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Florida Tax Advisors, 140 Sw 15th Street, Pompano Beach, FL (2026)

02/05/2025

Earned Income Tax Credit Eligibility - Did You Know?

Millions of Americans may qualify for the Earned Income Tax Credit (EITC), which can significantly reduce a person's tax or increase their IRS refund. Unfortunately, many people miss out on this valuable credit each year because they do not realize that they are eligible.

Even if you have not qualified for the EITC in the past, you may be eligible if you experienced a life change in 2024 like a reduction in income, a change in marital status, or the birth or adoption of a child. Others who may overlook the opportunity to claim the credit include veterans, grandparents raising grandchildren, Native Americans, and people who live in rural areas or have limited English skills.

In order to claim the EITC, you must file a tax return, even if you do not have enough income to have a filing requirement. A tax professional can check your eligibility and help you file your return electronically to get your refund as quickly as possible.

02/03/2025

Hobby or Business – Did You Know?

Depending on a variety of factors, the IRS may designate a side gig as either a business or a hobby. In some cases, having your side gig classified as a business can offer tax advantages, while in others, the hobby classification may be preferable.

Generally, the IRS defines a business as any activity that a person regularly pursues with a reasonable expectation of making a profit. If an activity results in losses (expenses exceeding revenue), the IRS may look at why those losses occurred, to determine whether they are likely to continue in the future.

One subtle factor to consider is the future value of assets used for the activity. If a pursuit involves acquiring property that gains value over time, like real estate or certain musical instruments, then those gains may yield long-term profits in spite of short-term losses. A tax professional can help you determine whether the IRS will likely see your side gig as a business or a hobby, and whether changes to how you pursue the activity could result in tax savings.

01/29/2025

IRS 2025 IP PIN to Improve Security - Did You Know?

The IRS encourages everyone to get an identity protection number (IP PIN) for the 2025 tax filing season. An IP PIN is a unique code that you include on your tax return and any other IRS forms that you file during a year. Using this code prevents scammers from submitting fraudulent tax documents in your name, in an attempt to steal your refund or identity.

The easiest way to obtain an IP PIN is to create an online IRS account (link below). You can also request one by mail by filing IRS Form 15227. Note that an IP PIN only lasts for one calendar year, so even if you had one in 2024, you will need a new one this year. Once you receive your 2025 IP PIN, make sure to include it on your 2024 tax return, so that the IRS will accept it and reject any fakes. A tax professional can help you file your return electronically with your IP PIN properly entered, to ensure the fastest possible processing.

Get an IP PIN: https://www.irs.gov/identity-theft-fraud-scams/get-an-identity-protection-pin

01/27/2025

Tax Filing Season Begins

The IRS starts processing tax returns today and the deadline to file 2024 tax returns and pay any taxes owed is Tuesday, April 15, 2025.

Once filed, the status of your tax return can be checked at: https://www.irs.gov/wheres-my-refund.

01/20/2025

Filing Deadline for W-2 and 1099 Forms

Businesses who paid employees or independent contractors in 2024 are reminded to file all required payment reporting forms by January 31, 2025.

If you operate a business and pay employees, you generally must file a Form W-2 for each employee with the Social Security Administration (SSA) by January 31. You must also send each employee a copy of their W-2

January 31 is also the deadline for 1099 forms if you are required to file 1099-MISC and 1099-NEC forms.

If you are an employee, you should expect to receive your W-2 from your employer soon, if you have not received it already.

01/13/2025

Federal Tax Filing Season Opens on January 27, 2025

The IRS has announced that the filing season for 2024 tax returns will officially begin on Monday, January 27. On that date, the IRS will begin accepting tax returns for processing, and begin preparing and issuing refunds. Note that you may file your return before January 27, but the IRS will not take any action with the return until that date. Except in regions where the IRS has issued deadline extensions due to federal disaster declarations, 2024 individual tax returns must be filed by April 15, 2025.

After January 27, people who have filed their 2024 returns will be able to use the IRS Where's My Refund portal (link below) to check the status of their tax refunds. For most returns filed electronically, status updates will become available within 24 hours after filing. For paper returns, it can take up to four weeks for the portal to provide refund status information. The IRS issues most tax refunds within 21 days after processing the return. However, refunds related to the Earned Income Tax Credit cannot be issued before mid-February.

A tax professional can help you e-file your return with direct deposit of your refund, for the fastest possible processing.

IRS Refund Status Portal: https://www.irs.gov/wheres-my-refund

01/13/2025

Quarterly Estimated Tax Payments - Reminder

If you are making quarterly estimated tax payments to the IRS, the due date for the September 1 – December 31 quarter of last year is January 15, 2025.

For payments made using IRS Direct Pay, you can make payments until 11:45PM EST, and for payments using a credit or debit card, payments can be made up to midnight on the due date.

01/08/2025

Standard Business Mileage Rate to Increase for 2025 – Did You Know?

The IRS has announced that the standard mileage rate for business use of a vehicle will be 70 cents per mile in 2025, an increase of 3 cents over the 2024 rate. Note that this rate applies only to business miles driven on or after January 1, 2025. Self-employed people and small business owners who use the standard mileage rate must use the previous rate of 67 cents per mile to figure their 2024 vehicle expense deductions.

In most cases, using the standard business mileage rate is optional. You may instead figure your deduction by tracking actual expenses like repairs, depreciation, auto loan interest, and fuel or charging expenses. Make sure to prorate each expense based on the percentage of your mileage traveled solely for business reasons. Also note that if you report actual expenses for the first year when you put a vehicle into service for business, then you generally must track actual expenses for all subsequent years as well.

A tax professional can help you determine whether you qualify to deduct business vehicle expenses, and if so, help you find the most advantageous strategy to figure your deduction.

12/31/2024

Tax-related Gift Card Scams During the Holidays – Did You Know?

The holiday season can bring a lot of joy, but unfortunately, it also brings a new wave of scammers trying to cheat Americans out of their hard-earned money. Many scammers impersonate the IRS or other government agencies and demand payment in gift cards.

In one common version of the scam, a caller posing as an IRS agent threatens a person with tax and/or criminal penalties if the person does not immediately pay off a fictitious tax debt. The scammer may also send threatening text, email or voice messages with a callback number. Ultimately, the scammer demands that the person make payment by purchasing gift cards and sharing the card numbers and PINs.

If you get a call or message from anyone demanding payment in gift cards, hang up or do not reply. The IRS will never call a taxpayer to demand payment in gift cards, prepaid debit cards or wire transfers. If you have legitimate concerns about your tax situation, including back taxes you may owe, a tax professional can help you handle the problem in a safe, secure way.

12/23/2024

'Tis the Season to Prepare for Tax Time – Start Assembling Important Documents Now

With a New Year fast approaching, tax filing season cannot be far behind. Taking a few simple steps to prepare over the next several weeks can significantly reduce stress when you complete your return. First, make sure you have important records readily at hand, like last year's return and receipts for deductible expenses or donations. Second, keep your eyes out for year-end income statements in January and early February. These documents may include:

- W-2 forms from employers
- Forms 1099-NEC and/or 1099-MISC showing your income from sources like rents, self-employment activities (such as gig work) and royalties
- Forms 1099-INT and 1099-DIV showing interest, dividends and other investment income

If you accept payments for goods or services through a payment app or online payment platform, you might also receive Form 1099-K showing that income. The filing threshold for these forms was lowered for 2024, so you may receive one even if you never have in the past.

Other important forms you might receive include Forms 1095-A (Health Insurance Marketplace Statement) and 1098-T (Tuition Statement). Also remember that you must answer questions about your involvement with digital assets like crypto on your tax return, and report any resulting income. Make sure you have complete records of all your 2024 digital asset transactions, so you can meet these reporting requirements. A tax professional can help you organize your records, and help you file your return electronically to get your refund as quickly as possible.

12/16/2024

Retirement Plan Distributions Deadline - Did You Know?

The IRS recently issued a reminder that many seniors must take mandatory withdrawals, known as required minimum distributions (RMDs), from their retirement accounts by December 31. In general, people of age 73 or older must take annual RMDs from their traditional IRAs or IRA-based workplace plans, such as SIMPLE IRAs, even if they are still working. Similar RMD rules apply for many other workplace retirement plans like 401(k) and 403(b) accounts. However, people who have not yet retired can defer RMDs for some of these accounts, as long as they do not own more than 5% of the company. Designated Roth accounts within workplace retirement plans are generally not subject to RMD rules.

Your retirement account administrator should inform you of your RMD amount, which is based on your account balance and current age. In general, RMDs count as taxable income. Failure to take an RMD by the deadline may trigger a tax penalty of up to 25% of the required withdrawal amount.

The standard deadline to take RMDs is December 31, but if you turned 73 in 2024, you will typically have until April 1, 2025 to take your first RMD. Just keep in mind that you will then need to take your second RMD by December 31, 2025. A tax professional can help you determine how the various RMD rules apply to your accounts, and plan for any tax impacts of the withdrawals.

12/10/2024

Healthcare Open Enrollment Deadline on December 15

This week is the last week to register for the HealthCare.gov open enrollment period with the deadline being Sunday, December 15th, 2024. Once the Open Enrollment period is over, you will only be able to enroll if there's a qualifying life event for the Special Enrollment Period.

Enrollment can be done at https://healthcare.gov, and a simple checklist of documents you'll need can be found here: https://marketplace.cms.gov/outreach-and-education/marketplace-application-checklist.pdf.

Florida Tax Advisors

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