1. Here are some key things to keep in mind when filing a 1040 tax return:
2. Deadline: The deadline for filing a 1040 tax return is typically April 15th, unless that falls on a weekend or holiday. If you need more time to file, you can request a six-month extension.
3. Income: You must report all sources of income on your 1040 tax return, including wages, tips, investment income, and business income.
4. Deductions: You can deduct certain expenses from your income to reduce your taxable income. Common deductions include mortgage interest, charitable donations, and medical expenses.
5. Credits: Tax credits are a type of tax break that reduce the amount of tax owed on a dollar-for-dollar basis. Common tax credits include the Earned Income Tax Credit, the Child Tax Credit, and the American Opportunity Tax Credit.

It’s important to be accurate and thorough when filing your 1040 tax return, as errors or omissions can result in penalties or additional taxes owed. If you have questions or need help with your tax return, consider consulting a tax professional or using a reputable tax preparation service.

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We want you to know that help is available. Of course, we have tax specialists at our Tampa CPA firm who would be happy to assist you, but we understand that not everyone in Tampa needs a CPA  to prepare their 1040 tax return.  

So, where can you go for help? 

The IRS Offers Free Filing Tools

The IRS cares about U.S. taxpayers. Really. And if they had the time, they would be happy to talk to you, but budget cuts have left the service understaffed, under-resourced and, for the most part, overwhelmed. 

But they’re trying.  

For example, the IRS now offers Free File, which allows you to do your taxes for free online. There are two free options, depending on your income:

• Guided Tax Preparation provides free online tax preparation and filing through one of the partnerships the IRS has created. Taxpayers whose adjusted gross income is $73,000 or less qualify to use this method to complete and file their 1040 tax return.

• Free File Fillable Forms Is a free option for taxpayers whose adjusted gross income is greater than $73,000. If you are going to use this option, you really need to know how to prepare your own 1040 tax return without the help of any handy software to guide you. You’ll have to rely on the IRS’s form instructions and publications. 

Filing your 1040 tax return electronically is more important than ever – especially if you are expecting a refund. Filing online is safe and secure and you will find all of the federal tax forms you need, equivalent to a paper 1040 form.

If you’re filing a 1040 EZ, you probably don’t need the assistance of one of our Tampa tax specialists. But if you do need help or just don’t want to go it alone, you’ll find the assistance you need at Walter S. Sanders & Associates, a small CPA firm in Tampa that offers personalized service. Contact us to take the first step.

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If for some reason you aren’t able to file your 1040 tax return quickly this year, then the only advice we can offer is to be patient. 

As CNBC reports, “this tax season will be a hectic one.“

Usually, the IRS Is able to Issue tax refunds within 21 days of when most 1040s are filed. “This year it could take longer than that, for a few reasons,” CNBC says. “To start, the agency still had 6 million unprocessed individual 2020 returns as of December 23, 2021, comprised mainly of those with errors made by the taxpayer and those with Recovery Rebate Credit amounts being corrected by the IRS. That’s millions more than the typical yearly backlog.”

Additional reasons why you’ll want to file early, according to CNBC, include:

• Like many employers around the country, the IRS is short-staffed. 
• Taxpayers submitted more than 2 million amended 2020 returns as of Jan. 1, 2022. 
• The IRS is still processing some corrections for people who paid too much in unemployment insurance taxes in 2020.
• And, last but not least, there’s Covid. Not just the delays caused by employees being out sick or having to work from home or the need to accommodate for social distancing. As CNBC says, “Staff is dealing with Covid-related tax changes like the third economic impact payments and child tax credit payments. All of that takes time to verify.”

The 2022 Tax Season Has Begun

The Internal Revenue Service kicked off the 2022 tax filing season on Jan. 24 by urging tax payers to be sure their 1040 tax returns are accurate before filing as a way to speed refunds avoid delays. They also recommend that you file electronically to help speed refunds. 

If you need help preparing your taxes and want to ensure that they are filed accurately and electronically, contact the Tampa tax specialists at Walter S. Sanders & Associates. 

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Of course, gaining a few tax advantages isn’t a good reason to get married, but, if you’ve found that special someone who believes in you and makes you feel kind of weak in the knees when they look at you that certain way, then the tax benefits are icing on the cake. 

Tax Benefits of Being Married When Filing Your 1040 Tax Return 

In some situations, married couples may find themselves facing what is referred to as a “marriage penalty.” It’s not really a penalty, it’s simply that sometimes it may be more to your advantage of the ability to file as single even though you are married.  

There are other potential benefits, ranging from being able to claim more in charitable deductions to estate protection. An experienced Tampa accountant, like Brian Sanders – the second generation of the Sanders family to take the helm at the Tampa CPA firm of Walter S. Sanders & Associates, can help you determine what is the best tax strategy for you and your spouse to pursue when the time comes to file your 1040s. 

Other Benefits to Being Married 

The List, a TV magazine show, reports that there are also quite a few surprising benefits to being married that have nothing to do with your taxes, including: 

• Living longer

“Living with a partner lowered the mortality rate for men by 80 percent and for women by 59 percent, according to researchers from Michigan State University and the University of Cincinnati,” The List says. 

• Enjoying a better night’s sleep 

The List looked specifically at research related to married women, who, they say researchers concluded sleep better. “The happier the women reported being in their marriages, the easier it was for them to fall and stay asleep.” 

• Reducing risky behavior 

“Over time, being married can actually change the way people behave for the better,” The List says. “One interesting way is that married people take fewer risks, including substance abuse.” 

If you are looking for love and someone special to file your 1040 tax return with, you might want to try one of the online dating sites. But, if you are looking for a Tampa CPA who can help you and your spouse determine an effective tax strategy, then we hope you will contact the tax specialists at Tampa’s Walter S. Sanders & Associates. 

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As the South Florida Sun Sentinel reports, unemployment fraud is putting a big hurt on people with jobs. “Identity thieves are having a field day stealing billions in unemployment benefits from Florida and other states across the nation,” fraud detectives told the paper. 

The Costs of Unemployment Fraud

The federal benefits that are helping keep people afloat as we continue to struggle with the impacts of COVID-19 have been too much of a temptation for criminals. And, unfortunately, the state was not prepared to deal with the problem. 

“As the pandemic wore on, Florida spent much of its time and money on catching cheaters who lied about their work backgrounds to acquire benefits,” Haywood Talcove, CEO of LexisNexis Risk Solutions, which also specializes in identity verification and fraud-prevention, told the Sun Sentinel.

No one knows how many Floridians have been affected or how much money has been diverted by identity thieves. It’s a problem not just for employed people who have had their identities stolen. As the Sun Sentinel reports, unemployment fraud is having widespread impacts. 

“Employers are being charged extra money by the state for unemployment taxes,” the Sun Sentinel says. And, of course, the State is out the money.

If fraudsters have stolen your identity, you might discover that they have opened bank accounts in your name. And just wait until it’s time to file your 1040 tax return, the money they steal will show up as income you received.

If you think you have been a victim of unemployment fraud, you will need to contact the authorities. After you have reported the crime and notified the credit reporting agencies, you can contact the tax specialists at Tampa’s Walter S. Sanders & Associates, one of Tampa’s leading CPA firms. We will do everything in our power to help you sort out the damage the criminals have done.

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The new deadline for filing your 2020 1040 tax returns is May 17, 2021.

In making the announcement, IRS Commissioner Chuck Rettig said, “This continues to be a tough time for many people, and the IRS wants to continue to do everything possible to help taxpayers navigate the unusual circumstances related to the pandemic, while also working on important tax administration responsibilities.” 

How Does the Extension Affect You?

You don’t have to do anything to qualify for this extension. It is automatic and applies to individual taxpayers, including individuals who pay self-employment tax. You will not be assessed any penalties or interest on any taxes that you might owe. 

The extension does NOT apply to any estimated quarterly taxes you may owe. Those are still due by April 15, 2021. (If your income is not subject to income tax withholding, you need to make estimated tax payments to the IRS quarterly. Examples would include self-employment income, interest, dividends, alimony or rental income.)

“Even with the new deadline, we urge taxpayers to consider filing as soon as possible, especially those who are owed refunds,” Rettig said. “Filing electronically with direct deposit is the quickest way to get refunds, and it can help some taxpayers more quickly receive any remaining stimulus payments they may be entitled to.”

Our Tampa tax specialists also recommend filing as soon as possible. Getting your 1040s in is the best way to prevent tax scammers from filing a false 1040 tax return under your name. And even if you file now, you will still have until May 17 to pay any tax that you might owe.

If you have questions or need help with your 1040s, we are here to help. Contact us at your convenience.  

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There are software programs that can help you file a simple 1040 tax return, but we are a long, long way from the day when you will be able to hand your receipts and bank records over to a robot to prepare your taxes. 

Advances in Robotics

The field of robotics has been evolving in amazing ways, though, as the folks at Boston Dynamics prove in a series of videos they have released in recent years. In the latest video from the company, Smithsonian Magazine tells us, Dancing Boston Dynamics Robots Show Off Their Sweet Moves.

“All of the videos show off the kind of coordination and dexterity that programmers can ask of their robotic minions,” Smithsonian reported. “The latest video, with its high-quality videography and editing, is more consumer-friendly than previous, academic demonstrations of the robots’ progress.”

Boston Dynamics’ videos include: 

• The most recent video features three different types of robots dancing to the tune “Do You Love Me.” Their moves are really pretty amazing.

• A previous video focuses on one particular model of robot, which the company has dubbed Spot because of its undeniable resemblance to a dog. 

• Another video traces the evolution of Boston Dynamic’s robotics, featuring earlier models of Spot and the company’s other models. 

It’s really interesting to see how Spot has developed from a loud, awkward creation into the current incredibly agile iteration, which is now commercially available and can be purchased for a mere $75,000. 

Spot can be used in a wide variety of settings, which the company says range from “industrial inspection to entertainment.” And by that they are not talking about your personal entertainment. So don’t get the idea that you can order up a dancing robot to impress your friends and clients and claim it as a business expense. 

On the other hand, if you invest in a robot that is used to test the safety of hazmat suits, move materials or collect data, then the tax specialists at Tampa’s Walter S. Sanders & Associates say you’re ok.

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If you are having a hard time getting festive this year, you are surely not alone. Covid-19 is enough to cast a shadow on even the jolliest elf’s day. This holiday season will be a different one for all of us, but there are still plenty of bright holiday lights shining in the dark. 

If you live in the Tampa area, there are still plenty of holiday happenings that can help to brighten your days. If you are looking for something to help get you in the spirit, we recommend the Riverwalk Holiday Spectacular.  

Holiday Spectacular

This is only the second year for the Riverwalk Holiday Spectacular in Downtown Tampa, so there won’t be any cancelations of long-standing traditions to weigh you down. The Riverwalk is beautiful any time of year, but thanks to the Friends of the Riverwalk, during the holidays it is even more magical. 

Through January 2, you and your family can enjoy:

• A 35-foot-tall LED-lighted Christmas tree floating in the harbor
• A holiday selfie station at the pirate water taxi ticket booth
• A lighted pine tree forest on the Riverwalk Manor dock
• Lighted garland and red bows on the Riverwalk light poles
• Lighted displays in the hotels, restaurants and bars that line the Riverwalk 

Water Works Park is part of the festivities, too, and it will definitely be worth checking out. In addition to socially distanced fresh-air fun, you can enjoy seeing: 

• The festively decorated architectural tree in the park
• A gingerbread lighted display floating in the river by the park
• Toy train lighted displays floating in the river 
• The Grand Oaks in Water Works Park aglow with thousands of twinkling lights

We’ll start thinking about your 1040s next year, for now all of us at Walter S. Sanders & Associates, your Tampa tax specialists, wish you and yours a happy and healthy holiday.

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Many small businesses in our community and around the country applied for a loan through Paycheck Protection Program (PPP), which was part of the CARES Act (Coronavirus Aid, Relief, and Economic Security Act). 

The program – which was intended to help small businesses keep maintain their payroll, hire back employees who may have been laid off, and cover their overhead – was in the news a lot. There were problems with the program from the onset. People had difficulties applying for the loans. The funds initially allocated ran out before many small businesses were able to receive assistance – partially due to the fact that a number of large companies applied for and received millions of dollars in these forgivable loans (some of them were shamed into returning the money, but many others kept it). 

Additional funding was provided for the program but then the original timelines established for the program proved to be impractical and had to be changed. In fact, many changes and revisions were required. 

Applications are no longer being accepted for PPP loans. Like the rest of the country, small businesses must wait for Washington to approve new relief funding. 

PPP Loan Forgiveness

If you received a PPP loan, it is important that you understand that forgiveness of your PPP loan is not automatic. You must apply, through your lender, for forgiveness. 

Earlier this month, the Small Business Administration in consultation with the Treasury Department, released a simpler loan forgiveness application for Paycheck Protection Program (PPP) loans of $50,000 or less. 

That means the SBA now offers three different application forms for those seeking forgiveness of their PPP loan: 

• Form 3508S – this is the new form you can use if your loan was $50,000 or less and you have met the criteria for forgiveness. 
• Form 3508EZ 
• Form 3508 

Your lender may provide you with an equivalent form. Just as you had to submit your application for the loan through the lender, you will have to submit the forgiveness application through them as well. 

With all the changes to the program, it’s not surprising that so many people are confused at this point. The SBA did put together an FAQ related to PPP loan forgiveness that might help or might just leave you more confused.  

If you would like to discuss the PPP loan for your small business in Tampa with a CPA, please contact Tampa small business consultant Brian Sanders.

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If you had had a business in Tampa, QuickBooks would not have been needed to keep track of everything needed to fill out that form. 

Of course, 1040s have changed significantly since then! 

The First Income Tax in the U.S.

You’ve heard the old saying that only two things in this life are certain – death and taxes. It’s based on something that Benjamin Franklin said back in the day. But it doesn’t specify what kind of taxes. 

In Franklin’s time, following the Revolutionary War, the main form of taxation was excise taxes, which Investopedia defines as “a legislated tax on specific goods or services at purchase such as fuel, tobacco, and alcohol.” Most excise taxes are paid directly by businesses and only indirectly by consumers. 

As the St. Louis Federal Reserve tells us, “The United States’ first federal income tax was levied during the Civil War. It became clear to Congress that this would not be a quick war, and the government needed to generate more revenue.”

The date was 1862 and the income tax was 3% percent for those who made anywhere between $600 and $10,000. The well-to-do, who were earning $10,000 or more, paid a 5% tax. The tax was collected for 10 years.  

According to the St. Louis Fed, federal lawmakers tried to bring the tax back in 1894, but it was ruled unconstitutional in 1895. That led to the passage of the 16th Amendment to the Constitution, which gave Congress the authority to tax income, in 1913. And Americans from Tacoma to Tampa have filed 1040 tax returns ever since.

If you need help with yours, we hope you’ll contact Tampa CPA Brian Sanders.

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