and you have a few options:

1. File IRS Form 4868

Form 4868 is the official request for an automatic extension for individual taxpayers. You can file it electronically through tax software, your tax professional, or by mailing a paper copy to the IRS.

To complete the form, you’ll need to:

• Estimate your total tax liability for the year
• Report how much you’ve already paid
• Indicate the balance due (if any)

Even if you can’t pay in full, submitting this form by the deadline avoids the late-filing penalty.

2. Make a Payment with Extension Request

If you make a payment to the IRS using Direct Pay or through the Electronic Federal Tax Payment System (EFTPS), and designate it as an extension payment, the IRS will automatically treat it as a request for extension—no separate form required.

3. Businesses File Form 7004

If you’re filing a business return and need an extension, use Form 7004. This applies to partnerships, corporations, and other business entities.

What Happens After You File an Extension?

Once your extension is accepted, you’ll have until October 15 to submit your complete return. During this time, you can gather any missing documents, consult with your CPA, and make sure everything is filed correctly.

However, interest and penalties will still accrue on any unpaid taxes after the original deadline. That’s why it’s always recommended to pay as much as you can by April 15—even if you’re filing for an extension.

What If You Don’t File or Pay?

Failing to file your return or request an extension by the deadline can lead to:

• A failure-to-file penalty (typically 5% per month on unpaid taxes)
• A failure-to-pay penalty (0.5% per month)
• Accruing interest on the unpaid balance

These penalties can add up quickly, so it’s better to file for an extension and pay something rather than miss the deadline entirely.

Need Help Filing an Extension?

If you’re unsure how much you owe, need help submitting the proper forms, or simply want peace of mind that everything is handled correctly, working with a CPA can make the process smoother. We help individuals and businesses navigate tax deadlines, extensions, and everything in between.
Contact our office today to discuss your situation. Whether you need to file now or need more time, we’re here to guide you through every step.

As the tax deadline approaches, many individuals and businesses find themselves scrambling to file on time. While filing under pressure can be stressful, rushing through your return often leads to costly mistakes. Whether you’re filing at the last minute or trying to catch up, it’s important to slow down just enough to avoid common errors that could trigger delays, audits, or penalties.

Here are some of the most frequent tax filing mistakes—and how to avoid them.

1. Incorrect or Missing Personal Information

One of the simplest yet most common mistakes is entering incorrect Social Security numbers, misspelling names, or forgetting to include a spouse or dependent’s information. Double-check all personal details before submitting your return. Even small typos can cause major issues.

2. Choosing the Wrong Filing Status

Your filing status affects your tax bracket, deductions, and credits. Selecting the wrong status—such as “Single” instead of “Head of Household”—can result in overpaying or underpaying taxes. If you’re unsure which status applies to you, a CPA can help determine the most beneficial option.

3. Math Errors

Manual calculations or incorrect input in tax software can lead to math errors. These mistakes are often flagged by the IRS, resulting in delayed refunds or notices. If you’re filing on your own, use reliable tax software with built-in error checks, or have a CPA review your return before submitting.

4. Forgetting to Report All Income

It’s essential to report all sources of income, including wages, freelance work, investment earnings, and side gigs. The IRS receives copies of your W-2s, 1099s, and other income documents—so if you leave something out, it won’t go unnoticed.

5. Overlooking Deductions and Credits

When you’re rushing, it’s easy to miss valuable deductions and credits, such as the Earned Income Tax Credit (EITC), Child Tax Credit, or deductions for student loan interest and charitable contributions. Take time to review what you’re eligible for, or work with a tax professional to ensure nothing is left on the table.

6. Missing Signatures

A missing signature is an automatic rejection for paper-filed returns. If you’re filing jointly, both spouses must sign. If you’re e-filing, make sure to follow all authentication steps to finalize your submission.

7. Using the Wrong Bank Information for Direct Deposit

Mistyping your routing or account number can delay your refund or even send it to the wrong account. Double-check this information before submitting your return. If you’ve changed bank accounts recently, make sure your current details are on file.

8. Failing to File State Taxes

While rushing to meet federal deadlines, many filers forget about their state obligations. Each state has its own filing requirements, deadlines, and forms. Make sure you understand and meet both state and federal filing responsibilities.

9. Not Filing at All

Some taxpayers mistakenly believe they don’t need to file if they can’t pay. This is one of the biggest mistakes you can make. Filing late is always better than not filing at all, and the IRS offers payment plans to help with owed balances.

10. Ignoring IRS Notices

If you make a mistake and receive a notice from the IRS, don’t ignore it. Responding promptly can help you avoid additional penalties and complications. A CPA can assist in interpreting notices and communicating with the IRS on your behalf.

Filing in a Rush? Let a CPA Help

Filing taxes quickly doesn’t have to mean filing carelessly. At our firm, we help clients file accurately and on time—even under pressure. If you’re feeling overwhelmed or worried about mistakes, we’re here to make the process smooth, stress-free, and compliant.

Contact us today to file with confidence and avoid unnecessary headaches.

Missing the tax filing deadline can be stressful, but it’s not the end of the world. Whether you forgot, ran out of time, or encountered unexpected challenges, there are steps you can take to minimize penalties and get back on track. Here’s what you need to know if you didn’t file your tax return by the deadline.

1. Don’t Wait Any Longer

The worst thing you can do after missing the deadline is continue to delay. The longer you wait to file, the more penalties and interest you may owe. Even if you can’t pay your full tax bill right now, filing as soon as possible helps limit the damage.

2. File Your Return Immediately

If you’re owed a refund, there’s no penalty for filing late—but you must file within three years to claim it. If you owe taxes, the IRS will begin charging penalties and interest after the due date. Filing your return now, even if it’s late, shows the IRS that you’re taking steps to resolve the issue.

3. Understand the Penalties

There are two main penalties for missing the tax deadline:

• Failure-to-File Penalty: This is typically 5% of the unpaid taxes for each month your return is late, up to a maximum of 25%.
• Failure-to-Pay Penalty: This is 0.5% of your unpaid taxes for each month you fail to pay, also up to 25%.

If both apply in the same month, the failure-to-file penalty is reduced by the failure-to-pay penalty amount.

4. Pay What You Can

Even if you can’t pay the full amount you owe, pay as much as possible when you file. This will reduce the amount of interest and penalties that accumulate over time. The IRS offers various payment plans, including short-term and long-term options, to help taxpayers settle their balances.

5. File for an Extension (If You Qualify)

Unfortunately, you can’t retroactively file for an extension after the deadline has passed. However, if there were exceptional circumstances—such as a natural disaster or serious illness—you may qualify for penalty relief. A CPA can help you determine if you’re eligible and assist with the proper documentation.

6. Watch Out for Scams

If you’ve missed the deadline, you may be feeling pressure to resolve your tax situation quickly. Be cautious of fraudulent “tax relief” companies that promise to settle your tax debt for pennies on the dollar. Always work with a reputable CPA or tax professional who can guide you through the process safely and accurately.

7. Plan Ahead for Next Year

Missing a deadline can be a wake-up call. Start organizing your tax documents early, track your income and expenses throughout the year, and consult with a CPA well before tax season arrives. Proactive planning can help you avoid the same stress next year.

Need Help Catching Up?

If you’ve missed the tax deadline, our team is here to help you file late returns, minimize penalties, and create a plan to move forward. We understand that life happens—and we’re here to provide judgment-free, professional guidance every step of the way.

Contact us today to get started and regain control of your tax situation.

The tax filing deadline is quickly approaching, and if you’ve been putting off the inevitable, you’re not alone. Every year, thousands of individuals and business owners find themselves scrambling to file their taxes just days—or even hours—before the deadline. The good news? It’s not too late to get organized and file on time. Here are some last-minute tax filing tips from our team of CPAs to help you meet the deadline and avoid unnecessary penalties.

1. Gather All Necessary Documents

Start by collecting all your income documents, including W-2s, 1099s, investment statements, and any records of other earnings. You’ll also want to gather receipts for deductible expenses, mortgage interest statements, and proof of charitable contributions. Having everything in one place reduces errors and saves time.

2. Double-Check Personal Information

A common and easily avoidable mistake is submitting incorrect personal information. Ensure that your name, Social Security number, and banking details are accurate. If you’re claiming dependents, make sure their information is correct and hasn’t already been used on someone else’s return.

3. File Electronically for Speed and Accuracy

E-filing is the fastest and most accurate way to file your taxes, especially when you’re in a rush. Most reputable tax software includes built-in error checks that help catch mistakes before you submit. Plus, you’ll receive a quicker confirmation from the IRS, and if you’re owed a refund, it’ll be processed faster with direct deposit.

4. Consider Filing for an Extension

If you know you won’t make the deadline, consider filing for an automatic extension using IRS Form 4868. This gives you an additional six months to submit your return, but it’s important to note that it doesn’t give you more time to pay any taxes owed. You must still estimate and pay your tax liability by the April deadline to avoid penalties and interest.

5. Don’t Guess Your Numbers

In a rush, it can be tempting to estimate income or deductions. Avoid this. Guessing can trigger audits, delays, or fines. If you’re missing documentation, do your best to retrieve it or consult a CPA who can help you navigate missing forms and suggest appropriate next steps.

6. Review Before Submitting

Even if you’re on a tight timeline, take a few minutes to review your return for any missed deductions or errors. Typos, incorrect calculations, and overlooked credits can cost you money or cause delays in processing. A second set of eyes, especially from a CPA, can make a big difference.

7. Don’t Forget State Taxes

While focusing on federal taxes, many filers forget that their state may have its own deadline and filing requirements. Make sure you check your state’s tax website or speak with a tax professional to ensure you’re compliant on all fronts.

Let a CPA Help You Cross the Finish Line

When time is limited, having a certified public accountant on your side can make all the difference. We can help you file quickly, accurately, and efficiently—giving you peace of mind and minimizing your stress.

If you’re feeling overwhelmed as the deadline looms, reach out to our team today. Whether you’re filing for yourself or for your business, we’re here to help make tax season less taxing.

Filing income taxes can be difficult enough with the constant changes to IRS rules. The situation becomes significantly more difficult when a teen and their income are involved. You’ll need to have a variety of information at your fingertips. The IRS sets dollar amount limits and whether or not your teen will have to file a tax return will depend on their total income was from all sources.

Income Levels

Unlike adults, there’s more flexibility when a child is filing, but that can also make it more complicated. If your child has income above the level set by the IRS, he/she won’t need to file. However, when a child has both earned and unearned income, the two will have to be added together to determine their filing status.

Financial Support

You can claim your child if you provide more than 50 percent of their financial support, they live with you more than half the year, and they’re under the age of 19 during the entire year. You can claim them up to the age of 24 if they’re a full-time student, even if they live outside your home due to their education.

Wages and Salary

The type of income your child has will also affect their filing status. Dependent children that have earned income of more than $12,400 (as of 2020) through wages and salaries must file. They may also owe income taxes. A child’s standard deduction can’t exceed the larger of $1,100 or their earned income plus $350. The maximum is $12,400.

Investment Income

A child’s investment income is treated differently. It’s considered unearned income when acquired through dividend or interest payments, for example. If all the child’s money was unearned income, you can include it on your return and combine it with your income. However, doing so has the potential of elevating you to a higher tax bracket.

At Peavy and Associates PC our mission is to assist you with all your tax preparations, payroll and accounting needs.  We provide our clients with professional, personalized accounting services and guidance in a wide range of financial and business needs. Give us a call today and discover why our clients return to Peavy and Associates, PC year after year!

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