News. Trends. Perspectives. February 2021

With the second round of Paycheck Protection Program (PPP) loan funding and tax season well underway, many Americans have their attention focused on their finances. There’s a lot to consider during this time of year, and it’s important to take the time to educate yourself on what to expect during this unusual tax season.

In my newsletter this month, I’m exploring things like tax breaks on your PPP loans and the pros and cons of early filing. I’ll also share an inside look at the world of financial planning.

In this edition:

• News for Now: Tax breaks for PPP loans
• Tax Trends: Pros and cons of filing your taxes early
• Paul’s Perspective: What it’s like to work as a freelance financial planner

1. News for Now — Financial news that matters to you

Got a PPP loan? You might be eligible for a tax break.

In 2020, the initial Paycheck Protection Program offered much-needed financial assistance to small business owners across the country. Now, even more businesses are taking advantage of Round Two of this forgivable federal loan.

There’s one question on nearly every PPP applicant’s mind, though: How will this impact my taxes?

The good news is you may be able to expect a tax break from the IRS. If your loan was forgiven, you can deduct expenses paid for with PPP funding from your tax return for that year. This means your PPP loan is a true “double-dip,” and you can rest easy knowing that you can still take advantage of the same business expense deductions that you might have if you’d paid for those line items out of your own pocket.

Even better, you may also be able to carry back losses you experienced and recoup some of your tax liability from previous years.

Watch my interview with NDT to learn more about how a PPP loan could affect your business taxes.

2. Tax Trends — Helping you stay on track with your taxes year-round

What happens if I file my taxes early?

With the April 15 tax filing deadline still weeks away, some taxpayers won’t even be thinking about preparing their return until mid-March. Others are early birds and have been ready to file since the beginning of this month.

Filing early isn’t necessarily a bad thing (and you can bet your CPA will appreciate you not waiting until the last minute!), but there are some pros and cons to consider about the timing of your tax return.

Early filers will enjoy less tax deadline stress, more time to prepare for their tax bill (if they owe), and a faster refund (if entitled to one). On the flip side, you may be more prone to errors or missing documentation if you try to rush through the filing process.

Read this article on the Miller & Company blog for a closer look at the advantages and benefits of filing your taxes early.

3. Paul’s Perspective — My take on hot financial topics

What’s it like to work as a freelance financial planner?

Once upon a time, financial planners either had to work as a full-time employee of a firm, or start their own full-time practice. Now, the gig economy has opened the doors to a plethora of part-time and freelance opportunities for up-and-coming financial planning professionals.

Our own accounting firm has offered part-time and freelance positions to accountants, and it works out really well for businesses in certain situations (like one-off gigs or assignment-based work). But what is it really like to work as a freelancer in this field?

When it comes down to it, the choice between a freelance or staff position depends on what you’re looking for in your career. A lot of people like the comfort of getting a secure check with benefits and knowing they have a sound place to work with good morale and colleagues. But if you’re someone who craves freedom, autonomy, and a wide variety of clients and projects, the 1099 route might be right for you.

Learn more about freelance finance work in this U.S. News article.

Looking for guidance on your financial future? Contact Miller and Company today to set up your free consultation.