Author - SFS Tax & Accounting

Tax Tips for New Parents

Tax Tips for New Parents: How to Maximize Your Savings Congratulations! Bringing a child into the world is a joyous and life-changing event. However, it also can come with a significant financial burden. New parents can take advantage of various tax breaks to alleviate some of the financial strain. Let's explore essential tax tips that can help new parents optimize their savings and take advantage of available credits and deductions. Obtain a Social Security or Individual Tax Identification Number: Parents must obtain...

Tax Breaks and Home Sales

Tax Breaks and Home Sales - When you sell your home, there can be tax consequences that you should be aware of. The tax implications will depend on various factors, including your country of residence and the laws governing real estate transactions in that jurisdiction. Capital Gains Tax: One of the primary tax considerations when selling a home is the potential capital gains tax. Capital gains tax is typically levied on the profit you make from selling an asset, including a home....

Tax and Corporate Sponsorship

Tax and Corporate Sponsorship As business owners, we are usually involved with not-for-profits. And their mission is to raise money for their charity. So, they prevail upon businesses that are sympathetic to their cause to raise money by offering sponsorships. However, there is often confusion between sponsorships and donations. Is business sponsorship the same as a donation?  No, but you need to understand the tax implications of corporate sponsorship. We are often asked this question and feel it is essential that business...

7 Ways To Prepare For Tax Season

Tax season 2023 is almost upon us. According to the IRS, the 2023 eFile Tax Season starts in January 2023: prepare and eFile your IRS and State 2022 Tax Return(s) by April 18, 2023. If you miss this deadline, you have until October 16, 2023. However, you should at least e-File a Tax Extension if you owe taxes by April 18, 2023. Discussing taxes is not a topic many people are overjoyed to discuss, let alone think about, especially if they have a...

Top 8 Mistakes On Tax Returns

Top 8 Mistakes On Tax Returns A typo or unintentional error can become a significant problem when you file a tax return incorrectly. Here are a few tax return mistakes preparers have found when reviewing (taxpayer prepared) tax returns. 1. Not a dependent anymore When filing a tax return, parents often claim their college-age children as dependents despite receiving little to no tax benefits. Allowing children to claim themselves as a dependent on their 1040 should be investigated as children reach their junior or...

Know Your Tax Responsibilities During Bankruptcy

You need to know your federal tax obligations during Chapter 13 Bankruptcy. Know Your Tax Responsibilities During Bankruptcy. Chapter 13 bankruptcy is only available to wage earners, the self-employed, and sole proprietor businesses. In a nutshell, bankruptcy is typically a last resort for taxpayers to get out of debt. Chapter 13 is the usual type of bankruptcy for individuals as this segment of the bankruptcy law allows individuals and small business owners in financial trouble to repay their creditors. Know your tax obligations...

Is It Really The IRS?

How to know it’s really the IRS calling or knocking on your door Many taxpayers have encountered individuals impersonating IRS officials – in person, over the telephone, and via email. Don’t get scammed. We want you to understand how and when the IRS contacts taxpayers and help you determine whether a contact you may have received is truly from an IRS employee. The IRS initiates most contacts through regular mail delivered by the United States Postal Service. However, there are special circumstances in...

This Isn’t a Tax Change

This isn't a tax change; it's a tax reporting change. If you're a gig worker, freelancer, or self-employed American, it might be in your best interest to get a jump on your 2022's taxes and consult with us at SFS Tax & Accounting Services. That's because a new tax reporting law could affect your tax return next year. This recent ruling, a provision of the 2021 American Rescue Plan, now requires earnings over $600 paid through digital apps like PayPal, Cash App, or Venmo to...

Tips to Reconstructing Records

 Tips to Reconstructing Records. Do You Have Your Destroyed Records from the most recent disaster? The time and work recovering from a natural disaster can be extremely stressful and potentially devastate a small business. When you consider the loss of income, damage to facilities/equipment, and the loss of business records, a company can fold if the issues aren't addressed timely. Many business owners might need to reconstruct records to prove a loss. The documentation may be essential for tax purposes, federal...

Charitable Contributions and Taxes

Charitable Contributions and Taxes. If you give money or goods to a charity, you may be able to claim those as a deduction on your taxes. This will reduce the amount of your taxable income. Here are the rules for charitable contribution deductions: Your Donation Must Given be to a Qualified Charity Organizations must be eligible to receive tax-deductible charitable contributions. The IRS keeps a list of these organizations online.  You can use this list to verify that your donations are going to...