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.
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.
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.
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!
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.
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.
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!
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.
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 Taxes
In 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!
Professional Tax Planning
While there are many fantastic ways you can tax plan by yourself, the number one way to efficiently tax plan for the coming tax season is to use your resources of professional tax planers. When dealing with the government you do not want to run the risk of not filing your taxes incorrectly. Eliminate that worry by contacting Hoods Taxes & Consulting for any and all your tax needs.
In order to start planning professionally for your taxes, it is imperative for you to make an appointment with the tax expert now rather than later. Getting started early can benefit you in more ways than one. Therefore, as you gather the items you need to start filing your taxes, give Hoods Tax and Accounting a call! Our professionals will help you in whatever way we can!
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