BHT&D Certified Public Accountants Blog

Virtual Currency and Crowdfunding: How Do They Affect Your Income Tax Filing?

Posted by Joe Turnes on Sat, Apr 02, 2022 @ 07:00 AM

The 2021 1040 tax return includes a question regarding virtual currency transactions during the calendar year. This question must be answered either yes or no. If the return is filed leaving the box blank, the return will be rejected and a new one must be filed.

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Tags: Individual Tax Return, Tax Planning, Small Business, Crowdfunding, VirtualCurrency

IRS Focuses On Internet Small Business And Side Hustle Income

Posted by BHT&D CPAs on Mon, Mar 14, 2022 @ 06:00 AM

In an effort to capture unreported income flowing through third-party settlement organizations (TPSOs) such as Amazon, PayPal/Venmo, card payment processors and other marketplaces, the IRS requires these organizations to report payments made to sellers through their platforms on Form 1099-K.

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Tags: Tax Planning, Small Business, Form 1099-K, Income Tax

Advance Child Tax Credit and EIP Must Be Reconciled on 2021 Return

Posted by BHT&D CPAs on Wed, Feb 09, 2022 @ 06:00 AM

Early in 2021, Congress passed the American Rescue Plan, which included a provision that increased the child tax credit amount and upped the age limit of eligible children. Historically, the credit was $2,000 per eligible child under age 17. For the 2021 tax year the American Rescue Plan increased the credit to $3,000 for each child under age 18 and to $3,600 for children under age 6 at the end of the year.

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Tags: Individual Tax Return, Tax Planning, Tax Credit, Tax Liability, Child Tax Credit

American Rescue Plan Act Increases Child Tax Credit

Posted by Andrew Holesinger on Fri, May 28, 2021 @ 03:15 PM

The American Rescue Plan Act (ARPA) expanded the Child Tax Credit for tax year 2021 only, allowing families to receive advance payments instead of taking the full credit on their 2021 tax return. The goal of increasing the credit, along with monthly payments, is to help families that have struggled during the COVID-19 pandemic and lessen child poverty in the U.S.

Beginning July 15, the IRS will start issuing monthly advance payments to families based on their 2020 or 2019 tax return. 

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Tags: Tax Planning, Individual Tax, Child Tax Credit, ARPA

Section 139 Qualified Disaster Relief Payments Excludable From Gross Income

Posted by Lori Shepard on Thu, Dec 03, 2020 @ 07:00 AM

Section 139 of the Internal Revenue Code excludes from a taxpayer’s gross income certain payment to individuals to reimburse or pay for expenses related to a “qualified disaster”.  Covid-19 is a federally declared disaster.

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Tags: Tax Planning, Small Business, Individual Tax, COVID-19, Work From Home

How to File Taxes After Saying 'I Do'

Posted by Joe Turnes on Tue, Nov 12, 2019 @ 01:21 PM

A taxpayer’s filing status for the year is based upon his or her marital status at the close of the tax year. Thus, if you get married on the last day of the tax year, you are treated as married for the entire year. The options for married couples are to file jointly or separately. Both statuses can result in surprises – some pleasant and some unpleasant – for individuals who previously filed as unmarried.

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Tags: Individual Tax Return, Tax Planning

Would A Mid-Year Tax Checkup Benefit You?

Posted by Joe Turnes on Mon, Oct 28, 2019 @ 12:00 PM

If you are inclined to procrastinate until the end of the year or, even worse, until tax-filing season to worry about your taxes, you may be missing out on opportunities to reduce your tax and avoid certain penalties.

The following are some events that can affect your tax return; you may need to take steps to mitigate their impact and avoid unpleasant surprises after it is too late to address them.

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Tags: Tax Planning, Small Business Accounting, Tax Liability

Are You Prepared For The Income Tax Changes In 2018 and Beyond?

Posted by Joe Turnes on Fri, Nov 02, 2018 @ 12:00 PM

Tax reform has changed the way most taxpayers need to think about and plan for their taxes. It is no longer business as usual. Advanced planning will become very important long before tax time next year.

For most taxpayers, the most significant change is the increase in their standard deduction, which on the surface seems like a big benefit. But, don’t overlook the fact that the same tax reform that nearly doubled the standard deduction took away the personal exemption as a deduction.

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Tags: Itemizing Deductions, Tax Planning, Tax Deductions, Tax Deductible Travel Expenses, Business Tax, Individual Tax, TCJA

Five Ways To Reduce Your Farm Income Taxes

Posted by Joe Turnes on Mon, Mar 06, 2017 @ 08:00 AM

 

Good tax planning and working with an accountant specializing in your field are key factors for agribusinesses in managing their tax liability.  As we head into the end of the year, here are five things to keep in mind to be prepared for next tax season:

1.  Tax PlanningDetermining your year-to-date income PRIOR to the end of the year and planning for an appropriate income level is 

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Tags: Agriculture, Tax Planning, Depreciation Deduction, Farm Taxes

What Does My Accountant Need For My Tax Appointment?

Posted by Mindy Pennock on Tue, Nov 01, 2016 @ 07:00 AM

The time spent getting organized for your tax appointment is priceless.  It gives you confidence that your returns will be filed timely, accurately, and that all qualified deductions are accounted for. 

Partnering with an experienced Certified Public Accountant can bring you piece of mind and possibly tax savings.  Here are some tips for making the best of that partnership: 

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Tags: Tax Planning, Tax Deductions, tax appointment