Tax & Accounting Solutions

08/16/2024

Here is a quick video if you would like to get a PIN number before tax season.

The IP PIN is a six-digit number assigned to eligible taxpayers to help prevent the misuse of their Social Security number on fraudulent federal income tax r...

08/06/2024

The Educator Expense Deduction can help offset out-of-pocket classroom costs

The Educator Expense Deduction lets eligible teachers and administrators deduct part of the cost of technology, supplies and training from their taxes. They can claim this deduction only for expenses that weren't reimbursed by their employer, a grant or other sources.

Who is an eligible educator
The taxpayer must be a kindergarten through grade 12 teacher, instructor, counselor, principal or aide. They must also work at least 900 hours a school year in a school that provides elementary or secondary education as determined under state law.

Things to know about this deduction
Educators can deduct up to $300 of certain trade or business expenses that weren't reimbursed. If two married educators are filing a joint return, the limit rises to $600. These taxpayers can't deduct more than $300 each.

Qualified expenses are amounts the taxpayer paid themselves during the tax year.

Some of the expenses an educator can deduct include:

Professional development course fees.
Books and supplies.
Computer equipment, including related software and services.
Other equipment and materials used in the classroom.
COVID-19 protective items to stop the spread of the disease in the classroom.

05/30/2024

IRS Tax Tip for the Summer

Summer activities that could affect people’s tax returns next year

While summer is a time for fun, it’s never the wrong time to thinking about taxes – and some of those summer activities could have an impact. Here are a few summertime activities and tips on how taxpayers should consider them for filing season.

Marriage
Wedding season is upon us, and newlyweds can make their tax filing easier by taking two simple steps now:

First, report any name change to the Social Security Administration.
Next, notify the United States Postal Service, employers and the IRS of any address change. To officially change their mailing address with the IRS, taxpayers must compete and submit Form 8822, Change of Address. See page 2 of the form for detailed instructions.
Summer camp
If a taxpayer is sending a child to summer camp, the cost may count toward the Child and Dependent Care Credit.

Business travel
Kids may have the summer off, but parents generally don't – and business travel happens year-round. Tax deductions are available for certain people who travel away from their home or main place of work for business reasons. Whether a business traveler is away for a few nights or all summer long, it’s important for them to remember the tax rules related to business travel.

Part-time work
While summertime and part-time workers may not earn enough to owe federal income tax, they should file a tax return to get any refund they may be owed. Part-time and seasonal workers can visit IRS.gov to learn more about who should file a tax return.

Some taxpayers earn summer income with a side hustle or doing gig work. They can visit the Gig Economy Tax Center at IRS.gov to learn how participating in the gig economy can affect their taxes. If taxpayers are paid through payment apps for goods and services during the year, they may receive an IRS Form 1099-K for those transactions. For more information, go to IRS.gov/1099k.

Home improvements
The IRS has information to help taxpayers take advantage of potential tax benefits for home improvements. If taxpayers make qualified energy efficient improvements to their home after Jan. 1, 2023, they may qualify for a tax credit up to $3,200. They can claim the credit for improvements made through 2032.

These types of improvements include Energy Efficient Home Improvement Credits for things like water heaters, exterior windows and doors and heating and air conditioning installations. Residential Clean Energy Credits are available for taxpayers who install solar water heaters, fuel cells and battery storage or solar, wind and geothermal power generation. Taxpayers can visit the Home Energy Tax Credits page on IRS.gov to learn more.

More Information
How to claim these credits can be found in these step-by-step guides:

Energy efficient home improvements
Home energy audit
Residential energy property

01/18/2023

http://ow.ly/TZ4T50MnUmE

IRS Tax Tip 2023-05, January 12, 2023 — In recent years, the gig economy has changed how people do business and provide services. Taxpayers must report their gig economy earnings on a tax return – whether they earned that money through a part-time, temporary or side gig.

12/19/2022

http://ow.ly/w9tq50M4Er2

Tax Tip 2022-191, December 15, 2022 — Whether they plan to stay up to greet the new year or go to bed early, taxpayers can get ready for 2023 by reviewing these common end-of-year tasks. People can always visit IRS’ Get Ready webpage for info on filing their tax return. Here are a few things the...

09/20/2022

Got a letter from the IRS or Colorado... DON'T ignore it! If you are unsure what to do, contact a tax professional!

http://ow.ly/GHUc50KCAJE

Tax & Accounting Solutions

Tax Tip 2022-141, September 14, 2022 — When the IRS needs to ask a question about a taxpayer’s tax return, notify them about a change to their account, or request a payment, the agency often mails a letter or notice to the taxpayer. Getting mail from the IRS is not a cause for panic but, it shou...

08/17/2022

Educator Expense Deduction Increase...every little bit helps!

COVID Tax Tip 2022-118, August 3, 2022 — Teachers go above and beyond for their students, often buying classroom supplies needed to make learning successful. The educator expense deduction allows eligible teachers and administrators to deduct part of the cost of technology, supplies and training f...

07/12/2022

If you're looking for a little extra money, check out this article from Dave Ramsey. Make sure you talk to a tax professional before jumping into new work to reduce the chances of a surprise at the end of the year!

https://www.ramseysolutions.com/saving/how-to-make-extra-money?utm_source=cnl&utm_medium=email&utm_content=7.10_cnl_blog_1_ramseyplus&utm_term=rplus_bu&utm_campaign=cnl_newsletter&utm_id=cnl_newsletter&cd17=RSCOM-11708_CNL-Eng&_kx=df8AmdcK6oszcM5xqF4jIF_4gEKaYrPgjS0AXeo-3oQ%3D.RzHn5B

Tax & Accounting Solutions

Can you use a little more cash in your pocket? If you need some new ideas for how to make extra money, look no further. Here are 34 ways to make extra cash.

06/08/2022

It's summer and usually a good time for young people to start working. Here is a good article from the IRS on the tax implications for kids starting their own business.

https://go.usa.gov/xJWyC

Tax & Accounting Solutions

Tax Tip 2022-88, June 8, 2022 — Teens and young adults often go into business for themselves over the summer or after school. This work can include babysitting, lawn mowing, dog walking or other part-time or temporary work. When a teen or young adult is an employee of a business, their employer wi...

04/21/2022

Here is a link for Colorado companies in need of financial or other resources.

Colorado Loans to Increase Mainstreet Business Economic Recovery Small Business Owners Learn how CLIMBER can help you recover. Lenders, CDFIs,Credit Unions, andNonprofit Lenders Learn about lending options. Stakeholder Information Help spread the word. FAQs and Support Access FAQs and technical assi...