Author - SFS Tax & Accounting

Tax ID Theft. Don’t Be A Victim.

Tax ID Theft. Don’t Be A Victim. Here are 7 Tips to Reduce Your Chances of Becoming a Victim of Tax Identity Theft. Tax identity theft occurs when identity thieves obtain your Social Security number and file a fraudulent tax return on your behalf. According to the Federal Trade Commission, tax identity theft is the most common form of identity theft. The FTC estimates that it costs taxpayers over $5 billion a year. Consumer advocates believe that since Social Security numbers...

Prepare for Tax Season

How to Prepare for Tax Season by Following These 3 Steps and Avoid Tax Trouble. Talking about taxes is not one topic people are happy to discuss or even care to think about, especially if they end up owing money in back taxes every year. That's why many taxpayers wait until the very last moment to prepare for tax season. It’s also why nearly 14 million Americans find themselves receiving threatening letters from the IRS and in some collection...

It’s Your Salary!

It’s Your Salary so who decides how much your paycheck should be? You or the IRS? You are the business owner. Are you taking advantage of your S Corporation status? Who decides what your salary should be? Don't let the IRS determine what your salary is. You likely formed an S corporation to save on self-employment taxes. Consider this - is your S corporation salary nonexistent? Is it too low, too high or, just right? Getting the S corporation salary right...

Stay Out of Tax Trouble

Stay Out of Tax Trouble By Avoiding These 5 Common Tax Filing Mistakes Whether you file a simple 1040EZ or a complex 1040 and a slew of schedules, making a mistake on your tax form could lead to big tax trouble. Something as simple as a math error or unsigned form could invite unwanted attention from the IRS. The tax agency sees those mistakes every year, and IRS representatives warn taxpayers to be careful when filling out their forms. Even if...

Ten Tax Facts to Know If You’re Selling Your Home

Selling Your Home? Here are Ten Tax Facts to Know Generally, the gain from the sale of the house is taxable but, you may not have to pay taxes. Here are ten tax facts to know: Exclusion of Gain. You may be able to exclude part or all of the gain from the sale of your home. This rule may apply if you meet the eligibility test. Parts of the test involve your ownership and use of the house....

Working From Home Best Practices

Tax Forms: How to Store Them, How to File Them and How to Reduce Your Liability Working from home can be a dream come true, especially if you are self-employed. Opportunities for freelancers, gig workers, and other self-employed men and women have exploded in recent years. People are getting the freedom they crave without sacrificing the income they need. This is far more evident with the current COVID situation where millions of Americans are now commuting from their bedroom to...

Newly Retired? You could be in for a tax surprise?

You've worked your entire life. You’ve got your retirement all planned out. Your retirement savings accounts are where you wanted them to be. You have started receiving Social Security benefits as wells your pension. is ready to go. Everything is planned including that extended vacation. What could go wrong? Here are five surprises that can turn your plan on a dime. Health emergencies and long-term care. When a simple procedure could cost thousands, health care costs can put a huge dent...

Takeaways on Coronavirus Tax Changes

In response to the coronavirus pandemic, the IRS has implemented numerous changes that go well beyond tax filing extensions and stimulus payments.  Here are takeaways on the Coronavirus  tax changes; significant changes that could affect you and your family: Early distribution penalty waived The 10% early distribution penalty on up to $100,000 of retirement withdrawals for coronavirus-related reasons is waived during 2020. New provisions allow tax liabilities on these distributions to be paid over a three-year period. The new rules...

SFS Spotlight Newsletter April 2020

April 10, 2020 Jeffrey Schneider, EA, CTRS, ACT-E, NTPIF Author of the Now What Help! series If you are preparing your own tax return the book is a great guide with complete explanations about the 1040 form. The third book in the Now What Help series is available on Amazon, https://amzn.to/38MXLrF In the World of Tax Sheltering in Place Activities Learn About the SBA Disaster Loans - video Mark Your Calendar What Are the CARES Act Provisions? Overview - FFRCA What To Do If You Received the Dreaded Letter From the...

Families First Coronavirus Response Act

On March 18, 2020, the Families First Coronavirus Response Act was signed into law, marking the second major legislative initiative to address COVID-19. The overview below provides a summary of key provisions of the Families First Act, which includes the key points in the law. Families First Coronavirus Response Act The new law requires that small business to provide paid leave Families First Coronavirus Response Act provides worker benefits. The Families First Coronavirus Response Act is the new law passed that offers COVID-19...