Ag FinTax

It’s true what they say, that nothing is for sure but death and taxes. However, this year we get a little reprieve from the latter. Due to the global COVID-19 pandemic, the IRS has extended the tax filing deadline from April 15 to May 17, giving filers an additional month to get their financial affairs in order. While the procrastinators amongst us might be rejoicing (and no shame in that), could it help to file before the tax filing extension? Does this extension give taxpayers more time to file state taxes? What incentive is there to get your taxes wrapped up?  That’s what we’ll cover in this guide: Tax Deadline Delayed Until May 17 — Should I Wait or File Now? Why did the tax filing date change? While the original tax filing date was slated for April 15, in keeping with most years, the Treasury Department and Internal Revenue Service announced on March 17, 2021, that this year’s tax filing deadline would be extended to May 17.  The announcement was made to give taxpayers r...

The big news this tax season is that the deadline for filing has been pushed back from April 15th to May 17th . This decision was made in light of the ongoing coronavirus pandemic, and it gives taxpayers a little more time to file their taxes.  That said, it never hurts to start preparing a little early. And if you’re new to filing taxes, or you’re not sure you’ve done it correctly in the past, then you may want to go over the basics of filing. Fortunately, even though filing your taxes seems intimidating, it can be fairly straightforward once you answer a few questions. Who has to file their taxes? If you’re reading this, you probably need to file a tax return. If you’re a dependent or your income is very low, you may not need to file, however, there can still be benefits to filing in these cases. So it’s best to check with a tax professional if you’re unsure of whether or not you should file.  What will I need to file my taxes? The first step in filing your taxes is gatherin...

When you start working on your tax planning strategies for the past year, you’ll inevitably see the word “dependent” come up. The term may seem a little vague at first, but a dependent is simply someone who depended on you for their care and income last year. Our children are often the people who come to mind when we think of dependents, but they’re by no means the only people you can claim as dependents.  In fact, there are two distinct categories of dependents: qualifying children and qualifying relatives.  Qualifying children can be your son, daughter, stepchild, adopted child, foster child, brother, sister, half-brother, half-sister, stepsister or stepbrother, grandchild, niece or nephew. However, there are more age and residency criteria that qualifying children must meet, which you can read about here . Qualifying relatives, on the other hand, don’t have to be children. They can even be your boyfriend or girlfriend in certain cases where your significant other is unemplo...

2020 was a very different year for most of us—so much so that the IRS has officially pushed back the deadline for filing your 2020 taxes from the traditional April 15th to May 17th.  However, some things, like the forms business owners need to file their taxes, haven’t changed. If you’re doing basic accounting for a small business, trying to juggle all those tax forms in the spring can be a full-time job. But it gets a whole lot easier if you know what you’re looking for and what you need to do with each form.  With that in mind, here’s a guide to some of the most important tax forms you’ll need to keep an eye out for, whether you’re a sole proprietor or have dozens of people on your payroll.  Tax Forms For Small Business Owners Form W-2 The official name of the W-2 form is the Wage and Tax Statement, and if you pay any employee more than $600 in a given year, then you owe them a W-2 form by January 31st of the following year, at the latest. The IRS requires employers to...

Back in 1980, over 50% of businesses filed as C Corporations or a corporation in which the shareholders are taxed separately from the entity.  However, the number of businesses choosing the structure of a C-corp has been steadily declining, and most U.S. businesses today do not pay the corporate income tax. Instead, they’re what’s known as pass-through businesses , because the profits they make a pass through to the owners and end up being taxed at individual income tax rates. If you have a sole proprietorship, partnership, S-corp, or limited liability company, then your business is probably a pass-through entity.  However, with the reduction of the corporate tax rate to 21% via the Tax Cuts and Jobs Act (TCJA) of 2017, the idea of a C corporation may be more appealing to those who would otherwise form a pass-through business. After all, when you start doing tax planning for your small business, doesn’t a 21% corporate rate look more attractive than the maximum individual rat...

It’s that time of year. The sun is shining, the days have gotten longer, flowers are blooming. It can only mean one thing: tax season is here.  For Americans, that means you’re likely gathering up your documents including W2’s and 1099s, and preparing to file. Or, if you’re an early bird, you’re patiently awaiting the long-awaited tax refund. But how can you find out if your tax refund is on its way? What’s the status and will it arrive via mail or direct deposit? The good news is, in recent years, thanks to digitalization, the IRS has made tracking tax returns a much easier process. And in this guide, we’ll look at how to find out where your tax return is and when you can expect it. E-File Update It pays to e-file.  E-filing, or submitting your taxes virtually, is already well underway. The IRS began accepting tax returns on Friday, February 12, 2021. So if you’re ready to send your tax return in, go right ahead. The sooner you file, the sooner you may see a refund. That sai...

With the advent of apps and web services geared toward casual, amateur investors—Robinhood, Acorns, and Zacks Trade, for example—the number of people trying their hand at trading stocks is increasing daily.  This can be a great way to make some money and enjoy yourself while doing it. But if you’re not prepared come tax time, you could find that you owe more money than you bargained for thanks to your trading habit.  If you’re just getting into investing, here’s what you need to know about taxes.  Keep records of your transactions While the app or brokerage you use will maintain reliable records, it’s a good idea to keep your own in case something happens. After all, companies do get cyber hacked, have outages, and sometimes lose data. If that were to happen around tax time, you could end up without the information you need to file properly.  The things you should track include:  What stocks you’ve purchased Number of shares What you’ve sold Dates of all transac...