3 New Tax Credits

covid-19 employer tax Jun 16, 2020

If you have employees, make sure to ask your accountant about 3 new tax credits. These new credits were created to help off set the financial hardship caused by COVID-19

  1. Employee Retention Credit: The employee retention credit is designed to encourage businesses to keep employees on payroll. The refundable tax credit is 50 percent of up to $10,000 in wages paid by an eligible employer whose business has been financially impacted by COVID-19. The credit is available to all employers regardless of size, including tax-exempt organizations. The two exceptions are state and local governments and their instrumentalities and small businesses who take small business loans.
  2. Paid Sick Leave Credit: The paid sick leave credit is designed to allow businesses to get a credit for an employee who is unable to work (including telework) because of Coronavirus quarantine or self-quarantine or has Coronavirus symptoms and is seeking a medical diagnosis.
  3. Family Leave Credit: The employer can also...
Continue Reading...

Free isn't Always Good

Uncategorized Jun 15, 2020
 

There's always free cheese in a mouse trap.

The free tax services you see on commercials are not telling you something.

It has a little disclaimer, it says for basic services. Some may say "postcard" service.

But you don’t see the notice and think “It's totally free.” You can go to the IRS website and do your taxes for free yourself if you qualify.

A problem with going into one of the box stores is the reason it's free is because they're not filing extra forms for you. So you might be missing out on thousands of dollars in deductions to save $50 or $60 bucks through their services.

 

But they don’t tell you that. They usually ask general questions that are prompted by a computer program. An often missed question & deduction is if you have someone in your family that is a student, college or post-grad. There are education credits that can lower what you pay in taxes.

Once you add the education credit, you're no longer considered a basic tax return...

Continue Reading...

Your Brain and Money

Uncategorized Jun 14, 2020
 

Social Media isn't always real.

There is an illusion of a lifestyle that is not necessarily truthful. People may not be giving you the best and most authentic information to help you in your life.

Your brain is pretty powerful & forms connections and patterns that you may not be aware of.

Your thoughts and habits around money are based on a lot of things. Society, the culture you grew up in, your parents, how your parents dealt with & talked about money.

We tie money into our self worth & our ethics. We think that if we owe somebody money or have debt, we are "bad" people.

That is not a healthy way to look at money.

The first step to fix this is to connect your limbic system (your emotions)  to your prefrontal cortex (your rational side).

When you start worrying about money or you want to hide and ignore it, try to connect your actions (or rational thinking) to a feeling.

For example, if you are a parent and you buy a bunch of stuff at the store then you can't even...

Continue Reading...

COVID 19 New Employer Tax Credits

employer tax Jun 13, 2020

A quick reference guide from the IRS to see if your business qualifies for Employee Retention Credits. Using the document, employers can determine whether they are eligible for the credits, the amount of the credits and which wages apply to the credits.

 

See full details on the IRS website:

https://www.irs.gov/coronavirus/new-employer-tax-credits

Continue Reading...

Do you talk about money?

Uncategorized Jun 12, 2020
 

Don't be afraid to talk about money. When you avoid talking about money, you create anxiety around it. 

Continue Reading...

Did you get a 1099

self employed tax Jun 11, 2020
 

If you get a 1099, you may be eligible for a big deduction. 

Section 199A allows taxpayers other than corporations a deduction of 20% of qualified business income.

What?

That means up to 20% of the income you earned on your 1099 could be a deduction. 

Make sure your tax person knows this! 

Continue Reading...

"Broke" with an assistant???

 

Say what!?!

There are a ton of people trying to sell you their 6 figure income program. I'm all for making more money & investing in yourself.

BUT...

Pay attention to who is giving that advice. Someone was selling a program to go from "broke" to 1 million in a week. And that wasn't just clickbait. They said it several times in their promotion.

They talked about discovering this amazing technique when the hit 'rock-bottom' and had to hustle. Then said they had their assistant do a bunch of tasks.

Your definition of broke & rock bottom involves having an assistant??

That's not really the definition broke for most people. Times of struggle are different, for different income levels. What is broke to one person may not mean the same to another person.

This person was being very misleading about their program. I'm sure there was some "no income guaranteed" legal text. But I wouldn't want to take advice or follow someone who would use these tactics.

Continue Reading...

Is your free email costing you money

business money May 19, 2020

Whether you’re someone that has to clear all your email notifications or you let that number climb, your business email says a lot about your business. If you’ve got a branded email. Sweet, move on. This article isn’t for you. However, If you are using a free gmail service, listen up. There are several ways this could cost you.  

 

Here’s the difference. The free accounts look like this:

[email protected] (or yahoo or eek aol)

The branded email looks like this: 

[email protected]

 

Close enough right? Let’s dive into it. 

 

The biggest reason that free accounts cost you is they don’t look professional. You want your clients to trust you. To know that you’re a credible business that isn’t going to take their money and disappear. Using a free account can make your business look tiny and a bit sketchy. 

 

Your customers form an opinion based on this. 36% of people think...

Continue Reading...

There’s still $120 Billion Available for Small Businesses

Uncategorized May 13, 2020

How is there money? Easy, 45% of small business polled didn’t think they would qualify. Or were told by their bank they could not send in an application. Many big banks are not doing applications unless you have a business account at their bank. A few are accused of sending in bigger loans applications first. (A big no-no) 

 

But the government has responded in a not so subtle manner. Publicly traded companies and entities with cash (I’m looking at you Harvard with your 40 BILLION) have been required to return the funds they received. This is all to help small businesses survive these crazy times. 

 

If you haven’t applied and are considering it, there are a few financing companies working with small business so you still have time. If you haven’t considered it, you might. Self-employed businesses are eligible. Here’s a quick rundown of the PPP for self-employed:

 

How much can you get?

2019 net profit divided by 12, to get a...

Continue Reading...

Taxes Explained in 5 Minutes

taxes Jan 02, 2020
 

Taxes explained in under 5 minutes. If you get any money outside of a W2, you should know this. Even if you only get a W2, you should know this.

If you get a paycheck with taxes taken out. The employer is paying half of your social security & medicare taxes. It’s their responsibility just for having you as an employee. You work, earn your money. Your employer withholds taxes for you then you get your check to spend.

When you work for yourself, a sole proprietor, an LLC, an S-Corp, a single-member LLC, a partnership, any of those things, it’s different. You earn your money then you spend money on your business, all your business expenses. Then you pay taxes.

Your tax is based on the income you make AFTER you've invested in your business. It's a really great benefit to have for some people. But a lot of people who get a 1099 (contract workers) don’t take out expenses and don’t realize they’re responsible for these extra taxes.

It's super important,...

Continue Reading...
1 2 3
Close

50% Complete

Two Step

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.