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Hoods Tax & Accounting Blog

Holiday Tips!

11/26/2019

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The holidays can be an exciting or terrifying time for any size business. It is up to you to make the most of the holiday season and make it the most wonderful time of the year for you and your employees. 

No matter the size of your small business, what your seasonal goals are, or if the holidays overwhelm you, don't let anything stop you from achieving all of your goals and enjoying the holidays as a business owner! At this point - many of you have already been planning or have already put into motion your sales and strategies for the holidays. But if you haven't yet, or you're having a hard time of it this year, don't panic. Breathe. Remember, you've got this! Kick-off this week with a strong cup of coffee, determination, and these tips to help get you through. 

Don't Be A Scrooge! 
  • One of the most common mistakes at the end of the year and during the holidays is poor bookkeeping. If your company needs to vamp up its bookkeeping software, now is the time. When you finish this fiscal quarter, it will be the end of your business year. Do you know what comes next? Tax season! If your company is planning on really expanding during the holidays and is expecting large amounts of holiday revenue, don't let poor software hold you back, damage your holiday income, or ruin your tax paperwork. It's an investment that will be worth your while! 
  • Is your company growing with a few new employees for the holiday rush and higher production needs? Invest extra time in training them. You might be running on a high level of stress but these wonderful people are here to ease that. It's worth your time to invest in them so during the busiest times, you don't have to stop and help, retrain, fix problems, or possibly replace them. This also prevents sales mistakes or any negative feedback for your company. It helps to hire these new employees early or bring back past holiday workers who you already know and trust. 
  • A fun and welcoming activity for your employees and customers is to decorate! Take advantage of the season and have fun. If you have a brick and mortar store this can help cheer up even the biggest Scrooge who walks into your shop! Be unique and creative! Don't blow your budget to decorate, use your products and brand to inspire your decoration decisions! 


Holly Jolly! 
  • Be Prepared. It's so important, I'll say it again. Be prepared! People will be shopping and they will want to buy. Many shoppers will save up all year to buy Christmas gifts! You'll want to make sure that you have extra inventory to support this. From your most popular products to what you plan on highlight as sales and special deal items, make sure to have extras ready. Always have a backup plan to order or create more if need be. Also, make room in your budget for a little extra cash to help pay for expedited or overnight shipping just in case.
  • How is your marketing campaign? How is it standing up against your competitor and in the holiday market? Make sure it is well thought out, well planned, and well-executed. Make sure it fits your brand and your customer base. If it is totally off-brand, it can turn off and turn away both loyal and new customers. Plan ahead of time so going through each holiday at the end of the year isn't a surprise. It allows you to reap all the benefits from the holidays, and the potential business a great campaign can create. 
  • Set goals. Take advantage of this busy season and push yourself and your team to end the year with a bang. Don't just hope you'll make a random amount of money that might be bigger and better than last year. Just like your marketing plan, set goals, actions, how to achieve them, and make it a reality. This can range from growth sales to growth in your social media following. 

You love what you do, that's why your company exists in the first place. No matter what holiday it is, don't let anything get in your way of enjoying a season that is good for your company. Take these tips and walk into the holidays ready to take on whatever comes your way. 
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Saving Pennies for Turkeys!

11/19/2019

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It's so easy to splurge during the holidays, but don't forget that Thanksgiving is just one of many festive activities on your list over the next few weeks and months. You also might want to still have a few dollars left in the bank once the new years begins. So enjoy these tips on how to save a few dollars as you approach the holiday season. 

I'm not sure about you, but Thanksgiving has always been one of my favorite holidays! Sitting around with your loved ones, celebrating the things you have to be thankful for, all topped off with an amazing plate (or two) stuffed full of amazing food, all ending with a nap? That sounds pretty perfect to me. It's so easy to want to buy the best foods, the best decorations, and the best little extra things to make these days special. But remember, you can still make Thanksgiving and every holiday special without breaking the bank. Just in time to start buying all of your favorite items to kick off the holiday season, here are a few tips on how to take care of your bank account while still celebrating the holidays in style! 

  • Don't overbuy or buy expensive items. Everyone loves to eat extra food on thanksgiving but plan on feeding the actual number of guests that will be attending your dinner, and not planning for the entire neighborhood. Maybe plan a little extra for those days after Thanksgiving sandwiches too, but go easy on yourself. This also means less cooking and stress for you too! 
  • Don't splurge on everything. Not every item has to be the most expensive or the very best. Pick an item or two that you'd like to be the special centerpiece of the meal, and the rest can be regular store-bought items or even discounted. 
  • You don't have to buy and make everything on the menu. If you're hosting, have your guest bring items to share. If you are in charge of the turkey and a few other staples, have your guests bring the rest. They can even bring cups, plates, and other paper items to cut down on clean up time and expense! 
  • As much as we all love specialty grocery stores, they are also the most expensive to shop in. Shop at your local chain grocery stores to save money. You will find everything much cheaper, and the quality is still fine. 
  • Check your fridge and pantry before you go shopping. You might already have a lot of ingredients and items you need to get cooking. Don't waste money on buying a duplicate of something you already have! 
  • It's hard not to decorate every room of your home like Martha Stewart, with a top-dollar budget to make it Hallmark ready. Remember, decorative items can add up quickly too. See what you already own and get creative. The amount of adorable DIY projects out there are amazing. You'll be surprised at what you can find. Also, invest in what's growing in your garden! The last bit of seasonal flowers, greenery, squash, pumpkins, and other garland are PERFECT for holiday decorations! 
  • Your turkey can easily be the big-ticket item on your shopping list. But if you get your turkey at a chain supermarket, this is the easiest place to save money. You will find that turkeys are much cheaper there.  
  • Research what will be cheaper to buy pre-made and what will be cheaper to make from scratch. This might surprise you! 
  • If you are hosting a large Thanksgiving this year, use stories like Costco or Sam's Club to your advantage. Buy in bulk and save. At some Costco's you can even buy wine and other alcohol in bulk very inexpensively! 
  • If you are traveling for the holidays, try and travel with just a carry-on. Thanksgiving trips usually are shorter than most, and you don't need any extra room for gifts just yet. 
  • If you're flying for the holidays, start thinking about buying your tickets in advance. A lot of experts recommend you start looking and purchasing as early as September if you can. Fly on days where it will be cheaper. Use popular apps and websites that are designed to help find the cheapest flights for you. 
  • If you're visiting family and friends, try and stay with them instead of renting a hotel room! If that isn't an option, try looking into Air B&B instead. You will get a homey feeling for a much better price. 
  • Pick and choose which holidays you're going to travel for, don't travel for all of them. Have family come to you, or celebrate locally with friends. Use Skype, Video Chat, and a good old fashion phone call to check in on your family if you decide to stay home for Thanksgiving. 
  • Use coupon saving apps and websites, and save up any kind of grocery store points and rewards for the holidays. These will go a long way. You can also apply this to fuel points and other offers for the holidays as well! 

The holidays can be overwhelming and expensive. But if you take the time to do a little extra research and planning, they certainly don't have to be. Use this list to help enjoy your holiday, let it be a little less stressful, and save some money while you're at it! 




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Late for a Very Important Date

11/1/2019

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What happens if you are unable to pay your taxes on time? Are there other options for you? Don't panic, that is what we will be discussing! 

Tax Day will be here on Wednesday, April 15, 2020, if we are ready or not. You can file your taxes as soon as you get all of your W2s, 1099s, and other tax forms from your employers. One of the perks of filing early is getting that prized tax return early. You should receive it within three weeks of filing. If you file your taxes sooner than most, you won't be fighting against the crush of everyone else who waited until the last moment to get everything filed. But what happens if you've filled out all your tax paperwork and you can't pay what you owe the IRS? What happens if you don't fill out your paperwork and file on time? Take a breath and let's review some options out there for you. 
  • The Bottom Line 
First of all, there are options for you so don't panic. If you are unable to pay on time, immediately file for an extension. Once you do this, you have to pay attention and stay on top of your extension just like you would any of your bills. Please know that there are penalties if you don't pay on time and a separate penalty for not filing on time. Not being able to file on time is a much larger penalty than not being able to pay on time. Failure to file is 5% of the money due per month and can go up to 25%. Failure to pay is .5% of the money due up to a max of 25%. If you can't pay right away, at the very least fill out and file your taxes. This way you are aware of how much is due and can hopefully avoid some of these penalties. But interest does add up until your tax bill is paid in full. 
  • Possible Options 
Try and find some options to help you pay on time. See if you can borrow money from family to help pay, get an advance on your next paycheck, or sell items you no longer need or use anymore. You can dip into your savings if you need or even tap into your 401(K). These aren't ideal options, but they will help you in the long run. You can pay your taxes with a credit card, but to do this you have to contact a special service provided through the IRS. You will be charged a continuance fee to do so and that adds up to be about 2.5% of what you're already paying. You will also incur interest charges if you can't pay off the credit card payment quickly. 
  • Not Quite Enough 
If you can't come up with the money and you don't have a credit card to use, you can work out an installment plan with the IRS. You will need to fill out form 9465, the Installment Agreement Request, and attach it to the front of your income tax return. You might even be able to request a payment plan online. This doesn't mean you can avoid paying interest on what you still owe. This interest will still accrue until everything is paid off. But in this situation, the IRS can reduce any failure to pay penalties. 
  • Not Even Close 
If the amount you owe is so large and there is no way possible that you will be able to pay, there is a program called Offer In Compromise, where the IRS may take less than the full amount that you owe. To do this you need to complete form 4334 and 656, along with a collection information statement. You will also need to provide a total financial statement. This includes a list of everything you own, all of your debts, your income, and the amount you can pay right away to make a compromise with the IRS. The IRS will then review this information to see if they will accept the compromise. You are required to pay all tax liabilities on time for the next five years for this compromise. If this requirement is not met, the whole original amount of your taxes will be your responsibility again, more penalties will be added on, and the IRS can get money from you in many other ways that could hurt and damage your credit score, like filing a lien on your property. 
  • Options
The IRS website tells taxpayers not to panic if you can't pay on time, and lays out the general options for you. The big thing they stress is to file on time and then contact them right away to talk about your money situation. Don't hide from them. They will find you one way or the other, you won't fall through the cracks. The IRS can temporarily delay collection by reporting your account as currently not collectible until you can pay, in some circumstances. But they will be more willing to work with someone who is upfront and comes to them rather than those who hide or lie to them. What can help in the long run is making sure the right amount is being taken out of your paychecks, so the amount owed at the end of the year isn't as painful. If you operate as an independent contractor, save a percentage of every paycheck to make up for the fact that no one is taking anything out for you. 

Not being able to pay your taxes can cause huge amounts of stress and panic, but try and not let it. Just make sure you are using the options and resources available to you. You will make it through this tax season, and many more to come! For more information and help from the IRS follow the link below!  

https://www.irs.gov/newsroom/what-if-i-cant-pay-my-taxes

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Common Mistakes for the First Time Tax Payer

10/16/2019

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Preparing and paying your taxes for the very first time is a terrifying rite of passage into adulthood. But for a first-time taxpayer, it's easy to scare yourself into making very simple and easy mistakes. Take the time to take a deep breath, check your work, and understand what you're doing! 

The very first time you pay your taxes is scary. It's scarier than this Halloween season. For most of us, our first tax experience comes with our first job while we are still in high school and living under our parent's roof. But once the safety blanket of Mom and Dad helping you file your taxes or taking you to their tax accountant goes away, things can get pretty dicey. You're out in the world for the very first time worrying about some huge adult things. Where are you going to live, how are you going to get around, how will you pay your bills, can you feed yourself, what will your job be? Those are huge learning curves, and we all go through them. And just like those learning curves, taxes have their curve too.

Most first-time taxpayers are just afraid they'll do it wrong. Afraid they'll miss a signature, not understand the paperwork, or not provide the correct paperwork to prove write-offs or prove their source of income. Sadly, this will happen for most first-time taxpayers. These mistakes can cause your return to be delayed or you can receive a terrifying official letter from the IRS. The letter will point out the mistakes you made, and you will have to correct them all before seeing your tax return. Take a deep breath, we are here to help you solve those issues. 

In this blog, we will be discussing some of the most common mistakes made by first-time taxpayers and how to prevent them from happening! 
  • The Basics 
It all starts with filing, right? One of the first mistakes made is hearing that you can pick up your official tax forms from the library or download them off the IRS website and print them off. These are all true statements, but you'll be stuck with a pile of papers you might not understand. You might even grab the wrong set of forms. For a first-time taxpayer, the best way to start off and even continue paying your taxes through the years is by investing in a tax preparation software - like Quickbooks. It comes with an impeccable FAQ, an easy how-to guide, and the software guides you through the proper paperwork to correctly file your taxes. It also helps determine what you can write off, what documents you need to complete these write-offs, and what paperwork you will need to save for future tax seasons. It also has an option to store all of this information for you in its database, so you can learn to upload and save everything you need right away and not have a huge stack of important papers, receipts, and documents just lying around waiting to get thrown away on accident. Also good to know, if your gross income is $66,000 or less the IRS offers free file software, too! It might be a pain to pay them every year - but at least they're being helpful about it! 
  • The Numbers
Believe it or not, one of the most common mistakes when filing your taxes is entering the wrong social security number. We get it, you're nervous and overwhelmed. But take the time to take a deep breath and to dig out your social security card and keep it handy while you're filing your taxes. Once you're finished, take the time to check your work. Take a little walk down memory lane and make all of your math teachers happy by checking your work. Entering the wrong SSN can lead to the delay in processing your return and it can also lead to the IRS rejecting exemptions for dependents.
  • The Side Jobs
It's very common today, especially for younger taxpayers, to have multiple sources of income. This is very true when you're an independent contractor or self-employed. Learning all the finite details of filing multiple w2s or I9s is very tricky, and can become even more difficult if you've worked in multiple states during that tax year. Each state will have its own little different tax laws on how to file these forms. Often in these situations, the young taxpayer fails to include all sources of income. Many decide just to put down the ballpark number of their yearly income. When you receive a 1099 or any other similar tax document, the IRS receives one too. It's their job to compare all of your documents with the ones they've already received and to catch any mistakes. This kind of mistake can increase the chance of being audited, and that is not what you want.

Tax season might still be a few months off, but we wanted to put any worried first-time taxpayers at ease. If you're a parent, family member or friend of a first-time taxpayer, share this with them! We are sure you remember how hard it was the first time you paid your taxes. Remember, we also offer the best Quickbooks training and Quickbooks services in Goose Creek, and are happy to help you and your family whenever you need it. Please don't hesitate to reach out! 

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Podcasts for the Modern Day Homeowner

10/1/2019

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Tired of reading self-help books to learn how to be a smart first time home buyer or how to do a DIY project? Why not step it up to the next level and discover some of the most helpful and hilarious podcasts to reach your goals? 

The end of September brought not only cooler temperatures but it also brought National Podcast Day on the 30th! Are you tired of researching ways to be a better homeowner? Are your Pinterest Boards so big that you don't even know where to begin? One of the best ways to stay up to date on the latest home trends, getting tips on how to buy a home, and how to handle your first DIY project is to listen to a podcast or two. And don't worry, when it comes to the topic of being a homeowner or working on your home, the number of podcasts out there for you to enjoy is pretty long. All you'll need to do is a little research to find exactly what you want to listen to! 

In honor of National Podcast Day, let's explore some of the top Podcasts for Homeowners in 2019! 

Young House Love
  • This podcast was created with first-time homeowners in mind! 
  • This podcast was created by Sherry and John Petersik. They began their journey in 2017 with a blog that shared the trials and tribulations of buying a new home and renovating it. After renovating multiple homes since then, it led to the birth of this wonderful podcast.
  • It offers helpful tips on realistic remolding. 
  • They talk about affordable materials, decorations, and furniture options for the home. 
  • It is a very funny and honest show. 
  • There are often guest speakers 
  • They offer tips on purchasing your very first home. 
  • They also offer tips when dealing with buyer's remorse. 
Visit their website here :  https://www.younghouselove.com/podcast-introduction/

The Money Pit
  • This is not just a podcast, it is also a radio show hosted by Leslie Segret and Tom Kraeutler. 
  • They are both very educated and knowledgeable on how to make repairs and installations. 
  • They offer help and inspiration for the first time owner attempting a DIY project or renovation. 
  • The show itself has a call-in format, so there is always a lot of interesting and unknown information that will be shared, covered, and discussed every time you listen! 
Visit their website here:  https://www.moneypit.com/

​Home: On 
  • This podcast is hosted by Richard Gunther 
  • The focus on the podcast is on smart and connected homes. 
  • Every week Richard features a new home gadget. 
  • The podcast has guest speakers on to talk about the smart home industry. 
  • The podcast guest include both experts and consumers like you! 
Visit his website at:  https://www.thedigitalmediazone.com/category/podcasts/home-on/

It can be stressful to be a homeowner! But use your free resources to make the journey a fun and stress-free experience. Plug in your headphones and get started! 
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Being Financially Prepared for a Hurricane

9/22/2019

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You've made the runs to the grocery store for the bottles of water, bread, and PB&J. But when it comes to natural disasters, you need to consider your financial preparedness as well. 

It's not new news that hurricane season is here. The weather channel, our weather apps, and friends up North have made sure we don't forget. But hurricane season isn't just about being prepared by storing up on non-perishable foods, batteries, bottles of water, and having an evacuation plan. You financially need to be prepared and ready for a hurricane, especially here in the Lowcountry. Now that we have had a taste of our first hurricane of 2019, we need to remember that one could be on its heels. Hurricane season isn't over until November. So, you still have time to get prepared. 
It goes without saying that yes, you need to make sure that your home and family are safe and prepared for anything. Make sure your home is stocked with what you'll need to get through a storm if you're going to stay. Follow all of the safety precautions laid out by local officials and police, and make sure you make informed and safe decisions. Your safety and the safety of your loved ones and pets are the first things that need your attention. 
But these precautions need to be taken care of even before the hint of the first hurricane appears. Taking care of your financial needs ahead of time will help eliminate stress, worry, and truly help you when a storm does arrive. Here in the Lowcountry, it's not a question of if, it's when. 
  • Make sure you understand all of your insurance policies, your deductions, and know what is covered and what will not be covered. 
  • Make sure you have all the correct forms of insurance. Some forms of homeowners insurance DO NOT include flood insurance. If you live in a flood zone, make sure that you have flood insurance included or have flood insurance. 
  • Have your car and home service and inspected ahead of time. You need to have a safe and reliable car to help evacuate at a moment's notice, and paying for repairs on the road during an evacuation can be a nightmare or not even a possibility. Paying for your home to be serviced and repaired ahead of time can help prevent damage and help save you money. 
  • Consider having a credit card used ONLY for hurricane needs. Build up the credit line when you first get the card so you can cover any unknowns that a hurricane could cause. From getting a hotel room, extra groceries, or home repairs, you will know you can cover these needs no matter what happens. 
  • Make sure all of your important financial documents are stored in plastic bags and even wrapped in plastic to add another protective layer. Consider a fireproof box that can be carried out of your home with you to travel with or in a state of emergency. 
  • Just in case the worst does happen, always have and carry with you copies of your most important documents. These documents include: 
    • Drivers license, your SSN card, birth certificates, copies of your children's identification, deed to your home, property tax information, car ownership, will and living will, estate info, power of attorney, lease for your rented properties and vehicles, proof of pet ownership, insurance papers, and any other important financial and tax document. 
  • Make sure your banks and any other business you pay a monthly amount to are aware of the situation at hand. More often than not, these establishments will be willing to work with you in these situations as long as you alerted them ahead of time. 
  • Have an emergency fund or savings account for times like these. 
Go beyond a hurricane fund or credit card. Have a budget in mind. With your everyday budget and salary in consideration with this, make a plan for the amount that you will need to spend on essentials. This includes the stocking up and hunkering down of your home and also if you do plan on evacuating. That will include hotels, travel expenses, and food. Depending on the outcome of a storm, you might be away from home longer than expected. Be financially able to support that! 
Last but very not least, keep cash handy! ATMs might be down or unavailable after a storm. You might not be able to get cashback at a store or even get to the inside of your bank. Make sure to have a safe stash with you or ready to go when you evacuate. Most plan for at least 72 hours worth of lodging, food, and travel expense. So start with that amount, and go from there. 
We hope this information is helpful for this year's storms and for many storms to come. Now that we've had the taste of our first one you have time to get prepared for the next hurricane. But as you do so, don't panic. If do just a few of these main points, you will be ahead of the game. Please stay smart, safe, and prepared this hurricane season! 
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How to Financially Prep for the Holidays

9/2/2019

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The Holidays will be here before you know it. Don't wait until they're here to be financially prepared for them! 
We know, we know. It's only September. But the holidays WILL be here before we know it. The holidays are a famous time to spend outrageous amounts of money, max out those credit cards, use up any extra savings, and break the bank. It's easy! You want to give back, prepare tons of delicious meals, travel to see friends and family, and spoil your friends, family, and yourself. These are all lovely and wonderful ways to celebrate. But getting an early start on your holiday spending plan and budgeting can allow you to do what you want to enjoy the holiday season and not destroy your bank account and credit while doing so. Here are some tips on how to save your money and your sanity. 
  1. At the beginning of the year, set a budget for how much you plan to spend on the holidays and stick to it. This includes budgeting for any celebration, holiday, or possible gift buying opportunity. It is important your money for this fund is set aside and not in your everyday checking account. This way you don't spend it accidentally or keep looking at it and feel it burning in your pockets. 
  2. When you're traveling, always plan and budget for the "what-ifs". Food, layovers, canceled flights, flat tires, and hotel rooms. Take advantage of discount travel websites and apps to get cheaper flights, rental cars, and hotel rooms. If you can be flexible on your travel days, look for dates that are cheaper to travel on. Don't fly on peak travel days, or you will break the bank. 
  3. Food for many people makes a holiday. From the bows of Halloween candy to the big new years eve parties, we want all the goodies! But if you're hosting an event, party, or a gathering don't be afraid to ask others to bring dishes or contributions. Be specific in these requests so you can still have the big celebrated meals and not end up with 15 bags of stale potato chips. If you are asked to bring a dish or dessert, you don't need to bring the whole grocery store with you. Just keep it simple. One delicious item is enough! 
  4. Be bold and limit or eliminate the use of credit cards for your holiday spending. They are so easy to use but come the new year if you don't pay them off in full you'll be paying for grandma's gift for months to come. You will be paying interest on every single item you buy for the holidays if you use your credit cards! Save up and pay in cash and avoid the stress of credit cards. 
  5. If you can't quite save enough for the holidays with the income you currently have, use your extra time and get a part-time holiday job! This can range from flexible retail hours, working overtime, babysitting, working as a server or bartender, becoming an uber driver, or delivering pizzas. You can even consider turning your guest room into a room on AirB&B and rent it out throughout the year and use all of that money for your holiday budget! 
The important thing to remember is that you want to enjoy the holidays. If you eliminate any stress linked to holiday spending, you'll be able to enjoy them like never before! 
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5 Unique Ways to Save Money for Your Family

8/20/2019

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Has this been a financially difficult year for you and your family? Here are five unique ways to help your family save some money to make those difficult times a little easier. 
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Home and family expenses are something that will always be there. No matter where you are in your life, something usually always pops up that becomes an unexpected cost or something you just weren't financially prepared for. It's okay, it happens! Commonly, you are always looking for the next best way to save a few dollars every month or every week as you budget for your family or your life. Here are five different and unique ways to save a little extra money to help your family stay a little more financially comfortable no matter what happens.

  1. Save The Tips 
It's understandable why so much of our paychecks go to our favorite restaurants. If you have a busy schedule, you might not have enough time or want to spend any free time you have left in the kitchen cooking three meals a day, seven days a week. You might not be the best cook or even know how to cook. But, so much extra money can be saved even by cutting one meal out a month, a whole week of meals out, or even cutting your weekly Starbucks! Don't believe us? Try this experiment. Go out just like you normally do and save your receipts for a whole month. Even for your cups of coffee throughout the day. At the end of the month, add up everything you spent when you skipped out on the kitchen. Multiply that number by 12 and just see how much you could potentially save in a whole year! It just might shock you. 

   2. Work From Home
Who wouldn't love the opportunity to go to work in your PJs, in a beautiful and comfortable space that you've created, with your favorite four-legged pet as your coworker? A lot of perks will come out of this choice faster than you could think. Right away, you'll be saving money on your commute. You might be walking a few feet to get to work, but you will no longer be driving miles to get to the office and back home again. This will cut down on gas cost and maintenance to your vehicle. This could also be a huge time saver for you. You can have the option to sleep in a little longer before you have to clock in. You can use this extra time to drop your kids off at school or pick them up. You can save money on babysitters, too! You'll be home if anything happens, you won't need a pickup service, and you no longer need to rely on anyone to be there when they get home.

You also won't need to go out for breakfast, lunch, snacks, or coffee. You can walk right into your kitchen for anything you might need. This could also turn into another monetary gain from your employer. It ultimately saves them money in operational cost if you're working from home using your own power, internet, and phone lines. So, they just might be willing to give you a raise for making this move home since you will be helping them save more money in the long run too. 

   3. Weekends and Vacations 
How often do you take advantage of your town or city? How often have you treated yourself to a staycation? You don't have to spend tons of money or any money at all to create the best weekends, trips, or memories. Take advantage of the free parks and natural wonders around you. Take a packed lunch to the beach, a local pond, or park. Take advantage of free concerts, free admission days to art galleries and museums. Pay close attention to your town's local paper and read up on all the free activities offered throughout the year. Volunteer for local charities, go fishing, check out our local library, and go stargazing! The possibilities are endless!

Have you heard of a staycation? It is exactly what it sounds like. Get ready to spend the most relaxing weekend (or week!) in your favorite PJs, cooking your favorite meals, and finally renting or checking out that movie or book you've been dying to get your hands on. If you're taking a full week of vacation - enjoy the wonders of your city. You don't need to spend hundreds or thousands of dollars to travel somewhere. Stay in a local hotel and pretend you're a tourist. See the sights, finally try out that new restaurant, and find a new (to you) watering hole! Enjoy your whole vacation with the comfort of your own home or hometown in the background! 

   4. Programmable Thermostats and Solar Panels
 
It's easy when the depths of winter and the height of summer comes along that your electric bill skyrockets into some very scary high numbers. But think about it - you're keeping your home cozy or cool for a lot of time that you're not even home to enjoy it. And, it can be cumbersome to remember to change those thermostats before you walk out the door every day. Why not invest a little to gain back a lot? Programmable thermostats have become very affordable and most, if not all of them, can be controlled by your smart devices. So even if you forget to set them before you leave for the day, you can change your thermostats from anywhere!

On top of that, save even more money by taking advantage of the sun here in the Lowcountry! If it has to be so hot, why not take advantage of it? Installations of solar panels can be extremely affordable if you work out the proper contract and don't buy them. Once they're installed and up and running if you're not using all the power you're generating, a lot of the time this power can be carried over into the next month. And sometimes, your local power companies will buy this extra power from you - giving you a little more money in the bank or credit towards the months when the sun isn't out as much. And don't worry about those cloudy days or cooler weather. Solar panels store energy for days and months that are known for not soaking up the sun. This way your money-saving options can continue throughout the year! 

   5. Save Money when the Windfall Comes 
Have you recently stumbled upon a very profitable time in your life? Have you recently inherited or won a good sum of money? Have you recently received a wonderful raise or bonus? Congratulations! The first thing a lot of us will do is throw this exciting chunk of change at a new car, a shopping spree, or a lavish vacation. There is nothing wrong with celebrating and enjoying these profitable times, but these windfalls won't always come around. Instead of spending all of this exciting capital on the fun stuff, put some of it in savings. Invest it for tougher and tighter times. Save it now for an even bigger and better dream or the opportunity to retire sooner. It might not be the most fun you could have at that moment, but you will appreciate it later down the line. Maybe when you least expect it! 

Hard financial times happen for all of us. But if you think about money-saving tips in new and unique ways, these hard times may become fewer and farther between. Start now by implementing these 5 tips into your everyday life to make the rest of 2019, and into the beginning of 2020, a little easier for you and your bank account! 
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Hidden Financial Changes

8/2/2019

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Our most recent blog was dedicated to all the known and unknown items you can look forward to writing off your personal taxes this year. But with new tax cuts and the Job Act of 2017 are you aware of everything you can no longer write off on your personal taxes this year?
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It was a delight to share in our last blog all of the wonderful known, and possibly unknown items, that you can write off of your personal taxes come April 15th. These write-offs can be such a relief to any family and a surprise to your bank account when Uncle Sam comes knocking. But it's just as important to know what you cannot write off your family's taxes, so there are no unpleasant surprises. This year could be one of the most difficult years of write-offs thanks to Tax Cuts and the Job Act of 2017. Tax code has changed dramatically, and once you have filed your 1040 (your personal federal income return) this tax season - these write-offs will no longer be available to you.

Understandably, you may not know about these new laws. Tax law for your personal taxes are hard to keep up with or hard to follow - the documents are all available for research, but they can be difficult volumes to understand and interpenetrate. But these new changes are credited to be the largest tax overhaul in over 30 years. A lot of people won't even know about these changes until they go to file. Beat this statistic and read up now - this way you can prepare your finances to pay for items this tax season that you've never had to pay for before.
  • Personal Exemptions. You can no longer claim a deduction for yourself, your spouse, or for any of your dependents. Thankfully the tax credit for children under 17 has been raised to $1000 and is much easier to access. There is also a new credit for all other dependents (although not of spouses or the taxpayer) for $500.
  • Alimony. As of December 31, 2018 alimony is no longer a deductible and is no longer included in taxable income. But if you were divorced before this date you can continue to deduct and report alimony payments.
  • Home Equity Loan Interest. Home equity interest money, which is interest on mortgage debt to pay for anything, used outside of helping to buy, build, or improve your home is no longer deductible. Existing home equity debt is no longer grandfathered in either.
  • Personal theft losses can no longer be deducted.
  • Casualty losses that are not declared a disaster by the President are no longer deductible.
  • Investment expenses are no longer deductible.
  • Tax preparation fees are no longer deductible.
  • Legal fees paid on an award, judgment, or a settlement are no longer deductible.
  • Nonmilitary job-related moving expenses. These expenses are will now be included in taxable wages, tips, ad compensations reported on a W2.
Were you aware of all of these changes? How much are they going to affect you and your family this coming tax season? These are the general changes - but there are more fine print restrictions that live in much grayer areas that have changed as well and are no longer offered.
  • Unlimited state and local tax deductions.
  • A $1 million mortgage interest deduction.
  • Deductions for unreimbursed employee expenses.
  • Miscellaneous itemized deductions.
  • Deductions for certain school donations.
  • Deductions from tax extenders.
For many families, this might be one of the most difficult tax seasons they experience. But knowing ahead of time may help ease the shock. Be prepared and if you can, save as much as you can to begin paying for these new tax items or for what you will no longer be able to write off. Hoods is here to help you prepare for it all, and here to answer any questions you might have!
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The Most Wonderful Time of the Year!

7/18/2019

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Businesses and Corporations aren't the only ones who can have write-offs and deductibles. As a tax-paying citizen, you can too! Do you know all of the common and most important write-offs for you and your family? Don't worry - this will explain them all!
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You might think it crazy that some people look forward to doing their taxes every year. But really, they're letting you in on a really important secret. Taxes DON'T have to be as painful as they have been played off to be. What have taxes done to you? I mean - besides taking your hard earned money every April 15th. But maybe think about it from another angle - what can doing your taxes give back to you? Just two magic words: itemized deductions. That is the golden ticket. But are you keeping track of all of your expenses and are you writing off everything that you can? It's so easy to overlook some of the most common and lucrative tax deductions. So we are here to shine a light on all of them -  so maybe next tax season, you can save a couple extra of those hard earned dollars.

Tax season is still nine months away, but we always recommend staying on top of your expenses, keeping track of all your important paperwork, and staying organized. There are TONS of amazing apps and programs that can help you do that. You just need to find the right one that works for you. It's so easy now to go paperless too - if you aren't totally paperless yet, maybe look into that. It'll cut down on the number of pieces of paper you have to keep your eyes on. And might open up a drawer or two in your desk. Always make the most out of any available tax deductions and exemptions. Each one that you claim gets subtracted from your gross income so your actual taxable income is automatically lowered.

First, I want to address those who work from home. This does span between the world of business tax and personal tax and can sometimes be a grey area. But be just as dedicated in keeping track of all of your work records and receipts as you would your own personal papers. You can write off your home workspace, no matter the size. Even if it's just a small corner of the kitchen or your den. But this dedicated space can ONLY ever be used for work purposes. The tip on knowing how much to write off is this: measure the workspace and divide it by the square footage of your home. The percentage you come up with is the amount of housing payment and utility that you can deduct every year. You can also write off other business expenses such as paper, pens, computers, and other commonly used goods and services. But again, similarly to your workspace, you can only use these dedicated items for your business. This also includes your phone lines.  You can only write off the percentage of your cellphone bill of how much time you're using it for business. If you still have a landline (kudos to you!) you cannot write it off unless you have two landlines. The IRS doesn't recognize your first landline as a deductible, but it will recognize your second landline as a deductible. That way they know your first line is used for anything but business, while the other is used only for business.

If you don't own your own business and work from home - don't worry. There are still plenty of other write-offs for you and your family. Of course, tax law and tax code do change every year. So if you personally do your taxes yourself and use a program like Quickbooks or have your accountant do your taxes every year - always make sure you're up to date on any changes to any tax law. Most big changes will quickly be made into very public knowledge - what else do we love to talk about more than changes that will affect our income? But always double-check! Your next step is to decide how you're going to file. There are four common deduction categories, but there are more. Make sure you look into all of them before you file. But if you're filing as a single person the total number of deductions is $12,000. If you married and filing jointly or you're a qualified widow(er) with a dependent child the standard deduction is $24,000. If you're filing as the Head of Household, the standard deduction is $18,000.

To receive your deductions, itemizing all of them might help you save some more money. But you still might have to do a little extra math. So keep your calculator close. If your itemized deductions add up to more than your standard deduction - you will end up saving money on your taxes by taking the extra steps to itemize your deductions!
COMMON ITEMIZED DEDUCTIONS! (Don't overlook these gems!)
  • Charitable Contributions
  • Value-based car requisition fees
  • Medical and Dental expenses
  • Traditional IRA & HSA contributions
  • Home mortgage points and property tax
  • College tuition and student loan interest
  • Work-related expenses
  • Self Employment Income
  • State and local income, sales and property tax
  • Child Care
  • Business use of your home
  • Earned income tax credit
How incredible are all of those? How much did you already know and what was news for you? Hopefully, these tips and insights will help keep a little more money in your bank account this coming tax season!

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