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.
Tag: tax season
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
Tax Planning Year Round
In this blog post, the IRS recommends ways to keep up with your taxes throughout the year so that when tax time approaches you’ll be prepared and not stressed. A few of the suggestions include, organizing tax records, adjusting check withholding, and saving for retirement. Read more here and start planning for next year’s tax season today. Tax planning doesn’t stop after a taxpayer files a tax return
Tax Season Delays
The IRS is understaffed and refunds may be delayed. Currently, the IRS has a workforce similar to that of the 1970s, 15,000 employees handle around 240 million calls during tax season, about 16,000 calls per employee. 90% of people file electronically helps the process and many in the remaining percentage would prefer filing online but cannot for various reasons including forms the agency does not yet process electronically. Reduced budgets and a decline in tax payer enforcement in recent years have led to concerns about a growing “tax gap.” Read more here: Treasury warns of ‘enormous challenges’ this tax filing season that could delay refunds
Go Paperless!
Ready to lose the piles, folders, and filing cabinets in your home office? Now’s the time! Wirecutter recommends the Scanbot Pro Ap for Android and IOS to begin saving your paper files onto your phone and home computer. One exciting feature is text recognition that will allow you to search for any word within each document. Wirecutter also offers a list of shredders for when you no longer need the paper files, How to Go Paperless With Your Home Office. Organizing these files into a specific folder and backing them up onto a thumb drive or other external hard drive is the final, important step. They assure that you will be amazed during tax season when all of your documents are accessible at the touch of a button.
Tax Confusion?
What will the new tax bills mean for you? At the moment it’s not quite clear. Accountants and tax advisors everywhere are watching with bated breath as we approach the current tax season where these new laws will take affect. The best advice in the article? Schedule your tax professional appointment early this year.
Confused by the Tax Bills? Be Glad You’re Not an Accountant
It’s Tax Day, Hug Your CPA
Today is one of the most stressful dates for many Americans. April 15th, Tax Day brings all kinds of worries for those who have waited to complete their tax forms and not sought the help of a CPA. On the other hand, accountants are just coming to the end of an extremely busy work season. Maureen Schwartz offers a humorous view of living with a CPA during this time and how best to care for them. Happy tax season and raise a glass to your and all CPAs in the US this monumental day! The 10 simple rules of caring for your CPA this busy season