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.

As High Tide Tax: The Price to Protect Coastal Communities from Sea Rise, a report issued by The Center for Climate Integrity and Resilient Analytics in 2019, explains, “The United States faces more than $400 billion in costs over the next 20 years, much of it sooner, to defend coastal communities from inevitable sea-level rise. This is approaching the cost of the original interstate highway system and will require the construction of more than 50,000 miles of coastal barriers in 22 states in half the time it took to create the nation’s iconic roadway network.”

Local Impacts of Climate Change

According to the report, there are 14 states that will be hit particularly hard – to the tune of $10 billion or more in costs. greater between now and 2040. More than 130 counties face at least $1 billion in costs. Can you guess which state is at the top of that list? Yes, it is the Sunshine State. 

Takeaways from the report for those of us in Tampa include: 

• Florida is by far the most heavily impacted state, with costs reaching nearly $76 billion statewide. 
• 23 counties in Florida are facing at least $1 billion in seawall expenses alone (and often far greater price tags according to local estimates)
• Of those 23 counties, the report says that both Hillsborough and Pinellas Counties made the top 10. Pinellas County ranked eighth with an estimated cost of $3 billion needed for seawalls. Hillsborough County, which the report says is looking at a cost of $2.7 billion to construct seawalls, was tenth. 
• Among Florida cities, the report says The City of Tampa ranks third, with almost $940 million needed for seawalls. 

“These costs reflect the bare minimum coastal defenses that communities need to build to hold back rising seas and prevent chronic flooding and inundation over the next 20 years,” the report’s authors say.

As business consultants in Tampa, the tax specialists at Walter S. Sanders & Associates, believe it is important to understand the implications because individual businesses and families will also be facing the costs of climate change.

The post The Financial Impacts of Climate Change in Tampa appeared first on Walter Sanders PA.

According to Untapped New York, “The holiday has its roots in a common 19th century tradition where laborers would have picnics and parades to draw awareness to worker’s rights.” At that time, the workplace was marked by low wages, child labor, unfair hours and unsafe working conditions. 

“In January of 1882 the Knights of Labor and the Tailor’s Union held a rally at Cooper Union which led to the creation of a city-wide trade consortium,” the folks at Untapped New York report. “They called the group the Central Labor Union of New York, Brooklyn, and Jersey City or (CLU).” The union still exists today as part of the AFL-CIO.

But back in the 1880s, the emerging organization simply had hopes of getting more workers interested in standing up for better working conditions.  “In an attempt to rally more workers to their cause they proposed that a day each year be celebrated to honor the working masses with parades and celebrations,” Untapped New York explains. The first Labor Day celebration, which occurred in New York on Sept. 5, 1882, would inspire workers across the country. 

As the New York Times reported on Sept. 6:

 “The parade of the working men yesterday, although not so large as its organizers had predicted, was conducted in an orderly and pleasant manner. Those who rode or marched in the procession were cheerful, and evidently highly gratified with the display. Nearly all were well-clothed, and some wore attire of fashionable cut. The great majority smoked cigars, and all seemed bent upon having a good time at the picnic grounds. The originators of the labor demonstration, as the parade was spoken of, frankly admitted that the working men were determined to show their numerical strength in order to satisfy the politicians of this City that they must not be trifled with.

“The parade was said to be 20,000 men strong as it marched past Canal Street to Union Square. Hundreds of seamstresses hung out the windows along the route cheering the procession blowing kisses and waving their handkerchiefs.”

According to U.S. Department of Labor, “By 1894, 23 more states had adopted the holiday, and on June 28, 1894, President Grover Cleveland signed a law making the first Monday in September of each year a national holiday.”

Obviously, the way we celebrate Labor Day has changed quite a bit over the years. Whatever you plan to do over the long holiday weekend, Tampa CPA Brian Sanders and the whole team of tax specialists at our Tampa office wish you and your family a very happy Labor Day.

The post Happy Labor Day! 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.

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.

You may not have realized it, but the City of Tampa has an impressive collection of public art. More than 560 murals, sculptures, mosaics and other works have been acquired over the years. Each one is designed to enhance the physical environment and celebrate Tampa’s unique character and identity.

Public Art in Tampa

The city is constantly adding to its collection of public art. You can see highlights of the collection on the public art program’s Instagram feed, @tampapublicart. 

Among the newer pieces are four major artworks by four different artists who worked together in an attempt to celebrate the abundant contributions of the African American community. The art has been placed in Perry Harvey, Sr. Park.  The park is closed at this time, but you can see the gateway sculptures by artist James Simon at the park’s entrance. 

Simon’s sculptures of musicians, dancers and a jukebox help highlight the importance of music to the history and culture of the historic Central Avenue Business District. The sculptures range in height from 12 to 16 feet. They were first created in clay and then cast in a fiber-reinforced concrete. 

While everyone hunkers down in Tampa, our QuickBooks specialists are working from home, but they are available if you have questions or need assistance. Who knows, maybe quarantine will turn out to be a good time to start your QuickBooks training.

The post CPAs love ART appeared first on Walter Sanders PA.

“Now with tax season upon us, individuals and groups will once again attempt to defraud taxpayers and the US government out of millions of dollars, using techniques and technologies that range from the old school to the cutting edge. This year is no different, and the IRS has been feverishly issuing warnings about how to spot the red flags and strategies for staying out of scammers’ crosshairs,” CNET says. 

Here are two of the tax scams to watch out for in 2020 from CNET:

1 – The IRS impersonation phone call

This one isn’t new, but it still manages to get honest taxpayers to fall for it. It involves someone calling and claiming to represent the IRS to demand that you pay your taxes immediately. “Calling from a phone number that appears to belong to the IRS on your caller ID, they will threaten, badger and intimidate you into making a rash decision. Usually they will often ask for a transfer of funds by gift card or wire transfer. Thieves are increasingly extending this scheme to email and social media channels,” CNET warns.

Don’t fall for it! The IRS will never phone you or show up at your house to demand an immediate payment — especially via gift card or wire transfer. 

2 – Fake texts, emails, or social media messages

“Thieves have had years to refine their email trickery and have recently expanded into text messages and social media messages,” CNET says. These are phishing scams that use e-mail messages to trick you into revealing personal and financial information that can be used to steal your identity. “One particularly bold gambit involves scammers using the IRS name and logo to warn taxpayers about the very scam they’re perpetrating, before soliciting sensitive personal information. Note that attackers are increasingly targeting tax professionals in addition to taxpayers.”

Don’t fall for it! “The real IRS will never initiate contact to request personal or financial information,” CNET says. “If you do receive such a message, the IRS asks that you forward it to phishing@irs.gov. Do not reply to the original message.” 

We all know it can be hard to get through to the IRS. Brian Sanders, a certified Tampa CPA, and the Tampa accountants at Walter S. Sanders & Associates are available if you have questions about your 1040 tax return or have received a questionable communication purporting to be from the IRS.

The post IRS Warns of Tax Scams appeared first on Walter Sanders PA.