Ivionne McFarland, EA

04/29/2023

Are you ready to avoid the painful yet inevitable repeat of your last tax season engagement? You may have been speaking with a blank wall (your previous tax preparer) or just pouring out your soul into the air as you scurried through your expenses in preparation for filing taxes. Understanding how taxing (pun intended!) it is to work up the motivation to complete the daunting task required to get ready to file. That’s why you should make sure this year’s tax season journey is different from your past experiences - no more procrastination!
It's time for you to declare: I will not repeat this Tax Season again!
Tax planning can be a tricky and often overwhelming task, but it is absolutely essential to ensure that you are not paying more in taxes than you actually should be. Unfortunately, many people simply hand over their financial documents to a tax preparer and fail to actively implement tax strategies, resulting in a higher tax burden.
One common mistake that can lead to overpaying in taxes is incorrectly filing them. It is imperative that you are aware of any changes to tax codes and regulations each year to ensure that you are correctly reporting your income and deductions. Even simple errors like forgetting to report a business expense or charitable donation can add up over time and result in a substantial amount of extra taxes.
However, being proactive with tax planning can help you to make the most of your financial situation. By actively implementing tax strategies like contributing to a retirement plan or taking advantage of available tax credits, you can keep more money in your pocket each year. For example, contributing to a 401(k) plan not only helps you prepare for retirement but also reduces your taxable income, resulting in a lower tax bill.
It is crucial to understand that tax strategies are not only legal, but they are also available to everyone. By doing your research and seeking help from a financial advisor or tax professional, you can find ways to minimize your tax burden and maximize your savings.
Failing to effectively plan can lead to paying too much in taxes or incorrectly filing them. However, actively implementing tax strategies and understanding the legality of tax planning can ultimately help you keep more of your hard-earned money. Remember to stay informed, take advantage of available tax benefits, and seek professional guidance when needed.

01/17/2023

Truth or Myth: Tax planning is only for the ultrawealthy👀

Truth. Tax planning is not just for the ultra-wealthy; it is beneficial for all types of taxpayers. By understanding the complexities of the tax code and taking specific steps to minimize their taxes, individuals and businesses can save more money on their taxes each year. For example, taxpayers who itemize deductions may be able to maximize their deductions by strategically planning throughout the year. Additionally, business owners can take advantage of various tax credits such as the Research and Experimentation (R&E) tax credit or Work Opportunity Tax Credit (WOTC).

On top of that, there are numerous strategies that even low-income households can use to reduce their tax liabilities. Some such strategies include contributing to a Retirement Savings Account like a 401(k), investing in a Health Savings Account (HSA), or utilizing above-the-line deductions like the student loan interest deduction or tuition and fees deduction. Moreover, those with lower incomes may be eligible for certain credits such as the Earned Income Tax Credit (EITC) or Child Tax Credit (CTC).

To sum it up, while effective tax planning can benefit those with higher incomes greatly by helping them minimize their taxes, even those with lower incomes can gain from careful tax planning by taking advantage of various credits or deductions available to them.

✨Ivionne McFarland, EA

11/01/2022

📅 Friendly Reminder 📅

Collecting w-9s from your contractors NOW will save you a lot of headaches come January!

My recommended best practice is to collect w-9s along with a photo ID from your contractors prior to starting work with them, however, later is better than never!

It is easier to get these forms completed prior to payment, rather than after the contract is over.

The due date for furnishing statements to recipients for Forms 1099-B, 1099-S, and 1099-MISC (if amounts are reported in boxes 8 or 10) is February 15, 2023 👈

-basedbusiness

09/12/2022

Need helping figuring out if working with a tax professional is the right choice for you?

Lucky for you, I've got a handy flowchart to help you come to a decision!

Ready to feel confident in your taxes? Let's set up a time to chat about your situation!

Click the link in our bio to setup your discovery call

09/24/2021

How exactly are we feeling about IRS response time POST-COVID19.

Before the COVID-19 pandemic, the IRS was getting refunds out swiftly and responded to calls and correspondence in a reasonable amount of time. However, COVID-19.........

Thirteen states have notable tax changes taking effect on July 1, 2021, which is the first day of fiscal year (FY) 2022 for every state except Alabama, Michigan, New York, and Texas. Individual and corporate income tax changes usually take effect at the beginning of the calendar year for the sake of...

09/15/2021

How do you feel about the IRS receiving reports about your bank transactions?

One key prong of President Biden's plan to bankroll Democrats' $3.5 trillion budget plan is to monitor gross inflows and outflows from an individual's bank account.

12/28/2020

Utilize a Tax Professional!

If you prepare a simple tax return, by all means use a free service. But if you have multiple businesses, multiple jobs, rental income, stocks or bonds, it may be time to call in a professional.

If you are unsure about how your 2020 tax return will turn out, don't be afraid to contact a professional we are here to help.

Share with us! We would like to hear your 2021 Business Needs!

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11/17/2020

Looking to plan ahead? Here are initial figures from the IRS regarding the upcoming, 2021 tax year.