Major Life Events May Mean Major Tax Changes
60 Second Tax Solution Podcast
Release Date: 05/11/2021
IRS Warning Tax Scams
60 Second Tax Solution Podcast
Identity thieves are becoming more creative in hitting people with realistic-looking emails and texts about their tax returns and refunds. These messages claim to be from the IRS. The IRS will only send snail mail letters. They will never contact you via text, phone, or social media. Scammers use these tactics to obtain your personal information, money, and more, leading to tax identity theft. This is when your number is stolen and used to file fraudulent tax returns. They then steal the funds your owed by depositing the tax refunds into their accounts. There are signs that your tax identity...
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When Do You Owe Taxes On Your Crypto?
60 Second Tax Solution Podcast
New investors may forget to consider taxes when dipping their toes into the crypto world. However, the IRS is cracking down on tax compliance. Be aware of how to handle your tax reporting when it comes to your digital assets. Taxable events from crypto investments require tax reporting. A taxable event means a scenario that triggers or realizes income. When you buy Bitcoin at $1,000 and the value goes up to $1,500 and you sell it, it is a taxable event. Your realized gain is $500. As stated in the IRS virtual currency guidance, taxable events for digital currency are trading crypto to a...
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Tax Planning for Individuals
60 Second Tax Solution Podcast
Are you unsure where to start with your tax planning? Do these simple tips that individuals like you can follow. You should max out your retirement plan. Remember that withdrawing funds from a retirement account can trigger additional taxes of up to 40% or more. Ensure you have confirmed your withholdings. Consider purchasing property. Also, take note that Sale of Property can initiate capital gains tax and must be communicated to your tax preparer before selling. Donate money to charity. Don’t forget to track your out-of-pocket medical and dental expenses. If you’re someone with a child...
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Reduce Audit Exposure
60 Second Tax Solution Podcast
No one likes the stress involved when your tax return is under the spotlight. There are some ways to avoid common audit triggers. Make sure to report everything with an informational return. Most likely, you’ll receive either a W-2 or a 1099 form, and the IRS gets a copy of it, too. If your tax return exceeds or doesn’t match your reported income, expect to receive a notice from the IRS. If you’re self-employed, steer clear from claiming large losses on a Schedule C. For business owners, consider incorporating your business instead of filing a Schedule C. Avoid using too many...
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Question: What are Hot Tax Deductions and Credits that Business Owners Should Know?
60 Second Tax Solution Podcast
Businesses and employees have struggled with the onslaught of COVID-19. In November 2021, the IRS enacted the Employee Retention Tax Credit (ERC), a refundable tax credit designed to reward business owners for employee retention throughout the pandemic. Business owners impacted by COVID-19 can claim up to $5,000 in refundable tax credits for each employee on their payroll in 2020 and up to $7,000 credit per quarter (excluding Q4) for each employee in 2021. Consider opening a retirement plan as the employer match is 100% deductible. In California, starting June 30th, all employers with 5 or...
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Question: What Interests the IRS?
60 Second Tax Solution Podcast
Question: What Interests the IRS? Be aware of what puts you at risk of attention from the IRS. Here are some of the more vulnerable areas. Frivolous tax protests have been frustrating to both the IRS and tax courts. If you file a return stating that you don’t owe any tax because the dollar is worthless, expect to be audited. Be wary if you’re someone in a high-income bracket auditing higher-income taxpayers because you’re likely to produce additional tax revenue. Taxpayers with occupations that produce cash income, such as laundromats, beauty salons, restaurants, vending machines, and...
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Being Audited By The IRS?
60 Second Tax Solution Podcast
Less than 2% of over 145 million individual tax returns filed will be selected for audit. The IRS may increase this percent as they have hired 2500 new auditors. The percentage increases for higher income groups and tax returns in areas of specific interest to the IRS. If you should receive notice from the IRS of an impending audit, please remember: IRS computers usually flag the tax returns for audits. The vast majority of them are routine. Because of the flagging process, your audit will usually focus on one to three categories of your tax return. Audits do not automatically mean something...
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What's New For Small Businesses in 2021?
60 Second Tax Solution Podcast
Call us today for a consolation on your business taxes-there is a lot of changes heading your way and you need the Best in the business helping you navigate through these tax situations. 1-877-6-SOLVER
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What's New in 2021 For Individuals
60 Second Tax Solution Podcast
Tune in to learn some of the changes coming into effect for tax year 2021 with Phil Liberatore, CPA.
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2021 Fica Tax Rates with Phil Liberatore, CPA
60 Second Tax Solution Podcast
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Major life changes can be stressful, not least because they often affect your taxes. The following are just some of the many life events that you’ll encounter, along with some tips on how to cut your tax bill or save money.
1. Getting married. Your marital status affects the tax bracket you’re in and doubles your standard deduction to $24,800. If you are married and either you or your spouse is 65 or older, your standard deduction increases by $1,350. If both you and your spouse are 65 or older, your standard deduction increases by $2,700.
2. Birth. With a new birth comes a new dependent on your return. You may now qualify for credits and deductions that can have an immediate benefit on your tax situation. You also have the option of withdrawing $5,000 per parent (or $10,000 total as a couple) without penalty from qualified retirement accounts to help with costs associated with your new bouncing baby. You’ll still owe income taxes on this distribution, but can avoid an early withdrawal penalty.
Please call if you have tax questions about these and other major life events. As always, should you have any questions or concerns regarding your tax situation please feel free to call.
Philip L. Liberatore, CPA remains committed to providing you with important information that pertains to your success. Learn more here: https://www.liberatorecpa.com/