Perfect Balance Accounting Services LLC

Tax Season is Here! It's that time of year again! Tax season is officially underway, and we’re here to make the process as smooth and stress-free as possible. Our expert accountants are ready to help you with all your tax preparation needs, whether it's individual returns, business filings, or anything in between. Call us today to schedule your appointment or click below to book online. Let’s get your taxes done right, so you can focus on what matters most! https://lnkd.in/gCbMgvE8

Federal Tax Filing Season! Make your Appointments with us Today! The IRS has announced that the filing season for 2024 tax returns started on Monday, January 27. The IRS is now accepting tax returns for processing, and has begun preparing and issuing refunds. 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. IRS Refund Status Portal: https://lnkd.in/esqSPWWq.

~February Upcoming Tax Deadlines~ 10th - Employees Who Work for Tips – If you received $20 or more in tips during January, report them to your employer. See Pub. 531 for more information on how to report tips to your employer. 18th - Individuals – If you claimed exemption from income tax withholding last year on the Form W-4 you gave your employer, you must file a new Form W-4 by this date to continue your exemption for another year. 18th - Businesses – Give annual information statements to recipients of certain payments you made during 2024. You can use the appropriate version of Form 1099 or other information return. Form 1099 can be issued electronically with the consent of the recipient. This due date applies only to the following types of payments: - all payments reported on Form 1099-B. - all payments reported on Form 1099-S. Substitute payments reported in box 8 or gross proceeds paid to an attorney reported in box 10 of Form 1099-MISC. 28th - Businesses – File information returns (for example, certain Forms 1099) for certain payments you made during 2024. These payments are described under All businesses under January 31, earlier. However, Form 1099-NEC reporting nonemployee compensation must be filed by January 31. There are different forms for different types of payments. Use a separate Form 1096 to summarize and transmit the forms for each type of payment. See the General Instructions for Certain Information Returns for information on what payments are covered, how much the payment must be before a return is required, which form to use, and extensions of time to file. If you file Forms 1097, 1098, 1099 (except a Form 1099-NEC reporting nonemployee compensation), 3921, 3922, or W-2G electronically, your due date for filing them with the IRS will be extended to March 31. The due date for giving the recipient these forms generally remains January 31.

Tax Season is Approaching! Upcoming Tax Deadlines for January! 10th - Employees Who Work for Tips – If you received $20 or more in tips during December, report them to your employer. See Pub. 531, Reporting Tip Income, for more information on how to report tips to your employer. 15th - Farmers and Fishermen – Pay your estimated tax for 2024 using Form 1040-ES. You have until April 15 to file your 2024 income tax return (Form 1040 or Form 1040-SR). If you don’t pay your estimated tax by January 15, you must file your 2024 return and pay all tax due by March 3, 2025, to avoid an estimated tax penalty. 15th - Individuals – Make a payment of your estimated tax for 2024 if you didn’t pay your income tax for the year through withholding (or didn’t pay in enough tax that way). Use Form 1040-ES. This is the final installment date for 2024 estimated tax payments. However, you don’t have to make this payment if you file your 2024 return (Form 1040 or Form 1040-SR) and pay all tax due by January 31, 2025. 31st - Payers of Nonemployee Compensation – File Form 1099-NEC for nonemployee compensation paid in 2024. 31st - Businesses – Give annual information statements to recipients of certain payments you made during 2024. You can use the appropriate version of Form 1099 or other information return. Form 1099 can be issued electronically with the consent of the recipient. Payments that may be covered include the following: - Cash payments for fish (or other aquatic life) purchased from anyone engaged in the trade or business of catching fish. - Compensation for workers who aren’t considered employees (including fishing boat proceeds to crew members). - Dividends and other corporate distributions. - Interest. - Rent. - Royalties. - Payments of Indian gaming profits to tribal members. - Profit-sharing distributions. - Retirement plan distributions. - Original issue discount. - Prizes and awards. - Medical and health care payments. - Debt cancellation (treated as payment to debtor). - Cash payments over $10,000. See the Instructions for Form 8300. See the General Instructions for Certain Information Returns for information on what payments are covered, how much the payment must be before a statement is required, which form to use, when to file, and extensions of time to provide statements to the IRS. Form 1099-B, Proceeds From Broker and Barter Exchange Transactions; Form 1099-S, Proceeds From Real Estate Transactions; and certain reporting on Form 1099-MISC, Miscellaneous Information, are due to recipients by February 18. 31st - Individuals – If you didn’t pay your last installment of estimated tax by January 15, you may choose (but aren’t required) to file your income tax return (Form 1040 or Form 1040-SR) for 2024 by January 31. Filing your return and paying all tax due by January 31 prevents any penalty for late payment of the last installment. If you can’t file and pay your tax by January 31, file and pay your tax by April 15.

Discover the inspiring story of Laura DeGroot, owner of Perfect Balance Accounting. Learn about her dedication to community leadership, her passion for youth initiatives, and her love for horses!

?? Important Update for Racine County Residents ?? Starting April 1, 2025, Racine County will implement a 0.5% county sales and use tax. Why is this happening? The new tax will help fund critical local services and infrastructure projects, supporting everything from road repairs to public safety initiatives. It's part of an ongoing effort to strengthen our community. ?? What does this mean for you? Expect a small increase on your purchases within Racine County, with the tax rate total increasing from 5.0% to 5.5%. The tax will be applied to most taxable goods and services, so plan accordingly when making large purchases or planning for big events. ?? Where does the money go? The revenue generated from this tax will directly fund local projects and services like public health, education, transportation, and more! For more details and to stay updated, visit https://lnkd.in/gG6Dsg6r Let’s work together to keep Racine County strong! ??

?? Year End Tax Checkup! ?? As the year comes to a close, here are some steps you can take in December to make sure you’re ready for the upcoming tax season: Organize Your Records Many tax deductions and credits require written documentation. Make sure your receipts for deductible expenses are safely stored with your tax records, or for digital documents, backed up in multiple locations. To claim a tuition credit like the Lifelong Learning or American Opportunity Tax Credit, you will need a copy of Form 1098-T from the school where you paid qualifying tuition and fees. Use Up Your FSA Funds If you have a workplace flexible spending arrangement (FSA) for medical or other qualified expenses, remember that FSAs have an annual use-it-or-lose-it rule. You will typically forfeit any funds left in the account on January 1. Check with your workplace benefits department to learn how the use-it-or-lose-it policy may affect your account. If you are at risk of losing funds, schedule qualifying expenses like dental work or eye checkups now. Set Up A Bank Account With Direct Deposit If you provide direct deposit banking information to the IRS, you can get your tax refund up to three weeks faster than with a mailed check. If you do not know whether your account can receive direct deposits, check with a customer service agent at your bank. Contribute To Your Qualified Retirement Plan If you have not reached the annual contribution limit for your retirement plan, such as an IRA or 401(k), you may wish to put more money into the plan before the year ends. Contributions to traditional IRAs and other plans may be tax deductible, reducing your taxable income. Depending on your adjusted gross income (AGI), your retirement contributions may also qualify you for the Saver’s Credit, which can reduce your tax on a dollar-for-dollar basis. Be like Santa, check your list twice! ??

Happy Giving Tuesday! Let’s make a difference, together. This Giving Tuesday, let’s focus on the power of community and the impact of financial literacy: - Research: Use the IRS Tax Exempt Organization Search Tool to verify a charity's legitimacy. - Consult Your Accountant: Discuss potential tax benefits of charitable giving. - Track Your Mileage: Keep a log of the miles you drive for volunteer activities. You may be able to deduct these expenses on your taxes. Together, we can build a stronger, more equitable future. #GivingTuesday #Charity #FinancialAdvice #PerfectBalanceAccounting

MSRP Limitations Apply for the Clean Vehicle Credit For the first time in 2024, people who qualify for the Clean Vehicle Credit (CVC) may transfer the credit to a registered dealership as a down payment, or in exchange for a discounted vehicle price. Vehicles eligible for the credit include many fully electric, plug-in hybrid and fuel cell vehicles assembled in North America. To qualify for the credit, a new vehicle must have a manufacturer’s (MSRP) not exceeding $80,000 for vans, pickups and SUVs, or $55,000 for all other passenger cars. Note that this restriction is based solely on MSRP, not on the price a buyer actually pays for the vehicle. The IRS recently reclassified some cars as SUVs, making them eligible for the CVC due to the higher MSRP limit. If you recently purchased an electric or plug-in hybrid car but could not claim and/or transfer the CVC due to the MSRP, you can search the current list of eligible vehicles (link below) to see if your car now qualifies for the CVC. If so, you may be able to claim the credit on your 2024 tax return by obtaining a vehicle eligibility report from the dealer. Updated Qualifying Clean Vehicles List: https://lnkd.in/gWfWfDuB

Honoring Our Heroes this Veterans Day! Today, we pause to thank and honor the brave men and women who have served in our nation's armed forces. Your courage, dedication, and sacrifice have made the world a safer place for all of us. We are forever grateful for your service. To all veterans—thank you for your strength, resilience, and selflessness. You are not only our heroes but also our inspiration. Today, we salute you!