In the past few years, self-employment, or working as a freelancer, has become a popular means to earn a living while pursuing creative ideas or working on passion projects. However, along with the many benefits of being your own boss, such as scheduling and completing work at your convenience, there are tax repercussions of which you need to be aware. For self-employment tax reporting, there’s some specific information and documentation you must have on hand when tax time rolls around. If you’re self-employed, here’s what to expect when you file your taxes.
The April tax deadline is looming. If you haven’t filed your taxes yet, you may be debating whether to hire a CPA or do them yourself. If you do decide to engage a professional, must they be a CPA? Knowing when the time is right to bring in a CPA can help you run your business more successfully. So… when do you need to hire a CPA for tax preparation?
Love it or hate it, tax time is looming large. (Not that we think many of you love it, unless of course you’re receiving a tidy sum in a refund). All through the winter, and into spring, you try to stop thinking about it (or you've completely forgotten), but the deadline is drawing very near. You are supposed to get your taxes filed before the 18th of April, and there's no time left to tip-toe around the topic. With just days to go, tax time is truly upon us! Do you need an extension?
When you see the phrase "identity theft," it’s likely that the first thing you think of is compromised credit and debit cards or a hacked bank account. Often, the identity theft we hear about involves the electronic movement of money, so we have learned to be more careful, protecting how we share information and making sure our personal details are encrypted and secured. However, one crime not often considered is another popular type of identity theft involving your tax returns, though it’s more common than you might think. Let’s look at what is involved and some of the best ways to protect yourself against tax identity theft.
When you open your mailbox and find a simple white envelope with the return address containing the words “Internal Revenue Service” or “State Tax Commission”, you might feel your heart skip a beat as anxiety sets in. It could be a simple notice informing you of your Identity Protection PIN, or a request for more information, or possibly a notification of something more serious, such as potential tax identity theft or an impending audit. Once you steel yourself to open the envelope, it’s likely that your initial thoughts will be along the lines of “How do I handle this?” and “Who can help me?” This is the reason that we at Myrick CPA are introducing the Client Care Services Plan - for your peace of mind.
Three kinds of taxpayers are doing their taxes incorrectly: those who are waiting for a refund, those who are dreading doing their taxes, afraid of owing as much as they did in the prior year, and those who have actually haven't got a clue as to what their taxes will look like once the dust settles. What they all have in common is insufficient planning, and each of them should take time to sit down with a Certified Public Accountant (CPA) and start planning for next year - because good tax planning never leaves money on the table.
Flimflam, scam, con, shakedown, racket . . . to borrow Shakespeare's phrase, "A fraud by any other name would be as deceitful." Scams have been perpetrated on individuals and companies for at least 2,500 years, and the tools used to carry out the crimes are ever-changing. An expansive list of possible scam scenarios will not likely cover all possibilities. Learning to beware of the signs of potential fraud and how to respond is a more effective method to protect yourself from becoming the victim of an online scam. Here a few hints on how to prevent online scams - and what to do if you’ve been targeted.
The past few years have seen some dramatic changes in workplaces across all industries. For example, the move toward fewer in-person visits to accountants began even before health concerns curtailed or eliminated nearly all interactions at every office. However, clients can take comfort that they still have the option of being able to meet "face-to-face" with their accountant on Zoom or any of the other video conferencing apps. This adjustment to a virtual relationship has raised concerns in some areas but has eased many other aspects of accounting. Let’s explore the question of whether a virtual meeting with your accountant is as effective as a meeting in person.
“Preparedness is the ultimate confidence builder” – Vince Lombardi
The time for reporting income taxes is here once again. For many, it’s a time of high anxiety, but it doesn’t have to be. As with most daunting tasks, a little preparation can go a long way toward alleviating stress and assuring smooth progress. Time spent organizing and uploading your documents prior to your virtual appointment with your CPA will serve you and your tax preparer well on multiple levels.
For example, as you are putting your files in order, it will likely refresh your memory of events throughout the year, which may affect the amount of taxes owed. Better yet, being prepared will inevitably cut down on the time needed to complete tax filings, since there will be less back-and-forth between you and your CPA. Here are some of the best ways for individuals and families to prepare for tax season.
The start of a new year is always a good time to create a cash flow projection and work toward improving cash flow management skills. Adam Stewart, a debt collection expert, describes it this way: “Cash flow is having the right amount of cash in the right places at the right time, every time.” Cash flow management begins with observing the natural flow of funds in your organization, household, or business with the desired goal of generating useful cash flow projections. Here’s how you can get on top of your cash flow in 2023.