Debra Newby Watkins CPA – CPA's not only count, they make change.

How Do Short-Term Rentals Operate in Your City?

The city of Austin decided that a cut from all short term rentals should be paid to the city. This is not a new trend and many other cities around the U.S. charge the same kinds of fees and taxes. It pays to look more closely into the cities you visit when deciding if you’ll be staying in a short term rental (AirBnB, VRBO) or hotel. Some of the city costs may actually affect your decision. For more resources on Austin and the fees they charge, visit the sites below.

Austin Finance Online: https://financeonline.austintexas.gov/afo/account_services/hotel/
Short-Term Rental Licensing: https://www.austintexas.gov/department/code-compliance-guide-short-term-rentals
Learn more about City of Austin HOT: https://www.austintexas.gov/page/hotel-occupancy-taxes
STR HOT Updates – Item 41 from the 2/27/2025 Council Meeting: February 27, 2025 Austin City Council Regular Meeting | AustinTexas.gov

Amended Tax Returns

Do you have questions about when to file an amended tax return? Did you know that certain filing errors will be corrected automatically by the IRS? If you need more information about when amended returns are required, visit this page. More informational topics are available at the bottom to help guide you through the process. Topic no. 308, Amended returns

Paying in Cash?

How would you feel if your service employees asked to be paid in cash? Would you suspect that they were trying to shave a little off of their taxes? Is it your job to “police” the people you employee for various jobs around your home? Many couples face this dilemma and may not be in agreement with each other. The Ethicist addresses this question and details why it is best to report all income when filing taxes, in his April 9, 2025 response, Our Gardener Wants to Avoid Taxes. Should We Pay Him in Cash?

1099-Ks for Online Sales and Money Aps

If you have sold items online this year and/or received money through an Ap such as Venmo or Cash Ap, you may receive a 1099-K form. The federal threshold for these types of sales in tax year 2024 is $5000 and will reduce each year until it reaches $600 in 2026. The income that these forms represent may be from online clothing sales, tickets sales, or even gig jobs. The IRS is making an effort to collect taxes from workers or online businesses who do not traditionally report their income. This article stresses that personal payments between friends and reimbursements are not taxable. If you feel you’ve received a 1099-K in error, there is a place on your 2024 tax forms to report the money as not income. Read more here: Did You Sell Concert Tickets or Clothes? You May Owe Taxes.

Small Things Add Up

Are you aware of the offers your bank gives for certain types of accounts? Do you know how much interest your regular or high-yield accounts pay? Have you ever felt confused by the information you bank sent about interest or ways to save?

These questions and more are currently at the forefront of the banking industry and have brought to light certain practices that institutions may be using to mislead their clients. Capital One was sued by the consumer bureau over advertising meant to deceive customers.

The article advises consumers to be diligent and pay close attention to “deals” when they come from their banks. These could help your money earn more. Read Here: Why Banks May Be Hoping You’re Not Paying Attention

Preparing to File Your Taxes

What are your tax prep best practices?

With the start of a new year, many begin thinking about filing taxes. The IRS offers simple tips and best practices for getting all of your paperwork in order to make the process go smoothly. This article is especially helpful for those who worry they may not be paying enough and want to take advantage of available deductibles. Read more here: Be ready to file taxes next year

New Ways To Save

As we enter the season of gift giving, it’s time to watch budgets even closer. Explore these sites recommended by ThePennyHoarder.com, The Dumbest Things We Keep Spending Too Much Money On, to save on your monthly bills and other needed household items such as:

Car Insurance
Amazon
Credit Card Interest
High Speed Internet
Movies and More

Leave yourself more money for the fun things in life during the holidays.

Commission Rules Have Changed

If you are entering the market for a home, some rules about realtor commissions have changed. Now sellers and buyers will both be responsible for these payments after the decision in a case brought against the National Association of Realtors. They will no longer be able to mandate the seller’s agent make an offer of monies to the buyer’s agent, or set any kind of industrywide standard commissions. Debra Kamin for the New York Times offers best practices for buyers and sellers as these new rules come into play. Buying or Selling a Home? The Rules Have Changed.

Too many calls and texts?

It’s a new era for homebuyers applying for a mortgage. In what’s known as a “trigger lead,” consumers may receive 60 to 100 phone calls and texts soon after their credit is pulled for mortgage approval. The idea behind credit bureaus selling this information to lenders was to give homebuyers options, but the market has become over burdened with disreputable and deceptive lenders. This deluge of contact has become such an issue with consumers that there is pending legislation to prevent trigger leads.

Help For Women’s Retirement

Eighty-six percent of women hope to achieve security in retirement but the statistics show that only about 33% of them will. Poverty often hits women harder in retirement. In 2021, AARP and the Ad Council came together to create a new campaign, “We Say Save It,” to help women better plan for retirement living. The article, AARP, Ad Council Team Up to Boost Women’s Retirement Savings talks about the reasons why women suffer monetarily after quitting work and directs readers to the, WeSaySaveIt.org official site that offers women detailed information on retirement savings and ways to make your money work best for you.