Traveling for Business? Here’s What You Need to Know

Traveling for Business? Here’s What You Need to Know

Hotel stays, airfare tickets, public transportation costs — it all adds up fast when you’re traveling. The good news is, as a business traveler, you may be able offset some of those expenses by claiming business travel deductions when you file your tax return. Not everything qualifies, however, so be sure you know some of the details.

What Can You Deduct?

Business travel deductions are available when employees must travel away from their main place of work for business reasons. The travel period must be substantially longer than an ordinary day’s work and include a need for sleep or rest to meet the demands of the work while away. Keep in mind:

  • Travel expenses must be “ordinary and necessary.” They cannot be lavish, extravagant or for personal purposes.
  • Employers can deduct travel expenses paid or incurred during a temporary work assignment if the assignment length does not exceed one year.
  • Travel expenses for conventions are deductible if attendance benefits the business (note: there are special rules for conventions held outside North America).

Deductible travel expenses can include the cost of:

  • Travel by airplane, train, bus or car between your home and your business destination.
  • Fares for taxis or other types of transportation between an airport or train station to a hotel, from a hotel to a work location.
  • Shipping of baggage and sample or display material between regular and temporary work locations.
  • Using a personally owned car for business (including increased mileage rates).
  • Lodging and non-entertainment-related meals.
  • Dry cleaning and laundry.
  • Business calls and communication.
  • Tips paid for services related to any of these expenses.
  • Other similar ordinary and necessary expenses related to the business travel.

Claiming Travel Expense Deductions

If you are traveling at the request of your employer, then your employer will most likely reimburse you for any expenses not already covered. In this case, you cannot also claim a deduction for the costs incurred. If you are self-employed and traveling for business, you can deduct travel expenses on Form 1040, Schedule C: Profit or Loss From Business, Sole Proprietorship. Farmers can use Form 1040, Schedule F: Profit or Loss From Farming. National Guard or military reserve servicemembers can claim a deduction for unreimbursed travel expenses paid during the performance of their duty.

Whatever your situation, make good recordkeeping a priority. Well-organized records and copies of receipts, canceled checks and other documents make it easier to prepare your tax return and support your deductions. If you have any questions about what is or is not deductible, please don’t hesitate to contact us at 706-632-7850.

Did You Get Your GA Tax Rebate?

More than 2.5 million Georgia tax refunds have been issued so far. That’s 90% sent out since May, with more coming by next month. Announced in March, eligible Georgians received up to $250 for single filers, $375 for heads of household or $500 for married couples filing jointly.

If you have not yet received the rebate, you may not be eligible (or you may not have noticed it was direct deposited into your account). The refund is only available to residents who filed Georgia tax returns for both the 2020 and 2021 tax years.

IRS Online Account Provides Valuable Info

If you sign up for an IRS Online Account, you’ll have easy access to your tax account information, including balance, payments, tax records and more.

For example, you can view:

  • Key information from your most recent tax return.
  • Your payment history.
  • Any payoff amount (updated daily).
  • The balance for each tax year for which you owe taxes.
  • Payment plan details, if applicable.
  • Digital copies of select IRS notices.
  • Economic Impact Payments, if applicable.
  • Your current address on file.

You can also use your Online Account to:

  • Select an electronic payment option.
  • Set up an online payment agreement.
  • Access tax records and transcripts.
  • Approve and electronically sign Power of Attorney and Tax Information Authorization requests from your tax professional.
It’s Time for a Mid-Year Tax Check-Up

It’s Time for a Mid-Year Tax Check-Up

T ax season was over in April, so you’re good until next year, right? Well, ignoring your financial situation for another six months may not be such a good idea. If you take a little time to plan ahead now, you can spot surprises before they become an issue, make things more manageable next tax season, and maybe even save some money.

That’s where a mid-year tax check-up comes in. Make an appointment with us now to review your projected tax responsibilities, and you’ll still have time to put together a plan and adapt. This is especially important if you encounter some big changes in 2022 — marriage, divorce, death, job change, move, etc. Own your own business? A mid-year review also makes sense for your company, too.

Mid-Year To-Do List

Take your time conducting a thorough examination of your personal and/or business finances. Here are some items to consider:

1. Check Your Withholding

Make sure you’re paying the correct amount of taxes as you go. If you don’t make sufficient income tax payments throughout the year, you may get hit with significant penalties on your tax return next year. So if your income, job or life situation has changed, it’s time to take a look at the amount of taxes your employer is withholding … and update that amount if needed.

If you are self-employed, pay your own taxes or earn additional income through gig work or hobbies, you may also need to make quarterly estimated tax payments. Keep in mind that late or insufficient payments may lead to fines, so calculating the right amount for your quarterly payments depends on accurately predicting your annual income.

2. Review Your Bookkeeping

Good bookkeeping practices are essential, whether for personal or business purposes. Did you categorize that donation as a charitable deduction? Make payments to a college for your child? Take some time to review your personal bookkeeping records now to ensure they are accurate.

Businesses also need clear income and expense records for calculating total income for tax liability and for claiming tax deductions. Be sure to record tax-deductible business expenses as you go so that you don’t forget any.

If you use QuickBooks, you can request us to conduct an audit and clean-up of your accounts to be sure financial records are accurate and correct (see sidebar).

3. Make Name & Address Changes

If you’re getting married (divorced) or moving this summer, you’ll need to report the changes. Report name changes to the Social Security Administration as soon as possible. The name on your tax return next year must match what is on file at the SSA. If it doesn’t, it could delay any tax refund. To update your information, file Form SS-5, Application for a Social Security Card (available at SSA.gov), call 800-772-1213 or visit your local SSA office.

To change your address, you probably already filed a forwarding order with the U.S. Postal Service. However, you should also change your address with the IRS by filing Form 8822, Change of Address.

4. Plan Ahead for Year’s End

Now is the time to think ahead and plan accordingly. Are you worried about being on the edge of two tax brackets? Do you need to make a required minimum distribution from a retirement account? Will you need to spend down an HSA by the end of the year? Start scheduling these items early so you don’t have to rush come December.

5. Make an Appointment Today

You don’t have to spend your summer working on taxes instead of going to the beach. But you should consider taking just a little time to review your financial situation. We’re taking appointments now for mid-year tax planning if you’re ready to plan ahead. Call our office at 706-632-7850 to make your appointment today.

Do Your QuickBooks Need a Clean Up?

You may use QuickBooks on a regular basis, and never think twice about entering transactions. But there’s probably a good chance you’ve made an error or two without realizing it … and that can lead to problems down the road.

If you’ve never done a QuickBooks audit, or it’s been awhile, now’s a good time to schedule one. We can go over your accounts to:

  • Look for coding errors.
  • Adjust balance sheet totals to actual.
  • Record any depreciation of assets.
  • Confirm payroll and sales match reports.
  • Correct any general input issues.

Once completed, we’ll print financial reports, review everything with you and go over any errors we corrected. Call our office today at 706-632-7850 to schedule your QuickBooks audit today.

2020 Census Update

According to the 2020 Census, Georgia’s population increased 10.6% from 2010 to 2020, with a total population of 10,711,908 in 2020. For Fannin County, the 2020 Census details include:

  • 25,319 = total population (up 6.9% from 2010)
  • 65.4 = population density (people per square mile)
  • 83.7% = residents age 18+ (29.1% are 65+)
  • 52.3 = median age
  • $46,028 = median household income
  • 77.8% = homeownership rate

For the city of Blue Ridge, the total population is 1,253 with a median age of 52.1. In the city of McCaysville, the population is 1,149 with a median age of 43.8.

IRS Video Tax Tip

If you have taxable income from any payer that doesn’t withhold tax for you, check to see if you need to make estimated tax payments.

Changes Are Coming to Your 401(k) Statements

Changes Are Coming to Your 401(k) Statements

A new information policy will soon impact your 401(k) statements, thanks to the Secure Act, which was passed in 2019. The legislation requires special disclosures be added to your quarterly statements issued after June 30.

In addition to the basic information about your investments and the size of your savings, you’ll now also see “lifetime income illustrations.” This information is meant to help you gain a “big picture” view of how long your nest egg may last when you retire. This will be illustrated by showing approximately how much income you would receive each month for the rest of your life if you were to buy an annuity with your current 401(k) savings at age 67.

There will be two examples shown on your statement:

  • A “single life” annuity, which pays income to an individual buyer for life.
  • A “qualified joint and survivor” annuity, which pays income for an individual and a surviving spouse for life.

Keep in mind that the estimates:

  • Are based on your current 401(k) balance.
  • Don’t include projections on how your savings may grow and affect your future nest egg.
  • Don’t account for Social Security or other retirement savings.
  • Assume your full balance will be fully “vested.”

Start Saving More Now

If you’re getting close to retirement age, the new disclosures will give you a clearer picture of your current financial situation. If retirement is still a ways off, however, the estimates will give you a better idea of how much more you should start saving now — while you still have time.

For example, you can better formulate a retirement plan now if you know how much you will have to spend when the time comes. Seeing it on your statement might inspire you to increase your 401(k) contribution — especially if your employer offers a 401(k) match that you haven’t maxed out yet.

Be sure to check with your plan administrator to see if they offer online resources that can help you determine your future income needs. Organizations like AARP and the American Institute of Certified Public Accountants also offer free online retirement calculators.

Did You Know?

Google offers digital training courses and tools to help your small business adapt, grow and better serve your community. Visit Grow With Google for information on improving your online presence, including:

  • Setting up an online business
  • Getting listed on search & maps
  • Using YouTube to grow your business
  • Learning about Google tools
  • And more

Mid-Year Mileage Rate Increase

Due to rising fuel costs, the IRS is increasing the standard mileage rates for the rest of the year. Beginning July 1, the new business mileage rate will be 62.5 cents per mile, up 4 cents from the current rate. The new rate for deductible medical or moving expenses (available for active-duty members of the military) will be 22 cents, up 4 cents. The 14 cents per mile rate for charitable organizations remains unchanged.

Enhanced Business Meal Deduction Still Available

Don’t forget that, through the end of the year, you can continue to take advantage of the enhanced business meal deduction. For 2021 and 2022 only, businesses can generally deduct the full cost of business-related food and beverages purchased from a restaurant. Otherwise, the limit is usually 50% of the cost of the meal.

To qualify:

  • A business owner or employee must be present when food or beverages are provided.
  • Meals must be from restaurants (i.e., businesses that prepare and sell food or beverages to retail customers for immediate on-premises or off-premises consumption).
  • Payment or billing for the food and beverages (including taxes & tips) must occur before January 1, 2023.
  • The cost of food and beverages must be billed separately from any entertainment
  • The expense cannot be lavish or extravagant.
Selling Your Home? Keep These Tax Effects in Mind

Selling Your Home? Keep These Tax Effects in Mind

With today’s hot real estate market, you may be considering selling your home. Before you do, consider these possible repercussions to your federal income tax:

Gains & Losses

If you sell your main residence and have a gain from the sale, you may be able to exclude up to $250,000 of that gain from your income ($500,000 if filing jointly). What’s more, if you qualify to exclude all of the gain, you do NOT need to report the sale on your federal tax return —unless a Form 1099-S was issued.

Keep in mind that if you happen to experience a loss on the sale of your home (it sells for less than you paid for it), you cannot deduct the loss on your taxes.

Ownership & Use

To claim the tax exclusion, you must meet certain ownership and use tests. During a five-year period ending on the date of the sale, you must have owned the home and lived in it as your main residence for at least two years.

If you own more than one home (e.g., a vacation cabin in Blue Ridge and a main home elsewhere), you can only exclude the gain on the sale of your main home. You must pay taxes on any gain you receive from selling your vacation or second home.

Reported Sale & Mortgage Debt

If you don’t qualify to exclude all or part of the taxable gain from the sale, you must report it when you file your tax return. If you receive Form 1099-S, Proceeds from Real Estate Transactions, you must report the sale even if you have no taxable gain.

Generally, you must also report forgiven or canceled debt as income on your tax return, including a mortgage workout, foreclosure or other canceled mortgage debt.

There Are Always Exceptions

Certain individuals may be excluded from these rules, including people with a disability, members of the military or intelligence community, and Peace Corps workers. If you have questions about the tax ramifications of selling your main or vacation home, please contact us today. We’ll be happy to help you work through the numbers.

Request an Extension? Don’t Wait to File

If you requested an extension, consider filing your tax return sooner rather than later. October 17 is the deadline, but we encourage you provide us with your documents so your return can be filed before the deadline. Completing your tax return this summer can either help you get a refund quicker or save you money if you owe by avoiding additional interest and penalties. Please drop off your materials at our office Monday–Thursday from 8:30am–5pm (we’re closed for lunch from 12–1).

IRS Interest Rates Increasing

For the calendar quarter beginning July 1, 2022, the new IRS interest rates will be:

  • 5% for overpayments (4% in the case of a corporation).
  • 2.5% for the portion of a corporate overpayment exceeding $10,000.
  • 5% for underpayments.
  • 7% for large corporate underpayments.
Retirement and Taxes: Understanding Your IRA

Retirement and Taxes: Understanding Your IRA

Retirement may be closer than you think — especially if you’re saving money now just for that purpose. An Individual Retirement Arrangement (IRA) can be a smart way to save because it provides tax incentives to help you on your path. And IRAs are easy to set up with a bank or other financial institution, a life insurance company, a mutual fund or a stockbroker.

What You Need to Know About IRAs

If you have a Traditional IRA, you may be able to deduct your contributions from your taxes. Also, the interest and dividends earned in a Traditional IRA are not taxed until you withdraw them, typically when you’re retired and in a lower tax bracket.

If you have a Roth IRA, you are subject to similar restrictions as with a Traditional IRA. However, you cannot deduct your contributions. But qualified distributions from a Roth IRA are typically tax-free. And Roth IRAs do not require withdrawals until after the death of the owner.

 A SIMPLE (Savings Incentive Match Plan for Employees) IRA or SEP (Simplified Employee Pension ) IRA can be set up for employees and employers to make contributions. These are often popular with smaller businesses. Ask your employer if one is available.

A CONTRIBUTION is the money that you put into your IRA. There are annual limits to the amount you can contribute depending on your age, income and type of IRA (see below for new 2022 limits).

A DISTRIBUTION is the amount you withdraw from your IRA. Keep in mind that you may face a 10% penalty and a tax bill if you withdraw money from your IRA before you turn 59½, unless you qualify for an exception. There are also required distributions from an IRA — in most cases, you generally must start taking withdrawals when you reach age 70½.

If you have one or more IRAs, you’ll need to let us know how much you contributed and/or withdrew during the year when we file your taxes next spring. Be sure to keep all the important paperwork related to your accounts. If you have any questions, we’ll be happy to help — just contact us here.

Retirement Plan Limits Increase for 2022

Due to cost-of-living adjustments, retirement plan contributions are increasing for tax year 2022. For example, the amount you can contribute to your 401(k) plan for 2022 will increase to $20,500, up from $19,500 for 2020 and 2021. This also includes 403(b), most 457 plans, and the federal government’s Thrift Savings Plan. The amount you can contribute to a SIMPLE retirement account increased to $14,000, up from $13,500.

The income phase-out ranges for deductible Traditional IRA contributions are increasing for 2022:

  • For single taxpayers covered by a workplace retirement plan, the phase-out range increases to $68,000-$78,000, up from $66,000-$76,000.
  • For married couples filing jointly, if the spouse making the IRA contribution is covered by a workplace retirement plan, to $109,000-$129,000, up from $105,000-$125,000.
  • For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, to $204,000-$214,000, up from $198,000-$208,000.
  • For a married individual filing a separate return who is covered by a workplace retirement plan, it remains $0-$10,000.

The income phase-out range for Roth IRA contributions is increasing:

  • For singles and heads of household, to $129,000-$144,000 up from $125,000-$140,000.
  • For married couples filing jointly, to $204,000-$214,000, up from $198,000-$208,000.
  • For a married individual filing a separate return, it remains $0-$10,000.

The income limit for the Saver’s Credit (Retirement Savings Contributions Credit) for low- and moderate-income workers is increasing:

  • To $68,000 for married couples filing jointly (up from $66,000).
  • To $51,000 for heads of household (up from $49,500).
  • To $34,000 for singles and married individuals filing separately (up from $33,000).

Know Your Contribution Limits

The limit on the amount you can contribute annually to your IRA remains unchanged at $6,000. The IRA catch-up contribution limit for those age 50+ also remains at $1,000. The catch-up contribution limit for employees age 50+ for 401(k), 403(b), most 457 plans, and the Thrift Savings Plan remains unchanged at $6,500. Therefore, those 50+ can contribute up to $27,000 starting in 2022. The catch-up contribution limit for employees age 50+ and for SIMPLE plans also remains unchanged at $3,000.

Are You Eligible for the ODC?

The Credit for Other Dependents (ODC) is a tax credit for qualifying dependents who can’t be claimed for the Child Tax Credit. The maximum credit amount is $500 for dependents who meet these conditions:

  • Age 17 or older.
  • Have individual taxpayer identification numbers or Social Security numbers.
  • Are dependent parents or other qualifying relatives you support.
  • Are living with you but are not related to you.

You can claim this credit if:

  • You claim the person as a dependent on your tax return.
  • You cannot use the dependent to claim the Child Tax Credit or Additional Child Tax Credit.
  • The dependent is a U.S. citizen, national or resident alien.

You can claim the Credit for Other Dependents in addition to the Child and Dependent Care Credit and the Earned Income Credit. Note that the credit begins to phase out, however, when your income is more than $200,000 ($400,000 for married filing jointly).

Let us know if you support other dependents in your household, and we’ll help you determine which credits apply on your next tax return.

IRS Video Tax Tip

If you have taxable income from any payer that doesn’t withhold tax for you, check out this IRS video to see if you need to make estimated tax payments.

Year-End Tax Tip: Check Your Income Tax Withholding

Year-End Tax Tip: Check Your Income Tax Withholding

Life moves quickly — events like marriage, divorce, a new child or a home purchase are all good reasons to check your tax withholding before the end of the year and make any necessary adjustments.

The IRS’s Tax Withholding Estimator can help you determine if you are having too much or too little withheld, and how to make an adjustment to:

  • Withhold less and put more cash into your pocket now,
  • Withhold more to make up for a small deficiency, or
  • Make an estimated tax payment to avoid a tax bill or penalty when you file your tax return next year.

Pay as You Go

You pay taxes generally throughout the year, whether through salary withholding, quarterly estimated tax payments or a combination of both. If you had one or more major life events happen during the past year, then your withholding may need to be adjusted to compensate for the changes.

About 70% of taxpayers over-withhold their taxes every year, which typically results in a refund. (The average refund in 2021 was more than $2,700.) By using the IRS’s Tax Withholding Estimator, you can determine the right amount of tax to have withheld. The tool provides a user-friendly, step-by-step method for effectively tailoring the amount of income tax you have withheld from wages and pension payments.

If you need to make additional tax payments, you can pay online, by phone or from the IRS2Go app. You can schedule payments for future dates, for payment plan payments or for estimated tax payments. You can also log into your IRS.gov/account to view amounts you owe, payment plan details and options, payment history, any scheduled or pending payments, and key tax return information from your most recent tax return.

Contact Us for Help

If you have questions about adjusting your withholding, don’t hesitate to contact us. We’ll be happy to help you determine the best amount for your situation.

Are Your Marketing Costs Tax Deductible?

In most cases, the answer is YES! You can deduct expenses that help you bring in new customers and keep existing ones, including costs for advertising and marketing.

Keep in mind that advertising and marketing costs must be ordinary and necessary to be tax deductible:

  • An ordinary expense is one that is common and accepted in the industry.
  • A necessary expense is one that is helpful and appropriate for the trade or business (it does not have to be indispensable to be considered necessary).

Consider these advertising expenses that are usually deductible:

  • Costs directly related to business activities, such as print brochures, online ads and billboards.
  • Expenses for institutional or goodwill advertising to keep the business name before the public (e.g., advertising that encourages people to donate blood or that supports the local high school football team).
  • Cost of providing meals, entertainment or recreational facilities to the public as a means of advertising or promoting goodwill in the community. (Note that this generally does NOT include funds paid to influence legislation, such as advertising in a convention program of a political party or candidate.

IRS Video Tax Tip

Check out this IRS video to learn about the difference between taxable and nontaxable income.

Tax Benefits Expanded for Your 2021 Charitable Donations

Tax Benefits Expanded for Your 2021 Charitable Donations

T he Taxpayer Certainty and Disaster Tax Relief Act of 2020, enacted last December, provides several deductions for individuals and businesses who give to charity. The law generally extends — through the end of 2021 — temporary tax changes originally enacted by the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Here’s what you need to know:

Deductions If You Do NOT Itemize

Generally, if you take the standard deduction, you cannot deduct your charitable contributions. The law change, however, allows you to claim a deduction of up to $300 ($600 for married filing jointly) for cash contributions made to qualifying charitable organizations.

Most cash donations qualify, except those:

  • Made to a supporting organization.
  • Intended to help establish or maintain a donor advised fund.
  • Carried forward from prior years.
  • Made to most private foundations.
  • Made to charitable remainder trusts.

(These exceptions also apply to taxpayers who itemize their deductions.)

Cash contributions include those made by check, credit card or debit card, as well as unreimbursed out-of-pocket expenses in connection with volunteer services to a qualifying charitable organization. Cash contributions do NOT include the value of volunteer services, securities, household items or other property.

Deductions If You DO Itemize

If you itemize, you can generally deduct your charitable contributions, but are limited to 20% to 60% of your adjusted gross income, and by type of contribution and charity. The law change now allows you to apply up to 100% of your AGI for qualifying 2021 contributions.

This 100% limit is not automatic, however. You must choose to take the new limit; otherwise, the usual limit applies. And your other charitable contribution deductions reduce the maximum amount allowed under this election.

Deductions for Corporations

The law now permits C-Corps to apply an increased limit of 25% of taxable income for charitable cash contributions made to eligible charities during calendar year 2021. Again, the increased limit is not automatic — C-Corps must choose the increased corporate limit on a contribution-by-contribution basis.

Deductions for Food Inventory

If you own a business that donates food inventory, you may qualify for increased deduction limits. For contributions made in 2021, the limit is increased to 25%. For C-Corps, the 25% limit is based on taxable income. For other businesses (i.e., Sole Proprietorships, Partnerships and S-Corps), the limit is based on total net income for the year. A special method for computing the enhanced deduction continues to apply, as do food quality standards and other requirements.

Keep Good Records

Note that special record-keeping rules apply when claiming a charitable contribution deduction. Usually, this includes obtaining an acknowledgment letter from the charity, and retaining a cancelled check or credit card receipt for contributions of cash. For donations of property, additional record-keeping rules may include filing a Form 8283 and obtaining a qualified appraisal in some cases.

For more details on how to apply the percentage limits and what records you need to keep, contact us today.

Set a Calendar Reminder

Need help remembering when payments are due to the IRS? You can subscribe to the IRS’ Small Business Calendar using Outlook 2007, Outlook 2010 or Mac iCal. Outlook 2003 does not have the ability to subscribe, but you can download the tax events from the calendar. Visit this link for more details.

Are Your Social Security Benefits Taxable?

If you earn income from pensions, wages, interest and more, you may have to pay federal income tax on a portion of your Social Security benefits. Social Security benefits include monthly retirement, survivor and disability benefits. They do NOT include supplemental security income payments, which are not taxable.

The portion of your Social Security benefits that are taxable depends on your income and filing status. To determine if your benefits are taxable, add half of the Social Security you collected during the year to your other income.

Up to 50% of your benefits may be taxable if the total equals:

  • $25,000-$34,000, and you are single/head of household/widow.
  • $32,000-$44,000, and you are married filing jointly.

Up to 85% of your benefits may be taxable if the total is more than:

  • $34,000, and you are single/head of household/widow.
  • $44,000, and you are married filing jointly.

We’re happy to help you determine whether your benefits are taxable or not. Just give us a call to set up an appointment.

Video Tax Tip

Check out this IRS video for details on claiming the Home Office Deduction: What’s Allowable?

FAQs About the Advance Child Tax Credit

FAQs About the Advance Child Tax Credit

We’re still getting questions from some folks about the Advance Child Tax Credit that they are receiving. Read below for some answers to common questions we’ve received.

Q: What is it?

A: The Advance Child Tax Credit provides you with an ADVANCE payment of the child tax credit you can claim on your 2021 tax return (filed in early 2022). It is not extra money provided by the government, but rather just an advance of the amount you would typically receive as part of your refund next year.

Q: How is this different than the previous Child Tax Credit?

A: Previously, you had to wait until you filed your tax return to receive the credit. This year, as part of COVID-19 tax law changes, you may receive the credit in monthly payments from July through December. What’s more, the amount has been increased for 2021 only to $3,600 for children under age 6 and to $3,000 for children between 6 and 17.

Q: Who qualifies?

A: You may receive these payments if your dependent child, stepchild, foster child, sibling or other dependent relative does not turn 18 before January 1, 2022, and also:

  • Does not provide more than half of his or her own support during 2021.
  • Lives with you for more than half of tax year 2021.
  • Is a U.S. citizen, U.S. national, or U.S. resident alien.

Q: Can I stop the payments?

A: Yes. If you don’t want to receive the monthly Advance Child Tax Credit payments because you would rather claim the full credit when you file your 2021 tax return, or because you will not be eligible for the credit, you can unenroll through the Child Tax Credit Update Portal. (Note: If you are married and file jointly, BOTH you and your spouse must unenroll individually.)

Q: Will receiving the Advance Child Tax Credit payments affect my other government benefits?

A: No. These payments cannot be counted as income to determine if you are eligible for benefits or assistance, or how much you can receive under any federal, state or local program.

Q: Are the Advance Child Tax Credit payments taxable?

A: No. Because these payments are an advance on your 2021 child tax credit, they are not income and will not be reported as income on your 2021 tax return. However, the total amount of payments you receive is based on the IRS’s estimate of your 2021 child tax credit (generally using information from your previous tax returns). If you receive more in payment than you are eligible to claim on your tax return, you may have to repay the excess amount.

More Questions? Ask Us!

If you have additional questions about the Advance Child Tax Credit, don’t hesitate to contact us. We’ll be happy to help you work through the details. You may also check the IRS’s website for more details.

Premier CPA Services 10 year anniversary logo

May 31 was our 10-Year Anniversary! To celebrate, we will be offering some great giveaways to our clients and Facebook friends. Be sure to follow us and stay tuned!

IRS Issues ERC Safe Harbor

The IRS issued a safe harbor allowing employers to exclude certain amounts from their gross receipts solely for determining eligibility for the Employee Retention Credit (ERC). As an employer, you can elect to apply the safe harbor by excluding these amounts to determine whether you are an eligible employer for a calendar. These amounts include:

  • The amount of the forgiveness of a Paycheck Protection Program (PPP) Loan;
  • Shuttered Venue Operators Grants under the Economic Aid to Hard-Hit Small Businesses, Non-Profits, and Venues Act; and
  • Restaurant Revitalization Grants under the American Rescue Plan Act of 2021.

You are not required to apply this safe harbor, but may do so on your employment tax return (Form 941 or Form 941-X). If you have questions about the ERC, just give us a call at 706-632-7850.

Social Security 2020 Annual Report

Last year, Social Security paid benefits of $1.096 trillion to approximately 65 million beneficiaries. Meanwhile, an estimated 175 million people paid into Social Security through payroll taxes.

However, the Social Security Administration projects its total annual costs in 2021 will exceed its total annual income for the first time since 1982. And if Congress does not act soon, trust fund reserves will be depleted:

  • Old-Age and Survivors Insurance (OASI) will be depleted in 2033, with 76% of benefits payable at that time.
  • Disability Insurance (DI) Trust Fund will be depleted in 2057, with 91% of benefits still payable.

Video Tax Tip

The IRS Small Business Tax Workshop is a series of online training videos covering tax topics for new and established small business owners.

Good Recordkeeping Leads to Smart Tax Planning

Good Recordkeeping Leads to Smart Tax Planning

While it may seem mundane, recordkeeping is an important chore. Gathering your tax documents throughout the year makes it easier to file your tax return the following year. And having an organized recordkeeping system overall makes it easier to understand any letters you may receive from the IRS.

 

Good Records Help:

  • Identify sources of income. You may receive money or property from a variety of sources. The records can identify the sources of income and help separate business from nonbusiness income, and taxable from nontaxable income.
  • Keep track of expenses. You can use records to identify expenses for deductions you claim. This will help determine whether to itemize deductions at filing. It may also help you discover potentially overlooked deductions or credits.
  • Prepare tax returns. Good records help you file your tax return quickly and accurately. Throughout the year, you should add tax records to your files as they are received to make preparing your tax return easier.
  • Support items reported on tax returns. Well-organized records make it easier to prepare your tax return and help provide answers if you are audited or receive an IRS notice.

In general, the IRS suggests that you keep records for three years from the date you filed the tax return. You should use a system that keeps all your important information together. You can use computer software for electronic recordkeeping and/or store paper documents in labeled folders.

 

Records to Keep Include:

  • Tax-related records. This includes wage and earning statements from all employers or payers, interest and dividend statements from banks, certain government payments like unemployment compensation, other income documents and records of virtual currency transactions. You should also keep receipts, canceled checks and other documents — electronic or paper — that support income, deductions, or credits reported on your tax return.
  • IRS letters, notices and prior year tax returns. You should keep copies of prior year tax returns, and any notices or letters you receive from the IRS. These include adjustment notices when an action is taken on your account, Economic Impact Payment notices, and letters about advance payments of the 2021 child tax credit. If you receive 2021 advance child tax credit payments, you will receive a letter early next year that provides the amount of payments you received in 2021. You’ll need this information to prepare your 2021 tax return in 2022.
  • Property records. You should also keep records relating to any property you buy or sell. These records are important for figuring the basis for gain or loss.
  • Health insurance. You should keep records of your and your family members’ healthcare insurance coverage. If you’re claiming the premium tax credit, you’ll need information about any advance credit payments received through the Health Insurance Marketplace and the premiums you paid.

If you have any questions on what paperwork you should keep, we’re happy to provide the answers you need! Contact us today or call (706) 632-7850.

Child Tax Credit Portal Available

The IRS recently upgraded its Child Tax Credit Update Portal so you can update your financial situation. You can use the portal to:

  • Confirm your eligibility for payments.
  • Update your bank account information for direct deposit of payments.
  • Unenroll from the advance payments if you don’t want to receive them. Note that BOTH taxpayers must unenroll individually if you file jointly. (You will still receive the rest of your child tax credit as a lump sum when you file your 2021 federal income tax return next year.)

Any updates made by August 2 will apply to the August 13 and subsequent payments. You should have received your first payment on Thursday, July 15, via direct deposit or check.

Premier CPA Services 10 year anniversary logo

May 31 was the 10-Year Anniversary of Premier CPA Services! Over the next few months, we will be offering some great giveaways to our clients and Facebook friends to celebrate! Be sure to follow us and stay tuned!

Overpayments Refunded Due to Unemployment Compensation

If you received unemployment compensation in 2020, you may receive a refund from the IRS. The American Rescue Plan Act of 2021 excludes up to $10,200 in 2020 unemployment compensation from taxable income calculations (for individuals and married couples with modified AGIs less than $150,000).

Refunds began in May and will continue throughout the summer. Instead of requiring amended returns, the IRS has been reviewing Forms 1040 filed prior to the law’s enactment to identify those people who are due an adjustment. The refund average is $1,265.

In most cases, you do not need to take any action. However, if, as a result of the excluded unemployment compensation, you are now eligible for deductions or credits not claimed on your original return, you should file a Form 1040-X, Amended U.S. Individual Income Tax Return.

If you receive a refund notice and you’re not sure of your situation, please feel free to call us at (706) 632-7850.

I

Do You Rent Your Home?

Do you have a rental home? Watch this short video from the IRS to learn about when and how to report rental income from a vacation home, such as a house, condominium, mobile home or boat.

Selling Your Home? Here’s How It May Affect Your Taxes

Selling Your Home? Here’s How It May Affect Your Taxes

In this current seller’s market, you may be considering selling your first or second home. If so, keep in mind how selling your home may affect your tax return. When filing your taxes, you may qualify to exclude all or part of any gain from the sale from your income.

What You Need to Know

Ownership & Use — To claim the exclusion, you must meet ownership and use tests. During a five-year period ending on the date of the sale, you must have owned the home and lived in it as your main home for at least two years.

Gains — If you sell your main home and have a gain from the sale, you may be able to exclude up to $250,000 of that gain from your income. If you file jointly, you may be able to exclude up to $500,000. If you can exclude all the gain, you do not need to report the sale on your tax return.

Losses — If you experience a loss when you sell your main home (e.g., it sells for less than what you paid for it), you cannot deduct the loss from your taxes.

Multiple Homes — If you own more than one home, you can only exclude the gain on the sale of your main home. You must pay taxes on any gain you receive from selling any other home.

Reported Sale — If you do not qualify to exclude all the taxable gain from your income, you must report the gain from the sale of your home when you file your tax return. This is why it’s important to keep all of the paperwork related to the purchase and sale of your home, including any Form 1099-S, Proceeds from Real Estate Transactions, you receive.

Run the Numbers

Of course, there are exceptions to the rules for some individuals, including persons with a disability, certain members of the military, intelligence community and Peace Corps workers. If you’re wondering how a home sale will affect your taxes, feel free to contact us. We’ll be happy to help you work through the numbers to determine any financial impact. Please contact us to schedule an appointment.

Are You Paying Enough Tax Throughout the Year?

Federal taxes are pay-as-you-go — meaning you need to pay most of your federal income taxes during the year as you earn income. This is handled either through withholding by your employer in your regular paycheck or by making estimated tax payments yourself.

If the amount of income tax withheld from your salary or pension is not enough, or if you receive interest, dividends, alimony, capital gains, prizes, awards or other income, you may need to adjust your withholding or make estimated tax payments. (This also applies if you are self-employed.) If you don’t pay enough taxes throughout the year, you may be penalized when you file your federal income tax forms next year.

Adjust Your Withholding

If your employer withholds your taxes, you should review the amount taken out each paycheck to make sure you’re having enough tax withheld (but not too much). We can help you determine how much to withhold, or you can use the IRS Tax Withholding Estimator available online. You can then update this amount with your employer by submitting a new Form W-4, Employee’s Withholding Certificate.

Make Estimated Tax Payments

Estimated payments are due on June 15th, September 15th and January 15th of each year. We can make these payments for you, or you may do so electronically on the IRS website.

Premier CPA Services 10 year anniversary logo

May 31 was the 10-Year Anniversary of Premier CPA Services! Over the next few months, we will be offering some great giveaways to our clients and Facebook friends to celebrate! Be sure to follow us and stay tuned!

Yes, We Can Handle Your Bookkeeping

As a business owner, you have more important things to do every day than spend valuable time maintaining your books. Whether you just need some guidance, a bit of QuickBooks training, or complete service from A to Z, we can help. Our services include:

  • Day-to-day entry
  • Bank deposits & reconciling
  • Invoicing & check writing
  • Generating statements
  • Consultations
  • And much more!

Let us take the weight off your shoulders so you can get back to the job of running your business and generating profits. Call us today at (706) 632-7850 for more details.

Do You Have Children? You May Start Receiving Monthly Child Tax Credit Payments in July

Do You Have Children? You May Start Receiving Monthly Child Tax Credit Payments in July

If you have one or more children age 17 or under, you may automatically begin receiving advance payments of the Child Tax Credit on July 15th. Roughly 39 million households — covering 88% of children in the United States — will begin receiving the payments as part of The American Rescue Plan Act, which was passed in March.

The new law increased the maximum Child Tax Credit (for 2021 only) to $3,600 for children under age 6 and to $3,000 for children between 6 and 17. As a result, eligible families will receive a payment of up to $300 per month for each child under age 6 and up to $250 per month for each child age 6 to 17. Payments will continue monthly on the 15th of each month — via direct deposit, paper check or debit card — through the end of the year.

Other Details Include:

  • The payments are an advance of any credit due on your 2021 tax return. (Keep in mind this may reduce the amount of your tax refund next year, or even trigger the need to pay back some of the funds if your financial situation changes significantly.)
  • The credit for qualifying children is fully refundable, which means you can benefit from the credit even if you don’t have earned income or don’t owe income taxes.
  • The credit will include children who turn age 17 in 2021.
  • The amount of the CTC was previously up to $2,000 annually per qualifying child under the age of 17.
  • The increased amounts are phased out if your income is over $150,000 (married filing jointly or qualifying widow/widower), $112,500 (head of household) or $75,000 (all others).
  • The advance payments will be made monthly from July through December as long as you live in the U.S. for more than half the year. The total of the advance payments will equal up to 50% of the full Child Tax Credit, and will be estimated from your 2020 tax return (or 2019 return if 2020 is not yet filed).

More to Come

The IRS is sending out letters to families it believes qualifies for the credit. If you qualify, you do not need to take any action to get your payment.

Later this summer, the IRS will be adding a Child Tax Credit Update Portal to its website. You can use the portal to notify the IRS of changes in your income, filing status or number of qualifying children, or update your direct deposit information. You will also be able to unenroll from receiving the advance payments (and instead receive the full amount of the credit when you file your 2021 return next year) if you wish.

Additional information on how you can access the Child Tax Credit can be found on the IRS website at IRS.gov/childtaxcredit2021. Feel free to contact us if you have any questions about how the credit will affect your 2021 tax return.

Premier CPA Services 10 year anniversary logo

May 31 was the 10-Year Anniversary of Premier CPA Services! Over the next few months, we will be offering some great giveaways to our clients and Facebook friends to celebrate! Be sure to follow us and stay tuned!

Extension Date: Still October 15th

Please note that if you filed an extension with the IRS, the due date for your federal income tax return is still October 15. Although the original tax deadline was moved from April 15th to May 17th, the extension deadline has NOT changed. In order to complete your taxes to meet the October 15th deadline, we will need all your paperwork by Friday, September 24th.

Payroll & Accounting Services Available

You may count on Premier CPA Services to file your personal and/or business taxes each year. And for that, we say “Thank You!” But did you know that we also offer Payroll and Accounting Services?

We can handle your employee payroll through MyPay, as well as in-house live payroll, no matter how many employees you have (whether one or 100!). We can also handle your after-the-fact payroll — processing all the necessary forms, and relieving you of the burden of all that tedious paperwork.

For more details, contact Amber at amber@premiercpaservices.com or call (706) 632-7850. It’s easy to get started, and can save you a ton of time and effort.

Common Tax Deductions to Know for Your New Business

Common Tax Deductions to Know for Your New Business

When you first start a business, you don’t know what you don’t know. This can be especially true when it comes to taxes. As a new business owner, you may not be aware of the many tax deductions available that can help take the sting out of starting up.

The IRS defines a business expense as a cost of carrying on a trade or business. “Ordinary and necessary” expenses are usually deductible if you are operating the business to make a profit. When you deduct an expense on your tax return, you lower your taxable income — and reduce your tax liability. When you reduce the amount you owe the IRS, you have more money to re-invest back into your business.

Which Expenses Are Deductible?

With tax laws always changing, it’s often hard to keep up. Below is a general guide, but be sure to check with us to verify that these deductions are still current — and how they may apply to you and your situation.

1. Startup Costs — You may not realize that you can claim business expenses that hit prior to your business’ launch. There are conditions, of course, but most small businesses can deduct up to $5,000 on the first year’s return.

2. Taxes, Interest, Fees & Charitable Contributions — If your business pays tax to a state or local jurisdiction, you may be able to deduct those taxes as a business expense. If you pay for business expenses with credit cards, you can deduct interest and late fees. You can also deduct bank fees, credit card processing fees, payment fees, and other fees incurred on your business banking accounts (i.e., QuickBooks fees). Money you borrowed to start the business can be recorded as a business liability and any interest can be expensed accordingly. Also, charitable contributions may be deductible as well.

3. Wages and Payroll Taxes — Employee wages and payroll taxes are deductions for your business. But being an employee in your own business has benefits, too. When you pay yourself a wage or salary rather than a distribution or dividend, you avoid paying self-employment tax on your personal return. And that allows you to pass the payroll tax deduction onto the business.

4. Retirement Plan Contributions — The benefits are two-fold here: Contributing to a retirement plan will not only give you a deduction now, but it will increase your retirement savings for the future. As a small business, you can establish an inexpensive 401(k) plan or other retirement account option for both you and your employees.

5. Bad Debt — Whether it’s loans to clients or suppliers, goods sold but not paid for, or the sale of a mortgaged property, bad debts are just one cost of doing business. You can claim bad debt as a deduction if the amount owed is included in your gross income or lent out as cash. You’ll just need proof that the debt is worthless.

6. Home Office — Do you run your business out of your home? There are plenty of home-related expenses that can be deducted, including insurance, utilities, property taxes, repairs & maintenance, basic office supplies and more. You do need to have a dedicated space for running your business, and it needs to be your principal place of operation.

7. Health Insurance — Depending on the type of business, you may be eligible for a self-employed health insurance deduction. Given the costs of health insurance, this could be a pretty significant deduction.

8. Education & Training — Investing in education — whether your own or your employees’ — is always a smart move. That’s especially true when you can deduct fees and costs for attending workshops, conferences, tradeshows and other types of classes that will improve your business knowledge.

9. Marketing — Marketing your business through advertising and promotion is not only necessary to succeed, but a deductible expense, too! Some of the expenses that qualify include print materials (e.g., business cards and brochures), print and web ads, website development, email marketing and more.

10. Travel & Entertainment — Some business travel and entertaining expenses have been curtailed over the past few years. The Taxpayer Certainty and Disaster Relief Act of 2020, however, temporarily allows a 100% business expense deduction for meals as long as the expense is for food or beverages provided by a restaurant. This provision is effective for expenses incurred through December 31, 2022. Some other expenses are still deductible up to certain limits.

Keep Track of Your Expenses

Whether you’re just starting a new business or have been running one for 25 years, you know how important it is to take advantage of every possible tax deduction. The money you save not only affects your bottom line, but can be re-invested to help grow the business. We can help you identify which deductions you may qualify for and help you make the most of them — now and at tax time. Call us today at 706-632-7850 to make an appointment with Jackie or Donna.

Source: Score.org 

Do You Need an Extension?

If you have not yet filed your federal income tax return, we can file an extension for you. The deadline to file your taxes or file an extension is Monday, May 17. This will give you until October 15 to file your tax return. Keep in mind, however, that an extension to file is NOT an extension to pay. Any tax due must still be paid by May 17 to avoid penalties and interest. To help you prepare your files, please download a copy of our 2020 Personal Tax Preparation Checklist.

Tax Credits Available for Vaccine-Related Leave

Are you providing paid leave for your employees to receive COVID-19 vaccinations? If so, you may receive a tax credit, available as part of the American Rescue Plan. This also applies to self-employed individuals, who can claim comparable credits.

Eligible employers can receive a tax credit for providing paid time off for each employee to receive the vaccine and for any time needed to recover from it. If you offer your employees a paid day off to get vaccinated, you can receive a tax credit equal to the wages paid to employees for that day. The tax credits are available for leave from April 1, 2021, through September 30, 2021.

The credits are claimed on Form 941, Employer’s Quarterly Federal Tax Return. You’ll keep the federal employment taxes that you otherwise would have deposited, including federal income tax withheld from employees, the employees’ share of Social Security and Medicare taxes, and your share of Social Security and Medicare taxes.

Let us know if you need assistance filing for the vaccine credit. You can contact us here.

QuickBooks Tip #1: Customize Your Settings

QuickBooks Tip #1: Customize Your Settings

As the most popular accounting software around, QuickBooks is designed to be used by almost any type of business. Whether you’re just getting started or have been using QuickBooks for years, take a little time to set (or update) your company’s settings. You can do this by clicking on the small gear icon in the upper right corner. The window that opens may look similar to this:

Start by clicking on Account and Settings, and then click on the various tabs to verify and/or edit:

Company — Check that all the information here is correct and up-to-date. It may not be if you’ve moved, changed a phone number, etc.

Billing & Subscription — Click here to change your plan (upgrade or downgrade) if your business has changed or you need different features.

Usage — Check your usage limits here for users, accounts, classes and locations.

Sales — Customize the design of your invoice, set preferred terms and delivery methods, add messages to your email forms and more.

Expenses — Choose whether to track expenses and items by customer, make expenses billable, use purchase orders and more.

Payments — Set up or connect an existing merchant account so customers can pay you via credit card and bank transfer.

Advanced — While some of the settings here are easy to complete, we can provide guidance on items like “Accounting method,” “Close the books” and “Tax form.”

We speak fluent “QuickBooks” here at Premier CPA Services. Just give us a call at 706-632-7850 and we’ll be happy to give you a lesson or two!

Updated QBI Rules for a Rental Real Estate Enterprise

The IRS recently updated qualified business income (QBI) rules to provide a safe harbor for certain taxpayers with a “rental real estate enterprise” (Sec. 199A). Under the new rules, a rental real estate enterprise is treated as a trade or business if at least 250 hours of services are performed each tax year. These hours are services performed by owners, employees and independent contractors and include time spent on:

  • Maintenance, repairs, rent collection and payment of expenses,
  • Provision of services to tenants, and
  • Efforts to rent the property.

Note that time spent in arranging financing, buying property, reviewing financial statements, and traveling to and from the property are NOT considered hours of service. Also, the IRS requires:

  • Separate books and records for the rental real estate enterprise.
  • Contemporaneous records such as time logs with details on hours spent, services performed and contractor names.
  • An annual statement attached to the tax return.

There are other rules and limitations, so be sure to talk with us about your specific situation.

The information provided here by Premier CPA Services PC is for general information only. It does not constitute legal, accounting, tax or other professional advice or services, and is presented without any representation or warranty as to the accuracy or completeness of the information. Please contact us for information as it relates to your circumstances.
Buy or Lease: What’s Best for Your Business Equipment?

Buy or Lease: What’s Best for Your Business Equipment?

Every business is different, but every business faces the decision on whether to buy or lease equipment. Whether it’s a new computer system for your office or a new truck for your construction business, there are plenty of considerations.

What’s the Cost?

Leasing often makes sense if the equipment will become obsolete quickly or requires regular maintenance, which can be wrapped into the lease agreement. Buying may be the better choice if the item will provide many years of reliable service.

How Will It Affect Your Cash Flow?

Leasing can help protect your cash flow by spreading the purchase cost over time. Lower-budget items may be better suited for outright purchase if it will not strain your cash flow. Also keep in mind that financing equipment purchases can impact your ability to secure credit for other items down the road.

Pros and Cons

Some of the advantages and disadvantages of leasing include:

LEASING PROS:

  • Lower initial expense
  • Potential for tax deductions
  • Flexible terms
  • Ease of upgrading equipment
  • Ease of repairs/maintenance

LEASING CONS:

  • Higher overall cost
  • Lack of ownership/equity
  • Obligation to pay/length of term
  • Availability of product may be limited

Advantages and disadvantages of buying:

BUYING PROS:

  • Ownership/equity
  • Resale value
  • No need for contract
  • Increased product availability
  • Tax incentives/depreciation deductions

BUYING CONS:

  • Higher initial expense
  • Difficulty in upgrading
  • Repair/maintenance costs

If you’re weighing leasing versus buying, give us a call. We can help you look at how the various options will play out so you can make an informed decision.

Don’t Be Scammed

While most everyone is familiar with the old “Nigerian prince” email scam, there are plenty of others that are not so obvious. Keep these tips in mind:

 The IRS will never send you an unsolicited email, or email you about your refund. Many of these scam emails ask you to click a link that takes you to a website that looks similar to the IRS website. If this is the case, do NOT enter personal information such as passwords or Social Security numbers. Instead, forward the email to phishing@irs.gov.

If you receive a call from someone saying they are from the IRS or FBI instructing you to send money someplace, be careful and do not provide any personal information. Verify the details of any “payment” options they may offer by checking your tax information online. It’s also smart to call the IRS or FBI directly using a number available on their official website.

More IRS scam information can be found here: https://www.irs.gov/privacy-disclosure/report-phishing

Other common scams include harassing debt collection calls, telemarketers saying they’re from a bank or credit card company, fake prizes or sweepstakes winnings, and work-at-home offers. If you’re not sure if something is real, check the Federal Trade Commission website or Consumer Fraud Reporting website for the latest information.

The information provided here by Premier CPA Services PC is for general information only. It does not constitute legal, accounting, tax or other professional advice or services, and is presented without any representation or warranty as to the accuracy or completeness of the information. Please contact us for information as it relates to your circumstances.
What Else Can We Do for You?

What Else Can We Do for You?

Many of you meet with Donna or I at tax time, when you’re closing out your year — or trying to figure out why your tax bill suddenly went up! But there are plenty of other times throughout the year that we can help — and maybe save you some money! Here are just a few:

#1 – Home-Related Issues

Because we are intimately familiar with your finances, we can help you understand how buying or selling a home will impact your income, taxes and financial strategies. This also applies to renting out your home or cabin, whether it’s through a local property management company or via Airbnb or VRBO. There are many tax considerations that go into renting, including paying sales & lodging taxes and earning additional income.

#2 — Children

If you’re having a child (or adopting one), you know that your expenses will be impacted. But so will your taxes, most likely in a positive way. We can help you maximize any tax credits or exemptions you may be entitled to, as well as guide you on college savings through tax-advantaged vehicles like 529 plans.

#3 — Marriage or Divorce

While these are both very personal events, you’ll find the government is more involved than you realize! Changes in your life situation will obviously change your tax filing status and could put you in a different tax bracket. In the case of divorce, we can help you understand the tax implications of future alimony payments before you go into negotiations.

#4 — Large Purchases

If you’re considering a major purchase (e.g., boat, RV, home addition), we can help you consider the best ways to pay for it. For example, if you’re selling stock to make the purchase, will you be liable for capital gains? Is a home equity loan your best option for remodeling your home? And which home remodeling receipts do you need to save?

#5 — New Job

If you’re considering a new career opportunity, keep us in the loop. We can help you determine proper withholding amounts, as well as possible write-offs and deductions, such as mileage, education expenses and 401(k) contributions.

#6 — New Business

Many of our clients are business owners, whether they’ve purchased an existing business or are starting from scratch. We can help you make some smart decisions with regard to business loans, employee payroll and taxes, budgeting for expenses and getting started with software like Quickbooks. We can also help you choose the most-advantageous entity for your new business — LLC, an S Corp or a C Corp.

Remember, we are your CPAs all year long, not just at tax time. Please call or schedule an appointment today, and let us help you make those important decisions in ways that benefit you, your family and your business!

 Jackie & Donna

Georgia Business Tax Climate

Georgia currently ranks 33rd on the Tax Foundation 2019 Index. However, the state’s business tax climate can be expected to improve and Georgia taxpayers should see lower tax rates next year once reform kicks in.

Click on image to enlarge.

The information provided here by Premier CPA Services PC is for general information only. It does not constitute legal, accounting, tax or other professional advice or services, and is presented without any representation or warranty as to the accuracy or completeness of the information. Please contact us for information as it relates to your circumstances.