Tax Archives - Killingsworth Spencer, LLC

Important Reminder

kwscpa2021-01-20T00:45:04+00:00

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; [...]

Important Reminderkwscpa2021-01-20T00:45:04+00:00

There are No Magic Bullets!

kwscpa2021-01-10T21:59:02+00:00

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 [...]

There are No Magic Bullets!kwscpa2021-01-10T21:59:02+00:00

Are you planning to purchase a new vehicle soon?

kwscpa2020-12-21T16:59:46+00:00

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 [...]

Are you planning to purchase a new vehicle soon?kwscpa2020-12-21T16:59:46+00:00

The Tax Man and COVID-19

kwscpa2020-12-15T14:25:58+00:00

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 [...]

The Tax Man and COVID-19kwscpa2020-12-15T14:25:58+00:00

What happens when a W-2 employee needs to deduct work related expenses due to Covid-19?

kwscpa2020-10-11T23:21:57+00:00

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 [...]

What happens when a W-2 employee needs to deduct work related expenses due to Covid-19?kwscpa2020-10-11T23:21:57+00:00

Home Office Deduction post TCJA of 2017

kwscpa2020-09-15T01:13:38+00:00

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 [...]

Home Office Deduction post TCJA of 2017kwscpa2020-09-15T01:13:38+00:00

Automatic Extension to FILE taxes

kwscpa2020-07-13T01:58:11+00:00

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

Automatic Extension to FILE taxeskwscpa2020-07-13T01:58:11+00:00

How GA Film Tax Credits Work

kwscpa2020-07-10T23:31:53+00:00

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 [...]

How GA Film Tax Credits Workkwscpa2020-07-10T23:31:53+00:00

GA Film Tax Credits available for 2019 tax year

kwscpa2020-07-10T22:51:06+00:00

Hello everyone, We wanted to pass along some important information to you if still owe GA income taxes for 2019. Two updates as we approach July 15th: We currently have over 60 mil Georgia film credits that can be used for 2019 returns and extensions. We can close on credit transactions as long as a wire is received on or before Tuesday, July 14th. 2. Disney has asked us to place these remaining credits, so they are very competitively priced: 20th Century Fox Productions 2017 tax year credits 190,000 available (prefer to place with 1 or 2 buyers, [...]

GA Film Tax Credits available for 2019 tax yearkwscpa2020-07-10T22:51:06+00:00

Section 165(i) and deducting 2020 Covid losses on your 2019 tax return

kwscpa2020-06-30T21:00:41+00:00

On March 13, 2020, the President declared the Coronavirus pandemic of sufficient severity and magnitude to warrant an emergency declaration for all states, tribes, territories, and the District of Columbia. This declaration allows taxpayers to invoke Section 165(i) of the Tax Code turning 2020 losses into 2019 deductions. Small business owners may elect to deduct 2020 expenses directly attributable to COVID-19 on their 2019 returns, or amend 2019 if already filed. Qualifying losses must not be compensated by insurance or otherwise. Examples include costs for: additional office cleaning expenses personal protection equipment (PPE) costs to move employees to shelter at home [...]

Section 165(i) and deducting 2020 Covid losses on your 2019 tax returnkwscpa2020-06-30T21:00:41+00:00