Top Hat Tax & Financial Services

Trying to decide whether to rent or buy your home? Well, either way, we've got the tax part covered, but these three items in particular will tell you a lot about your available housing options. 1. Income - Spend one-third or less of your pre-tax income on housing. 2. Savings - Cash on hand is important because you’ll need money for deposits if you’re renting or down payment and closing costs if you buy.... 3. Credit score - Your credit score can open or close the doors to certain mortgage products. But landlords and property managers are going to check your credit, also.

Less than a month until ARPA's Child Tax Credit (CTC) expansion rolls out, and a little chaos in the form of unanswered questions is already looming over it like storm clouds on a summer day. For example, for taxpayers who got divorced in 2020 and have alternating custody arrangements, who gets the payments? Can the IRS split the payments? Or for taxpayers whose tax bracket changed, will they still get payments? If so, how much? If you've got questions, you can always spend a... little time reading the IRS updates on their website... OR give us a call... we can get you answers.

Last year spelled out financial disaster for thousands of people who suddenly found themselves unemployed, especially for those who didn't have any financial windfall in place. One thing that could have helped? Having an emergency fund to tide them over until unemployment came through or a new job opportunity popped up.... Building up an emergency fund to prepare for certain crisis (2020 isn't the last economic fallout we'll see) isn't doom and gloom thinking... it's smart planning. We advise our clients to maintain an emergency fund equal to at least three months of expenses (we would even go so far as to say 6 months!). One way to do this: treat your savings goal like a fixed expense.

Second-quarter estimated tax payments are due today. If you’re self-employed, receive substantial dividend or interest income, recently sold property for a profit, or a number of other scenarios, you may owe estimated tax to the IRS. Need help calculating your estimated tax payment or determining whether you owe one in the first place? Give us a call.

When organizing your records, play it safe -- for the sake of any potential IRS run-ins. If you are holding any tax documentation, and are asking yourself, "Should I keep this or throw it away?" err on the side of caution and file that sucker.

2020 brought many businesses into an even more digital approach to running their businesses. But it wasn't just necessity that incentivized this shift. One study, by Nucleus Research, found that small businesses that go paperless see a return of more than $8 in cost savings for each $1 they spend on digitization. That adds up in a hurry. Other studies have shown that paper creates more data breach risks than being digital. In large companies, paper records account for nearly ...2/3 of all data breaches, according to the US Department of Health and Human Services. So how do you start going paperless? To start with, consider the low-hanging fruit: - Start sending invoices to customers by email. - Use electronic funds transfers in lieu of checks. - Use cloud-based document sharing services within the office. - Use software to set employee schedules and replace the old time clock. What other methods have you found to be effective in your business?

For 2021, you may be eligible to claim as much as $16,000 in qualifying dependent care expenses that you pay in order to go to work. This can yield as much as an $8,000 tax credit -- subject to a bunch of rules and limitations, of course. So if you pay child or dependent care expenses that are directly related to your ability to be employed, let’s have a discussion about helping you max out this valuable tax credit.

The rise of self-employment and the side hustle is an exciting trend for the US economy. If this is you, there are important deductions you'll want to make use of to make your venture as profitable as possible. If you file your taxes with us, we're always looking out for these money-savers. Let us know if you have questions.

In the realm of preparing your tax return, I urge you ... do NOT fall prey to the thinking that a software program or talking heads on a floating desk can suffice to enable you to preserve your resources or properly leverage the multiplicity of credits, loopholes and deductions available. Give yourself the gift of financial peace of mind during tax season, and do it with someone who knows how to do it right.

Lowered gas and insurance costs in 2020 led the IRS to reduce the mileage deduction rates for 2021. This is now what you can deduct for driving for business purposes this year: - 56 cents/mile for business (down from 57.5) - 16 cents/mile for medical or moving (down from 17) - 14 cents/mile for charitable purposes... But with gas prices seemingly on the way up again in 2021, we'll probably see mileage rates affected accordingly next year.

Depending on how you handle your 2020 taxes, you'll end up in one of two groups: 1) Sitting on top of a mountain of tax benefits that are available to those who use them effectively, or 2) Crying at the bottom of a pit of missed tax opportunities that could have eased the financial strain of 2020.... We're here to help YOU process tax season. No matter what happened during the donkey that was "2020" ... we're going to ensure that your taxes are as locked tight, cost-efficient and SAVINGS-OPTIMIZED for you as legally and ethically possible.

If you know you're going to owe the IRS this year an amount that you can't pay... You should still file your tax return. If you don't, you'll get hit with a failure to file penalty (plus interest) and have to pay them even more.

"Hope someone can use some of these baseballs in the batting cages. I found them cleaning my garage. I pitched them to my son and grandson for countless rounds. My son is now 46 y/o and my grandson is 23 y/o. I am 72 and what I won't give to pitch a couple of buckets to them. They have both moved away. If you are a father cherish these times. You won't believe how quickly they will be gone. God bless P.S. Give them a hug and tell them you love them every chance you get."

A new QR code feature aims to help you access your taxpayer account info easier when receiving an overdue tax notice from the IRS. If you just need help setting up logistics to pay your bill, this will help you. But if you do not agree with their numbers or you can't pay, you will still want professional assistance.

There's lots of tax talk in this election season, as in every other, as both candidates are making promises about their tax policies. The BEST advice we can give about what to do for your individual and business tax plan right now is: wait and see. If new tax legislation is passed in 2021, it probably won't be effective until 2022. Congress very rarely makes tax changes that are retroactive. So ... wait and see. Then, we will listen together to see what whichever President we have says about their tax plans ... and react accordingly.

Organizing your financial world can feel like a daunting task, but some SIMPLE steps will go a long way. Watch our video -- doesn't this seem really doable?

Well, with yesterday's extended tax deadline behind us, one crazy and wild and completely unprecedented tax season comes to a close. Thank you for entrusting us with something as close to you as your finances -- we know how important each dollar is to each of you, and we're committed to helping you keep as many of them as you legally can. (And now, it's time for a very long nap this weekend, before we gear up for next year.)

The day has come. All 2019 returns that were given an extension to file are due to be submitted today, which means our most recent marathon is coming to an end. Next tax season is now not so very far away (along with the tax ramifications of what THIS tax season delivered). Are you ready for that? You will be ... with our help.

We've been telling you about some tax professional rumors circulating about "automatic forgiveness" for PPP loans under $150K. Well, they did it! Except it is for even smaller loans (under $50K). And it's not "automatic", but it is very, very easy. Here is the simplified application if your loan falls in that category. https://bit.ly/318OOYh

Here are some questions to consider for your 2020 taxes that will set you up for long-term success. We're here to help you walk through these answers and how to affect your tax status in a positive way. 1) Have you had a significant change in your wage income this year? 2) Have you taken capital gains or losses this year? Are you planning to? 3) Did you start or sell a business this year?... 4) Did you purchase real estate? 5) Did you make your full contributions to retirement accounts? 6) Have you considered a Roth IRA? 7) Did you withdraw from retirement accounts, and for what purpose? See more

Extension deadline is on THURSDAY, folks. Filing a tax return late (without reasonable cause) results in a 5% late FILING penalty (on whatever it is that you owe -- and the IRS will figure it for you if you don't), and an additional 5% for every month you wait to file. PLUS there is an additional 0.5% to 1% late PAYMENT penalty (per month) on whatever it is you owe. NOTE: this is ON TOP of late filing penalties. Then (yikes), interest accrues on both the late tax filing penal...ties AND the late payment penalties. That's a lot of penalty. And at least the first one is completely avoidable. If you can't pay the tax due on October 15, still file ... and talk to us about helping you set up an installment agreement or working out an offer in compromise to cover what you owe.

Another PPP loan update for businesses: If your PPP loan was less than $50K, a couple of time-consuming requirements have been removed from the forgiveness application, making the process *a little bit* less complicated. Automatic forgiveness for certain loans, while still being discussed, is not yet available.

If you filed an extension on your 2019 taxes (like many Americans), your extended deadline is a week away (on Oct. 15).

There is no doubt that in 2021, the IRS will be sending out massive amounts of IRS debt notices. But, you might say, wouldn't that mean that enforcement will be lax? Far from it. That's because in order to forestall this catastrophe, Uncle Sam has been passing out stimulus like a drunken sailor ... and their bill will be coming due as well.... So, if you are facing an IRS debt issue, there is no better time than NOW to get it handled. By the time 2021 hits, you do not want to be part of that chaotic crowd. We'll work with you on a plan of action that can help give you peace, and take care of your IRS problems without you having to do all the legwork.

The IRS just pushed back a deadline for non-filers who have yet to receive their stimulus check. The new deadline for non-filers to supply the IRS with their information is Nov. 21.