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.

The post IRS Offers Help for Filing Your Taxes appeared first on Walter Sanders PA.

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. 

The post Why You Should Complete Your 1040 Tax Return ASAP appeared first on Walter Sanders PA.

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.

The post Unemployment Fraud Hurts Employees and Employers in Florida appeared first on Walter Sanders PA.

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.

The post Robots Can Dance, But Can They Do Your Taxes? appeared first on Walter Sanders PA.

Whether you are filing your individual 1040s or are responsible for the taxes of a small business, you can avoid surprises at tax time by getting a clearer picture of your finances. One of the best ways you can do that is by creating a budget.  

Budget Basics

There are a lot of definitions of budget floating around out there. We like one from Nerd Wallet, which says, “A budget is a way to balance income, expenses and financial goals for a specific length of time.”

We like that definition because it brings your goals into the equation. If you think of a budget as just numbers, the idea of making everything balance can seem remote (or even worse, like a story problem from your high school math class!). When you tie those numbers to your goals – whether you want to take a dream vacation or buy a house – they start to have real meaning in your life. 

As the folks at Nerd Wallet explain, there are many different budgeting plans. Whichever method you adopt, it is important to remember that, “Any budget must cover all of your needs, some of your wants and — this is key — savings for emergencies and the future,” they say. 

At Nerd Wallet, they like to use the 50/30/20 rule as a basic framework for creating a budget:

• 50% of your income should be designated for your needs.
• 30% of your income can go toward the things you want.
• 20% of your income should be targeted toward savings and debt repayment.

If you have a small business in Tampa, QuickBooks might be a good tool for you to consider. But whether you are looking to set up a business or personal budget, the Tampa accounting firm of Walter S. Sanders & Associates is here to help.

The post Will This Be the Year You Make a Budget – and Stick to It? appeared first on Walter Sanders PA.

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.

The post Did Your Great Grandfather File a 1040 Tax Return? appeared first on Walter Sanders PA.

The Paycheck Protection Program is part of the Coronavirus Aid, Relief, and Economic Security Act – more commonly known as the CARES Act – passed in Congress with enthusiastic bipartisan support. The Act is a $2+ trillion economic relief package intended to help Americans as well as cities and towns and businesses across the country, who are struggling because of the COVID-19 pandemic.

Applying for a PPP Loan

If you received $1,200 in relief funds, you have already benefited from the CARES Act. If you own a small business or a self-employed gig worker, you may be eligible to apply for a PPP loan.

The PPP is run by the Small Business Administration with support from the Department of the Treasury. It can provide you or your small business with enough money to pay up to 8 weeks of payroll costs. You can also use a percentage of the money to pay interest on mortgages, rent and utilities.

If you use the funds as intended, your will be forgiven by the Small Business Administration. There are a lot of details you’ll want to get yourself familiar with before you decided is it is right for you to apply for a PPP loan.

If you decide that you do want to apply, experts recommend that you do so through your bank. If they won’t work with you for whatever reason, don’t despair. There are a number of other options – including PayPal. 

If you are a sole proprietor/contract employee, you’ll find the figures you need to get started on your 1040 tax return for 2019. If you employ up to 500 people at your small business in Tampa, an accountant can help you. If you don’t have a CPA in Tampa who can assist you, please contact us.

The post Paycheck Protection Program Loans appeared first on Walter Sanders PA.

The challenges you might face in creating a budget lie in the same things that have created the need for budgeting among countless households in Tampa, the QuickBooks experts at Sanders & Associates say. The economic uncertainty linked to Covid-19 has set the markets on an unpredictable roller coaster ride, so it is not hard to imagine what it is doing to individual household budgets. 

You might be able to protect yourself from some of that volatility if you have a budget in place.  

How to Create a Monthly Budget

You might be afraid of the math, but putting a budget isn’t very complicated. In fact, the hardest part might be realizing your limits.

Step 1: Determine your after-tax income.  

If you collect a paycheck, just add up what you get paid every month. “If you have automatic deductions for a 401(k), savings, and health and life insurance, add those back in to give yourself a true picture of your savings and expenditures,” the folks at Nerd Wallet recommend. If you are self-employed, you might want to average out your monthly income based on the figures in your 1040 tax return. 

Step 2: Decide on a budgeting plan.

You’ll find all kinds of helpful apps you can use to help you figure out the details of your budget. If you want to keep things simple, you might want to consider using the 50/30/20 rule. “The 50/30/20 rule budget only requires you to track and divide your expenses into three main categories: needs, wants, and savings or debt. This reduces the amount of time you have to spend detailing your finances and allows you to focus more on the big picture instead,” Credit Karma explains. 

Step 3: Keep good records. 

Again, you can find all kinds of online tools and apps to help you keep track of the money you are spending. 

We’ve also provided a number of financial tools and some helpful information. If the pandemic has put you in need of a consultant for your Tampa business or an accountant for your Tampa family, please contact us.

The post This Might Be a Good Time to Create a Budget appeared first on Walter Sanders PA.

If you’re one of those people who are always on the lookout for the silver lining – even on the darkest of days, you’re going to love this story!  

Alone Together with a Dog

It turns out that lots of people have decided that this is a good time to get a dog. (Of course, our Tampa QuickBook pros and business consultants think any time is a good time to get a dog.)  

It’s not hard to understand why. If you live alone, staying Safer at Home is much easier with a dog to keep you company. Being home also means you don’t have to worry about coming home to find your new puppy has chewed up your shoes – you’re right there to provide the training and guidance the little guy needs. And there are probably more than a few parents who finally gave in to their child’s request for a dog as a way to provide the child with a playmate they don’t have to stay six feet away from. 

Well, it turns out that so many people thought that this would be a good time to add a dog to the family that some shelters are actually running out of dogs!

As iheartdogs, reported, “First, Chicago Animal Care and Control adopted out all their dogs, and many other organizations have followed in their footsteps. Now, Friends of Palm Beach County Animal Care and Control has also had a significant milestone. During the coronavirus quarantine, the Florida shelter successfully emptied one of their three kennels! All the dogs in that kennel found their forever families, leaving the staff and volunteers with plenty to celebrate.”

Tampa CPA Brian Sanders, a tax specialist who can help you with your 1040 tax return, was also celebrating. Brian is a real dog lover.

The post Our Tax Specialists Have Gone to the Dogs! appeared first on Walter Sanders PA.