Teaching Tax Flow

Amending Federal Tax Returns: When and How to Use Form 1040-X Mistakes happen, even on tax returns! The good news is, the IRS allows taxpayers to correct errors or make updates to their previously filed federal income tax returns using Form 1040-X. Whether you’ve discovered unclaimed deductions, overlooked income, or received new tax documents, an amendment could help ensure your tax situation is accurate and complete. Here’s what you need to know: Eligibility: You can amend your return for up to three years from the original filing date or two years from when you paid the tax, whichever is later. Common Reasons to File: Amending is often necessary to correct filing status, dependents, income, or deductions and credits that were missed. Electronic Filing Available: Form 1040-X can now be filed electronically for certain tax years, making the process faster and more efficient. Supporting Documents: Be sure to include any relevant forms or schedules supporting the changes you're making. Processing Time: Amendments typically take up to 16 weeks to process, so patience is key. Correcting your tax return can save money or prevent potential issues down the line. Consult a trusted tax professional if you're unsure about the process. #TaxTips #AmendedTaxReturn #Form1040X #IRSUpdates #TaxPlanning #TaxSeason #FinancialTips #TaxHelp https://lnkd.in/exxhGGXt

A little behind the curtain of our #podcast production. If you missed it - here's the latest episode where we talk LLCs > https://bit.ly/4g3bvkL

Secure 2.0 Act: Key Highlights You Need to Know The Secure 2.0 Act is transforming retirement planning with new provisions aimed at making saving for the future more accessible and flexible. Here are some of the most impactful changes: Automatic Enrollment: Starting in 2025, many new employer-sponsored retirement plans will automatically enroll employees, ensuring more individuals start saving early. Catch-Up Contributions: For individuals aged 50+, the catch-up contribution limits for 401(k) and similar plans are increasing. Starting in 2025, those aged 60-63 can contribute an additional $10,000 annually, indexed for inflation. Student Loan Matching: Employers can now match student loan payments with contributions to retirement accounts, helping young professionals build their retirement savings while paying off debt. Roth IRA Flexibility: Secure 2.0 eliminates the RMD (Required Minimum Distribution) for Roth accounts in employer-sponsored plans starting in 2024, enhancing Roth IRA benefits. Emergency Savings Options: Participants can withdraw up to $1,000 annually from their retirement accounts for emergency expenses without penalty. Small Business Incentives: Tax credits for small businesses offering retirement plans have increased, making it easier for them to provide benefits to employees. These updates are game-changers for retirement planning, offering individuals and businesses more opportunities to secure their financial future. #RetirementPlanning #SecureAct #FinancialPlanning #401k #RothIRA #TaxPlanning #RetirementSavings #FinancialFreedom #SmallBusiness #CatchUpContributions #StudentLoans #TaxCredits #FuturePlanning #WealthManagement #EmergencySavings #RetirementStrategy

?? Tax Tip Tuesday: Should I Be an LLC? This week, we’re tackling a hot question for entrepreneurs and business owners: Is forming an LLC right for me? ?? In our latest podcast episode, we break down: ? When an LLC makes sense (and when it doesn’t!) ? Tax benefits and implications of LLCs ? Common mistakes to avoid when setting one up ?? Tune in to the full episode here: https://bit.ly/3ZnDOVk Get clarity on this — because your business structure can shape your financial future (and provide or avoid possible unwanted headaches + expenses). #TaxTipTuesday #LLCFormation #Entrepreneurship #TaxStrategy #SmallBusinessSuccess

Questions about S-Corps? Just give him a whiteboard. #Taxes #BrainAtWork #Education

Understanding the IRS Passive Activity Loss (PAL) Rules The IRS Passive Activity Loss (PAL) rules can catch even seasoned investors by surprise. These rules limit the ability to deduct losses from passive activities, like rental properties or businesses in which you don’t materially participate, against non-passive income such as wages or portfolio income. Here’s a breakdown of what you need to know: Passive vs. Active Participation: A passive activity is one where you don’t materially participate. For example, owning rental property typically counts as passive unless you qualify as a real estate professional. Material participation requires regular, continuous, and substantial involvement. Loss Deduction Limits: Passive losses can generally only offset passive income. If your passive losses exceed your passive income, the excess is suspended and carried forward to future years to offset future passive income or reduce capital gains when the activity is sold. Special Rules for Real Estate: Real estate investors may qualify for exceptions. If your modified adjusted gross income (MAGI) is $100,000 or less, you might deduct up to $25,000 in rental losses, subject to phaseouts. Disposing of an Activity: If you fully dispose of a passive activity in a taxable transaction, any suspended losses become deductible in full. Understanding the PAL rules is critical to effective tax planning. Work with a tax professional to structure your activities for optimal tax outcomes. #PassiveIncome #TaxStrategy #PALRules #RealEstateTax #TaxPlanning #RentalIncome #IRSRegulations #PassiveLosses #TaxTips #AccountingAdvice #RealEstateInvesting #CPATips #TaxCompliance #FinancialPlanning

?? New Podcast Episode Alert! ?? Are you a content creator or social media influencer trying to turn your passion into a sustainable business? ?? We recently sat down with Duke Alexander Moore, EA to talk about what it takes to succeed—and how to handle taxes in this unique industry. One key takeaway: “Consistency is the most important thing. Don’t stop—because once you stop, it’s over.” Tune into the full episode here: https://bit.ly/3YXYDoS #ContentCreation #InfluencerMarketing #TaxPlanning #Taxes

Quick Tip: What Qualifies as a Deductible Business Expense? Not all business expenses are deductible—so what qualifies? According to the IRS, a business expense must be ordinary and necessary to be deductible. Let's break it down... Here's the full podcast discussion https://bit.ly/40VqGIn #BusinessExpenses #TaxDeductions #OrdinaryAndNecessary #IRSRules #BusinessTaxTips #TaxPlanning #DeductibleExpenses #SelfEmployedTaxes #IRS #TaxStrategy #FinancialPlanning #Podcast

How to Withhold Taxes on Social Security Income Social Security income can be a lifeline during retirement, but many retirees are surprised to learn it may be subject to federal income tax. The good news? You can plan ahead and withhold taxes directly from your Social Security payments to avoid surprises during tax season. Here’s how to do it: Assess Your Tax Liability: First, determine if your Social Security benefits are taxable. Combine your total income (including wages, interest, dividends, and retirement distributions) with half of your annual Social Security benefits. If this total exceeds $25,000 for single filers or $32,000 for married filing jointly, a portion of your benefits may be taxable. Submit Form W-4V: If you decide to withhold taxes, complete IRS Form W-4V (Voluntary Withholding Request). On this form, you can choose to have 7%, 10%, 12%, or 22% of your monthly benefits withheld for federal taxes. Send It to the SSA: Submit the completed W-4V form to your local Social Security Administration office. The withholding will begin promptly. Review Annually: As your income changes, reevaluate your withholding to ensure it aligns with your tax liability. Proactive tax withholding can prevent underpayment penalties and a hefty tax bill come April. Planning ahead is the key to stress-free retirement finances! #TaxPlanning #SocialSecurityTaxes #TaxWithholding #RetirementIncome #CPATips #IRSFormW4V #TaxStrategy #SocialSecurityPlanning #TaxTips #RetirementPlanning #AvoidTaxSurprises #CPAAdvice #TaxCompliance #RetirementTaxPlanning https://lnkd.in/e-U2K4aZ

If you missed it earlier this week, we published our amazing discussion with Duke Alexander Moore, EA about taxes (and business) for Content Creators and Influencers. He has an amazing personal and professional story about getting 3.4 million followers on TikTok, being invited to the White House and being featured on countless national news outlets. Ep. 110 | Followers to Fortune: Influencers and Content Creators ?? https://bit.ly/3YXYDoS #Podcast #Taxes #Business #Create #Content