Full Scale Tax Service

12/13/2020

Hope you're getting to spend some socially distanced quality time with the ones you love.

12/12/2020

DID YOU KNOW: Section 2202 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), enacted on March 27, 2020, provides for special distribution options and rollover rules for retirement plans and IRAs and expands permissible loans from certain retirement plans.

In general, section 2202 of the CARES Act provides for expanded distribution options and favorable tax treatment for up to $100,000 of coronavirus-related distributions from eligible retirement plans (certain employer retirement plans, such as section 401(k) and 403(b) plans, and IRAs) to qualified individuals, as well as special rollover rules with respect to such distributions. It also increases the limit on the amount a qualified individual may borrow from an eligible retirement plan (not including an IRA) and permits a plan sponsor to provide qualified individuals up to an additional year to repay their plan loans.

12/11/2020

There are several ways to notify the IRS of an address change:
1. You can call and tell them over the phone. They'll verify your identity by asking your full name, new address, old address, date of birth, and social security number (ITIN or EIN). They may also request additional information if needed.

2. You can fill out IRS form 8822 (change of address) or form 8822-B (change of address or responsible party-business).

3. You can use your new address when you file your tax return.

4. You can send the IRS a signed written statement with your full name, old address, new address, social security number (ITIN or EIN). Mail your signed statement to the address where you filed your last return.

If you filed a joint return and are still residing with the same spouse, both you and your spouse should provide your names, social security numbers, new address and signatures on the form or statement.

If you filed a joint return and you now have separate addresses, each of you should notify us of your new, separate addresses.

For more information on this topic, visit www.irs.gov/faqs

12/11/2020

FRIDAY FACT: Gambling winnings are fully taxable and you must report the income on your tax return. Gambling income includes but isn't limited to winnings from lotteries, raffles, horse races, and casinos. It includes cash winnings and the fair market value of prizes, such as cars and trips.

To deduct your losses, you must keep an accurate diary or similar record of your gambling winnings and losses and be able to provide receipts, tickets, statements, or other records that show the amount of both your winnings and losses.

12/10/2020

It's time to take final actions that can affect your tax results for 2020. If you have substantial increases or decreases in income, changes in marital status or dependent status, or if you sold property during 2020, call for a tax planning consultation appointment. I can help you prepare your taxes with a maximum refund guarantee.

12/10/2020

Based on recent IRS guidance, any Payroll Protection Program (PPP) loan forgiveness may have a tax impact on your freelance business. If you are planning to apply for PPP loan forgiveness, or you already have and are waiting for a final determination, here’s what you need to know:

1. If you are applying for PPP loan forgiveness based on payroll, rent, or other eligible expenses, they will not be tax deductible (preventing a double dip by taxpayers), and by inference this may increase your taxes. If for example you are applying for a PPP loan forgiveness amount of $10,000 of payroll and $5,000 of rent expenses, that $15,000 cannot be deducted on your 2020 tax return—which increases your tax liability.

2. If your PPP forgiveness is based on sole-proprietor or active LLC members profits, you should not consider them to be taxable on your 2020 return. This is because the profits are viewed by the IRS as equivalent to a freelance business owner’s salary, on which they pay income and self-employment taxes. As such this will not have a tax impact for PPP loan forgiveness and are not deductible. Keep in mind that salaries over $100,000 are excluded from forgiveness eligibility.

12/07/2020

Look at yourself in the mirror, smile, and say “this week is going to be amazing.” Then, go make it amazing. Nobody’s stopping you but you.

12/04/2020

This is also great to know as you wrap up your financials from this year and prepare to file your taxes.
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If your personal and financial information happens been compromised, here are some key steps you can take right away. Unfortunately, information breaches and identity theft are all too common. Even if it has never happened to you, be sure to use secure passwords that you change often, do not enter your personal information into devices you don't trust, monitor your credit and apply a freeze if you don't need to use credit right now and report any suspicious activity on your accounts immediately!⁠⠀⁠⠀⠀⠀⠀⁠⠀⠀⠀⠀⁠⠀⠀⠀⠀⁠⠀

12/03/2020

Contact me to learn how to make preparing your taxes as easy as possible.

12/03/2020

12/02/2020

When you pay taxes, you have the option of taking the standard deduction or itemizing your deductions. If you itemize, you calculate your deductions one by one. Itemizing is more of a hassle, but it’s worth it if your itemized deductions exceed the amount of the standard deduction.

For tax year 2020, the standard deduction went up slightly to adjust for inflation.

Keep in mind that every situation is different as far as whether you should take the standard deduction or whether you should itemize. Tap the link in bio to learn more about how I can help you.

12/02/2020

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When looking to increase your savings, FIRST take a look at the BIG 3: Housing, Car & Food Expenses.⁠
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