Barbara A. Akins CPA Blog

What's the Kiddie Tax?

Sat, 07 Feb 2026 13:49:32 GMT

What is the Kiddie Tax and How does it Work?

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New Car Loan Interest Deduction

Wed, 07 Jan 2026 16:50:10 GMT

One Big, Beautiful Bill

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No Tax on Overtime

Tue, 06 Jan 2026 21:40:18 GMT

One Big, Beautiful Bill

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No Tax on Tips

Tue, 06 Jan 2026 21:29:25 GMT

New One Big, Beautiful Bill

For Tax Years 2025 - 2028, eligible tipped workers, can deduct $25,000 from their Modified Adjusted Gross Income (MAGI). This phases out for single filers with MAGI over $150,000 and $300,000 for joint filers.

The Qualified Tips must be paid Voluntarily. For instance, a restaurant that imposes an automatic 18% service charge for large parties IS NOT CONSIDERED QUALIFIED TIPS.

Do you have a Hobby or a Business?

7029639497 — Fri, 27 Jun 2025 14:14:48 GMT

The BIGGEST difference between the two is that businesses operate to make a profit while hobbies are for pleasure or recreation.

Either way, they may receive an IRS Form 1099-K for transactions. These payments are taxable income and must be reported on federal tax returns.

Here are some QUESTIONS to help you decide if you have a Hobby or a Business:

? Is there an intent to make a profit?

?? Do you depend on the income for your livelihood?

??? Are losses due to circumstances beyond your control?

???? Are losses normal for the start up or your type of business?

????? Is the activity carried out like a business w/ books & records?

?????? Do you have the knowledge to make it successful?

Whether you have a Hobby or run a Business, good record keeping throughout the year will help when you file your taxes.

Is my Student Independent for FAFSA?

7029639497 — Thu, 17 Oct 2024 14:53:38 GMT

Are you wondering if your student can be Independent on the FAFSA?

The most common question I get from parents is, "Shouldn't my student be independent if they file their own taxes?"

The answer often surprises families who hope to qualify for additional aid by pursuing independent student status for their student.

According to the Federal Department of Education, an independent student for the purposes of completing the FAFSA, must meet at least 1 of the following:

- Age 24 or older by December 31 of the FAFSA year of Submission
- Married
- Pursing a graduate level or professional degree
- A veteran or current armed forces member
- An orphan or ward of the court
- An emancipated minor
- At risk of becoming homeless
- Have their own legal dependents

Bottom Line - Your student's dependency status is NOT BASED on their tax filing status.

State Supreme Court Upholds PA Position on Like-Kind Exchanges.

7029639497 — Thu, 17 Oct 2024 14:12:07 GMT

The Pennsylvania Supreme Court decided that the Internal Revenue Code Section 1031, a federal tax provision for deferring capital gains in Like-Kind Exchanges DOES NOT APPLY in PA.

This means that when you sell property in PA and you qualify for Like-Kind Exchange on your Federal Income Tax Return, BE AWARE that you WILL PAY PA TAX on Capital Gains on your PA Income Tax Return. GOOD NEWS - PA Income Tax is 3.07%!

Do you have a HOBBY or a BUSINESS?

7029639497 — Wed, 05 Jun 2024 17:29:42 GMT

Hobbies and Businesses are treated differently when it comes to filing taxes. The biggest difference is a Business operates to MAKE A PROFIT and Hobbies are for PLEASURE .

There are a few things that people should consider when deciding whether they have a Hobby or a Business.

1 - Does the time and effort put into the activity show you intend to make a profit?

2 - Does the activity make a profit in some years? And how much of a profit?

3 - Will there be a future profit from the appreciation of the assets used in the activity?

4 - Do you depend on income from the activity for your livelihood?

5 - Are any losses due to circumstances beyond your control or are the losses normal for the start-up phase of your type of business?

6 - Do you change your method of operations to improve profitability?

7 - Do you keep complete and accurate books and records?

8 - Do you have the knowledge needed to carry out the activity as a success business?

For more information, Google: Publication 334, Tax Guide for Small Businesses (For Individuals Who Use Schedule C) or Publication 535, Business Expenses.

Help your Workers pay their Student Loans!

7029639497 — Thu, 04 Jan 2024 21:41:52 GMT

Educational Assistance Programs Can Help Pay Workers' Student Loans!

Employers that offer educational assistance programs can ALSO use those programs to help pay their employees' student loans.

Traditionally, education assistance programs are used to pay for books, equipment, supplies, fees, tuition and other educational expenses for the employee. THESE PROGRAMS CAN NOW ALSO BE USED TO PAY PRINCIPAL AND INTEREST ON AN EMPLOYEE'S QUALIFIED EDUCATION LOANS.

The tax-free benefit is up to $5,250 per employee per year. Any assistance provided above $5,250 is taxable to the employee as wages.

This benefit is available until December 31, 2025. ��

The IRS issued the NEW Standard Mileage Rate for 2024!

7029639497 — Thu, 14 Dec 2023 20:08:53 GMT

$0.67 a Mile for the use of a car, van, pickup truck or panel truck driven for business in 2024.

You have the option of calculating actual costs of using your vehicle rather than using the standard mileage rates. BUT YOU MUST OPT TO USE the Standard Mileage Rate the first year the car is available for business use. Then, in later years, you can choose either the standard mileage rate or actual expenses.

LEASED VEHICLES must use the standard mileage rate method for the ENTIRE LEASE PERIOD if the standard mileage rate is chosen.

2024 Maximum Earnings Subject to Social Security Tax

7029639497 — Thu, 19 Oct 2023 15:02:05 GMT

The Social Security Administration announced that the maximum earnings subject to Social Security tax will increase from $160,200 to $168,600 in 2024 (an increase of $8,400 - 5.2%).

The maximum employer contribution for Social Security in 2024 will be $10,453 ($168,600 x 6.2%).

Congratulations New Parents!

7029639497 — Tue, 10 Oct 2023 20:48:07 GMT

Congratulations to welcoming another new bundle of joy into the world!

I f you haven't realized already, kids are expensive! Fortunately, there are several tax breaks for new parents.

1 - Child Tax Credit: Partially REFUNDABLE CREDIT available to parents with dependent children under age 17. The CTC is $2,000 for each qualifying child if your modified adjusted gross income (MAGI) is under $400,000 for joint filers.

2 - Dependent Care Credit: This credit is for costs of caring for children under 13 yo so you and your spouse can work. The maximum credit is $600 for 1 child and $1,200 for 2 or more children.

3 - Adoption Credit: For 2023, parents can claim a maximum credit of $15,95 for qualified expenses incurred to adopt an eligible child. The credit begins to phase out for taxpayers with MAGI above $239,230 and is zero if you reach $279,230.

4 - Higher Education Credits: The maximum annual American Opportunity Tax Credit of $2,500 is available for up to the first 4 years of study for each student. ------The maximum Lifetime Learning Credit (LLC) is $2,000. The LLC applies to each taxpayer (not each student) but is available for all years of study - not just the first 4 years.------------Each credit is subject to phase-out based on MAGI.

You Got Mail.... from the IRS

7029639497 — Fri, 22 Sep 2023 14:16:41 GMT

When an IRS letter arrives,
You DON'T need to PANIC, BUT
You DO need to READ IT.

The IRS sends notices and letters when it needs to ask a question about a taxpayer's return, let them know about a change to their return or request a payment.

When an IRS letter arrives in the mail, read the letter carefully.
Better yet, GIVE the letter to your Tax Preparer and they will explain
Why you received the letter.
What the IRS is looking for.
How to respond.

Your Tax Preparer will Thank You for forwarding it to them.

3.8% NII Surtax - Could Get Worse

7029639497 — Mon, 18 Sep 2023 20:41:25 GMT

More people each year are paying a 3.8% surtax on net investment income (NII). And it looks like it could even be MORE in the future!

The NII tax was part of Obamacare. It applies to Single filers with modified AGI above $200,000 and Joint filers with modified AGI over $250,000. [Modified AGI is AGI + tax free foreign earned income.] NII includes interest, dividends, capital gains, annuities, royalties and passive rents.

The thresholds have stayed the same since 2013!! Because of this, the number of 1040 returns reporting NII surtax has more than doubled, from 3 million for 2013 returns to 7 million for 2022 returns. The revenue from the NII tax has grown by $38 BILLION during the same period.

What does the future look like?

Republicans want to raise the threshold for Joint filers to $400,000 AND index the thresholds to inflation each year.

President Biden wants to increase the NII tax to 5% for people with over $400,000 of income AND impose the NII tax on income from pass-through entities in which an individually material participates for Joint filers with income over $500,000 and Single filers with income over $400,000.

Stay tuned for updates on the progress of changes to the NII tax!

PA Increases Section 179 Limit

7029639497 — Thu, 24 Aug 2023 17:15:19 GMT

Finally what every business owner has been waiting for!!!!

Pennsylvania updated the Section 179 limits for 2023 and later tax years!

The maximum amount of Section 179 deduction has increased from $25,000 to $1,160,000 for 2023. In addition, the $200,000 investment limitation increased to $2,890,000.

How to Deduct Business Expenses While on Vacation

7029639497 — Mon, 10 Jul 2023 17:20:33 GMT

A big question for business owners is "Can I mix my business travel and a vacation, and if so, am I allowed to deduct those expenses?"

YES - with proper recordkeeping, business expenses may be deducted, as long as certain requirements are met.

1 - The IRS states that travel expenses must be Ordinary & Necessary. They cannot be lavish, or for personal purposes.

2 - Deductions for business travel are available when you are away from home and need to sleep to meet the demands of your work.

3 - When your trip is 100% for business 100% of travel expenses incurred for yourself are 100% deductible. This includes air, train, bus, car between home and business destination, taxis, shipping, lodging, 50% of non-entertainment meals, dry cleaning, laundry, tips. Make sure you document the purpose of your travel and keep receipts.

4 - When you have a trip that is primarily for business but extend your stay for a vacation, you can only deduct your business-related travel expenses. The IRS says that YOU CAN COUNT WEEKENDS & HOLIDAYS IF THEY FALL BETWEEN BUSINESS DAYS.

5 - When taking a trip that is business and your family joins you, only those expenses that apply to you are deductible. If you are traveling by vehicle, the entire cost would be deductible because you would have incurred the cost regardless of whether the transportation is used for business or leisure. For lodging expenses, the allowable deduction cost is what you would have paid for a single room rather than a double room.

6 - Unfortunately, trips that are primarily for personal reasons or vacations are completely NOT DEDUCTIBLE. If you conduct business while on your vacation, only expenses that are 100% directly related to your business are deductible.

Funding your Child's College Education - 529 Plans

7029639497 — Tue, 30 May 2023 18:23:07 GMT

A Section 529 Plan is a tax-favored way to save for a child's college education. Contributions can grow without any current tax while distributions to pay for qualified expenses like tuition are tax-exempt.

In 2023, a parent or grandparent can contribute up to $17,000 per recipient without having to file a Gift Tax Return. There is a Special Rule where you can choose to give up to 5 years worth of contributions at one time without any gift tax liability. You could make a one-time gift of $85,000 in 2023.

What happens if your child graduates (like my daughter, Dr. Erin Akins) or your child decided not to go to college?

1 - You can roll over the funds to an account for your younger child OR you can change the beneficiary designation on the account to your younger child.

2 - Arrange a Roth Rollover. Beginning in 2024, the Plan Beneficiary can roll over the funds tax-free to a Roth IRA, subject to the annual contribution limits. The account must have been opened at least 15 years. Plus, there's a $35,000 lifetime cap on rollovers.

CONGRATULATIONS TO THE GRADUATES OF 2023!

New SECURE Act 2.0 signed into law on 12/29/22

7029639497 — Tue, 31 Jan 2023 12:15:19 GMT

DID YOU KNOW that on December 29, 2022, the SECURE Act 2.0 was signed into law? [It passed in 2019, but was not signed until almost the very end of 2022.]

WHAT IS the SECURE Act 2.0?
Setting Every Community Up for Retirement Enhancement!

What are some of the KEY CHANGES in the New Act?

- Beginning in 2023 , you must start taking Required Minimum Distributions (RMDs) at age 73. In 2033, the threshold is age 75.

- If you fail to take an RMD in time, the penalty was equal to 50% of the amount that should have been withdrawn. The New Law cuts the penalty in half to 25% of the shortfall.

- Beginning in 2024 , you can take Emergency Distributions without a penalty of up to $1,000 a year from a retirement account. But if you don't REPAY the distribution within a specified time, you can't take another Emergency Distribution for 3 years.

- Beginning in 2025 , the New Law increases the limit for the extra catch-up contributions from $7,500 to $10,000 (or even more if you are age 60 through 63).

- New Retirement Saver's Credit! Some taxpayers are entitled to a Retirement Saver's Credit for making contributions to their retirement. The New Law replaces this credit with a MATCHING CONTRIBUTION made by Uncle Sam! The Matching Contribution is equal to 50% of the amount contributed to your retirement account, up to $2,000.

- Do you have a 529 Account? Beginning in 2024, funds remaining in a Section 529 account can be rolled over into a Roth IRA, up to a lifetime cap of $35,000, without any tax or penalty. CAVEAT: The 529 account must have been open for at least 15 years.

And NOW YOU KNOW!��

What should you do if Tax Season SCAMMERS call you?

7029639497 — Wed, 11 Jan 2023 22:35:15 GMT

The IRS will NEVER:
- Call to demand immediate payment using a specific payment method such as a prepaid card, gift card or wire transfer.
- They will not threaten to bring in local police to have taxpayers arrested for not paying.
- They will not demand that taxes be paid without giving taxpayers the opportunity to question or appeal the amount owed.
- Call unexpectedly about a tax refund.

IF you receive these calls, you SHOULD:
- Record the number and then hang up immediately.
- Report the call by calling 1-800-366-4484
- Complete an IRS Impersonation Scam Reporting Form located on the Hotline page of the Treasury Inspector General for Tax Administration.
-Report the number to phishing@irs.gov and put "IRS Phone Scam" in the subject line.

New Standard Mileage Rates for 2023

7029639497 — Sat, 31 Dec 2022 18:00:53 GMT

The IRS just announced the NEW Standard Mileage Rates for the use of a car, van, pickups or panel trucks:
65.5 cents per mile driven for business use.
22 cents per mile driven for medical purposes.
14 cents per mile driven for charitable purposes.

These rates apply to electric and hybrid-electric automobiles, as well as gasoline and diesel-powered vehicles.

Taxpayers can use the standard mileage rate but generally must opt to use it in the first year the car is available for business use. Then, in later years, they can choose either the standard mileage rate or actual expenses. Leased vehicles must use the standard mileage rate method for the entire lease period (including renewals) if the standard mileage rate is chosen.

Do you invest in Real Estate?

7029639497 — Tue, 27 Dec 2022 18:08:42 GMT

Do you know that there are special tax rules if you are a Real Estate Professional?

Investors in real estate in which they don't materially participate can only take deductions up to the amount of their passive income for the year. Normally, you can use up to $25,000 of loss to offset non-passive income. But the $25,000 offset is phased out for Modified Adjusted Gross Income (MAGI) between $100,000 and $150,000.

But if you are a Real Estate Professional, you can deduct a loss against non-passive income, just like any other business.

There are 2 KEY REQUIREMENTS for qualifying as a real estate pro:

1 - More than half of the personal services you perform in all trades or businesses during the year are performed in real property trades or businesses in which you materially participate.

2 - You must expend more than 750 hours on your real property trades or business.

As long as you satisfy this 2-part test, real estate activities in which you materially participate aren't treated as passive activities.

PA has a Rebate Program for Alternative Fuel Vehicles.

7029639497 — Thu, 22 Dec 2022 14:53:39 GMT

This is what you need to know:
- The Rebate is First-come, First-served basis
- The final purchase price of the new AFV must be $50,000 or less
- You must be a PA resident with total household income below 400% of the Federal Income Poverty level. (For example, a Family Size of 4 can have a Maximum Household Income of $111,000 to qualify.)

If you or anyone you know qualifies, tell them to go to https://www.esa.dced.state.us/Login.aspx

Don't miss out on the SAVER's CREDIT!

7029639497 — Wed, 21 Dec 2022 21:46:15 GMT

Did you know that you can SAVE for RETIREMENT NOW and get a special TAX CREDIT?

The Retirement Savings Contributions Credit, also known as the Saver's Credit, helps offset part of the first $2,000 that worker's contribute to IRA's, 401(k) plans and similar workplace retirement programs.

To get the Saver's Credit on your 2022 tax return, you must contribute to your IRA by April 18, 2023. BOTH Roth and traditional IRAs qualify!

Married couples filing jointly with incomes up to $68,000 in 2022 and $73,000 in 2023 qualify. Singles with income up to $34,000 in 2022 or $36,500 in 2023 qualify.

The Saver's Credit will increase the taxpayer's refund OR reduce the tax owed. �� But you must be at least 18 years of age. AND anyone claimed as a dependent on someone else's return cannot take the credit. Also, a student cannot take the credit. (A person enrolled as a full-time student during any part of 5 calendar months during the year is considered a student.)

One of the BEST Tax Breaks Around!

7029639497 — Tue, 29 Nov 2022 17:53:24 GMT

Home Sale Gain Exclusion When a Taxpayer Remarries...

Has your home substantially increased in value since you bought it? This is a common occurrence. Fortunately you may be able to exclude most, if not all, of your gain from tax when you sell your home. This is one of the Best Tax Breaks around!

However, you must meet certain requirements. (This gets a little tricky if you're in a second marriage.)

If you've owned and used your home as your principal residence for at least 2 of the 5 previous years, you can elect to EXCLUDE from tax up to $250,000 of home sale profit if you're a Single Filer or $500,000 for Joint Filers. THERE IS NO CURRENT LIMIT ON THE NUMBER OF TIMES YOU CAN CLAIM THE EXCLUSION, as long as you skip at least 2 years in between.

1 - Either spouse owns the residence
2 - BOTH spouses meet the use test, and
3 - Neither spouse has sold a residence within the last 2 years.

Here is an example of when it gets TRICKY.... If it's a new marriage and one spouse sold a residence within 2 years before the marriage (thereby self-disqualifying from the exclusion), the other spouse could still exclude up to $250,000 in gain on a residence owned before the marriage.

Smart Tax-Payers make Tax-Free Gifts to Charities!

7029639497 — Fri, 18 Nov 2022 20:07:16 GMT

IF you are required to take Required Minimum Distribution (RMD) from your IRA, AND you give to charities, THEN you should be making a Qualified Charitable Distribution (QCD).

NOW is the time to contact your IRA trustee so the trustee will have time to compete the transaction before the end of the year.

Normally, distributions from a traditional IRA are taxable when received. These distributions become TAX-FREE as long as they're PAID DIRECTLY from the IRA to an eligible charitable organization.

An IRA distribution (including an electronic payment) made directly to the IRA owner, DOES NOT count as a QCD. Also, checks made directly to the IRA owner is NOT a QCD.
EACH Spouse can exclude up to $100,000 for a total up of to $200,000 per year!

QCD's are not deductible as Charitable Contributions on Schedule A. But the transferred amount is NOT TAXABLE either! The donor must get a written acknowledgement of their contribution from the charitable organization.

'Tis the Season to be Giving!!

New Electric Vehicle Tax Credit $7,500

7029639497 — Tue, 30 Aug 2022 21:40:02 GMT

Here's what you need to know about the $7,500 Electric Vehicle Tax Credit -

The Inflation Reduction Act hopes to encourage electric vehicle production in the United States. So it only offers tax credits on electric vehicles assembled in North America. But for 2022, some manufacturers (like Tesla, Chevrolet & GMC Hummer) have already reached the 200,000 vehicle-cap for this year's credit. So some vehicles won't qualify for the tax credit again until January 1, 2023. The Department of Energy's Alternative Fuels Data Center has released the full list of electric vehicles that currently qualify for the credit.

ALSO, STARTING IN 2023, the credit will ONLY be available to individuals earning less than $150,000 per year, or married couples earning less than $300,000 AND the credit will ONLY be offered on electric cars costing less than $55,000 and electric truck and SUV's costing less than $80,000.

Teachers get an increase in over 20 Years!

7029639497 — Wed, 10 Aug 2022 20:20:54 GMT

Teachers are now able to deduct up to $300 of out-of-pocket classroom expenses for 2022 when they file their 2022 Federal Income Tax Returns.

This is the first time the annual limit has increased since the Educator Expense Deduction was enacted in 2002. The limit used to be $250.

WHO QUALIFIES?

Educators can claim this deduction even if they take the Standard Deduction. Eligible educators anyone who is a kindergarten through 12th grade teacher, instructor, counselor, principal or aide in school for at least 900 hours during the school year.

WHAT CAN YOU DEDUCT?

Books, supplies and other materials used in the classroom. Equipment including computer equipment, software & services. COVID-19 protective items. Professional development courses related to the curriculum they teach.

WHAT ISN'T DEDUCTIBLE?

You cannot include the cost of home schooling or for nonathletic supplies for courses in health or physical education.

Keep good records including receipts for the IRS.

Good News for PA Property Owners & Renters who are over 65 years old!

7029639497 — Wed, 03 Aug 2022 13:04:20 GMT

PA has just announced a One-Time BONUS REBATE to the Property Tax/Rent Rebate Program for 2021. The BONUS REBATE is equal to 70% of your original rebate amount. And Claimants do not need to take any additional action to receive their one-time bonus rebates. If you already filed your rebate application for the 2021 claim year and received your rebate, PA will take care of everything. You will receive your one-time bonus rebate through the same method (check or direct deposit) that you opted to receive your original rebate.

To be eligible for the PA rebate you must be age 65 or older (widows and widowers age 50 and older and people with disabilities ages 18 and older).

The income limit is $35,000 a year for homeowners and $15,000 annually for renters. Half of Social Security income is EXCLUDED.

The filing deadline has been extended from June 30, 2022 to December 31, 2022. So pass this information on to your friends, co-workers and loved ones. Let's help put a smile on someone's face today!

Who can claim a child when the parents are divorced, separated or live apart?

7029639497 — Tue, 28 Jun 2022 15:10:15 GMT

Only 1 person is eligible to claim the qualifying child as a DEPENDENT. Parents cannot share or split the tax benefits on their tax returns. IF BOTH PARENTS claim the same child on their tax return, it WILL SLOW DOWN the processing time.

The CUSTODIAL PARENT generally claims the qualifying child as a DEPENDENT ON THEIR RETURN. The Custodial Parent is the parent who the child lived with for the greater # of nights. IF the child lived with each parent for an equal number of nights, THEN the Custodial Parent is the parent with the higher Adjusted Gross Income.

The Custodial Parent CAN RELEASE the Dependency Exemption and sign a written declaration or Form 8832 for the Noncustodial Parent to submit with their tax return so that they can claim the child as their Dependent. This will allow the Noncustodial Parent to receive the Child Tax Credit. {It does NOT APPLY to the Earned Income Credit.]

Tax Benefits of the Business Meal Deduction...

7029639497 — Tue, 14 Jun 2022 15:18:03 GMT

For 2021 & 2022 only, businesses can generally deduct the full cost of business-related food & beverages purchased from a restaurant. Otherwise the limit is usually 50%.

To qualify for the 100% deduction:
- The business owner or employee must be present.

- Meals MUST be from restaurants OR businesses that sell to retail customers for immediate consumption, i.e. catering. [Grocery stores & convenience stores that mostly sell pre-packaged goods not for immediate consumption, DO NOT qualify as restaurants.]

- The expense cannot be lavish or extravagant.

The cost of the meal CAN INCLUDE taxes & tips.

Is my Hobby a Business?

7029639497 — Wed, 25 May 2022 15:09:00 GMT

How to tell the difference between a Hobby and a Business for Tax Purposes...

A Hobby is any activity that a person pursues because they enjoy it AND with NO INTENTION of making a PROFIT.

People operate Businesses with the intention of MAKING A PROFIT.

Sometimes a Hobby turns into a source of income, BUT has the Hobby actually grown into a Business???? Here are the factors that the IRS uses to determine if your Hobby is a Business:

1. Taxpayer maintains complete and accurate books and records.

2. Taxpayer puts time and effort into the activity to show they intend to make it profitable.

3. Taxpayer depends on income from the activity for their livelihood.

4. Taxpayer has personal motives (enjoyment/relaxation) for carrying out the activity.

5. Taxpayer has enough income from other sources to fund the activity.

6. Losses are due to circumstances beyond the Taxpayer's control OR are normal for the startup phase of their type of business.

7. There is a change to methods of operation to improve profitability.

8. Taxpayer has the knowledge needed to carry out the activity as a SUCCESSFUL BUSINESS.

9. The Taxpayer was successful in making a profit in similar activities in the past.

10. Activity makes a profit in some years AND HOW MUCH PROFIT IT MAKES.

11. Taxpayer can expect to make a future profit from the appreciation of the assets used in the activity.

IF a Taxpayer receives income from an activity that is carried on with NO INTENTION OF MAKING A PROFIT, they must report the income they receive on Schedule 1, Form 1040, Line 8 - Other Income.

Hobbies give you a way to take your mind off the stresses of everyday life! They let you relax and seek pleasure in activities that aren't associated with work, chores or other responsibilities. WHEN LIFE BRINGS YOUR DOWN, HOBBIES BRING YOU UP!

How to check the status of your Federal Tax Refund

7029639497 — Tue, 19 Apr 2022 13:33:37 GMT

How to check the status of your Federal Tax Refund --

You can start checking the status of your refund within 24 hours after the IRS acknowledges receipt of your e-filed return.

There are 2 ways to access the Where's My Refund? tool:
- Visit www.irs.gov
- Download the IRS2Go.app

To use the tool, you will need:
- Your SSN#
- Tax Filing Status
- The EXACT amount of the refund claimed on the tax return.

When it says "Refund Approved", the IRS is preparing to send the refund as a direct deposit or mail the check to the address on the return.

Calling the IRS WON'T SPEED UP a tax refund.

Do you have BIG PLANS for your Tax Refund?

7029639497 — Wed, 16 Feb 2022 21:09:51 GMT

Most tax refunds are issued within 21 days.

Some refunds could take longer IF...

- the tax return contains errors or is incomplete.

- the return has identity theft.

- most banks do not process payments on weekends or holidays.

The IRS will contact you by mail if more information is needed to process your return.

Taxpayers can start checking on the status of their return within 24 hours after the IRS acknowledges receipt of an electronically filed return.

Go to the IRS website, Where's My Refund?

1. Return Received

2. Refund Approved

3. Refund Sent

The IRS updates it once a day (usually overnight).

Tax Season is PRIME TIME for PHONE SCAMS!

7029639497 — Thu, 27 Jan 2022 16:33:27 GMT

Here are some telltale signs of a tax scam:
The IRS WILL NEVER CALL -
- to Demand immediate payment using a prepaid debit card or wire transfer.
- Threaten to bring in the local police to have you arrested for not paying.
- Call unexpectedly about a tax refund.

If you receive a phone call like this, you should:
- Record the number and then hang up the phone immediately.
- Report the call by calling 800-366-4484, the IRS Impersonation Scam Reporting Form.
- Report the number to phishing@irs.gov and be sure to put "IRS Phone Scam" in the subject line.

TAX TIP - How Small Business Owners Can Deduct Their Home Office From Their Taxes

7029639497 — Wed, 19 Jan 2022 17:07:53 GMT

You must exclusively and regularly use part of your home (own or rent) as your primary place of business.
This includes administrative activities if there is no other location to perform these activities.

SIMPLIFIED OPTION use $5 per SF for business use of your home. The maximum size is 300 SF. So the maximum deduction is $1,500.

REGULAR METHOD is based on the % of the home that is devoted to business use. Apply this % to Indirect Costs including Mortgage Interest, Insurance, Utilities, Repairs, Maintenance and Rent.

DIRECT EXPENSES like a separate phone line, purchasing a desk or computer are deducted in full and/or depreciated.

Employees are NOT ELIGIBLE for the Federal Home Office Deduction, Form 8829.

The Gift Nobody Wants, But Everybody is Getting.....Form 1099-NEC!

7029639497 — Fri, 14 Jan 2022 16:55:08 GMT

IRS Form 1099 is due to both Recipients and Government Agencies by January 31, 2022.

1099-NEC is required to be sent to Vendors to which you paid $600 or more (in total) for services rendered.

1099-MISC is required to be sent to each person to whom you have paid $600 or more for rent, prizes and awards, or other non service payments.

1099’s are NOT required to be sent to Vendors who are Incorporated. [1099’s ARE REQUIRED for Single-Member LLC’s and Partnerships.] If you are not sure if the Vendor is incorporated, have them complete Form W-9. https://www.irs.gov/pub/irs-pdf/fw9.pdf

Regardless of the dollar amount, ANY PAYMENTS made to an Attorney are required to be reported on Form 1099-NEC.

Thinking about Taxes?

7029639497 — Mon, 10 Jan 2022 18:42:35 GMT

To AVOID processing delays that may SLOW your REFUND, here is a list of important things you need to have BEFORE YOUR BEGIN to do your taxes:

- Social Security Numbers of everyone listed on the return. (1 number WRONG will cause processing delays.)

- Bank Routing and Bank Account Numbers. (Direct Deposit is the FASTEST WAY to get your REFUND.)

- Form 1099's from banks, unemployment compensation, dividends, distributions from retirement, annuity or retirement plans.

- Form 1099-K, 1099-MISC, 1099-NEC or W-2.

- Form 1095-A, Health Insurance Marketplace Statement. (This is needed to reconcile the advance payment or claim the premium tax credit.)

- NEW Letter 6419, 2021 Total Advance Child Tax Credit Payments to RECONCILE THE ADVANCE. Watch out for 2 LETTERS if you file MARRIED FILING JOINT!

- NEW Letter 6475, Your 2021 Economic Impact Payment (includes the payment you received March - December 2021), to determine eligibility to claim the Recovery Rebate Credit.

Happy Tax Season!

Don't stop looking in your mailbox just yet!

7029639497 — Mon, 27 Dec 2021 16:26:30 GMT

The season for receiving Christmas cards might be over.....
BUT the season for receiving letters from the IRS is about to begin!

The IRS announced that it will issue information letters to Advance Childe Tax Credit recipients starting in December AND to recipients of the 3rd Round of the Economic Impact Payments at the end of January.

The letter contains important information than can make preparing their tax returns easier. Using this information when preparing a tax return can reduce errors & delays in processing.

The IRS urges people receiving these letters to make sure they hold onto them to assist in preparing their 2021 federal tax returns in 2022.

Did you take your 2021 RMD?

7029639497 — Wed, 22 Dec 2021 13:22:53 GMT

Did you take your 2021 RMD?

Because of COVID, 2020 RMDs were waived. This was NOT extended to RMD's for 2021. Participants in retirement plans are subject to RMDs for 2021.

If you reached age 70 1/2 in 2019 , your 2021 RMD is due by Dec. 31, 2021, based on your account balance on Dec. 31, 2020.

If you reached age 72 in 2021 , (and didn't reach 70 1/2 in 2019) your 2021 RMD is due by April 1, 2022, based on your account balance on Dec. 31, 2020. AND your 2022 RMD is due by Dec. 31, 2022, based on your account balance on Dec. 31, 2021.

RMDs: IRA BENEFICIARIES

For a 2019 and 2020 death, distributions would generally be required to start by the end of 2021.

Gas Prices keep going UP!

7029639497 — Fri, 17 Dec 2021 21:26:11 GMT

Finally, the IRS is recognizing that gas prices are going UP!

Beginning on January 1, 2022 the standard mileage rates for the use of a car, van, pickups or panel trucks will be: $0.585 per mile driven for Business Use. This is up 2.5 cents from the rate for 2021.

The standard mileage rate for medical purposes is $0.18 per mile. This can be included with your Medical and Dental Expenses on Schedule A "Itemized Deductions".

The rate is $0.14 cents per mile driven in service for a charitable organization. This rate did not change from 2021. Charitable miles driven can be included on Gifts to Charity on Schedule A "Itemized Deductions".

Remember that individuals cannot claim a miscellaneous itemized deduction for unreimbursed employee travel expenses. And individuals also cannot claim a deduction for moving expenses unless they are members of the Armed Forces on active duty moving under orders to a permanent change of station.

'Tis better to GIVE than to Receive!

7029639497 — Mon, 13 Dec 2021 17:05:34 GMT

It's that time of year to donate to your favorite charity!

This year-end you may want to gift securities you own instead of gifting cash. The key is to donate low-basis stock held longer than 1 year that is now worth more. In order to get a tax benefit, you don't want to sell the stock and give the charity the proceeds. You want to gift the stock to the charity. Your Investment Advisor and favorite Charity can assist you in the process. In order to get the tax deduction it must be gifted by December 31.

'Tis the SEASON to GIVE!!

7029639497 — Tue, 30 Nov 2021 20:51:53 GMT

The IRS announced that the annual Gift Tax Exclusion is increasing from $15,000 per recipient in 2021 to $16,000 in 2022.
You can DOUBLE UP at year-end by giving $15,000 to a child in December and then another $16,000 to them in January with ZERO GIFT TAX.
The exclusion is doubled if a spouse joins in the gift.

When do you need to file a Gift Tax Return?

You don't have to file a gift tax return if you give gifts that fall within the annual gift tax exclusion. If the annual gift is more than the exclusion, then you must file a Gift Tax Return. The returns for 2021 are due on April 15, 2022. Also, each spouse must file a separate Gift Tax Return.

"It's better to give than to receive." - Acts 20:35

No More Hiding

7029639497 — Mon, 15 Nov 2021 19:46:55 GMT

The IRS will soon know about your Business Venmo & PayPal Receipts

No more hiding business payments received from Venmo, PayPal or other third-party networks starting January 2022.

The American Rescue Plan Act (ARPA) includes a provision that providers must begin reporting to the IRS "business transactions" totaling $600 or more.

This does NOT include payments made between Family & Friends.

This new rules does not change the tax consequences for recipients. If you receive payment for business services or goods you're already liable for federal income tax REGARDLESS of whether you're paid by Cash, Check, Credit Card, App or some other means.

If you are concerned about this new rule, you should use separate accounts for business and personal transactions.

Tax Timeline in the USA

7029639497 — Thu, 04 Nov 2021 19:13:20 GMT

Taxes have been around about as long as the world has existed. Just read the Bible.

Here is a timeline of taxes in the USA!

1909 - Corporate Income Taxes

1913 - Federal Income Taxes & Capital Gains Tax

1916 - Estate Tax

1921 - Sales Tax started in West Virginia

1924 - Gift Tax

By 1940 - (3) states had Sales Taxes

1932 - Federal Excise Tax on gasoline

1936 - Dividend Tax

1937 - Social Security Taxes

1978 - Alternative Minimum Tax (AMT)

It might surprise you, BUT the USA is at the bottom end of the tax scale when compared to other developed nations. According to the Tax Foundation in October 2019, the USA is ranked 32 out of 41. The highest marginal rate is Sweden at 76% and the lowest is Bulgaria at 29%. America's marginal tax rate is 47% (it includes income taxes, payroll taxes and consumption taxes).

So what lies ahead for America's taxes? We can't be certain. BUT we can be certain that they aren't going away!

Were you trying to get an answer from the IRS in 2021?

7029639497 — Tue, 02 Nov 2021 14:31:27 GMT

How many people reached an IRS customer service representative in 2021?

According to the Journal of Accountancy November 2021 issue, " only 2.6% of calls on 800-829-1040 were answered in 2021. The total number of calls nearly quadrupled, from 96 million in 2019 to 375 million in 2021. "

Congratulations to you if you were one of the lucky ones that got answered!

IRS Letters being sent January 2022!

7029639497 — Wed, 20 Oct 2021 12:41:58 GMT

If you received the Advance Child Tax Credit, then you will be getting mail!

Did you receive the Advance Child Tax Credit this Year? Make sure to Check your Mailbox Next Year.

Taxpayers who received advance payments will receive a letter from the IRS in January 2022 and should bring this letter to their tax preparer when filing their 2021 return. The letter will include the total amount of advance payments sent in 2021. The letter will be mailed to the address the IRS has on file as of the letter's mailing date.

Back to School again. Never too late to Learn!

7029639497 — Thu, 26 Aug 2021 14:14:43 GMT

Time for a REFRESHER Course on IRA's!

As the kids go back to School NOW is the perfect time for an IRA REFRESHER COURSE!

IRA is an Individual Retirement Arrangement that provides TAX INCENTIVES for people to make investments for their retirement.

IRA's can be set up with a bank, life insurance company, mutual fund or stock broker.

Withdraws may be subject to a 10% PENALTY if your age is before age 59 1/2.

Required Distributions must be withdrawn when you are age 72 (new with the SECURE ACT).

Traditional IRA contributions may be TAX DEDUCTIBLE but are taxed when the $$$ is withdrawn.

ROTH IRA contributions are NOT deductible on your taxes. But qualified distributions are TAX-FREE. Also, Roth IRA's do NOT REQUIRE withdrawals until after the death of the owner.

SIMPLE IRA - Savings Incentive Match Plan for Employees. EMPLOYEES & EMPLOYERS may contribute to traditional IRAs.

SEP IRA - Simplified Employee Pension. An EMPLOYER can make contributions towards their own and their employees' retirement.

Rollover IRA - The IRA is taken from one IRA plan and deposited into a different IRA within 60 days!

It is NEVER TOO LATE TO LEARN and it is NEVER TOO LATE TO SAVE FOR YOUR RETIREMENT!
YOU ARE WORTH IT!

Have you ever gotten mail from the IRS?

7029639497 — Wed, 18 Aug 2021 13:53:25 GMT

Here are some DO's & DON'Ts when you get mail from the IRS:

Have you ever gotten mail from the IRS? SCARY, right? Your heart definitely starts beating faster.

Here are some DO's & DON'Ts when you get mail:

DON'T PANIC - Most of the time all you need to do is read the letter carefully & take the appropriate action.

DON'T IGNORE IT - Most IRS letters are notices with a specific issue & includes specific instructions for what to do.

DON"T THROW IT AWAY - Keep for your records for 3 years.

DO TAKE TIMELY ACTION - Acting timely could minimize additional interest & penalty charges.

DO REVIEW THE INFORMATION - Review any changes with the original return.

DO RESPOND TO A DISPUTED NOTICE - If you don't agree with the IRS, mail a letter explaining why. Mail it to the address on the Contact Stub included with the notice. You should include information & documents for the IRS to review when considering the dispute.

DO REMEMBER THERE IS NO NEED TO CALL - If you must call the IRS use the number in the upper right hand corner of the notice. Have a copy of your tax return with you when you call.

DO AVOID SCAMS - The IRS will NEVER contact you using social media or text message. The first contact from the IRS usually comes from mail.

DO CONTACT YOUR TAX PREPARER - We will read the notice and explain what the IRS is requesting and then prepare a response.

And most importantly ...DON'T PANIC!!

It Feels Like FOREVER!

7029639497 — Fri, 16 Jul 2021 14:48:21 GMT

Are you STILL WAITING for your TAX REFUND?

It Feels Like FOREVER!!!
Are you still WAITING for your Tax Refund?

Well, you aren't the only one! There is dire backlog at the IRS.

Staffing issues related to COVID-19.
Outdated technology.
A backlog of unprocessed paper tax returns and correspondence related to 2019!
Issuing the Economic Impact Payments (EIP) "Stimulus Checks"
Higher volume of 2020 tax returns needing manual processing. According to the Taxpayer Advocate Service, as of April 2021, the IRS had more than 29 MILLION RETURNS ON HOLD for manual processing!

"Waiting is an art that our impatient age has forgotten."

June is Wedding Season!

7029639497 — Wed, 16 Jun 2021 11:58:25 GMT

Saying "I do" Can Affect a Couples Tax Situation!

Do you know what the month of June is?

----------------WEDDING SEASON--------------

Saying "I do" Can Affect a Couples Tax Situation!

Here's a Tax Checklist for Newly Married Couples:

Name Change - File Form SS-5
Address change - File Form 8822
Withholding - Use the Tax Withholding Estimator on IRS.gov to help complete a new W-4
Filing Status - Married people can file taxes jointly or separately each year. While filing jointly is usually more beneficial, it's best to figure the federal tax both ways to find out which works best. Remember, if a couple is married as of December 31, the law says they're married for the whole year for tax purposes.

Congratulations to all the Newly Married Couples!

100% Deduction for Business Meals

7029639497 — Thu, 27 May 2021 21:16:40 GMT

Temporary Exception for 2021 & 2022

At 12:01 AM on Memorial Day, PA is lifting all COVID restrictions. This means that dining out can become a regular thing again!

This is GOOD NEWS for your TAX DEDUCTIONS! Normally a deduction for food or beverages is limited to 50%. BUT there is a temporary exception for 2021 & 2022. 100% is deductible to help restaurants, many of which have been hard-hit by the COVID-19 pandemic.

The IRS defines "restaurant" as a business that prepares and sells food or beverages to retail customers for immediate consumption, regardless of whether the food or beverages are consumed on the business's premises.

In order for the cost of the business meal to be deducted:

the business owner or employee must be present;
the cost of the meal or beverage isn't "lavish or extravagant"; and
the meal is with a business contact (customer, employee, vendor).

Not only is Memorial Day Weekend the start of beautiful weather but it is the start of enjoying good food and drinks with business contacts while increasing your tax deductions!

NEW Monthly Child Tax Credit

7029639497 — Tue, 18 May 2021 18:31:09 GMT

Families will start getting $250-$300 per Child on July 15!

Monthly Child Tax Credit Payments to Start July 15: $250-$300 Per Child for Most Families

Eligible families will receive a payment of up to $300 per month for each child under age 6, and up to $250 per month for each child ages 6 up to AND including 17.

The monthly CTC payments will be made direct deposit, paper check, or debit cards.

For 2021, the CTC is $3,000 per child between the age 6 and 17 and $3,600 per child under age 6.

The increased amounts are reduced (phased out) for incomes over $150,000 for MFJ, $112,500 for HOH and $75,000 for Single.

The advanced payment amount will be reconciled with the actual credit amount on next year's return and increase taxable income by the excess of the advanced payment amount over the actual credit allowed.

If you do not want to receive advance payments of the 2021 CTC you will have the opportunity to decline. You will also have an opportunity to update information about changes in income, filing status or the number of qualifying children. The IRS will provide information on how to do that soon!

Did 2020 Bring You a Life Change?

7029639497 — Sat, 30 Jan 2021 13:03:24 GMT

We want to be your trusted tax advisor no matter where life takes you!

Did you or someone you know go through a life change in 2020?

Did you get married?

Did you quit your job?

Did your wife get a new job?

Did you turn your house into a rental?

Did you move to ZAMBIA, AFRICA?????

Well all of that happened to one of our clients in 2020!

Don't Worry, Be Happy!

At Akins Accounting we can prepare tax returns whether you move to California, Arizona, South Carolina or even Africa!!!
We have a SECURE CLIENT PORTAL that allows our clients to send us their tax documents from anywhere.

We want to be your trusted tax advisor no matter where life takes you!

The Estimate Income Tax Trap

7029639497 — Sat, 23 Jan 2021 20:23:40 GMT

Don't get caught in the Estimated Income Tax Trap!

Have you gotten caught in the Estimated Income Tax Trap? When you owe a penalty on top of the tax that you owe!

You can escape this tax trap if you meet one of the Safe-Harbor Rules:

1. You pay at least 90% of the current year's tax liability. This works if you keep up with your bookkeeping and keep good records to track your income & expenses throughout the year.

2. You pay at least 100% of the prior year's tax liability or 100% if your AGI is over $150,000. This is the easiest method to use.

3. You pay at least 90% of the current year's annualized income. This method works well for people who receive most of their income on a seasonal basis.

At Akins Accounting we help our clients determine their estimated tax payments for the following year.
We are able to adjust the payment with just a quick phone call or email from our clients.
And we remind our clients before every estimated tax deadline - April 15, June 15, September15 and January 15.

So don't get caught in the trap of paying more penalties than you need to. As your tax preparer, we can help you escape it!

We are ready for Tax Season!

7029639497 — Mon, 18 Jan 2021 15:47:42 GMT

Are you ready for Tax Season?

Our staff is rested and ready to file your taxes.

We can prepare your 2020 tax return and e-file it with the IRS now so that it will be ready to be transmitted to the IRS starting February 12. That's right --- February 12 is the start date that the IRS will accept individual returns.

This is to allow the IRS time to do additional programming following the December 27 tax law changes. The IRS anticipates 9 out of 10 taxpayers will receive their refund within 21 days of when they file electronically with direct deposit IF there are no issues with their tax return.

So what are you waiting for? Get your tax information to us - because we are READY TO GO!!

New COVID Relief Bill

7029639497 — Wed, 30 Dec 2020 21:09:43 GMT

Highlights below in case you were not planning on reading almost 5,600 pages!

Additional round of Economic Impact Payments (EIP) include Direct Payments $600 per eligible family member (includes dependent children under 17 years old). The amount of the payments start to phaseout for single filers earning more than $75,000; married filing joint earning more than $150,000 and $112,500 for heads of household. If the credit determined on the 2020 tax return exceeds the amount of the advanced payment, the taxpayer will receive the difference as a refundable tax credit. Taxpayers who receive an advanced payment that exceeds the credit do not need to repay the amount.

Unemployment Insurance includes an additional $300 per week for all workers receiving unemployment benefits from December 26, 2020 to March 14, 2021. It extends the PUA (covering self-employed) from 39 weeks to 50 weeks – with benefits ending April 5, 2021.

Paycheck Protection Program (PPP) Loans are now allowed to deduct expenses associated with their forgiven PPP loans. Small businesses (with less than 300 employees) can receive a 2nd PPP loan if they can demonstrate a revenue reduction of 25%. The new bill also created a simplified PPP loan forgiveness application for loans < $150,000. Borrower signs a 1 page certification for # of employees retained and estimated amount of loan spent on payroll costs. Borrowers are not required to deduct their EIDL Advance from their PPP loan forgiveness amount.

If you received an Economic Injury Disaster Loan (EIDL) Advance Grant less than $10,000, you can reapply for the difference you received up to the $10,000 maximum amount.

Lookback for Earned Income Credit and Child Tax Credit will help workers who experienced lower wages this year to get a larger refund that is consistent with their earnings from prior tax filing seasons by using their earned income from tax year 2019 to determine the Earned Income Tax Credit and the refundable portion of the Child Tax Credit (Additional Child Tax Credit) in 2020.

A 100% Deduction for Business Meals & Beverage provided by a restaurant that are paid or incurred in 2021 and 2022. The deduction is 50% for 2020.

An increase to $600 non-itemizer Charitable Deductions for cash donations for married filing jointly for 2021. The deduction is $300 in 2020.

No AGI limit for Cash Charitable Contributions in 2020 and 2021. Previously cash charitable contributions were limited to 60% of AGI.

Extension on Federal Student Loans interest and principal payments until April 1, 2021.

The exclusion from gross income of discharge of qualified principal residence debt has been extended through 2025.

You cannot deduct the interest for acquisition debt greater than $750,000 through 2025.

Mortgage insurance premiums qualify as residence interest through 2021.

The Nonbusiness Energy Property Credit for qualified energy improvements to a principal residence is through 2021.

Business Miles

7029639497 — Wed, 30 Dec 2020 16:02:22 GMT

How to Deduct Business Miles

Can you deduct the Business Use of your Vehicle? YES!

Self-employed Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the Standard Mileage Rate. But to use the Standard Mileage Rate, you MUST CHOOSE to use it the 1st YEAR, then in later years, you can choose to use the Standard Mileage Rate or actual expenses.

Standard Mileage Rates for Business are:

2020 - 57.5 cents per mile

2021 - 56 cents per mile

You must keep adequate records sufficient to support the business use of the vehicle. These records must be kept generally 3 years from the date you filed the return.

NEW Income Ranges for IRA Eligibility in 2021

7029639497 — Mon, 09 Nov 2020 14:53:48 GMT

Here are some highlights of the 2021 changes!

TRADITIONAL IRA Phase-Out Ranges:
- $198,000 to $208,000 - Taxpayer NOT covered by a workplace retirement plan Married to someone who's covered.
- $105,000 to $125,000 - Both Husband & Wife are covered by a workplace retirement plan.

ROTH IRA Phase-Out Ranges:
- $198,000 to $208,000 - Married Filing Jointly
- $125,000 to $140,000 - Single

New Charitable Deduction for NonItemizers

7029639497 — Wed, 28 Oct 2020 16:39:06 GMT

Residents of the USA are ranked among the most generous in the world!

But with the COVID-19 Pandemic some organizations are experiencing a decline in giving. So Congress included a provision in the CARES Act that allows individuals who do not itemize to deduct $300 of qualified charitable contributions as an "above-the-line" deduction for tax years beginning in 2020.

The $300 is the limit regardless of filing status.

The contribution must be made in cash, check, payroll deductions, etc.

Non-cash contributions are not allowed as an "above-the-line" deduction.

The taxpayer must keep a "written acknowledgement" for any contribution over $250. (On a gift-by-gift basis)

PPP Loan Rules Changed

7029639497 — Mon, 08 Jun 2020 13:59:16 GMT

President Trump Signs Law Changing the PPP Loan Rules

The Rules for the PPP Loan Funds have changed. Here's what you need to know:

1. You have 24 WEEKS TO SPEND the PPP Loan Funds (it used to be 8 weeks).

2. You need to SPEND 60% of the loan ON PAYROLL (it used to be 75%).

3. The covered period of the loan now ENDS DECEMBER 31 (it used to be June 30).

4. You WON'T HAVE TO MAKE EMPLOYER PAYROLL TAX PAYMENTS THROUGH THE END OF 2020 .

5. You WON'T LOSE LOAN FORGIVENESS ELIGIBILITY if you can show that some employees declined to return to their job.

6. The PAYBACK PERIOD FOR NEW LOAN APPLICANTS is 5 YEARS .

PREPAID DEBIT CARDS SENT BY IRS

7029639497 — Thu, 28 May 2020 13:22:10 GMT

Economic Impact Payments by PREPAID DEBIT CARDS

The IRS is sending some of the Economic Impact Payments by PREPAID DEBIT CARDS.

Nearly 4 million people are being sent their Economic Impact Payments by prepaid debit card, instead of a paper check. The determination of which taxpayers received a debit card was made by the Treasury Department.

The debit cards arrive in a plain envelope from "Money Network Cardholder Services".

If you receive a debit card you can do the following without any fees:

- Make purchases on-line or at any retail location that accepts VISA.

- Get cash from in-network ATMs.

- Transfer funds to your personal bank account.

- Check your card balance online, by mobile app or by phone.

Remember to always go to IRS.gov for official information. The IRS will not send unsolicited electronic communications asking people to open attachments, visit a website or share personal or financial information. R

How COVID-19 Could Affect Your IRA!

7029639497 — Fri, 15 May 2020 13:52:00 GMT

3 Areas Where You Could Be Affected.

1. Required Minimum Distributions (RMDs) for 2020 are NOT required.
This will allow time for your funds invested for retirement to recoup losses incurred during the pandemic.

2. Distributions from IRA's prior to age 59 1/2 of up to $100,000 are NOT subject to the 10% Penalty.
BUT YOU must be affected by COVID-19.

3. Distributions of up to $100,000 can be reported as income over 3 years and/or repaid.
BUT YOU must be affected by COVID-19.

To Qualify as affected by COVID-19, you (including a spouse or dependent) would either be diagnosed with COVID-19 - - OR - - experiencing adverse financial consequences as a result of events including, but not limited to, quarantine, furlough, lay-offs, reduced work hours, no available childcare, business closing or reduced business hours (self-employed), or other factors determined by the Secretary of the Treasury.

Loan Forgiveness Rules under the Paycheck Protection Program PPP

7029639497 — Wed, 13 May 2020 20:31:25 GMT

How do I get the PPP Loan Forgiven?

The PPP is a government incentive for small businesses to retain employees during the COVID-19 pandemic. It provides low-interest loans (1%) to eligible small businesses, self-employed individuals and non-profit organizations. It is meant to cover payroll, mortgage interest, rent & utilities over an 8-week period. The maximum loan amount is 2.5 times the average monthly payroll from the previous calendar year. The loan matures over a 2 year period.

A PPP loan may be FORGIVEN, in whole or part, IF all employees are kept on the payroll for 8 weeks. Clients apply for forgiveness from the Lender 8 weeks after the loan disbursement. The Lender is responsible for determining eligibility. (You DON'T HAVE TO use ALL the proceeds in the 8-week period, BUT it won't be forgiven for any funds that are spent afterward.)

Non-payroll items that qualify for loan forgiveness include:

- Payroll processing costs

- Mortgage interest for buildings purchased before 2/15/2020

- Rent payments for leases dated before 2/15/2020

- Utility payments: electricity, gas, water, phone & internet

The non-payroll items are capped at 25% of the loan proceeds.

Qualifying Payroll Costs include:

- Salaries, Wages, Tips, Commissions

- Health Insurance

- Retirement Benefits

- State & Local taxes assessed on compensation

- SOCIAL SECURITY & MEDICARE TAXES (FEDERAL TAXES) DO NOT QUALIFY

You can't count an employee whose 2019 wage was more than $100,000.

Employees 8-week pay cannot be reduced by more than 25% compared to the most recent full quarter that they were employed. If it is, the allowable forgiveness will be reduced.

Also, the allowable forgiveness is reduced for any decrease in the number of full-time equivalent (FTE) employees by comparing the average number of monthly FTE employees employed during the 8-week after you receive your loan with (a) the average monthly FTE level for 2/15 through 6/30/19 or (b) 1/1/2020 through 2/29/2020. You won't be penalized for any reduction occurring between 2/15/2020 through 4/26/2020 if the reduction is eliminated by 6/30/2020.

RECORDKEEPING is important!

ALL EXPENSES must be paid within 8 weeks from the date the funds hit your bank to qualify for forgiveness.

Concerned about your financial well-being?

7029639497 — Fri, 24 Apr 2020 18:51:30 GMT

COVID-19 Financial Update for Individuals & Businesses

As COVID-19 continues to affect local communities and global economies, you may have concerns about your financial well-being, your company's financial well-being, as well as the well-being of your employees.

You may be wondering about how recently passed legislation affects you and your business.

Following is a summary of some of the key provisions impacting individuals and businesses:

The IRS extended the filing and payment deadline dates to July 15, 2020. However, we continue to work on filing returns as soon as possible.
Estimated tax payments due on or after April 1, 2020 and before July 15, 2020 can wait until July 15 to make the payment without penalty.
Payments to individuals of $1,200 ($2,400 for joint filers) plus $500 for each qualifying child are NOT TAXABLE.
Through the end of 2020, individuals who are under 59 1/2 years old can take up to $100,000 in coronavirus-related distributions from retirement plans without the usual 10% penalty for early distributions. The distributions may be repaid within 3 years and any resulting income inclusion can be taken over 3 years.
If you were over 70 1/2 at 12/31/2019, you won't have to take a RMD in 2020. If your retirement assets have taken a hit, not having to take a RMD may allow those assets to recover some value before you liquidate them.
If you have a federally-held student loan, your payments will be suspended through Sept 30, 2020 and interest won't accrue during this period. This does not apply to privately-held student loans.
A refundable tax credit has been created to assist employers retaining employees. The credit is computed at 50% of qualified wages paid by eligible employers for up to $10,000 paid to each employee between March 13, 2020 and December 31, 2020.
Employers of less than 500 employees are required to provide mandatory sick time & paid family leave but are eligible for payroll tax credits to offset the costs. Healthcare providers and emergency responders are excluded; employers with fewer than 50 employees can be exempted.
Employers are able to postpone the employer's share of Social Security taxes through the end of this year. The delayed payments are due in 2 equal payments, one on 12/31/21 and the second is due on 12/31/22.
Small businesses are eligible to apply for Economic Injury Disaster Loan (EIDL) grant of up to $10,000 . The grant will not have to be repaid.
Small businesses may apply for a loan through the Payroll Protection Program (PPP). This is designed to help provide capital to cover the costs of retaining employees. If certain criteria are met, the loan can be forgiven.
Other SBA programs are also available - see SBA's Coronavirus Small Business Guidance and Loan Resources .
Unfortunately, many businesses are facing losses due to the economic impacts from the pandemic. For losses arising in tax years 2018, 2019 and 2020, a 5-year carryback is now allowed to help businesses recoup some of their prior taxes.
Net interest expense was limited to 30% of adjusted taxable income. Now, that limit has been increased to 50% for tax years 2019 and 2020.
Depreciation modifications were made in connection with qualified improvement property to allow for a faster write-off of these assets. This type of property was required to be depreciated over 39 years. Now the depreciation period is 15 years and the assets are eligible for bonus depreciation which allows for an immediate deduction of the entire cost of the property.

We're working to minimize disruptions and impacts to you so that we can still offer the same level of superior service and support you have come to expect from our Team.

We have implemented procedures to protect the health and safety of our staff, clients and community.

We are in this together and our thoughts go out to all that have been impacted by this unprecedented situation.

More Changes!

7029639497 — Fri, 10 Apr 2020 12:36:48 GMT

IRS announces CHANGES to Deadlines & Due Dates AGAIN!

The IRS just announced that ALL Tax Deadlines for Individuals & Businesses are Extended to July 15!

AND Quarter 1 & Quarter 2 Estimated Tax Payments are now due July 15.

Be Safe from a Coronavirus Scam

7029639497 — Fri, 03 Apr 2020 14:53:40 GMT

IRS issues WARNING for Coronavirus-related SCAMS!

The IRS is not going to call asking you to verify or provide financial information so you can get your Economic Impact Payment faster. Don't open or click on emails that appear to be coming from the IRS.

Go to IRS.gov for the most up-to-date information.

Also watch out for text messages, websites & social media that requests personal information.

If you haven't provided direct deposit information on previously filed returns you can go on a newly designed Secure Portal on IRS.gov in mid-April.

Also if you are a Retiree and normally don't need to file a tax return, that no action is needed on your part to receive the $1,200 Economic Impact Payment. The IRS is sending the $1,200 payments automatically to retirees!

Watch out for KEY WORDS that SCAMMERS might use:

"Stimulus Check" or "Stimulus Payment" ---- these are NOT the correct words. The official term is ECONOMIC IMPACT PAYMENT.

You will NOT be asked to verify banking information in order to received the Economic Impact Payment --- THIS IS A SCAM!

If you get a check in an odd amount - THIS IS A SCAM!

Do not verify information in order to cash a check - SCAM!!!!

We encourage you to be safe in health and also be safe from SCAMS!

COVID-19 & Unemployment

7029639497 — Sat, 28 Mar 2020 15:48:54 GMT

What you need to know about Unemployment Compensation.

COVID-19 is affecting everyone in some fashion.

People who have always held a job and went to work are now finding themselves laid off and unemployed. Entrepreneurs and Self-Employed Individuals are being told they cannot work by the Governor.

The numbers of first-time filers for Unemployment Benefits is staggering. As a Tax Professional, I can't help to think what this will do to people's Tax Returns Next Year. Unemployment Compensation IS TAXABLE INCOME on your Federal Tax Return. It is not taxable income on your PA and Local Tax Return.

As your Accountant &Tax Professional, I advise you to withhold at least 10% Federal Withholding on the Unemployment Compensation that you receive.

Don't be Fooled!

7029639497 — Wed, 18 Mar 2020 12:30:50 GMT

Tax FILING DEADLINE is STILL April 15, 2020! Payments have been Extended.

Have you heard that the IRS changed Tax Day?

Do you realize that what the IRS changed was NOT when the Tax Filings are DUE?
That's right! Your Federal, PA and Local Tax Returns are still required to be filed by April 15, 2020.

BUT if you OWE TAXES you have until July 15, 2020 to pay them without Penalties or Interest.

So don't be fooled -----t he IRS changed the Tax Payment Deadline ---- they did not change the deadline to FILE your TAX RETURN.

Do you own a small business?

7029639497 — Sat, 25 Jan 2020 18:10:43 GMT

Small Business Owners & the Home Office Deduction!

Do you own a small business?

Do you use a portion of your home exclusively and regularly for your business? Do you meet clients at your home? Is your home where you store your inventory or samples?

Deductible expenses for business use of a home include: Real Estate Taxes, Mortgage Interest, Rent, Utilities, Insurance, Repairs & Maintenance.

There are 2 Methods to figure out and claim the home office deduction:

REGULAR METHOD - Divide the above expenses of operating the home between business & personal use.

SIMPLIFIED METHOD - Business Use Square Foot (up to 300 SF) x $5 per SF. This deduction is capped at $1,500.

BE CAREFUL ----------- Certain expenses of the home are limited to the Net Income of the Business, like utilities, insurance & repairs/maintenance. These expenses cannot create a business loss. You don't lose them - they carry forward to next year.

Not sure if you are eligible for this deduction or where it goes on your tax return? Contact us! We are here for YOU!

OPENING DAY FOR 2019 TAX FILING SEASON!

7029639497 — Wed, 08 Jan 2020 15:11:03 GMT

We Are Ready! Are You?

We Are Ready! Are You?

Opening Day for IRS E-Filed Returns has begun!

Business Returns (1120, 1120S, 1065, 990) can be E-filed starting January 6, 2020.

The IRS will start accepting Individual (1040) Returns on January 27, 2020.

We are EXCITED for this Season with You!!

Smishing, Phishing & Vishing

7029639497 — Thu, 19 Dec 2019 19:03:55 GMT

Don't let these Thieves get you!

Thieves are getting very creative when it comes to Identity Theft. They are using email, text and phone.

BEWARE! Here are some common schemes that are hitting our local area!

SMISHING --- the Victim receives a text message that they will be charged for a service that they never ordered. They must cancel the company immediately to cancel the order. The text includes a hyper-link, which the Victim clicks on, taking them to a fake website that triggers the download of a program that breaches the security features of the phone.

PHISHING --- Fraudsters impersonate a business to attempt to trick you into giving them sensitive information. You open the email and click and go to a "spoofed" site. Or you click on a link that installs malicious software on your computer so thieves can track your movements and gain user IDs & passwords.

VISHING --- the Victim receives an automated phone message saying there is a suspicious transaction on their account and to please call a phone number. The Victim calls the number and is asked to enter their credit card number and the security number on the back of the card so they can be authenticated as the real customer.

These Thieves are lurking in our area.
Stay Alert & Share this information with your Friends & Family so they don't become a VICTIM!

DON'T TAKE THE BAIT!

7029639497 — Wed, 04 Dec 2019 21:28:04 GMT

'Tis the Season of Giving...But NOT financial or tax information to an Identity Thief

This week (1st week of December) is National Tax Security Awareness Week .

More than 90% of all data thefts begin with an email phishing scam . Identity thieves are looking for new & different ways to use phishing schemes to obtain sensitive information in hopes of filing fraudulent tax returns.

Phishing emails "bait" users into opening them. They pose as a trusted email from a bank, favorite retailer or even a tax professional.

The phishing email creates urgency - like there is a problem with your account or order. It instructs you to open a link or download an attachment. The link may send you to a familiar website, but then your username and password goes to thieves. The download may contain malicious software.

Other scams could include letters claiming to be from the IRS for an overdue tax bill. Remember that any tax due is ALWAYS made payable to the "United States Treasury".

And the IRS does NOT call with angry demands of payment and threats of going to jail. Also, the IRS does not make threatening phone calls or accept payments via gift cards.

New scams include links and malware in social media. Do not open links from social media unless you are certain of the source.

So in this Season of Giving, DON'T give away sensitive information to an identity thief!

Running a Business!

7029639497 — Thu, 07 Nov 2019 21:00:04 GMT

Good Record-Keeping is an Important Part of Running a Business!

In fact, keeping good records helps business owners make sure their business stays successful!

It helps monitor the progress of the business, keep track of expenses, prepare tax returns & support items reported on tax returns.

A good record-keeping system includes a summary of your business transactions. It could include a business checkbook, daily & monthly summary of cash receipts, check disbursements journal, depreciation records & employee compensation records.

You must meet the Burden of Proof in order to deduct certain expenses. You should keep accurate records and receipts to prove your expenses - including canceled checks, credit card receipts and statements and invoices. For gross receipts you should keep cash register tapes & deposit information including customer invoices.

The IRS generally suggests taxpayers keep records for 3 years. But records of employment taxes should be kept for at least 4 years.

How is your Business Running?

Maybe it's time to stop running in circles and start better record-keeping!

Teachers, School has started!

Sun, 06 Oct 2019 17:15:38 GMT

What you should know about Deducting Classroom Expenses!

Fall is here and school has started! Many teachers are dipping into their own pockets to buy classroom supplies. This can add up fast! ELIGIBLE EDUCATORS deduct up to $250 of unreimbursed expenses on their Federal Tax Returns.

Taxpayers qualify if they:

- - - Teach from Kindergarten thru 12 grade.

- - - Are a Teacher, Instructor, Counselor, Principal or Aide.

- - - Work at least 900 hours during the school year.

Qualified Expenses include:

- - - Books.

- - - Supplies.

- - - Computer Equipment including Software and Services.

- - - Supplementary Materials.

- - - Athletic supplies for health & physical education.

Keep up the Good Work Teachers!

You are Teaching our Future! Leaders, Scientists, Engineers & possibly Future Accountants!

TIPS for MAXIMIZING Repair Deductions!

7029639497 — Mon, 30 Sep 2019 14:41:58 GMT

As far as taxes go, REPAIRS to Rental Property are always better than improvements.
Repairs are deductible in a single year, while improvements to rental property are depreciated over 27.5 years.

How do you know if it is a Repair or an Improvement?

The basic rule from the IRS is it is an Improvement if:

- It makes a long-term asset much better

- It restores it to operating condition

- It becomes a new use.

TIP #1 - PATCH, MEND & MAKE DO - Don't Replace!

A replacement is almost always an improvement for tax deduction purposes.

TIP #2 - BE CAREFUL WITH UPGRADES - They're Improvements.
When you fix something you should use the same quality materials it contained originally.

TIP #3 - DOCUMENT REPAIRS!

Good documentation is the key! Repairs to rental property usually happen after a tenant complains. Write a note on your calendar or on the invoice that the tenant complained that something was broke and you had to fix it. Get an invoice for every repair. Good words to use on the invoice include "repair, fix, patch, mend, restore". You can also take a photograph of the before and after to show that the property has not been made substantially more valuable.

TIP #4 - PREVENTIVE MAINTENANCE always deductible as an operating expense.

Business Meals 50% Deductible - But NOT Entertainment

7029639497 — Fri, 06 Sep 2019 20:19:26 GMT

FOOD FOR THOUGHT!

The IRS says that a 50% deduction is still allowed for food and beverage expenses if the following conditions are met:

- The expense is an ordinary & necessary business expense;

- The expense is not lavish or extravagant;

- The taxpayer or an employee is present for the meal;

- The meal is provided to a current or potential business client;

- The meal is purchased separately from the entertainment.

You still can't write off expenses for entertainment, recreation or amusements like the cost of a play, concert tickets or sporting event.

Everyone should do a CHECK-UP!

7029639497 — Thu, 15 Aug 2019 15:25:24 GMT

The IRS has a NEW Mobile-Friendly Tool to Check-Up your Withholding!

Employees, Retirees, Self-Employed!! If you haven't checked your federal withholding this year, you should ASAP!

The IRS created a NEW Mobile-Friendly Tax Withholding Estimator . It's a User Friendly Step-By-Step Tool to help taxpayers adjust the amount of income tax they have withhold from wages & pension payments. This will help you make sure that you are paying the right amount of tax throughout the year.

Why should you do a Check-Up?

To AVOID an unexpected year-end tax bill & penalties.

Check-Ups are important if you made adjustments to your withholding in 2018 or had a major life change (baby, marriage, divorce, death).

At the end of the Check-Up, you will receive specific withholding recommendations. It also clearly explains what you should do next.

So Check-Ups aren't just for your physical or mental health, they are also for your financial health.
Tools aren't just for fixing your car or toilet, they are for fixing your taxes.

To start your Check-Up use this link: https://www.irs.gov/individuals/tax-withholding-estimator

Do you know the Vacation Home Rental Rules?

7029639497 — Tue, 30 Jul 2019 20:15:54 GMT

Summer is 2/3 over!

Do you know that there are 2 METHODS to use when calculating how much of your Real Estate Taxes & Mortgage Interest you can deduct?

"IRS Method" allocates Real Estate Taxes & Mortgage Interest by the ratio of total rental days to the total number of days the property was USED for any purpose during the year (Personal Days + Days Rental).

"Court Method" allocates Real Estate Taxes & Mortgage Interest by the ratio of total rental days to the total number of days in the year (365 days).

If you use the Standard Deduction, the "IRS Method" will probably be more advantageous.
If you Itemize, there are other considerations (limit on mortgage indebtedness) that will determine which method is preferable for you.

So RELAX and ENJOY your SUMMER! And let the Tax Professionals at Barbara A. Akins, CPA RUN the NUMBERS for you!

Challenges & Satisfaction

7029639497 — Tue, 02 Jul 2019 13:00:41 GMT

After 28 Years, I Still Love My Career!

I can't believe it was 4 years ago that I took a leap of faith and opened my own Accounting Firm. I recently celebrated my 50th Birthday in Europe with my 2 daughters (23 & 20 years old). They are at that age where they are trying to decide what they want to do for the rest of their lives. (Ha Ha) While talking with them, I realized how much I like the career that I chose. After 28 years of being an accountant, I still look forward to coming to work. I am constantly challenged by new tax laws, new accounting standards, and new client industries. Being a CPA is a lot like working on a puzzle - EVERYDAY!

Everyday there are new puzzle pieces that need to be put together into a Tax Return or a Financial Statement. And I am not putting those pieces together by myself. I am surrounded by wonderful people - my co-workers, my clients, and collaborators/valued connections with other business people in the community.

I am truly blessed to have found my niche and still love what I do 28 years after first beginning this career. I can only pray that my children will be as fortunate as me.

YEAR-ROUND SERVICES

7029639497 — Wed, 22 May 2019 13:12:50 GMT

Good-Bye Spring & Hello Summer!

WOW!! Is it just us or is 2019 zooming by?!?

It seems like just last week we were driving to work in the dark and also driving home in the dark. And it wasn't that long ago that taking a break for lunch seemed like a vacation.

NOW we have opportunity to try to find a more balanced life and enjoy the sunrises and sunsets. BUT our work doesn't end when Tax Season ends. We are OPEN Year-Round. Tax Season may end April 15 but our deadlines keep coming... Sales Tax, Payroll Tax, Estimated Taxes, Non-Profit & Different-Year-End Taxes ---- Not to mention the Extensions that were filed at the end of Tax Season. And then there's fitting in the 96 Continuing Education Credits (bi-annually)! Oh, and did you know that Every 3 Years we get reviewed by a Peer CPA Firm to make sure that we are providing quality work to our clients?

So while Tax Season is one season of being a CPA, there are SO many more! And that is what makes our profession so exciting... like the changing seasons, our work is constantly changing!

Every Day is a New Opportunity to serve our clients and be a Valued and Trusted Advisor to them.

Happy Memorial Day Weekend! Hope you are able to take some time to enjoy the sunrises, sunsets, and changing seasons!

TAX isn't BLACK & WHITE!

Wed, 01 May 2019 20:18:31 GMT

Here to help with the GRAY!

We are here to help you understand all the shades of gray.

Tax Season is officially over, BUT we are still OPEN 5 Days a Week.

We are still completing tax returns that were extended or that have a different year-end than December 31.

We are also busy performing audits and reviews for our non-profit clients (like ambulances, libraries, churches).

We also use this time to continue learning --- staying on top of the most recent tax and accounting changes to help our clients.

Don't hesitate to contact us throughout the year with your Tax Questions.
Remember even though the tax return is printed black and white --- it is really very gray.

Think you know the Tax Law? Read This!

Sat, 30 Mar 2019 11:39:17 GMT

You don't know what you don't know!

Our clients are both smart and successful in their professions. They have a general understanding of taxes and have the capability to look things up on the internet.

But what our clients don't have is 47 years of experience preparing all kinds of tax returns and taking continuing education courses on the most recent tax laws year-round!

This week, we had a client who sold (2) real estate properties at a gain in 2018. The client knew that he wanted some losses to offset the realized gains for his 2018 tax return. The client was ready to start a new chapter in life and sold his stock in the company that he was a shareholder of ---- the stock was sold at a loss. He thought he offset capital gains with capital losses. He thought he would get a refund of $2,678!

BUT WHAT HE DIDN'T KNOW was that he sold Section 1244 Stock. And WHAT HE DIDN'T KNOW is that Section 1244 of the Internal Revenue Code, allows shareholders of domestic small business corporations to deduct ORDINARY losses when they dispose of their small business stock at a loss.

WHAT HE DIDN'T KNOW is that ordinary losses are deducted from ordinary income (such as wages). WHAT HE DIDN'T KNOW is that in 2018, the Capital Gain Tax Rate is 0% for Joint Taxpayers with income up to $77,200.

WHAT HE DIDN'T KNOW is that his 2018 Federal Refund was $11,986!!!! That was a $9,308 Federal Tax Savings from having his tax return prepared by a CPA!

You just don't know what you don't know.

The TAX PREPARER Super Heroes strike AGAIN!

7029639497 — Tue, 26 Mar 2019 21:58:29 GMT

What a GREAT DAY in the Akins Accounting Office!

The TAX PREPARER Super Heroes strike AGAIN...What a GREAT DAY in the Akins Accounting Office!

Hunting down Cost Basis and reconstructing Dividends Reinvested SAVED a client $4,010 in taxes owed for selling investment funds.

Taking the time to understand a client's living arrangements and having them each file Head of Household instead of Married Filing Separate, in accordance with IRS rules, SAVED another client $6,027!!

And catching up a client who did not file taxes for 3 years - got that client REFUNDS TOTALING $5,632!!!

Do NOT UNDERESTIMATE the IMPORTANCE of using a Professional Tax Preparer!
Had all these individuals self-prepared, it would have resulted in THOUSANDS of $$$$$'s kept by the IRS!

CHECKUP TIME

7029639497 — Fri, 22 Mar 2019 21:50:54 GMT

Is it time for a Paycheck Checkup?

Doing a Paycheck Checkup can help you avoid having too little or too much tax withheld from your paycheck. You can generally control the size of your refund by adjusting your tax withholding.

You should check your withholding each year and when life changes occur, such as marriage, childbirth, buying a new home or your children are no longer your dependents.

The IRS Withholding Calculator can help taxpayers get their tax withholding right. When using the calculator, it is helpful to have a completed 2018 tax return available.

Taxpayers can use the results from the IRS Withholding Calculator to determine if they should complete a new Form W-4. The calculator will recommend the number of allowances to claim and, if needed, the amount of additional federal income tax to have withheld each pay period.

Don't wait until you file your 2019 tax return to be surprised again.
Those who need to adjust their withholding should do so as soon as possible!

Don't use luck when picking an accountant.

Fri, 15 Mar 2019 11:36:54 GMT

Are you happy with your accountant?

Tell your neighbors, friends, co-workers & family!

Choose Tax Preparers Carefully!

7029639497 — Fri, 08 Mar 2019 22:53:38 GMT

Tax Preparer Fraud included in the "Dirty Dozen"!

The IRS just included Tax Preparer Fraud on it's "Dirty Dozen" list of common tax scams.
Here are some tips to avoid unscrupulous tax preparers:

1. Look for a preparer who is AVAILABLE YEAR-ROUND .

2. Inquire whether the preparer has a professional credential ( CPA , Enrolled Agent).

3. Ask about service fees. Avoid preparers who base fees on a % of their client's refund or boast BIGGER refunds than their competitors.

4. Don't give tax documents, Social Security #s or other information to a preparer if inquiring about their service & fees.
Some unscrupulous preparers have used this information to improperly file returns without taxpayer's permission.

5. Make sure the preparer offers IRS e-file and ask to e-file the tax return . It's the safest & most accurate way to file.

6. Provide records & receipts. Good preparers ask to see these documents.
They'll ask questions to determine the client's total income, deductions and tax credits.

7. NEVER SIGN a BLANK RETURN.

8. Review the tax return before signing.

REMEMBER ---- Taxpayers are ultimately responsible for the accuracy of their tax return, regardless of who prepares it.
Well-intentioned taxpayers can be misled by preparers who don't understand taxes or who mislead people into taking credits or deductions they aren't entitled to claim. Scam tax preparers often do this to increase their fee.
Selecting the right tax professional is important - don't let yourself be scammed this year!

BUSTING THE MYTHS!

Fri, 01 Mar 2019 13:22:56 GMT

It's time to BUST the TAX REFORM MYTHS!

1 - The Tax Changes are Permanent . ...WRONG - some are permanent but a majority of them expire 12-31-2025 .

2 - Unreimbursed Employee Expenses are no longer deductible ....WRONG - most states did not entirely conform to the tax law changes. So while, they are not deductible on your federal return they might still be deductible on your state return. For example, PA still allows Unreimbursed Employee Expenses.

3 - Alimony paid is no longer deductible and alimony received is no longer included in income...WRONG - only true for divorce or separation agreements executed on or after 1-1-2019 .

4 - Personal casualty and theft are still deductible ... WRONG - the only exception are presidentially declared disaster areas.

5 - Hobby losses are still deductible...WRONG - many people have a "side gig". If the side gig does not rise to the level of a trade or business, the hobby loss rules will apply. Expenses such as mortgage interest and property taxes are deductible up to the amount allowable whether or not the taxpayer has an activity that is not engaged in for profit.

6 - Equity Mortgage Interest is not deductible...WRONG - it is still deductible as long as the proceeds were used to improve or expand the home . But proceeds used for non-home improvements are no longer deductible.

7 - My tax return will be filed on a postcard now, so the tax preparation will be easier...WRONG - the new "simplified" Form 1040 fits on a large postcard but this is a false sense that this means taxes are now simpler. There are numerous sheets that need to be completed that accompany the" postcard". With all of the tax changes this tax season may be one of the most complicated!

Use Tax in PA

7029639497 — Fri, 22 Feb 2019 23:05:48 GMT

What you need to know about online sales if you live in PA!

Beginning in 2019 , Businesses making online sales to PA Customers WITHOUT CHARGING PA 6% SALES TAX are REQUIRED to submit a report to BOTH YOU & the PA Department of Revenue providing information about your Total Purchases for 2018!

You should use these reports to calculate Use Tax on Taxable Items purchased online from these Businesses. If you did not receive any reports, you may use actual receipts to calculate Use Tax due.

Examples of Taxable Items include: antiques, paintings, appliances, books, digital products, stationary, computers, exercise equipment, sports equipment, formal clothing, furniture, furnishings, jewelry, luggage, handbags, musical instruments, office equipment, souvenirs, televisions, radios, stereo equipment, video equipment and camera equipment.

See the Retailer's Information Guide (REV-717) for an extensive list of taxable items.

7 REASONS WHY SMALL BUSINESS OWNERS SHOULD HIRE A CPA:

7029639497 — Fri, 15 Feb 2019 15:35:13 GMT

#1 - Taxes are Complex.
#2 - Your Time is Money$$$.
#3 - CPA's can Save your Money$$$.
#4 - Mistakes will Cost You.
$5 - Peace of Mind.
#6 - Planning Ahead.
#7 - Year Round Service.

CAUTION! Before completing PA-40 Schedule UE

7029639497 — Sat, 09 Feb 2019 14:37:33 GMT

Are you an Employee with Business Miles?

WATCH OUT before completing the PA-40 Schedule UE (Unreimbursed Expenses) Form.

IF an Employer reimburses at a rate less than the federal rate for the mileage expense, you cannot claim mileage expenses on PA-40 Schedule UE. The instructions for PA-40 Schedule UE includes the following example: "James' employer reimburses him at a rate of $0.40 per mile. James is not permitted to deduct a mileage expense on his PA-40 Schedule UE for the difference between the federal allowance and his employer's reimbursement unless his employer includes the reimbursement in his PA compensation."

So take CAUTION before completing Schedule UE!

A Tax Preparer Hero!

7029639497 — Wed, 06 Feb 2019 15:33:48 GMT

Is your Tax Preparer asking you questions??

Today I was a TAX PREPARER HERO!

A new client had me prepare his 2018 taxes. When I reviewed his 2017 tax return that was prepared by another tax preparer, I noticed that he had a child and had his filing status as SINGLE. All it took was a quick phone call to verify that he met the IRS requirements to file as HEAD OF HOUSEHOLD and then......

BAM! 3 Years of tax returns AMENDED got him $1,876 of refunds from the IRS.

IS YOUR TAX PREPARER ASKING YOU QUESTIONS?That's what a relationship with your tax preparer is all about.
RELATIONSHIPS. SERVICE. INTEGRITY. 3 KEY ELEMENTS at Barbara A. Akins, CPA!

8 Things That Could Increase Your Chances of Being Audited

7029639497 — Fri, 01 Feb 2019 22:32:16 GMT

In 2017, the IRS audited 1.1 million returns out of the 196 million that were filed. That's 1/2%.

The IRS has a "point system" .... the more risk factors on your return, the greater your chances of being selected for audit.

Here are some TOP IRS AUDIT TRIGGERS TO AVOID:

1. Home Office Deduction - Self-employed persons must set aside ®gularly use a portion of their home for business. Certain guidelines must be met. Employees can no longer deduct their home office under the New Tax Law.

2. 1099 Income - When you have lots of small clients, the IRS suspects that you might not have reported everything. The first thing they will ask for during an audit is your bank statements. Keep a separate account for your business income & expenses.

3. Self-Employment - the IRS might consider your business a hobby. If your business isn't making a profit & you're claiming deductions, that's a red flag.

4. Charitable Contributions - There are strict rules for donated property. You have to have a receipt for anything over $250 & substantiate the value & condition. It's a good idea to take a picture.

5. Mileage Deduction - you can use your GPS history as audit support. You can also recreate your mileage from your business records.

6. Rental income - The higher your income is, the more likely you are to be audited. There are limits on how much loss you can take.

7. High Earnings - The higher your income, the more likely you are to be audited.

8. Estimated Numbers - Round numbers are a red flag so you should save your receipts for up to 6 years.

50% Deductible Business Meals

7029639497 — Fri, 25 Jan 2019 21:32:28 GMT

Business Meals are Deductible Again --- But NOT Entertainment!

Previously the New Tax Law (TCJA) eliminated deductions for business entertainment expenses, effective in 2018.

NOW the IRS says taxpayers MAY DEDUCT 50% of the cost of BUSINESS MEALS if:

The expense is ordinary & necessary when carrying on business.
The expense is NOT lavish or extravagant .
The taxpayer, or an employee of the taxpayer is present when the food or beverage is served.
The food & beverage is provided to a current or potential customer, client, consultant or similar business contact.
The food & beverage provided during or at an entertainment activity IF THEY ARE PURCHASED SEPARATELY from the entertainment .
OR IF the cost of the food & beverage is STATED SEPARATELY from the cost of the entertainment on the invoice .

Are you eligible for the NEW Child Tax Credit?

Fri, 18 Jan 2019 22:44:41 GMT

Don't miss out on this year's CHILD TAX CREDIT!

The New Tax Law (TCJA) DOUBLED the credit amount from $2,000 to $4,000! But the BEST news is that the New Tax Law increased the phase-out of who can take the credit. Formerly the credit began to phase-out for joint filers at $110,000 and single $75,000. NOW the credit begins to phase-out at $400,000 for joint filers and $200,000 for all others.

You might also be eligible for the $500 credit for "qualifying relatives" (a person who lived with you the entire year as a member of your household or a lineal ancestor) AND gross income is LESS THAN $4,150 and you provide more than half of the person's support.

The $500 credit is also for a qualifying child, age 17 & 18 or up to 23 for full-time students and you provide more than half of their support.

TAX SEASON STARTS NOW!

7029639497 — Mon, 14 Jan 2019 22:50:36 GMT

New Year, New Tax Law... No Problem!

We have been working very hard preparing for this year's Tax Season! The Tax Cuts and Jobs Act (TCJA) is the biggest tax change in decades! There are so many changes that will affect so many people. Make sure you are getting the most out of the Tax Law changes by having your return prepared by a CPA this year!

REFERRAL THANK YOU!

7029639497 — Sun, 18 Nov 2018 18:26:53 GMT

Thank You for YOUR REFERRALS...It is the best compliment we can receive!

There is no better way to GROW our BUSINESS than to have our CLIENTS, FRIENDS, and FAMILY introduce us to like-minded people with whom we can build long-term relationships. We would like to THANK those CLIENTS, FRIENDS & FAMILY who have helped introduce us to NEW CLIENTS this past year!

CYBER-SECURITY

7029639497 — Sat, 20 Oct 2018 18:57:02 GMT

Protecting Sensitive Information

Did you think October was just for Pumpkins?
Who knew that October was Cyber Security Awareness Month?!?! ��
At Akins Accounting we take SECURITY SERIOUSLY.

To prepare your tax return we use: multi-factor authentication, frequently changing passwords with numbers,
upper and lower case and characters and a required amount of failed attempts before getting booted out.

Our firm strives to protect our client's sensitive information.

We are an Accounting Firm with a Risk Awareness Culture!

How to avoid becoming a Scam Victim

7029639497 — Mon, 03 Sep 2018 13:51:46 GMT

Criminals prey on Fear & Ignorance

Did you or someone you know get a call from the IRS demanding payment in back taxes or they would be immediately arrested?
Scammers stole $61.9 million from 12,469 victims - starting in 2013. Thousands of Americans were conned. WHY? Because scammers are aggressive and use high-pressure tactics that create individuals to react with their emotions - heightened fear & anxiety that short-circuits logical thinking. When you start thinking cognitively of course it doesn't make sense. In Colorado, 63% of the state's population over the age of 50 received IRS impersonation scam calls. Even the Commissioner of the IRS received calls.

So what should you do if you get a call?
1. Never answer a call from an unknown phone number. Important callers will leave a message.
2. If anyone calls you and demands money, hang up!
3. If you do receive a suspicious call, hang up, call the IRS. It will help them monitor the scam.

Do you know someone who might be a fraud victim?
1. Sudden Secrecy - Scam victims feel shame and embarrassment for falling prey to the scam.
2. Changes in Financial Behavior - Are they a little short in money this month when you know their expenses are pretty constant?
3. Isolation - Scammers say they have their best luck with people who are alone.

Be Relevant.

7029639497 — Wed, 27 Jun 2018 15:14:10 GMT

Is your Accountant committed to do what's good for you?

Being relevant is the ability and commitment to do what's good for the client.
First, the client's needs have to be identified. And you have to ask why this is important to your client.
Next, the client's needs have to be satisfied.
At Akins Accounting, we work hard at strengthening our firm so we can acquire the abilities needed to prepare us to do what's good for our clients. We don't only want to be a Trusted Advisor - we want our clients to think of us as Relevant!

Are Client Meals Deductible?

7029639497 — Mon, 23 Apr 2018 13:37:43 GMT

"The AICPA takes the position that business meals that (1) take place between a business owner or employee and a current or prospective client; (2) are not lavish or extravagant under the circumstances; and (3) where the taxpayer has a reasonable expectation of deriving income or other specific trade or business benefit from the encounter, are not disallowed under Sec. 274(k).

The AICPA requested that the IRS provide the immediate guidance on the change to Sec. 274 ...and recommend that the IRS confirm that business meals that meet the above criteria are deductible."

- AICPA, The Tax Advisor , April 12, 2018

Tax Deductions

7029639497 — Sat, 24 Feb 2018 20:50:01 GMT

Don't forget to tell us about your "little" Tax Deduction!

There are lots of reasons to tell your Tax Preparer about your "little" tax deduction. In 2017, they will be included as a Personal Exemption and the Child Tax Credit calculation. There is also the Dependent Care Credit. In 2018, there are even more reasons that you will be excited about your "little" tax deduction!! The Child Tax Credit goes from $1,000 to $2,000 per child under the age of 17 years old. And the income phase-out limits increased from $110,000 of wages to $400,000 of wages! We LOVE "little" Tax Deductions at Akins Accounting!

What is the New Tax Law all about?

7029639497 — Tue, 06 Feb 2018 12:37:34 GMT

Top 42 Highlights of the Tax Cuts and Jobs Act

#1-Top Tax Bracket 37%; #2 - Kiddie Tax simplified; #3 - 20% Deduction for Qualified Business Income; #4 - $10,000 Limit on State & Local Income & Property Taxes; #5 -Mortgage Interest Deduction up to $750,000 & no home equity line-of-credit; #6 - Like-Kind Exchanges only real property; #7 - Estate Tax doubled; #8 - Corporate Tax Rate FLAT 21%; #9 - Section 179 up to $1 million & $25,000 on SUV's; #10 - Method of Accounting can be Cash even with inventory; #11 - Luxury Auto Limits increased; #12 - Residential Rental Property Recovery Period reduced for ADS; #13 - AMT nearly eliminated for individuals; #14 - Individual Mandate for health insurance not required; #15 - Sunset Provision tax cuts end in 2025; #16 - Deduction for Qualified Production Activity Income removed; #17 - Education allows distribution from 529 plan for elementary & high school up to $10,000; #18 - Miscellaneous Itemized Deductions removed; #19 - Standard Deduction increased & Personal Exemptions removed; #20 - Child Tax Credit - $2,000 credit phases out for couples with $400,000 income; #21 Charitable Contributions 60% of AGI; #22 Medical & Dental Expenses 7.5% above AGI and Casualty Losses only presidentially-declared disaster areas; #23 - Graduate Students tuition waivers are not income; #24 - IRS Levy Relief 2 years to bring a wrongful levy action; #25 - Carried Interest Loophole 3 year holding period taxed as ST Capital Gain; #26 Combat Zone Tax Benefits; #27 - Head of Household due diligence; #28 - Installment Agreement User Fees can be increased by the IRS; #29 - Bonus Depreciation; #30 - Sale of Partnership Interests; #31 - Contributions of Capital; #32 - Employer Credit for Paid Family & Medical Leave; #33 - Changes to ESBT Rules; #34 - Deductibility of Penalties & interest disallowed; #35 - Citrus Plants Casualty Losses; #36 - Limit on NOL Deductions for businesses to 80% of taxable income; #37 - Sexual Harassment Settlements; #38 - Alimony Deduction disallowed; #39 - Moving & Entertainment Expenses disallowed; #40 - Limitation of Deductibility of Losses on self-employed to $500,000 for joint filers; #41 - Contribution to Retirement Accounts Levied by IRS; #42 - International Taxes.

NEW PA Requirements for Charitabale Organizations!

7029639497 — Mon, 15 Jan 2018 15:32:15 GMT

PA Raises the Threshold for Audits!

Act 71 of 2017 raises the threshold of annual contributions to $750,000 before it triggers the need for an AUDIT by a CPA.
Annual contributions greater than $250,000 but less than $750,000 are required to have a REVIEW or an AUDIT.
Annual contributions of at least $100,000 but less than $250,000 are required to have a COMPILATION , REVIEW, or AUDIT.
A COMPILATION, REVIEW or AUDIT will be optional for any charitable organizations that receives annual contributions less than $100,000.

Act 72 of 2017 clarifies that any state registration form filed for charitable purposes will be timely filed if postmarked on or before the renewal date. ( Before registration statements were only considered timely filed if they were received by the renewal date. )

YES! We are Accepting New Clients!

7029639497 — Mon, 15 Jan 2018 14:18:39 GMT

Barbara Akins, CPA has been preparing taxes , performing audits , and providing accounting services to individuals, businesses, municipalities, and non-profit organizations in the Boyertown/Pottstown surrounding area since 1991. The firm presently prepares 400+ tax returns and approximately 30 audits annually. When you call us you will receive a quick response to your questions. As a client you will be able to make decisions and move forward with other aspects of your business.

Barbara considers it an honor to be a CPA. The clarity, consistency, transparency, and trust that is obtained by using a CPA is more important now than ever. QUALITY is not an act, it is a HABIT . If you are looking for Relationships, Service and Integrity in your tax preparer or auditor CALL US 484-321-3839!

TEAMWORK

7029639497 — Fri, 17 Nov 2017 13:31:31 GMT

At Akins Accounting we Do What We Love, Love What We Do & Love the People We Do It With! Working as a Team with eachother and our clients is priority #1! Our tag line is Relationships. Service. Integrity. RELATIONSHIPS is #1! That means being there for eachother, caring for eachother's needs and following the Golden Rule " Do unto others as you would have them do to you. " We hope our clients feel the same way about us!

A Much Higher Quality Audit

7029639497 — Thu, 19 Oct 2017 14:31:15 GMT

Connecting to the Client & Understanding their Risks and Needs

" Quality is not an act, it is a habit."

Quality is something that can only be embedded through a CPA firm's people and culture. It is a fundamental value and way of life for a true professional. A CPA firm's "tone at the top is the most important characteristic of the firm." Owner/"Partner involvement should be early and often." The Audit Team Leader should be present, available and approachable. Taking the time to understand the client and the changes that they are going through will help emphasize the risks that will lead to a higher quality audit.

We are very connected to our clients and understands their risks and needs. Our firm engages with our clients to potentially help them with more than just the audit. When we accept an audit, we make a promise to know the person across the table. That deep understanding of the client allows us to provide a much higher quality of audit at the end of the day.

Our Team Is Growing to Help Serve You Better

7029639497 — Fri, 01 Sep 2017 15:39:47 GMT

Welcome BRITTANY JONES, MSA

Brittany Jones, MSA, is a recent graduate of Liberty University who is highly motivated. She graduated college in 3 years and also received her Masters in Accounting. She has real-life work experience in preparing taxes and performing audits. We are very excited to have her join our Team at Barbara A. Akins, CPA. Brittany is conscientious, friendly and smart! We think you will also agree when you meet her.

How Much Do You Know About FRAUD?

7029639497 — Mon, 31 Jul 2017 15:48:29 GMT

The median amount of time from when fraud begins until it is detected is 18 MONTHS.
84% of cases of theft were from MISAPPROPRIATION OF ASSETS (skimming revenue, stealing inventory & payroll fraud.)
35% of cases of theft were from CORRUPTION (kickbacks).
Tips, Hotlines are the MOST COMMON Fraud Detection Methods (39%).
Only 4% of frauds are detected by External Audits.
WARNING SIGNS OF FRAUDSTERS - Living beyond their means or Unusually close associations with vendors or customers.
92% of Fraudsters were never previously punished or terminated for fraud.
A CREDIT CHECK could be the most effective check to do on an employee (Personal Financial Stress is common among Fraudsters).
For most Fraudsters, it starts with INCENTIVE & PRESSURE - Due to circumstances, the individual is under financial pressure (divorce, living beyond means, college education.
A Fraudster must RATIONALIZE/JUSTIFY the fraud - was not given a raise, overworked, underappreciated, the fraudster thinks they will pay eventually pay the money back.
POOR INTERNAL CONTROLS - all it takes is a poor internal control environment in order for an otherwise honest person to be converted to a Fraudster.

5 Questions Board Members Should Ask About FRAUD

7029639497 — Thu, 25 May 2017 13:19:05 GMT

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#1 - What are the TOP 10 Fraud Risks we face?
For example, manipulation in financial reports, theft of assets?
#2 - Does our organization DETER, PREVENT or PROMPTLY DETECT FRAUD?
Is the Board monitoring financial reports monthly? Can override of controls happen?
#3 - Can anyone with concerns about suspected fraud contact the Board?
This includes employees. supplies, volunteers and donors.
#4 - Does the Executive Director/Manager lead the anti-fraud efforts?
Set the tone at the top!
#5 - Are employees trained in anti-fraud skills?
Employees are usually your first line of defense against fraud.

- PICPA, CPA Now, 5/13/15, John Hall, CPA, Pres. of Hall Consulting, Inc. & NFP Speaker