Crystal's Tax Prep

02/12/2022

🚨🚨🚨Tax tip for business owners! I get a lot of questions on when or how to report 1099 for contractors! You do not need to issue 1099-NEC to contractors you paid if you paid them via stripe, PayPal, cash app, etc the IRS already required TSPO (third party settlement organizations) to report any income over 600 on a 1099k.

02/12/2022

If you only received unemployment, or made less income in 2021, you can use your 2019 income for larger returns.

02/12/2022

TAX TIP 🚨🚨🚨🚨
IRS has stated that those who normally aren’t required to file or who haven’t filed in years should file for 2021 tax year because of the increase in tax credits. Families or individuals with little to no income still qualify for a lot of these increased credits.
Here is what you may be missing when you don’t file
✅An expanded Child Tax Credit
✅An increased Child and Dependent Care Credit
✅A more generous Earned Income Tax Credit
✅A deduction for gifts to charity
Text "Quote" to 980-221-9607 for your free quote

01/26/2022

Tax Credits 💰💰💰 Dont leave 💰on the table‼️
Child and Dependent Care Expenses
FULLY REFUNDABLE!!!!
✅FORM 2441 for 2021 due to American Rescue Plan
✅For tax year 2021, the amount of qualifying child care expenses increased to: $8,000 for 1 child (was $3,000); maximum credit: $4,000 (was $1,050)
✅$16,000 for 2 or more children (was $6,000); maximum credit: $8,000 (was $2,100)
Note ‼️ If you pay for child care you MUST READ THIS AND MAKE SURE YOU TAKE THIS CREDIT!!!!!
ALSO....if you pay for a loved one to be cared for example an adult parent, grandparent, aunt, uncle, etc..... you can also take this expense
Here’s the link to file with me https://form.jotform.com/213645069674060

01/21/2022

I saw this info going around A LOT last month:
Who qualifies for $8000 child tax credit? The credit is only available for dependent care provided so that you could go to work or look for work (or, perhaps, attend school). You must have earned income during the year to claim the credit. For 2021 tax return, the cap on the eligible expense is $8000 for one child or $16000 for two or more. DO NOT TAKE THIS LIGHTLY. In most scenarios, the child care provider you pay will have to also claim that income on their return (there is an income exception). Which means you will need to provide their name, social and additional info. Do not just claim you paid an individual just to get the tax.

01/21/2022

Do you have all of your important documents? File with me when you’re ready. Here’s my intake form:
https://form.jotform.com/213645069674060. IRS will be accepting e-files starting January 24th.

01/21/2022

Tax Tip: You can hire your children to work for you in your S-Corp. Children either under the age of 18 or over the age of 18, it doesn't really matter. The reason you would want to consider this option is because your children are in the lower bracket than you are.
Any individual in the United States can earn up to $12000 of income and not pay federal income taxes of those earnings. If you're hiring a child under the age of 18 and that child doesn't have any other job and you pay this child up to $12000 you can take that as a write off. Your child doesn't have to pay taxes on a $12000 of income earned from your S-Corp. Put your kids on your payroll but remember to pay employment taxes for them also.

01/21/2022

🚨This question is asked every year🚨
Can you file taxes without a w-2?
No, you cannot file a return using your last pay stub and be alarmed if your preparer advises you its ok to do so.
Your last paycheck stub is not guaranteed to be an accurate statement of your annual earnings, and it could be missing some information that you need to file a full tax return. If you file a return that has missing or inaccurate information, you could be required to file an amended return. That could cost you more in tax preparation fees and will increase the amount of time it takes for the IRS to issue a refund.
Ways to get your W-2
Here’s a little bit of good news. Employers must furnish form W-2 to employees by January 31st. However, many employers now provide electronic W-2s that can be accessed earlier in the month.
While you’re waiting, here’s some things you can do:
Ask your employer when they mail out their W-2s.
Did your employer mail your W-2 to an old address? If so, ask them the re-send a new one.
See if you can import your W-2.
Make sure you have updated your employer of your new address. Also, complete form 8822 with the IRS to change your address with them as well. This will lessen the chances of you having your refund delayed due to you having to complete an ID verification.

01/21/2022

Earned Income Credit (EIC)****(this is only for the eic, it does not include the additional credits)
For 2021, the maximum credit increased to:
• $6,728 with three or more children
• $5,980 with two children
• $3,618 with one child
• $1,502 with no children
Earned Income Amount Increased******
Taxpayers may elect to use their 2019 earned income( the look back credit)to figure the EIC, now if their 2019 earned
income is more than their 2021 earned income you don’t qualify for the look back credit). To be eligible for a full or partial credit, the taxpayer must
have earned income of at least $1 but less than:
• $51,464 ($57,414 if Married Filing Jointly) with three or more qualifying children
• $47,915 ($53,865 if Married Filing Jointly) with two qualifying children
• $42,158 ($48,108 if Married Filing Jointly) with one qualifying child
• $21,430 ($27,380 if Married Filing Jointly) with no qualifying child.

01/21/2022

It is almost tax time and who should you trust more to not only get you the maximum refund amount but keep all your personal information confidential? File with me.
FOR YOUR KNOWLEDGE
1) Parents could see an increase of up to $8,000 in refund for dependents ages 12 and under.
2) You will receive letter 6419 that must be filed with your taxes. This letter will let us know how much did you receive in monthly child tax credit payments and if you have not received any or missed a payment(s).
3) Gambling losses are tax deductible (certain requirements)

01/21/2022

Laws are always changing in the tax world and we are here to make sure you stay updated!
Biden has extended the pause for student loan payments until May 1, 2022. You will want to book your appointment as soon as you have all documentation so you don’t get caught in the act of having your refund taken from you.
COLLEGE STUDENTS: New Tax Law Update:
🔰The Tuition and Fees Deduction (which was an adjustment to income on Form 1040) has been eliminated. Therefore, Form 8917 is no longer applicable.
🔰The Lifetime Learning credit will now begin to phase-out when the taxpayer’s modified adjusted gross income reaches $80,000 ($160,000 for married filing joint filers).
🔰Educational credit will still be available, therefore you should receive form 1098-T to file with your tax return.
Stay updated with all new tax laws!

01/21/2022

Why Hire a Tax Professional? Here’s 10 reasons why !!
1️⃣It can save you money. If your tax preparer finds even one deduction or tax credit you may have missed, it can easily exceed the fee it costs to have a professional prepare your return.
2️⃣It saves you time. The Internal Revenue Service reports that it takes nearly 20 hours to complete the average tax return with deductions. Your time is worth money. How much is it worth to you to get that time back?
3️⃣Tax professionals can answer your questions and resolve issues. It’s very likely you will have questions about your taxes. Calling the IRS means you could be on hold for hours. Tax professionals can answer most of these instantly.
4️⃣The tax code is very complicated. Professional tax preparers keep up with it and all those changes each and every year so you don’t have to.
5️⃣You gain peace of mind. Just knowing that a professional is handling your taxes reduces stress.
6️⃣Making mistakes can be very costly. In terms of missed deductions or triggering an IRS letter or audit; a tax professional can help eliminate errors and ensure your returns are prepared correctly.
7️⃣You benefit with money-saving tax planning. Tax professionals can advise you now and all year round on the best strategies to make smart tax-saving decisions.
8️⃣Your previous returns can be also reviewed. A tax professional can look at your past returns to see if any deductions were missed and, if so, amend them for you.
9️⃣You can reduce your risk of an audit. And, if you are audited or the IRS starts asking questions you can’t easily answer, a professional tax preparer knows how to deal with the IRS.
🔟It takes the hassle out of doing it yourself.
When you're ready, here's my intake form.

Please click the link to complete this form.