Guidelines

It’s Year-End Close! Are You Ready? Here are some tips for fiscal year end close. “Invest in A Good Bookkeeping and Accounting System.” -Angela Sticca Snyder (06:07-06:10) Are you prepared for the year-end? It’s critical to review your business financials as this information will be used to prepare your tax returns. How else are you supposed to analyze the performance of your business? In this episode, Angela Sticca Snyder will give you some actionable year-end accounting advice that you don’t want to miss. Part One of ‘It’s Year-End! Are You Ready?’ If you’re sitting on a huge profit, you might want to make some asset purchases before the end of the year. For instance, if your highest tax bracket is 30% and you buy a new computer for $1,000. That means you saved $300 on your federal taxes. So, it’s a good time to take a look and see everything that you know you’re going to need to buy soon. It’s a good idea for you to buy it now before the end of the year. “Keep in mind that you’re technically supposed to have all your taxes paid by the end of the year.” – Angela Sticca Snyder (02:13-02:17) For some reason, I have received notices about penalties. The tax was due back in December or at the latest April 15th, but they didn't get it filed. They filed an extension but only an extension of time to file and not an extension to pay. What you can do is you can go to irs.gov/payments and go ahead and set up an account and make a payment that way. Nobody wants to make a payment to the IRS, but you also don't want penalties or interest. So, that's one thing to keep in mind. If you think you have any balance due or you think you've got an under-withheld for your taxes, do something about it. Make sure that you file on time to cut those penalties or put in estimated tax payment. It's super simple to organize your taxes. We have amazing tools to make your life easier in terms of tax and accounting. Even if you don't do anything with it throughout the year and you have it for tax time, at least you've got it organized. If you don't have some type of checks and balances, something's going to fall through the cracks. Part Two of ‘It’s Year-End! Are You Ready?’ Here’s another cool tip for you. When you get 'frequent flyer points' or 'credit card points', don't use it for business purchases. Your business buy would be deductible anyway. You can use it for other things like Christmas gifts for a holiday item, or for yourself. “If you’re sitting on any old capital losses or mutual funds, consider selling some of your investments.” - Angela Sticca Snyder (03:49-04:03) There’s another important thing you need to keep in mind. If you have a flexible spending accounts or an HSA, make sure to maximize that before year-end. It’s a good idea to fund your HSA each year because that money can grow, and it comes out tax-free for medical purposes. When you pull it out in your later years with your flexible spending account, you've got to use it or lose it. So, look at your flexible spending account and see if there's anything in there, any stock sales. Now is a good time to sell some of your investments or your mutual funds if you're sitting on any old capital losses. The market is up so high that you would be able to offset those capital gains with any leftover capital loss. Remember, you're limited only to 3000 a year. So, if you capture some of those gains, then you can offset it with some of those losses and not have to pay it. To end this podcast episode, make sure that you start the year off right with a mileage tracking app. Consider getting some type of good bookkeeping and accounting system. No receipt, no deduction. How to Get Involved Taxanista is a leading certified public accountant who offers reliable professional tax and accounting services. She is a consummate strategist. She loves listening, analyzing and developing strategic plans. Do you have bigger issues? Taxanista can help you fight off the IRS. Angela knows how unsettling some of your struggles may be that’s why she offers private consultations for your business and tax matters. Increase your profit by knowing your numbers. Reach out to her now. https://www.taxanista.com/

Are you at risk of an IRS Audit? Have you not filed in years? Are you a business owner in trouble? Then you HAVE to watch this video! We have all levels of service to assist your startup, growing and established business. GROW SALES. INCREASE PROFIT. KNOW NUMBERS. Reach out to us https://taxanista.com/ https://taxanista.com/Contact/

Should your company become a limited liability company or an S-corporation? Here's the difference between LLC and an s-corporation. Tune into the FULL EPISODE to learn about the differences. And, subscribe to the channel for more tax and accounting advice just like this. ------------------------------------------------------------------------------------------------------------- Taxanista is a leading certified public accountant who offers reliable professional tax and accounting services. She is a consummate strategist. She loves listening, analyzing and developing strategic plans. Do you have bigger issues? Taxanista can help you fight off the IRS. Angela knows how unsettling some of your struggles maybe, that’s why she offers private consultations for your business and tax matters. Increase your profit by knowing your numbers. Reach out to her now. https://www.taxanista.com/

There's a difference between a 1099 and a W2. Most people get W2's. W2 is when you're an employee and you're working for someone else, and they're withholding taxes for you. It's the most common way of getting paid. 1099, on the other hand, is when you're doing side work, maybe a gig or some extra work for somebody, or you have your own business and your customers then give you a 1099, that income is not taxed before you receive it. So, when you get your income, it comes to you in a gross format. With that, then you get to write off deductions that go against that income. In this week's episode, Angela Sticca Synder talks about W2 vs. 1099. Part One of ‘W2 vs. 1099’ It is imperative that you save your financial documentation. Credit card statements will not support you in an audit. What you need to have is a receipt that shows what was purchased. So, if you go to a store and they hand you that receipt, you need to make sure you take a picture of it to save it. If you buy something online, set up a folder on your computer that's called invoices or receipts. You want to make sure you have a copy of every item on your tax return. Now that you're using a 1099 form, you want to make sure that you're keeping track of all expenses involved and carrying out your duties of whatever function you're doing to earn that money. If you're driving for business purposes, then you need to make sure you have a mileage tracking app. That's the second thing that's most important. When you get your 1099 form, there's a lot of good free apps out there. You can turn it on, and it just runs in the background. Technically and legally, you are supposed to have the starting and stopping odometer reading. Also keep track of where you went, who you went to see and the business purpose. Keep your mileage tracked and use an electronic calendar that's got your appointments. Part Two of ‘W2 vs. 1099’ Now if you're audited, you have a backup. If you're organized, do it now. Many business owners have more time to spend on making money than keeping track of this. As long as you've got outstanding support, you'll be fine. With a 1099 form, even if you're a sole proprietor or an LLC, you still report your income and expenses on a Schedule C small business form. It gets filed with your 1040 tax return if you report your gross income. which would be all of the income you received before any expenses. It is crucial that the total gross income on your Schedule C at least equals or exceeds the sum of all your 1099. If you have 1099 that's greater than what you're reporting as income, you will automatically receive a notice from the IRS. They have a matching system. If they mismatch and your income reported is last, you'll get a notice. Once you reported all of your income on Schedule C, there are lots of deductions that you can take. Anything that you incur to operate your business is deductible. For instance, things like advertising, marketing, promotion, and anything you're doing to get your name out there. This also includes pins, business cards, or flyers, all that kind of stuff that you are expanding to get people to notice you. Other expenses that you can incur would be retirement plans. You can set aside money for yourself in retirement: any office expenses or office supplies, your cell phone use, and even your home office. The home office is not the risk it used to be. So, for instance, if you do work out of your house and you have a home office, but you're conservative, or you're unsure, then take the standard home office because you can take that, and it doesn't require any supporting items. Again, the difference between the W2, which is when you're truly an employee and 1099, is that your social security and medicare taxes come out of the W2, and the employer also pays their half. When you get 1099, you report your gross income; you have deductions to come out of your net income, but remember there are no taxes withheld from your 1099. Tune into the full episode for more tips. How to Connect Taxanista is a leading certified public accountant who offers reliable professional tax and accounting services. She is a consummate strategist. Do you have bigger issues? Taxanista can help you fight off the IRS. Angela knows how unsettling some of your struggles may be that’s why she offers private consultations for your business and tax matters. Increase your profit by knowing your numbers. Reach out to her now. https://www.taxanista.com/

Make sure you get your account set up at IRS.gov and we'll give you tips and guidance on how to make your tax payments made online.