 There are many loose ends you need to tie up at the end of any year for your personal taxes and those of your small business. You also need to be staying on top of the many changes coming your way in 2020 taxes. You might have more work ahead of you, so it's better to be prepared now for what is quickly heading your way.
You've made it through the holidays and all the celebrations that go along with them, both in your job and with your families. As tax season approaches for the 2019 fiscal year, you need to start thinking about a few new changes that you'll be seeing sooner rather than later, along with tying up a few loose ends.
In this blog, we won't be discussing all of the changes that are heading your way. We will just be touching on some of the most important. You will see changes in the W-4 form in 2020, in State withholding, Federal W-2s and State Deadlines, ACA Compliance from the State, and in Gig Economy and worker classification. Changes with W-4 Forms In 2020 you're going to see changes with the IRS W-4 tax form. They have changed the form and given it a bit of a facelift. The changes include calculations for income tax withholding. There is a new form that has been added for the head of the household as well. The new form eliminates withholding allowance. As an employee, you will just adjust your withholdings by putting your tax information on your W-4 forms. This will include non-wage income, full-year deductions, and any child or any other dependent tax credits. If you own a small business or are getting a new job in the year to come, filling out tax papers will be much different than previous years. Since you probably don't know all of your tax information off the top of your head, and you probably won't be carrying around copies of last year's tax refund, take more time filling out the paperwork. If you are a business owner, allow your employee to take it home. Ask your new employer for a private space to call home or your tax professional to fill out all the information. If you are happy with your current withholdings at your job now, you will not need to fill out the w-4 form again. If you need to change anything for your future taxes, you will have to fill out the new paperwork. State Withholdings The new W-4 paperwork could affect state tax withholdings. Many states are still trying to figure out how to work with these new changes, so you or your small business won't be the only one trying to follow along. You will need to prepare for these changes by the end of next year, as their decisions on how to deal with these new changes will also affect how you file your taxes. The main issue many states are dealing with right now is the fact that there is no longer a box for allowances on the federal tax forms. Different states are picking different ways to handle the situation. One option that might become the norm is taking the focus away from income tax and shifting to pay-roll taxes. This might not be a very fun solution for many of us, but be prepared. When it's time to do taxes and paperwork for 2020, make sure to pay attention to the choices your state has made to deal with the W-4 changes. Federal W2s and State Deadlines In 2020 the tax rate will remain the same for employees and employers, at 6.2%. Medicare tax rates will also stay the same as they were in 2019. The IRS has now moved up the W-2 submission deadline to January 31st. They have done this to continue the fight against tax fraud and identity theft. Most states will now require electronic W-2 filing from your employers. Many states have also increased the penalties for late filings of W-2 forms. Be very aware of these due dates. These fees can add up very quickly and become very costly. The good news for you, if you're feeling overwhelmed for next year's tax season, is that we are here to help you keep up to date on these changes. We are here to help you understand them, help guide you through them, and prepare for them. These charges vary from small differences to ones that will affect you on a state and federal level. Just like any tax law changes, the new ones we will be seeing in 2020 will evolve into others. So don't get too comfortable. Stay connected, educated, and ready for the unexpected.
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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?
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.
 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!
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!)
 Tax season is quickly approaching as the new year begins, and many are watching the clock to fill out their taxes by the April deadline. Some are new to the tax paying scene, and are wondering what all these new terms mean, especially a personal income tax.
In order to fund programs such as Medicare, Social Security, national security, roads, schools, and welfare, the government taxes our personal income. This income includes wages, unemployment benefits, tips, salaries, business income, and more. When filing your tax return, make sure you pay attention to deadlines set by the IRS. Not having your taxes completed by the deadline can result in penalties and charges. To combat tax confusion, make an appointment with our tax experts at Hoods Tax & Accounting. We take taxes seriously, so you don’t have to worry!  Ways to File Your TaxesIn this day of technology, there are multiple ways to file your taxes. While it is preferred you work with a team of experts in the matter, there are other options. Today we are going to give you a small overview of those options.
New Age Technology Alongside all the convenience technology has granted us other the years, filing your taxes electronically is one of them. These various tax preparation software give the user an easy process when filing their federal or state return. Don’t worry, technology encrypts your data so no one else can access your tax information! Old Fashioned Paper and Mail While filing this way is the cheapest route for those penny pushers out there, it is also the method with the least security. The paper method is what it sounds like, just filling out the appropriate tax forms on paper and mailing it to the IRS. The information you would need to include when filing includes, status, income, tax exemptions, credits, or deductions. With mail comes longer filing and processing time. So if you choose this method, the earlier the better! Leave It To A Professional What can we say? The best method for filing your taxes would be to entrust a professional who understands all the ins and outs of the tax filing process! For example, Hoods Tax & Accounting can provide you professional tax preparation services with no hassle to you! Make an appointment today for us to assist you with your taxes, and you won’t regret it! Prepare early and schedule your appointment with Hoods Tax & Accounting today!  With all the wonderful tax services at your disposal, why would you take on the daunting task of taxes alone? With Hoods Tax & Accounting, we are on your side to help with completing and filing your taxes on time in 2019! We are available for appointments, all you have to do is call and schedule! We work with the individual to ensure their taxes are filed and completed to IRS standards.
It is in your best interest to go through a tax service like Hoods to ensure that your taxes are completed appropriately! We also try our best to inform you of any deductions you may qualify for to save you money! We love what we do and enjoy working with every one of our clients! So, if you are wanting your taxes done early, correctly, and professionally, contact Hoods Tax & Accounting today to schedule an appointment with an expert!  As we begin preparations for tax season coming in April of 2019, we thought we would cover some basics for those who may be new to the world of taxes. Tax Brackets are an important factor when it comes to taxes, and can also be daunting for those who are new to paying taxes. The Federal Tax Brackets It all depends on your taxable income, but you will fall into one of seven brackets. These brackets are 10%, 12%, 22%, 24%, 32%, 35%, and 37%. Each bracket will determine the amount of taxes you will have to pay in correlation with your income of that year. How will you file? Depending on the way by which you file your taxes can also change the amount you pay within those tax brackets. The options to file are single, head of household, Married filing jointly (or qualifying widow), and Married filing separately. Difference of Cost Below is a chart of the brackets and their correlating amounts for this tax season,  For those of you who need assistance with their taxes, Hoods Tax & Accounting will happily help and assist you in filing your taxes! Come meet with us today and get a head start on the upcoming tax season!
The Federal Unemployment Tax Act The Federal Unemployment Tax Act, or FUTA as it’s commonly known for, helps fund state workforce agencies in the United States. In order to file this tax, employers will fill out Form 940 and sometimes pay the tax in installments during the year.
FUTA supports the government use of job programs and the insurance that unemployed citizens are deemed rightful to when without a job. Each state has a different tax percentage in which they pay in the Federal Unemployment Tax. South Carolina employers pay 0.3% in the Federal Unemployment Tax each year. As a community, we want to ensure that every citizen has the means to employment, and with the money from this tax going into job growing and producing measures, it is achieving the purpose for employer and employee. If you have any questions regarding taxes, please feel free to contact Hoods Tax and Accounting! We would love to speak with you!  Taxes can be tricky but that is why our team at Hoods Tax and Accounting are here to help! Today we’re going to discuss the question frequently asked, “how much do I have to make to file taxes?“.
To tell you the truth it is all dependent on the individual. Specifically filing status and age. It also depends on the year, so things can fluctuate greatly. Here are a few margins to help you get a better idea of where you fit in. For example, Last year in 2017 the minimum for single filing status was roughly around $10,400. If you’re under the age of 65 that is. So if your income is below that amount, it’s not likely that you will have to file your federal tax return. But there are so many different filing statuses, so here is the general overview: Like we said earlier, at a single filing status, if you made below 10,400 and were under the age of 65 you do not have to file. For married filing jointly, if you are both under the age of 65 your minimum would be $20,800. If one of you was older than 65 and another is younger, your minimum will be $22,050. And if you are both older than the age of 65 your income will have to be $23,300 for you to have to file for federal tax return. For those who are married but filing separately things are a little simpler. For all ages your minimum income is $4,050 in order to have to file your federal tax return. If you were a qualifying widow or widower with a dependent child your minimum if you are under the age of 65 is $16,750 if you’re older than 65 it is $18,000 even. At Hoods Tax and Accounting, we understand it can be a little tricky to remember the age groups and maximums and minimums of taxes. That is why we are here to help if you have any questions or further concerns regarding this topic as well as any other please feel free to contact us and schedule a meeting. We look forward to hearing from you. |
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