Since many of our readers are business owners, Killingsworth Spencer in Roswell wanted to share this brief reminder. Business owners must file 1099’s for cash and check payments of $600 or more to individuals, attorneys, and unincorporated entities who are NOT TREATED AS W2 EMPLOYEES. Credit card and PayPal payments do not require this filing. 1099-NEC’s include payments for contract labor, commissions, professional services, and other non-employee compensation. 1099-MISC’s are for rents, prizes and awards, royalties, and settlements to attorneys. 1099-NECs and 1099-MISC’s are due February 1st, 2021. There is a $50 penalty per 1099 if not filed within 30 days; [...]
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The IRS announced today that the opening date to begin filing your 2020 tax returns has been moved back to Friday, February 12th. Here is a quick synopsis as why. “The Feb. 12 start date for individual tax return filers allows the IRS time to do additional programming and testing of IRS systems following the Dec. 27 tax law changes that provided a second round of Economic Impact Payments and other benefits. This programming work is critical to ensuring IRS systems run smoothly. If filing season were opened without the correct programming in place, then there could be a delay in [...]
If you owe back taxes to the IRS or the state, there is little doubt that you may feel anxious and vulnerable. If you have not filed your taxes for several years, you also know that the day will soon come when “Shylock comes for his pound of flesh.” If you received a Notice of Tax(es) Due from the IRS and it was a complete surprise to you then you are probably saying to yourself, “What?” and you quickly call or text your tax preparer for an explanation. Either way, the IRS and or the state DOR have you in their [...]
A frequent mistake made by many business owners is with their auto expenses and tax deductions. The most common deduction method is the Mileage Method, and the deduction for 2020 is 57.5 cents per business-use mile. This deduction INCLUDES the costs for fuel and oil, maintenance, tires, car washes, and insurance. It is still a good idea to keep an eye on these expenses, but your tax preparer will not need them to calculate your tax deduction. You should keep accurate records as to how you use your vehicle in your business. Often times, we see where a taxpayer will “double [...]
We have a few key tips and ideas if you owe back taxes to the IRS and or the state. The COVID-19 pandemic has disrupted nearly everyone and everything around the world in 2020; the IRS and the GA Department of Revenue were not immune to the fallout. If you happened to mail a check to the IRS or the state to pay a tax debt early in the spring, you probably saw it leave your bank account sometime this past summer. The IRS has stated in a recent communication that it estimates it has nearly 2.5 million hard copy tax [...]
Hello again, Lynn Spencer here. I am taking this opportunity to announce that Killingsworth Spencer in Roswell has a new registered trademark with the United States Patent & Trademark Office that ties nicely to what we do, “Helping Clients Understand the Choices that Matter.” ™ This is the cornerstone of what we do each and every day at Killingsworth Spencer, and we are proud that we can forever tie this phrase to our firm. Of course, we prepare tax returns while also providing tax planning, bookkeeping, payroll, and business consulting. We also go to bat for our clients with the IRS [...]
Our previous blog discusses the home office deduction and how it is not available to W2 employees working at home due to COVID. In addition, at-home employees cannot deduct equipment, such as computers, printers and supplies, postage, business meals, and miles driven for business, not even telephone and internet expenses, even though they are using them for work. How does an employee get made whole for using their own items for business usage? The only way is through their employer. The employer will get the deduction for such expenses. However, there is a caveat as to how this reimbursement is handled [...]
https://killingsworthspencerllc.com/blog Right now, at least 1 in 3 Americans find themselves working from home due to the Covid-19 pandemic. The Tax Cuts and Jobs Act (TCJA) of 2017 eliminated the Home Office deduction through 2025 for W-2 wage earners. This means if you receive a paycheck from an employer, you cannot deduct an expense for working in a designated part of your home. If you have an office outside the home but are now required to work from home due to the pandemic, the pandemic is NOT considered a hardship reason for a Home Office deduction according to IRS regulations. If [...]
Hello everyone. Last year I did a podcast about using an automatic extension if you are not ready to file your returns by the April 15th deadline. Because of the Covid pandemic, this year's due date is July 15th. Other than substituting July 15th for April 15th for 2020, the balance of the information remains relevant. Lynn Spencer Watch it here https://www.youtube.com/watch?v=JpuVqjZx850&list=PLZHe19A1Qzz8eKpNivxgcoHt7UsaL1KuS&index=4&t=1s HAVE A GREAT WEEK
Hello there, Andrea Altman with Killingsworth Spencer here. Today I want to let you all know about how the Georgia Film Tax Credits work, and how they can save many GA residents on their state income taxes. Many people are unaware of just how big a deal the GA film industry is and how it benefits every citizen. GA currently ranks 3rd behind California and New York in the total number of film and television projects produced. Over 92,000 Georgians are employed by the film industry with over $4.6B in direct wages, and an estimated economic impact of $9.5B (these are [...]