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As tax season approaches, you may be wondering: “Should I meet with a tax preparer before tax season starts?” The answer varies based on your circumstances, but in general, the answer is YES! Find a Preparer You Trust If you don’t already have a trusted tax preparer, it’s a good idea to research and meet with a few preparers in advance to find one who will be a good fit for you. Some preparers have specific clientele they prefer to work with, while others have specialized skills to offer. It’s important to make sure you choose a tax preparer who understands the nuances of your unique situation and has the skillset to support you. You may also find that one preparer’s communication style is more in line with your own, making them a better fit to work with you. Most importantly, we recommend finding a tax preparer who is local to you, and is easy to get in touch with when needed. Here at Hoods Tax & Accounting, our tax preparers are local to Goose Creek and Summerville, SC. They are experienced tax preparers who understand the needs of our clients because they live and work in our community. We also have a dedicated admin email available that is checked regularly–so when our preparers are out of the office, we will still get back to clients in a timely manner, especially if there is an emergency. Plan Ahead for Tax Season By meeting with a tax preparer before tax season, you can ensure that you have covered all of your bases. No one wants a surprise during tax season. We all hope our filing will be uneventful. But if you ignore your taxes until it’s time to file, you are setting yourself up for the unexpected. Here at Hoods, our team offers Tax Planning services to help you get prepared for tax season in advance. Get Answers to Your QuestionsYou don’t have to wait until your tax filing appointment to ask questions. If you have questions or concerns about your taxes, meet with your preparer now to get answers and talk through your options if you have concerns. Take the Stress Out of Tax Season Meeting with your tax preparer early–whether to make sure they are the right fit or for a Tax Planning session–is always a good idea. The team here at Hoods welcomes you to reach out and schedule an appointment!
If you aren’t already connected with a trusted tax professional, contact us at [email protected] to find the right tax preparer for you, and schedule an appointment before tax season begins.
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We’re heading into fall, which means we’re thinking ahead to tax season! If you haven’t thought about taxes since filing your 2024 return, you’re probably feeling that familiar dread reading this: the stress brought on by bracing for your filing results. If you relate, it’s time to think about investing in our Tax Planning services. What Is Tax Planning?Tax Planning is a proactive approach to your yearly taxes. Instead of ignoring your taxes throughout the year and facing the unknown in tax season, our local tax pros will sit down with you in advance to look at the big picture of your financial situation. Together, you’ll determine what your filing results will look like at the end of the year, and make a plan to improve your results before the year ends if needed. Why Should I Invest in Tax Planning? So why should you invest in Tax Planning? What makes Tax Planning so valuable? There are many reasons to use Tax Planning services like the ones offered here at Hoods Tax & Accounting. Here are 3 of the most important reasons. 1: Plan for Major Life Events Most major life events impact your taxes, but often, families aren’t thinking about the tax implications while living their lives. For instance, if you get married (or divorced), your taxes will be affected. If you buy or sell a house, you may have changes in your taxes. Giving birth or adopting a child can also impact you. Essentially, if you are going through any major change in your life this year, it’s a good idea to sit down with a Tax Planning professional to discuss how it could impact your taxes–for better or for worse. 2: Lower Your Tax LiabilityThe last thing anyone wants is to file their taxes and find out they owe more than expected. This is one of the biggest benefits of investing in Tax Planning services. When a professional looks at your finances–your income, expenses, investments, and life circumstances–they can flag in advance anything that could cause an issue during tax season. If you catch the issue early, you can create a plan to lower your liability throughout the remainder of the year, and offset as much of your tax liability as possible. 3: Plan for RetirementIt’s important to think about your retirement accounts now, to ensure you’re setting yourself up with a good safety net when the time comes to retire. Your Tax Planning professional can help you understand your contributions and withdrawals, and how they impact your taxes–both today and in the future. Schedule Your Appointment Today!Planning in advance for tax season is the best way to ensure you are prepared when tax season rolls around. And it’s always better to work with a tax professional who is an experienced local.
We hope that you will consider Hoods Tax & Accounting for your Tax Planning needs in Goose Creek or Summerville, SC. Reach out at [email protected] to schedule your appointment!  If you’ve filed taxes, you’ve probably heard the terms “tax deduction” and “tax credit.” But do you know what they actually mean? Today, let’s talk about what deductions and credits are (and are not). Tax Deductions and Credits Are Not the Same ThingWhen people talk about deductions and credits, they sometimes use the two terms interchangeably. But the truth is, tax deductions are not the same thing as tax credits. The difference is small, but important. What Is a Tax Deduction?A tax deduction is money that can be subtracted (or deducted) from the amount of your taxable income. In other words, it reduces how much of your income can be taxed by the IRS. Deductions can indirectly reduce the total amount of taxes that you owe because lower taxable income means a lower starting point for the calculation. What Is a Tax Credit?On the other hand, a tax credit applies directly to your due taxes. This means that whatever taxes you are calculated to owe will then be reduced by the amount of your tax credit. Tax credits are dollar-for-dollar, which means that if you owed $800, and you have a credit of $600, you will only owe $200. How Does This Affect Your Refund? Tax deductions and tax credits can both impact your refund in different ways. A tax deduction changes your taxable income. If you underpaid on taxes throughout the year, this could reduce or eliminate owed taxes. But if you overpaid, you could receive a refund due to overpayment. Tax credits work a little differently. Some tax credits are refundable, while others are structured as non-refundable. Non-refundable credits will only ever reduce your owed taxes. This means if you owe $1,000 and you have a non-refundable credit of $1,300, you won’t owe taxes, but you also will not receive a refund of the extra $300. However, some tax credits are refundable. For these refundable tax credits, any credit beyond what covers your owed taxes may be refunded to you. Have More Questions?We hope this helped you to better understand the differences between tax credits and tax deductions!
If you are local to Goose Creek, Summerville, or the surrounding areas of South Carolina, Hoods Tax & Accounting is here for you. We are proud to serve local families and small businesses in tax season and throughout the year. For more information or to schedule an appointment, email us at [email protected].  In last month’s blog, one of our tips for getting prepared for next tax season was to create a new organizational system for your tax documents. But do you know how to do that? Today, we’re sharing some tips to help you get organized so you can feel confident when it’s time to file! Have a Dedicated SpaceDon’t just throw your documents into a drawer with other paperwork (or worse, toss them into a junk drawer). Instead, choose a dedicated space JUST for your tax documents. This could be a dedicated drawer, cabinet, small closet, or even a box. What matters most is that your tax documents won’t be lost in the shuffle of other things in the same space. Categorize EVERYTHINGBy creating categories for all of your documents, you’ll be able to easily determine where new documents should go. You’ll also be able to organize by category for easier navigation when you need to find something specific. Some basic categories to get you started:
Keep Business and Personal SeparateIf you are a business owner or have a ‘side hustle,’ remember to always keep your business and personal tax documents separate. This helps you stay out of trouble with the IRS. We recommend creating entirely separate spaces for your personal and business tax documents, so nothing gets mixed up. Label Everything ClearlyMake sure that as you organize, you are labeling things as clearly as possible. If you can, use different colors to denote different categories. For example, you could use yellow folders for past tax returns, green for income, and red for expenses. Label each folder in large, bold, easy-to-read letters to ensure you can flip through quickly to find what you’re looking for. Keep Digital CopiesAs you work to organize your documents, scan all documents (even individual receipts) to create digital copies of everything. You can then use a similar organizational system for your digital documents, so that even if something happens, you can still access copies of all of your documentation. Check In RegularlyOnce you have your system in place, plan to check in on your tax documentation regularly to ensure everything is still organized and you aren’t forgetting to add new documents to the system. Congratulations! You now have an organized system for your tax documents. Next tax season, you will feel much more prepared to tackle the task of filing.
And remember, the team here at Hoods is always here to help.  Now that the 2024 tax filing season has come to a close, it’s time to think ahead. Whether you were happy with how tax season went for your family or left your tax filing appointment feeling disappointed, there are things you can do now to prepare to have the best tax season possible next year. So let’s talk about 3 ways that you can prepare NOW for next tax season. 1: Organize Your DocumentsIf you tend to spend the first few weeks of tax season digging through drawers and folders to find the documents you need, now is a good time to start reorganizing. Create a simple, straightforward system for your tax documents. Set aside a drawer specifically for tax paperwork and get organized. Don’t forget to check in with your tax preparer routinely to ensure you are keeping all the right documents! 2: Talk to Your Financial Planner Do you have a financial planner or advisor? If so, this is a great time to talk to them about optimizing your finances for your tax situation! Retirement plans, Health Savings Accounts (HSAs), College Savings Accounts (529s) and more can impact your taxes. Your financial professional can help you navigate your options and choose the combination that fits your family’s needs. 3: Invest in Tax Planning The person who can best support you in preparing for a great tax season next year is your tax professional!
Here at Hoods Tax & Accounting, we offer a Tax Planning service throughout the year to help individuals, families, and businesses plan ahead for the next tax season. Tax Planning can help you review your filing status, ensuring you are choosing the correct filing; get to know the credits and deductions you qualify for, potentially finding ones you didn’t even know about; adjust your W-4 tax withholding, so you are only withholding what is needed; plan for strategically-timed expenses to make the most of your deductions; and more! Tax planning is the biggest gift you can give yourself as you prepare for next tax season. And we want to help you get the best results on next year’s return! Reach out to our office at [email protected] to schedule your first Tax Planning appointment with the Hoods team.  We’re celebrating here at Hoods today. Do you know why? It’s Tax Day! For our office, Tax Day–or the final day to file your tax return without an extension–is a big day. It marks the end of the official tax season (although we will still be working on extended returns in the weeks to come). But for you, here’s what it means: What Does Tax Day Mean for Filers?If you’ve already filed your tax return for 2024, Tax Day will primarily just mean that you will hear about taxes less–at least for a few months. Taxes won’t be the biggest topic in the news, you won’t see as many ads (and scams) on social media, and you’ll generally just see LESS about the IRS. And isn’t that reason enough to celebrate? But if you haven’t filed, Tax Day may not be such a celebratory moment for you. If you’ve filed an extension on your 2024 tax return, don’t worry. Your extension protects you from the penalties of late filing. Keep in mind, however, that it does not protect you from the penalties of paying owed taxes late (if you think you may owe, talk to your tax preparer about your options). But if you haven’t filed your return or an extension, Tax Day means that you will now begin receiving penalties and fees until you file and pay. What Should I Do If I Haven’t Filed Yet?If you have not yet filed for 2024, you have options.
First, you have until the end of the day today (April 15) to file an extension. If you haven’t yet done so, don’t wait. Aside from filing an extension, the first thing you should do is speak to a professional. Your tax preparer can help you explore your best options and guide you through choosing the best path to get back on track. If you do not yet have a tax preparer, our team here at Hoods would be happy to assist you. Reach out to us at [email protected] and we will get in touch with you quickly to assess your situation. We’re here for you!  We’re halfway through March, and only one month away from Tax Day 2025. With the end of the season approaching, we wanted to check in and give you some information to help you as you work on filing your taxes. Tax Season Ends on April 15thThe official end of tax season is only ONE MONTH away. Tax Day 2025 is happening on April 15. In recent years, we have seen federal extensions on the end of tax season. We do not expect to see similar extensions this season, although there may be smaller state-specific or county-specific extensions for those who experienced extenuating circumstances (like wildfires or hurricanes) in 2024. This may feel like plenty of time, but if you wait to file, you won’t have time to fix any issues that may arise. Don’t wait. File now to avoid the stress of last-minute filing issues. Extensions Are AvailableIf you aren’t sure you can finish filing by the April 15 deadline, now is the time to file an extension! Filing extensions allow you to get your paperwork in order before filing your return. But please note: if you will owe taxes, payment is still due on April 15, even if you file an extension. Any taxes owed that aren’t paid by Tax Day will receive penalty fees. Hoods Tax & Accounting Is Still Accepting New ClientsIf time got away from you and you’re now worried about the impending deadline, we’re here for you!
We are pleased to share that Hoods Tax & Accounting in Goose Creek, SC is still accepting new clients for the 2024 tax filing season. We will help you start your return, file extensions if needed, and ensure you get the best results possible despite your late start. Please reach out to our office at [email protected] to get started!  As we navigate tax season, we’re having a lot of conversations about the Child Tax Credit. Every family hopes to claim it, but how much do you actually know about it? Today, let’s talk about what the Child Tax Credit is, who it is for, and how it works. But First, What Is a Tax Credit?
A tax credit is a reduction that can be applied to your tax return. It directly reduces the amount of money you owe in taxes. Some tax credits are refundable, while others are non-refundable. What Is the Child Tax Credit? The Child Tax Credit, or CTC, is a tax credit extended by the U.S. government to help families with qualifying children lower their taxes. It is designed to extend financial relief to families who have higher expenses due to the costs of raising children. Who Qualifies? For the purposes of the Child Tax Credit, a qualifying child:
How Much Is the 2024 Child Tax Credit? For the tax year 2024, the maximum credit that can be claimed per child is $2,000. In 2025, this number will be updated to $2,200 per child. How Do I Claim It? The Child Tax Credit can be claimed by entering your qualifying children and dependents on your Form 1040, then filling out and attaching a Schedule 8812. Schedule 8812 is also known as “Credits for Qualifying Children and Other Dependents.” Want support in filing your 2024 tax return? We would love to support you! At Hoods Tax & Accounting, our tax professionals are experienced and local to Goose Creek and Summerville, SC. Email us at [email protected] to schedule an appointment with a local you can trust. Happy New Year to our neighbors and friends here in Goose Creek, Summerville, and throughout the Lowcountry!
As we enter a new year, everyone here at Hoods Tax & Accounting is gearing up for a busy tax season ahead. Today, we want to tell you a little bit about what to expect with this year’s tax season–and what to expect from our office this year. Tax Season Begins January 27th On January 10, 2025 the IRS announced that the official start to the 2025 tax season–when you can begin filing your 2024 tax returns–will be January 27, 2025. Of course, there is always a possibility that delays will be announced, but at this time, we expect to begin filing on the 27th. Tax season will end on April 15, 2025, unless extensions are announced. Early Filers Get Refunds Faster Did you know that taxpayers who file their returns at the beginning of the season get their refunds faster? If you have not begun to prepare to file your 2024 tax return, we recommend that you start prepping your paperwork now so that you can be prepared as soon as possible to file. Hoods Tax & Accounting Is Beginning the Filing Process Our long-time clients know that we get started on the filing process early. For clients who have simple returns, we have already begun the process of prepping their returns. This means that on January 27th, some of our clients will already have returns ready to submit. Hoods Is Accepting New Clients We are thrilled to announce that we are accepting new clients for tax preparation. If you are interested in working with experienced local tax preparers and live in Goose Creek, Summerville, or the surrounding areas of South Carolina, reach out to us at [email protected] to get started. If you have always handled your taxes on your own, you might feel like there’s no reason that you would benefit from hiring a professional. After all, there are so many tools online today to help you file. So what’s the point in hiring a tax preparer? Here are 5 reasons you should hire a tax professional in 2025. 1: It Will Save You Time Your time is valuable. Don’t spend hours sitting at a table strewn with paperwork and receipts. A tax preparer can help you reclaim your time during tax season. We know what needs to be done, and we know how to do it quickly and efficiently. You may not even need to be present while we work on your return. In most cases, you can simply drop off your paperwork and come in to sign when the work is done! 2: It May Save You Money Many people choose to do their own taxes because they don’t want to pay the extra cost for a professional’s help. We get it! But the truth is, in many cases, you’ll actually save money by getting help from a tax preparer. We know about all the little deductions that you have probably never heard of. We can help you get the most out of your filing. You may even get an unexpected refund with our help! 3: You Have Complex Circumstances If you have experienced any major life changes or special circumstances in 2024, it’s a good idea to hire a professional to help you with your tax filing. For instance, if you changed jobs, took on a ‘side hustle,’ received an inheritance, bought or sold a home, adopted a child, or took on the care of an elderly parent, you may need the expertise of a tax preparer to navigate your taxes. You may also need help if you need to make changes or fix an error on a previous tax return. 4: You’re Self-Employed If you are self-employed, we highly recommend working with a tax preparer. There is so much to navigate when you are working for yourself, and your taxes are bound to be more complicated than in the past. 5: You Want Peace of Mind Taxes are stressful. We get it! But you don’t have to let the worries of tax season cause stress. Hire a professional to take the burden off your shoulders. Your tax preparer can ensure that you’ve done everything correctly–and if they find any discrepancies, they can help you correct them the right way. It’s all about giving our clients peace of mind. Are you a local to Goose Creek, SC or the greater Charleston area? The tax preparers at Hoods Tax & Accounting are here to help! Reach out to us at [email protected] for more information or to schedule an appointment.
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Hoods Tax & Accounting Service, LLC.
105 Etling Ave, Goose Creek, SC 29445 Phone: (843) 797-5153 Email: [email protected] |
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