Aurelia E Weems, CPA

2022 Changes Could Mean Tax Advantages for The Woodlands Filers https://bit.ly/3hnnQrg

Here are 10 smart ways to reduce your 2022 tax bill, and they're still doable right now.

1. Consider an extra mortgage payment.
2. Pay your property taxes right now (not next year).
3. Donate to charity—it's ok to do good and save at the same time.
4. Take care of those medical bills.
5. Get your papers in order NOW.
6. Sell losing investments to offset capital gains.
8. Wait to invest until after the ex-dividend date.
9. Max out your retirement savings.
10. If you have one, make the most of your flexible spending account.
11. Avoid the gift tax by giving $16,000 or less per year per person.

If inflation's got your business struggling to meet the bottom line, why not reduce inventory?
What you sell is one of your biggest expenses.

Try grouping your inventory by value:
“A” group = biggest moneymakers
“B” group = middle ground
“C” items = make the least

Keep a close eye on the supply chain -- especially the A items.

If your suppliers are getting prone to longer or fluctuating lead times, stock up on their items when you can. And if you’re finding a lot of items in your “C” group, maybe consider ditching some.

How Bonuses Are Taxed (and Bonus Tax Rates)

Bonus on your mind? Make sure you're thinking about the tax implications.

How Bonuses Are Taxed (and Bonus Tax Rates) Understanding how bonuses are taxed can be confusing due to the withholding laws. Here we clear up the confusion so you can make the most of any bonus coming your way.

Here are 6 essential business components for any small business owner, new freelancer, or participant in the growing "gig economy" to make sure they have covered:

1 - Disability and Workers' Comp
2 - Property and Liability Coverage
3 - Unemployment Coverage
4 - Healthcare Plans
5 - Retirement Plans (401(k)s, etc)
6 - Retirement Income Plan (Social Security and beyond)

Those who reach their financial goals usually carry a willingness to live beneath their means for as long as it takes. While their peers are showing a tendency toward embracing the good life at the first sign of prosperity, the would-be wealthy take a pass on all of that.

A drive to save large amounts of money causes frugal spending habits, which then enable the ability to make purchases without using debt.

It's a domino effect.

Every deduction you can grab means less cash you have to part with.

Sound good? Of course, it does.

And timing the deduction for your best advantage is the cherry on top.

For instance, paying some or all of your property taxes early may mean you can get the federal deduction in 2022.
(Note: This does not work for everybody, especially if the alternative minimum tax is involved.)

Accelerating a house payment can give you an extra bit of mortgage interest to deduct too.

Certain financial hits can be offset by tax deductions.

You can deduct losses from a natural disaster or theft, but...
... you can't include the amount covered by insurance
... and the amount you can claim is reduced by a percentage of your adjusted gross income.

There are, of course, a lot of rules that apply to loss scenarios so feel free to call us to go over the details of your specific situation.

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This is the time of year when we re-examine what success looks like.

In rethinking and re-examining, you'll soon discover that sometimes the "most successful" people can be the most impoverished ... and those without many zeroes in their accounts can be flat-out rich.

"Success" is a state-of-mind -- and it's tied to gratitude. Gratitude is the enemy of fear. It's like an opposite magnet for it. Walk in gratitude, and fear just melts away.

One thing that should be on your radar: Year-end moves that will affect your 2022 tax positions. Whether it's spending, saving, asset structure, etc ... we only have one more month (or so) before the books close.

After 12/31/22 ... we're mostly confined to "historical" work on your tax files.

Reach out to talk about it.

Giving Tuesday 2022 Is Today: What It Means and How You Can Help

Ever thought about giving more than just money for Giving Tuesday?

Which of these giving ideas resonates the most with you?

Giving Tuesday 2022 Is Today: What It Means and How You Can Help There are many ways you can give back to your community this year that go beyond giving cash.

The New U.S. Congress: What's Ahead for The Woodlands Taxpayers https://bit.ly/3gIdmm3

Easy Steps to Protect Your Computer and Phone

We all love Cyber Monday and holiday shopping online. Beats having to fight the crowds at the mall.

But, watch out for cyber thieves looking to take your Christmas gift money.
The IRS has some tips on how to keep it safe.

Easy Steps to Protect Your Computer and Phone Find out how you can protect your phone and computer. For more information, go to https://www.irs.gov/taxessecuritytogether. Follow us:Twitter – https:...

Getting people to call your place of business saying, "I want to do business with you," and then to show up at your door wanting to give you money in return for a particular service is the most important thing you could master.

This is why I'll continue to focus in on helping you think about topline growth for your business -- in addition to the financial services and advice that we provide.

Communication Over Email Doesn't Have to Be Painful--Use This One Simple Rule to Communicate

"Email verbosity" can quickly deter even the most focused readers.

Consider some of these email writing tactics to get your point across.

Communication Over Email Doesn't Have to Be Painful--Use This One Simple Rule to Communicate Use the '3-sentence rule' to make sure your emails are crystal clear to you and your recipients.

Beware of student loan forgiveness scammers.

They like to use language like:

- APPLY THROUGH US...
[Only apply here: http://studentaid.gov/debt-relief/application – and nowhere else.]

- SLIP US A FEW BUCKS TO GREASE THE WHEELS...
[The application process is free and there are no shortcuts.]

- CLICK TO ATTACH A COPY OF YOUR BANK PIN AND AN OUTLINE OF YOUR HOUSE KEY...
[No one's asking for your bank or credit card info to apply.]

- BY THE WAY, COULD YOU SEND...
[IF the government gets in touch with you to verify information, emails will only come from these addresses: [email protected], [email protected], or [email protected]. Check them carefully.]

- GET APPROVAL FOR ONE LOW FEE...
[Cash will not get approval. Appeals are allowed if you get denied -- fee free.]

Electric cars are becoming ever-more popular thanks to shifting interests in the car industry (and in Washington)…

Because of the Inflation Reduction Act, if you’re thinking about investing in an electric vehicle, you could qualify for a special EV tax deduction.

But as is the case with many deductions, there are some (ahem) … details you’ll have to sort through to determine eligibility.

Our team has some experience with that if you want to flesh it out. Let us know.

There are people who HAVE plans, and there are people who MAKE plans.

Which are you?

Benefits of Joining a Local Chamber of Commerce

Joining your local chamber of commerce could be the thing your business needs for growth and establishing connections. What's been your experience at your local chamber?

Benefits of Joining a Local Chamber of Commerce Learn how your local chamber can create business contacts, increase credibility, expand your network, provide resources, and support professional development.

Manage Taxes for Your Gig Work | Internal Revenue Service

Joined the Gig economy via any of these?
- Rideshares or delivery services
- Property rental
- Gopher work (running errands, completing tasks)
- An online store or selling goods
- Renting equipment
- Creative or professional services
- Providing any kind of temporary, on-demand, or freelance work

You might consider making estimated tax payments so your tax bill isn't so big come filing time. And so you can avoid penalties.

The IRS has some other tips for helping you make sure you're checking everything off their list.

Manage Taxes for Your Gig Work | Internal Revenue Service Do you earn income as a rideshare driver, rental host or online seller? Find forms, keep records, deduct expenses and file taxes for gig work.

A Tricky Tax Credit for The Woodlands Electric Vehicle Owners https://bit.ly/3N7Ldka

Ever take care of a plant?

At some point, you probably noticed brown leaves and dead branches. So, you carefully picked them off or cut them away, and not long after, you saw fresh green sprouts appear.

Easy to see where we’re going with this...

If your business was that plant, which customers would the dead stuff be?

Always keep an eye out for tax scammers who use texting, phone calls, and emails to do their dirty work. These messages often contain bogus links claiming to be an IRS website link or other online tax tools. And they're aimed at one thing: Getting your personal information in order to steal from you.

If it looks bogus, sounds bogus, or smells bogus... it usually is -- Don't respond to it.

Any requests for information or notices of payments owed will be done via mail, and they'll be minus threatening "or else" language.

Taxes and Crypto: Five Things You Need to Know | WSJ

New to the world of crypto and its effect on your tax standing?
Here are some helpful pointers.

Taxes and Crypto: Five Things You Need to Know | WSJ For many, 2021 marked their first year—and now first tax season—in cryptocurrency. WSJ tax columnist Laura Saunders breaks down how to navigate reporting dig...

Boutique Employee Retention Credit (ERC) mills have cropped up lately promising the moon for a cut of your easy credit money.

Except...
• Reputable tax pros do not help you claim the ERC simply to take a cut of the credit.
• The IRS got a lot of money recently for better enforcement – and going after shady claims for tax credits tops their to-do list.
• These mills will likely be long shuttered if you have to defend yourself in an audit.

Please, avoid.

Student loan forgiveness application officially launches, putting relief in sight for 40 million Americans

The how-to for applying for the new student loan forgiveness...

Student loan forgiveness application officially launches, putting relief in sight for 40 million Americans Tens of millions of Americans can now apply for student loan cancellation.

Your The Woodlands Side Hustle & the IRS Crackdown https://bit.ly/3Dc8EoM

Starting this year, IRS rules require reporting income for some transactions of just 600 dollars from a side hustle.

The American Rescue Plan Act of 2021 made sure you’re going to get an IRS Form 1099-K if you sold goods or services via platforms like eBay, Etsy, and Uber and if that platform used third-party transaction networks such as PayPal.

Technically, there was always a good chance you’d get a tax form (and have to declare as income) money that you received for work -- no matter how small. This new rule formalizes the ability of the IRS to crack down on it.

You might soon get your first 1099-K ever.

Are you ready for that?

What would your financial situation -- both personal and business -- look like in a year if you applied this principle to all of your financial decisions?

You can’t replace meetings totally, nor should you. Often, you have to get coworkers in the same room (or on the same Zoom screen) to swap ideas. But could something have replaced that meeting? A phone call? A fact sheet?

In other words, is the meeting going to help move work forward – or replace work, only giving everyone a sense that something’s getting done?

Want to get a good night’s sleep? First of all, stop trying

We all want to get a good night's sleep, but there's a lot of debate out there about how that actually happens.

This sleep study has our interest piqued.

Want to get a good night’s sleep? First of all, stop trying Seven expert and unexpected tips for people who have already tried everything. By Camilla Stoddart

As a business owner, consider now what your retirement plans are so you can make a plan for your business and for yourself.

Here are some questions to get you started:
- Do I know how much income I will actually need at retirement?
- How much control in the business must I maintain to secure my retirement income?
- Have I looked into financing options for key employees to buy me out?
- Do I want to be running my business, full-time, five years from now?
- Do I have contribution protection for my retirement if I were to become disabled?

Too many business owners view their business as their "retirement cash cow" but have not made serious plans for how it can BE that cash cow.

Dallas Fed says inflation surge badly eroding many American's wage gains

Many, many Americans are facing this predicament.

If you are, you're not alone.

Dallas Fed says inflation surge badly eroding many American's wage gains Americans' wages are losing ground to inflation at a steep rate, a report on Tuesday from the Federal Reserve Bank of Dallas said, a finding that offers some support for the central bank's super-charged campaign to lower price pressures.

How The Woodlands Taxpayers Can Navigate Retirement Contribution Limits https://bit.ly/3TuUSTV

Aurelia Weems's Guide to Senior Discounts https://bit.ly/3Td8ToQ

We hate to beat a dead horse here, but only 7 days left to get all of your 2021 filing in order if you filed for an extension. If you miss it, you can expect the IRS to slap some penalties on your account.

10 more days until filing extensions for 2021 taxes are due.

Tick... tick... tick.

AARP® Member Benefits: Browse All Discounts & Programs

One of the brighter sides of getting older is the plethora of discounts that become available when you reach your golden years -- and the list of discounts seems to be getting longer.

A great site to find a good list is the American Association of Retired Persons Member Benefits (AARP). Offers are broken down alphabetically and by topic and run a pretty complete gamut.

Also worth a look: Senior Citizen Discount List and Senior Strong.

AARP® Member Benefits: Browse All Discounts & Programs Explore all the benefits that come with AARP membership. From travel and insurance to fraud protection, AARP has you covered. See a full list here.

Making the right decisions for your business is wholly dependent on having the right information, whether big or small. Sometimes, that information takes time to curate because you have to update things in your “ledger” to make sure you know exactly where things stand.

While some delay in updating records is pretty common for business owners, the reality is, there are times you need to make quick decisions (both operationally and investment-wise).

If you don’t have the most updated bookkeeping that could mean missed opportunities, or even worse, lost money from making decisions based on incorrect information.