Spann CPA Advisory

01/23/2022

Some pre-tax season humor...The 2022 tax filing season begins Jan. 24

01/21/2022

Some days we all dream of a rich uncle who would leave us a small fortune in his will…What is I told you there is a place where you can find some of your long-awaited money. It is called Unclaimed Funds. You can check it on your State Treasurer’s Website and search for what is rightfully yours. I got $110 back a couple years ago. Not exactly a life changing amount, but it felt like pulling a winter coat out of a closet and finding some money in the pocket that I left for “my future self”.
Please, see a link below and go get that treasure

There’s a whopping $49 billion in unclaimed funds waiting to be claimed, according to SmartAsset. And more than $3 billion in unclaimed money is returned to its owners by the states each year, according to the National Association of Unclaimed Property Administrators. Due to the financial woes re

01/18/2022

Isn’t it exciting to earn additional income doing what you like? And no, I’m not asking you to buy any essential oils from me. :) Here I am talking to all of those in the freelance economy…Side hustle is a way to take control of your financial well-being and get closer to your goals. As a matter of fact, I also have a side hustle project...but more about it later…and no, it’s not essential oils!
You have to treat your side hustle as any other business and remember to set aside some of this money for taxes. The IRS is getting more and more serious about collecting the money from people in the “gig economy”.
As a freelancer, you may be getting paid through some form of electronic payment (Venmo, PayPal, etc.) or participate in online services (like Uber or eBay). Until the end of 2021, freelancers and businesses normally only received a 1099-K tax form if they sold $20,000 or more in goods or services, with a minimum of 200 transactions throughout the year.
But starting in 2022, there is a BIG CHANGE. Now anyone who receives $600 from selling goods or services from these platforms will receive a 1099-K—and there’s no more transactions minimum. It is more important as ever to gather your receipts and invoices, because the right documentation will help you prove to the IRS if a certain transaction was related to your business.

01/15/2022

January 15 is here, which is a time to make an estimated tax payment for some businesses.

Most people know that small business owners are required to pay estimated taxes four times a year, or every quarter. But how do you calculate estimated taxes? Here’s a step-by-step procedure to help you to determine these quarterly payments.

• Calculate your projected taxable income for the current year.
• Determine how much you’ll owe in income and self-employment taxes.
• Divide the total amount of taxes you expect into four equal payments.
• Make an estimated quarterly tax payment to the IRS.

01/14/2022

Tax Planning vs. Tax Preparation: What is the Difference?

Tax preparation is the process of preparing and filing a tax return. Typically, it is a one-time event that is set and done after you sign your return and find out whether you owe the IRS money or will be receiving a refund.

Tax planning is a year-round process and is a separate service from tax preparation. Both individuals and business owners can take advantage of tax planning services, which are typically performed by a professional with in-depth experience and knowledge of tax law.

Tax planning is something that most taxpayers do not take advantage of - but should - because it can help minimize their tax liability on next year's tax return by planning. Yes, this means you will get to see your accountant more, say quarterly or even monthly. In addition, you will be in a top shape when it comes to tax saving strategies, organization and your financial goals.

01/13/2022

I usually see myself as an optimist...but the IRS going into new tax season with at least 10 million unprocessed returns from last year...Yikes!

What does it mean for you this tax filing season? With so many important details to consider, it’s easy to make an error or omit something which could end up as a penalty, fine, or unwanted problem with the IRS.

It’s best to have all of your records organized and work with a professional who can prepare accurate and timely tax returns to avoid issues with the IRS, which, let's be honest, at this speed, can take years to resolve.

https://www.nytimes.com/2022/01/12/business/irs-backlog-tax-returns-2021.html

01/13/2022

Do you enjoy taking your clients and colleagues to lunch? So do we! Just a reminder that taxpayers who incur food and beverage expenses associated with operating a trade or business can deduct 100 percent of these expenses for tax years 2021 and 2022 as long as the meal is provided by a restaurant.
Now, that a delicious tax break!

01/13/2022

Getting Ready for the 2022 Tax Filing Season:

No one likes getting letters from the IRS. That's a fact! This year filing your tax return promises to be just as complicated as always - especially if you received stimulus payments or advance child tax credit payments. Some taxpayers should be on a lookout for the following IRS documents scheduled to arrive in January 2022:

Letter 6419, 2021 Total Advance Child Tax Credit Payments, to reconcile advance child tax credit payments

Letter 6475, Your 2021 Economic Impact Payment, to determine eligibility to claim the recovery rebate credit

As much as we all dread getting correspondence from the IRS, these are non-threatening letters that are necessary for your tax filings this year. Please, make sure to have them ready to start your tax preparation.