Your state and federal tax deadlines have now been extended until May 17th! Here is everything you need to know!

As many of you may or may not have heard, the tax deadline has been extended from April 15th to May 17th! However, before we dive into everything you need to know about this new extension, we wanted to remind all of our clients and readers that just because this extension has been offered, that doesn't mean you should wait until the last minute to prepare them! Waiting until the last minute is tough on our company, and we want to make sure that we deliver the best service possible! Please make sure that if you are planning to work with us to prepare your taxes, please bring all of your information to us now.

On March 17th, the IRS announced that they would be pushing back the federal tax filing deadline from April 15th to May 17th. Their reasoning behind this was to continue to help all taxpayers deal with the strange and unusual tax atmosphere that many are navigating after the difficulties faced in 2020. What we've all had to deal with financially and how to navigate it all has been challenging, and many will benefit from this change. This announcement also stated that taxpayers can delay payment of any money owed to the IRS until May 17th as well. This decision was also brought to light after the $1.9 trillion American Rescue Plan was passed, which included a third stimulus check. Having to deal with processing tax returns and refunds while also sending out another round of stimulus checks was going to be a difficult task for the IRS. This deadline offered some relief to both the taxpayers and those collecting taxes. Many politicians agreed that due to continued stress and strain on the American taxpayer from this ongoing unprecedented crisis, that this extension was absolutely necessary. It is also important to know that this new economic bill that was signed into law by the president on March 11th came with several new changes, not just another stimulus payment. For tax filers with an income of $150,000 or less, the first $10,200 individuals received in unemployment and $20,400 for married couples is now tax-free. The child tax credit for children ages 6 to 18 was expanded to $3000, and for children under 6, it was expanded to $3600.

Moving tax day also brought to light that while Americans have been dealing with all the effects of the pandemic for over a year now, this remains one of the most complicated tax seasons in the history of the U.S. Also, on the side of the devastation that the pandemic has left behind, there have been many more requests for extensions due to a rise in children requesting help with deceased parent's estates, according to U.S. News. The IRS is now dealing with more final returns, estate returns, and trust returns this year. Many people also refinanced their mortgages in 2020 to help ease any financial strain, which added to the complexity of filing for many taxpayers. For businesses like gyms and restaurants, they are dealing with significant losses which will be claimed on their tax returns. This will also add the time needed to fill out and make sure these taxes are done properly, making sure they are given what they're owed.

Moving tax day from April 15th to May 17th allows taxpayers to gather and save the money they need to pay the IRS what they owe. This will help many who were caught owing a lot to the IRS due to not taking taxes out of their unemployment taxes. Even with those who have will benefit from some of their unemployment money becoming tax-free, many will still owe a good amount of money. It is giving taxpayers more time to sort things out and to get any unreceived stimulus payments straightened out. Please remember that stimulus checks are not reportable or taxable. If you still need another tax extension, you can apply for one that gives you until October 15th to get everything in. This new tax extension date of May 17th does not affect the October extension.

While many were relieved that the federal tax due date was extended to May 17th, there were still state taxes to worry about. While extensions like these usually are followed very quickly by state taxes following suit, nothing was set in stone until a few days later. South Carolina decided to also extend their tax due date to May 17th, to match the new federal tax extension. Taxpayers do not need to file anything or fill out any paperwork to receive this extension from the South Carolina Department of Revenue (SCDOR), it will just happen automatically. Along with the IRS, the SCDOR recommends that all taxpayers file electronically, making the process simpler for all parties involved and to receive any return payments much faster. It is very important to understand that those paying estimated taxes must still pay by April 15th.

While the state has now changed its tax date to match that of the IRS, tax preparers and the state are still waiting to receive more information and guidance from the IRS. Once that is received, please pay close attention when filing your South Carolina state taxes to make sure you follow these new guidelines correctly. Please also remember that these will be new guidelines for your tax preparers to deal with. With these changes both the IRS and the SCDOR recommend that you file both sets of taxes as soon as you can if you haven't already, with electronic filing as their preferred method. Please note that filing sooner will help you receive your tax returns quicker and any stimulus payments that were not received last will also get to you faster. While this extension can offer the stress relief needed by many, Hoods does align with the IRS and SCDOR to urge our customers to file and prepare their taxes with us now and not to wait until the last moment. This will be greatly appreciated by our whole staff and will help relieve a large amount of stress on our company, If you have any more questions or concerns, please do not hesitate to reach out, and we will guide you through this new extension as best we can! Remember, we don't know what could happen next when it comes to our taxes. Things are still very volatile and up in the air. It is best to get your taxes done and filed just to be safe, and to avoid any future issues that we can't plan for or see. Remember, if you are looking for the best accounting services in Goose Creek, the best tax preparation in Goose Creek, business consulting in Goose Creek, bookkeeping in Goose Creek, or payroll services in Goose Creek, we are here for you! Our phone lines and inboxes are waiting for you. Don't hesitate! Please stay safe, everyone. We will see you soon!

​While we all want to open our arms and our wallets to our loved ones and a big turkey dinner, 2020 might not be the best time to do that. While this might be a hard holiday pill to swallow, it's all going to be okay.

Thanksgiving is in the air, and we know that many of our Goose Creek friends and customers are getting excited to gather with their loved ones to celebrate. While everything is still very up in the air and uncertain, we hope that when choosing to gather with your loved ones this year that you choose to do so safely and with your loved ones in mind. 2020 is the year of smaller Thanksgivings, outdoor gatherings, gatherings with bigger smiles and fewer hugs, and sharing a meal over zoom and FaceTime. This might be a different holiday season for so many reasons, and we are here to support and offer our comfort and condolences. It will look much different in our homes this year too, so we sympathize and understand how many of you are feeling right now.

While the Thanksgiving and Christmas holidays might be different when it comes to how far we can and cannot travel and how many of our loved ones we will be seeing, many of us might be tempted to make it look and feel the same. This is a quick route towards spending way more than is needed right now or ultimately what you actually want to do. Remember, Christmas is just a few short weeks after Thanksgiving, so make sure to spread out all of your holiday budgets wisely. With all of these ideas in mind, we were inspired to write this week's blog. We wanted to share a few tips and suggestions on how to save money through the 2020 holiday season, and what that can mean for you and your loved ones.

TRAVEL BILLS
Many of us won't be traveling for the holidays this year. Instead, we will be staying put and creating new traditions with our bubbles, our close friends, the relatives we live closest to, or just with our nuclear family members. While this is still an incredible way to celebrate the holidays, it can be difficult not to see the whole family or all of your friends during this time of year. The silver lining of all of this? You can save hundreds of dollars by not spending it on plane tickets, hotel rooms, and other travel expenses. You can save money not driving those long distances, save money not having to put a lot of work into your car to make those long drives, and you can also save a little peace of mind not having to worry about driving in the snow or ice when many of us haven't done that in years. Instead, make time to plan Zoom Calls, Facetime Calls, and group phone calls. Save this unused travel money to help pay for the shipping on all of the Christmas presents you have your eyes on for your loved ones, save it for when you can travel to see your family again, or save it to help out with those surprise extra bills that might appear at the end of the year. Don't forget, once we hit January 1, 2021, tax day will be here faster than you might think. Maybe saving a few dollars here and there can help with paying your taxes as well.

TO BLACK FRIDAY OR NO?
Black Friday has already started for a lot of our favorite big box stores with in-store deals, discounts, and online deals. While the big Black Friday shopping might not happen as it has in the past, that doesn't mean that it's going to stop or slow down online Black Friday or Cyber Monday sales. We've mentioned this in previous blogs, but as we all reach for our credit cards to buy everything we come across in our Black Friday shopping sprees and going with our "treat yourself" mentality to make these difficult holidays feel a little bit better, maybe step on the brakes. Trying to avoid these big shopping sprees right now can be a huge benefit to you and your bank account. If you're still planning on shopping, set a spending limit and a budget for yourself. This includes if you are planning to do your holiday shopping on Black Friday or Cyber Monday. Pick who you are shopping for, how much you're going to spend on each person, and stick with it. We know a big Christmas for your loved ones can be a knee jerk reaction to a difficult year, but be financially smart about it. Outside of budgeting your cash flow, make sure that these plans include putting a spending limit on your credit cards. You can come up with every excuse to use your credit cards when your Christmas budget has been depleted, but try and go easy with the plastic. Can you imagine the gift it would be to start 2021 financially stable with little to no outstanding balance on your credit cards? We also recommend that if you are planning to shop big on thanksgiving, try and shop small. Invest in local small businesses, local artists, or creators on websites like Etsy or Redbubble for all of your shopping needs. These are the people that need your Black Friday money more than Walmart or Target. If you're investing in local artists and small businesses, this is an investment in your local community and local economy.

TURKEY TIME
We know that Thanksgiving comes with this beautiful picture of a giant turkey with as many sides and desserts surrounding it that can fit on the table. When having a smaller 2020 Thanksgiving, why put that pressure on your family, yourself, your refrigerator, or your wallet? There is nothing in the rule book that says you have to get a huge 20-pound turkey for the holiday. There are smaller birds available, and the option of only getting half a turkey or just a fantastic cut of a turkey breast is out there too and at a much lower price than your standard turkey. This can help save a ton of money on your initial Thanksgiving grocery bill, and it can also help with your leftover situation. Not everyone is on board with eating Thanksgiving leftovers for days on end. So why buy a ton of food that's just going to go to waste? Also, there is no rule saying that you have to eat turkey for Thanksgiving. If you want to try a different protein, go totally vegetarian or vegan, or just have your favorite fast food to celebrate the day, that's okay too. However, if you end up with a big turkey and a large number of leftovers, it can help save you money on the following week's grocery bill following Turkey day. As you plan your turkey day menu, plan a menu for the week to follow that can reuse as many leftovers as possible. The key is to pick a wide variety of recipes that doesn't make you feel like you're just eating turkey for a week straight.

Also, save on the drinks. Many people who enjoy adult beverages during the holidays might go get some wine or beer for the day. Instead of buying multiple bottles of wine or cases of beer, choose a cocktail or punch to share. If you're going to be preparing a traditional meal, use Costco or Sam's Club to help save money. Also, keep an eye on online deals and coups. Don't forget, if you are hosting a small gathering, a potluck Thanksgiving is a perfect way for everyone invited to save money!

SIMPLE AND CHIC
While the Griswald's would disagree with us, keeping your decorations for Thanksgiving and Christmas on the simpler side can help you save money too. It's tempting because right now every store you walk into is already bursting with Christmas decorations. They might be calling out to you to redo all of your decorations this year, but stick with what you already have. Believe us, this will be a huge money saver and can help reduce your stress and anxiety about decorating the perfect house and home for your in-laws to see this year. Take that pressure off, you're staying safe and saving money by decorating with what you already have!

A LITTLE MORE, A LITTLE LESS
While many of us are still having a hard time adjusting to the fact that Thanksgiving will look different this year, and dealing with being away from our loved ones, we will still have food on our tables. Regardless of it being a big turkey dinner or a pizza, there will be something there. Take some of the extra money you're going to be saving by following these tips and donate to those in need.

PLANNING FOR WHATS NEXT
We know that Turkey Day and Christmas might be what has your full attention is focused on right now. What about the day AFTER Thanksgiving? Just like the day after Halloween and Valentine's day, a lot of Thanksgiving food items will be significantly marked down. Buy the non-perishable items that are on sale and save them for Christmas dinner or help lighten the load in your grocery bills over the next couple of weeks between Thanksgiving and Christmas. While everyone is participating in this year's unique and socially distanced black Friday events, head to the grocery store instead and save big for the next few weeks and beyond.

The great thing about Thanksgiving can be the goals you set for yourself financially, and being able to reach them without stress. This can be your reason for the season and your reason to celebrate without breaking the bank. Enjoy the little things this year, and be ready to financially step into 2021. Remember, if you are looking for the best accounting services in Goose Creek, the best tax preparation in Goose Creek, business consulting in Goose Creek, bookkeeping in Goose Creek, or payroll services in Goose Creek, we are here for you! Our phone lines and inboxes are waiting for you. Don't hesitate! Please stay safe, everyone. We will see you soon!