Tannery Company 的动态

Is the itemized deduction coming back? And are self-preparers, Tax Pros, and CPA's looking for it? A bit of context: The 2017 Tax Cuts & Jobs Act (first effective in tax year 2018) was the biggest piece of tax reform since the 1980's. It brought about the elimination of personal exemptions and a substantial increase of the standard deduction. Prior to the TC&JA it was estimated that 18% of tax filers itemized their deductions. Afterward, that number was closer to 3%. There is a variety of reasons that this was true, one of the largest being the $10,000 cap on deductions for State and Local Taxes (SALT). As an example, for 2024, with SALT capped at $10k, a Married Filing Jointly couple would need to have an additional $19,200 of itemized deductions to overcome the standard deduction "hurdle" of $29,200. There are a lot of itemized deductions (feel free to add any that I miss). But the core items that most people have are as follows: ? State and Local Taxes (capped at $10k) ? Student Loan interest (capped at $2.5k) ? Charitable giving (nuanced but usually not capped out for most people) ? Medical expenses (nuanced and only deductible after expenses exceed 7.5% of AGI, most families don't qualify) ? Mortgage interest expense (nuance exists here for loans greater than $750k that I am not going to cover) Mortgage interest expense is huge! From 2018 to 2022, mortgage interest rates were at all-time lows. A $300k mortgage at 3.5% (going rate in 2020/2021) only incurs $10,400 of deductible interest expense. Coupled with SALT capped at $10k, you still need $9,200 of itemized deductions before you overcome the standard deduction hurdle. A $300k mortgage at 6.67% (going rate in 2023, ask me how I know…) incurs $20,000 of deductible interest. Coupled with SALT of $10k. You are right on the line of itemization with every deduction after this. This is likely an area that most folks are not thinking about when preparing their own taxes. Tax pros need to make sure they start asking the questions regarding itemizing deductions, even if it represents more work. The tax "game" is ever changing. But it is knowable.

?? Ready to Save Big This Tax Season? Check Out These Must-Know Tax Tips for 2025! ?? ?? Did you know? Over 70% of taxpayers miss out on deductions they’re eligible for. Don’t let that be you! Whether you're filing as an individual or for your business, these 2025 tax tips will help you maximize savings and stay IRS-compliant: 1?? Start Early, File Early: Avoid the last-minute scramble. Early filers are more likely to catch errors, get their refunds faster, and dodge the tax season rush. 2?? Organize Your Documents: Gather W-2s, 1099s, expense receipts, and other financial records now. Keeping everything handy prevents missing out on valuable deductions. 3?? Leverage Tax Credits: Tax credits like the Child Tax Credit, Earned Income Tax Credit, and Energy-Efficient Home Credit can reduce your tax bill significantly. 4?? Don't Forget About Deductions: Whether it’s the home office deduction, student loan interest, or business expenses, deductions can save you thousands. 5?? Report All Income: Even side gigs or freelance work must be reported. IRS matching systems easily catch underreported income—don’t risk penalties. 6?? Contribute to Retirement Accounts: Maximize your contributions to 401(k)s or IRAs. Not only do you secure your future, but you also lower your taxable income. 7?? Plan for State Taxes: Federal and state tax rules differ. If you moved in 2024 or work remotely, consult an expert to avoid surprises. 8?? Watch Out for Common Errors: Incorrect SSNs, wrong filing statuses, or overlooked credits can delay your refund or lead to IRS notices. 9?? File Electronically: E-filing is faster, safer, and ensures accuracy with built-in checks for errors. Plus, you’ll get your refund quicker with direct deposit. ?? Pro Tip for 2025: If you own a business, keep an eye on IRS changes like beneficial ownership reporting and other compliance updates. ?? Make 2025 the year you file stress-free and save more! Contact our founder, Anshul Goyal, CPA, at [email protected] to ensure your taxes are filed accurately and you claim every deduction and credit you deserve. ?? Expert guidance, maximum savings, and peace of mind—let’s make it happen together! #TaxSeason #TaxTips #IRSCompliance #TaxSavings #FileYourTaxes #TaxCredits #CPAServices #SmallBusinessTax #RefundReady #FinancialPlanning

?? The Impact of Taxes on Our Lives: Why Form 1040 Matters ?? Have you ever considered how taxes affect not just our wallets but our entire quality of life? ?? Understanding taxes might seem complicated, but it’s essential for making informed financial decisions, and one key player in this process is Form 1040. Here’s why it matters for all of us: 1. Income Reporting: Form 1040 is where individuals report their annual income. This is crucial because it helps ensure that everyone pays their fair share of taxes. When people accurately report their income, they contribute to funding important services like schools, hospitals, and public safety. 2. Tax Liability Calculation: This form calculates how much tax you owe based on your income and any deductions or credits you might qualify for. Knowing whether you owe money or will receive a refund can significantly impact your financial planning and budgeting. A tax refund can provide a welcome boost to your finances, while owing money might require adjustments in spending. 3. Deductions and Credits: Form 1040 allows taxpayers to claim various deductions and credits. Deductions can reduce your taxable income, while credits can directly reduce your tax bill. For instance, you might be able to deduct expenses related to education or claim credits for energy-efficient home improvements. These incentives encourage people to save and invest in their futures. 4. Access to Benefits: Completing Form 1040 is often necessary to access government benefits and programs. Many assistance programs, like those for housing or food support, require proof of income reported on this form. This means that how you fill out your taxes can affect the support you receive in times of need. 5. Financial Planning: The information on Form 1040 provides a clear picture of your financial situation. By reviewing your income, expenses, and tax obligations, you can make more informed decisions about saving for retirement, buying a home, or planning for your children’s education. Good financial planning leads to better long-term security. 6. Compliance: Filing Form 1040 accurately is not just a good practice; it’s a legal requirement. Ensuring that you file correctly helps you avoid penalties and interest that can arise from mistakes. This compliance gives you peace of mind, knowing you are fulfilling your civic duties. Understanding the significance of Form 1040 is not just for accountants; it’s for everyone. When we grasp how taxes work, we can better navigate our financial lives and support each other in our communities. Let’s promote financial literacy and encourage open discussions about taxes and financial wellness! Together, we can help everyone feel more empowered to take control of their financial futures. ?? #Form1040 #EmployeeWellbeing #Tax

How Income Taxes Work Taxpayers and businesses spend an estimated 6.5 billion hours a year complying with tax-filing requirements, which is worth $364 billion in economic value just to comply with tax regulations.1 As complex as the details of taxes can be, the income tax process is fairly straightforward. However, the majority of Americans would rather not spend time with the process, which explains why almost half hire a tax professional to assist in their annual filing.2 Remember, this material is not intended as tax or legal advice. Please consult a professional with tax or legal experience for specific information regarding your individual situation. Getting Started The tax process starts with income, and generally, most income received is taxable. A taxpayer’s gross income includes income from work, investments, interest, pensions, as well as other sources. The income from all these sources is added together to arrive at the taxpayer's?gross income. What’s not considered income? Gifts, inheritances, workers’ compensation benefits, welfare benefits, or cash rebates from a dealer or manufacturer.3 From gross income, adjustments are subtracted. These adjustments may include retirement plan contributions, half of self-employment, and other items. The result is the adjusted gross income. From adjusted gross income, deductions are subtracted. With deductions, taxpayers have two choices: the standard deduction or itemized deductions. The standard deduction amount varies based on filing status, as shown on this chart: T Chart Source: IRS.gov, 2024 Itemized deductions can include state and local taxes, charitable contributions, the interest on a home mortgage, and certain unreimbursed job expenses, among other things. Keep in mind that there are limits on the amount of state and local taxes that can be deducted.4 Once deductions have been subtracted, the result is taxable income. Taxable income leads to gross tax liability. But it's not over yet. Any tax credits are then subtracted from the gross tax liability. Taxpayers may receive credits for a variety of items, including energy-saving improvements. The result is the taxpayer's net tax. Understanding how the tax process works is one thing. Doing the work is quite another. 1. NTU.org, April 17, 2023 2. IRS.gov, 2024 3. The tax code allows an individual to gift up to $18,000 per person in 2024 without triggering any gift or estate taxes. An individual can give away up to $13,610,000 without owing any federal tax. Couples can leave up to $27,220,000 without owing any federal tax. Also, keep in mind that some states may have their own estate tax regulations. This material is not intended as tax or legal advice. Please consult a professional with tax or legal experience for specific information regarding your individual situation. 4.?The mortgage interest deduction is the first $750,000 of the loan for a home and the state and local income taxes deduction is capped at $10,000. (Copyright FMG Suite)

Tax season has a reputation. For most people, it’s that time of year when panic sets in, papers are flying, and you’re wondering how on earth you’re going to pull everything together in time. Sound familiar? Well, I tend to disagree with the whole “panic mode” approach. And here’s why. When your books are in good shape, tax season becomes way less of a nightmare. Sure, unexpected things will pop up now and then, but let’s be real most of the stress comes from not having everything organized. The secret? Keeping your financials clean, clear, and ready to go before tax time rolls around. ?? Here’s how I help my clients stay cool, calm, and collected during tax season: 1?? Everything is prepped and ready. From their balance sheet to their profit and loss statement to the general ledger, my clients have every single report their tax preparer might need. No digging through random receipts, no searching for missing expenses just clean, accurate numbers. 2?? Clarity on deductions. I make sure my clients know exactly what’s deductible, so there’s no confusion or missed opportunities. From business meals to software expenses, everything is tracked and documented. And if their tax preparer has questions? The info is already at their fingertips. Let’s talk about my own experience for a second. I’ve been doing my own bookkeeping for a while now, and when I sat down to handle my taxes earlier this year, I’ll admit I felt a little nervous. But, here’s the thing I wasn’t overwhelmed. Why? Because I knew my books inside and out. I knew where every number came from, what my deductions were, and how to make sense of it all. There was no guesswork, no last-minute scrambling. And honestly, that feeling of being prepared? It’s priceless. But here’s a confession: As much as I love having control over my books, I think this might be the year I finally let someone else handle my taxes. Why? Because even though I’m fully capable, it’s okay to hand over the reins when you’ve done the prep work. Trusting a professional when you’ve got your books in order makes the process even smoother and it frees you up to focus on what you love most in your business. Here’s the bottom line: Tax season doesn’t have to be a stress-fest. When your bookkeeping is in order, you feel confident, prepared, and ready to tackle it head-on or pass it off to someone else with zero anxiety. Whether you do your taxes yourself or hand them over to a pro, the key is in the prep.

Today is April 16, 2024. This is a day that I have celebrated over many years as a practicing Certified Public Accountant. Taxes are due on April 15th without an extension of time to file your tax returns, as long as it isn’t a weekend. On April 16th, I would pack up the car and drive to Palm Springs for about four or five days of R&R, Rest, and Relaxation! Tax season is very hard for CPAs, and the rest is well-earned. So you have had a Certified Public Accountant prepare your income tax returns for you. That’s the smart way to do it. Please see a Certified Public Accountant unless you only have a W-2 form and interest income. Don’t use an enrolled agent or a storefront tax preparer if you have any complexities. If you learn anything from this article, see a CPA if you have any complexities. Back to the topic, the Internal Revenue Service hasn’t done anything for you ever, let alone recently. If you are getting a refund, you are just getting your money back from the government. Let me say that again: YOUR MONEY.?That means that during the year, you overpaid the taxes you were going to owe for the past year.?Many of you use your refund to take a vacation, buy a new car, and do a whole list of other things with the refund: YOUR MONEY!?And you didn’t get one dime of interest on that money.?NOT ONE DIME!?If you changed the withholding exemptions and got more in your paycheck every week or paid somewhat less in the estimated income tax payments that so many of us pay, you could have put the money in a savings account and received interest income.?But be aware of paying enough not to be subject to the “penalty of underpayment of income taxes” that is there. So, again, the Internal Revenue Service is doing nothing good for you.?But I have a way for you to get an interest-free loan from the Internal Revenue Service!?You read that right: an interest-free loan from the Internal Revenue Service.?If you invest in commercial real estate, defined as real estate that generates income, which includes that single-family residence that is considered Residential Real Estate by so many others, and if you have a Cost Segregation Study performed by a licensed company of engineers, not accountants, then you can defer the payment of income taxes on literally tens of thousands of dollars for years and years and YEARS!!!?So, you can get a HUGE tax deduction against your other income, yielding a much lower amount of income taxes that you have to pay now and pay it later.?Therefore, you have an interest-free loan from Uncle Sam!!!?But please remember that this is a deferral of paying income taxes that will be paid in years from now. You should also be aware that there is a situation in which you will never—I said NEVER—pay income taxes on the income, but that’s another whole article. We are looking to help you invest in real estate and WIN!!! THE CLIENT COMES FIRST!!! THE CLIENT ALWAYS COMES FIRST!!!

The W-4 is the form you fill out when starting a new job to determine how much federal income tax is withheld from your paycheck. While the default W-4 settings will work for many people, you may be able to adjust your W-4 to get more money in each paycheck, but you should take care when doing so. Filling out your W-4: The basics Determine your tax situation Think about your expected income, tax credits, deductions, and personal exemptions for the year. Are there any major changes from last year? Gather any related tax documents as well to help inform your W-4 changes. Use the IRS withholding calculator The IRS provides an online calculator you can use to estimate the right tax withholding for your situation. Plug in the relevant details and it will suggest the number of allowances to claim. Claim allowances for dependents If you have qualifying dependents, be sure to claim allowances for them on your W-4. Each allowance will reduce your taxable income amount. Consider additional income If you have additional income like interest, dividends, or freelance work, you may need to account for estimated taxes on that income separately. Claiming fewer allowances can help cover the tax due. Request additional withholding If you are significantly underwithheld, you can request an additional flat dollar amount be withheld from each paycheck in Step 4(c) of the W-4. This increases the tax taken out upfront. Update as needed Major life changes like marriage, childbirth, or new deductions may require submitting an updated W-4 to your employer. Recheck your withholding any time your situation changes. For more, here’s our detailed guide to filling out your W-4. A larger refund means more withheld throughout the year Rather than getting a lump sum refund at tax time, it’s better to properly withhold and receive more in each paycheck throughout the year. That big refund means you’ve overpaid your taxes all year, and the government has been holding on to your money; all the while, you could have invested or earned interest on that money yourself. And ultimately, getting a huge refund signals that your tax withholding was too high and more was taken out of each paycheck than necessary. It’s better to adjust your withholding to match your tax liability. For obvious reasons, I won’t list all the illegal ways people try to improperly maximize tax refunds—but there are perfectly legitimate ways to adjust your W-4 to optimize tax withholding. The key is to try to optimize your withholding to match your expected tax liability: Review your tax situation from last year. Did you get a large refund or owe a lot at tax time? Use this info to determine if you need to adjust your withholding. Make sure your number of allowances claimed on your W4 is accurate based on your tax situation. The higher the number, the less tax withheld. If you had major life changes like getting married or having a child, update your W4 to reflect that. Getting married

???? Exploring Your Tax Balance Due and Refund Options ???? Tax season isn't just about crunching numbers—it's also an opportunity to explore your options when it comes to tax balances due and refunds. Here's a breakdown of what you need to know: ?? Understanding Tax Balances Due: If you owe money to the IRS after filing your tax return, it's essential to understand your options for payment. You can pay your balance due in full or explore payment plans and installment agreements to spread out the payments over time. It's crucial to address any balance due promptly to avoid penalties and interest accruals. ?? Payment Options for Balances Due: When it comes to paying your tax balance due, you have several options: 1. Electronic Payment: You can make secure electronic payments directly to the IRS through various methods, including debit or credit card, bank transfer, or electronic funds withdrawal. 2. Check or Money Order: You can also pay by check or money order, either by mailing it to the IRS or submitting it in person at an authorized payment location. 3. Installment Agreement: If you're unable to pay your balance in full, you may qualify for an installment agreement, allowing you to make monthly payments until the balance is paid off. Xpert Tax Service can help you explore this option and guide you through the application process. ?? Exploring Refund Options: If you're entitled to a tax refund, congratulations! It's time to consider how you'd like to receive your refund: 1. Direct Deposit: Opting for direct deposit is the fastest and most secure way to receive your refund. You can have your refund deposited directly into your bank account, usually within a few weeks of filing your return. 2. Paper Check: If you prefer a traditional approach, you can receive your refund as a paper check sent by mail. Keep in mind that this option may take longer to process and receive compared to direct deposit. 3. Split Refunds: With split refunds, you can divide your refund into multiple accounts or financial instruments, such as checking accounts, savings accounts, or retirement funds. This option allows for flexibility in managing your refund. ?? Consulting with Xpert Tax Service: Whether you have a tax balance due or are expecting a refund, Xpert Tax Service is here to help you navigate your options and make informed decisions. Our team can provide personalized guidance tailored to your unique tax situation and financial goals. Don't let tax balances due or refunds catch you off guard—explore your options and take control of your finances with Xpert Tax Service by your side! #TaxRefund #TaxBalanceDue #PaymentOptions #DirectDeposit #InstallmentAgreement #XpertTaxService #FinancialPlanning #TaxSeason

Happy New Year! I'm going to share some tricks that I've learned have been helpful for financial review and tax planning as 2025 gets started. TL;DR: 1) Download all your 2024 transactions while the year is new. 2) Review your tax withholdings 3) Upload your tax docs as soon as you get them. 4) Budget 5) Review best places for your liquid and near-liquid holdings. First, I highly recommend downloading all your transactions from your bank accounts, credit cards, and money market accounts. Most banks only allow you to download a year's worth of time in an easy-to-use format. Unlike credit card companies which make downloading data easy, banks do not. So going in early on in the year and getting them in .CSV format is best. If you plan to do any planning or even prepare for your taxes, having that will answer any hidden questions. Additionally, if you've downloaded all that data, you can do your "year-in-review". You can see where you spent money and which purchases were really great and which ones didn't work out. It can help you as you plan your budget for 2025 to see just how expensive (or inexpensive!) that Florida vacation turned out to be. Second, look at your withholding from your paycheck. Perhaps you received a raise or something changed (i.e. your spouse is now working) it would be good to make those adjustments early in the year so you won't need to adjust backward calculating the difference from the beginning of the year. Third, start uploading your tax documents asap. When you receive your end of year tax information, don't just put them in some file on your computer (although you should keep copies) go ahead and upload them directly to your tax preparer/planner. All of them have secure file portals and you don't need to upload at once, when you get them - just upload them. Fourth, get your budget together. This time of the new year, we're often optimistic so use that energy for a good purpose and think about what you want to do with your family, how you want to accomplish certain 2025 goals and put them in your annual budget now. Will it happen in March or July? What's a good estimate for that upcoming cost? What's the trip you'd love to do but you need to plan for it and start a plan to save today. That's the kind of thing I'm talking about. Finally, review your cash situation. Each year interest rates change and the money market fund or the bonds, cash accounts, whatever you use may be great or it may need to change. Think through your best options for your liquid savings and even some of those near-term but maybe don't need to be totally liquid savings. If you're saving for more than a year in a CD, there are most likely much better options. We have a low-risk opportunity for our clients that yields roughly 10%. This is not a recommendation for that but it's worth looking around. I hope your 2025 is off to a great start!

?? Your Taxes Are Up for Election Every Two Years: Here’s How It Affects You! Growing up, I remember my father meticulously going through our taxes every April. He’d often mutter, “You know, these rules could change overnight.” It sounded dramatic at the time, but little did I know how profoundly true his words were. Today, as I navigate my own finances and help others with theirs, I realize that our taxes are indeed up for election every two years, and it’s crucial to stay informed. Or better yet, stay in control! If you’re wondering whether you should be concerned about rising taxes, buckle up.... Here are six ways you could owe more in taxes in the future. 1. Higher Income, Higher Tax Bracket: The fastest way to owe more taxes is by earning more money. Moving into a higher tax bracket means a larger portion of your income goes to the government. 2. Government Decisions on Tax Rates: Tax rates can change based on government decisions. For instance, in 2018, Congress passed a tax reform that lowered tax brackets for many Americans. However, these changes are set to sunset in 2025, potentially raising taxes again in 2026 unless new legislation is passed. When most people think about paying higher taxes, these 2 scenarios come to mind, but there are still 4 other ways taxes can increase: 3. Changing Tax Deductions: Tax deductions can change, impacting how much of your income is taxable. The Tax Cuts and Jobs Act, for example, reduced the mortgage interest deduction limit from $1 million to $750,000 for married couples and to $375,000 for single filers. 4. Expanding Taxable Income: New sources of income can become taxable. Social Security, which was once 100% tax-free, now has up to 85% of its benefits subject to taxation. 5. Legislative Changes: New laws can affect your taxes. The SECURE Act of 2019, for example, changed the age for required minimum distributions (RMDs) from retirement accounts from 70.5 to 72, and later to 73, increasing to 75 with SECURE 2.0. 6. Widower’s Penalty: When a spouse dies, the surviving spouse files as a single taxpayer. Without a decrease in income, this often results in a significantly higher tax bracket. Talk about adding insult to injury! Understanding these scenarios is crucial. Your tax risk is indeed up for election every two years, influenced by legislative changes, economic shifts, and policy reforms. Addressing tax risk today could save you thousands of dollars in the future - Don’t believe me, check it out for yourself: www.NavigateYourTaxes.com. While many financial advisors suggest ways to dodge the bullet, at Compass Financial we believe we should take you out of the line of fire! Let’s connect and discuss how you can prepare for these potential tax changes. Remember, knowledge is power, especially when it comes to your finances. How are you preparing for the impact on your taxes? Share your thoughts below!