Separating truth from fiction

Now, more than ever, it's important to keep your mind clear.

With so many of us spending more time than ever online and on our devices, there are even more opportunities for falling -- no, DIVING -- into rabbit holes of distraction and unproductive emotion.

Yes, I'm a local tax professional. We're not known for our deep emotions.

This might make me the perfect person to advise you on this matter: there is no benefit to marinating in fear; nor is there a benefit to marinating in a conspiracy.

Our nation feels like it is arguing and being ripped apart at the seams. Some might say this is a failure of leadership (they wouldn't be completely wrong) ... but I am here to tell you: you can only control what is within YOUR control.

Yes, there are many people out there who are confused/deluded/corrupt/wrong.

But will you really be winning hearts and minds with your snarky and hostile Facebook post that points this out?

It's something to consider...

All that aside, I shall now focus on that with which *I* am most associated: taxes and your economic stimulus payments.

First, here is the schedule for when paper check payments from the Economic Stimulus will be distributed. This concerns those who had not set up their direct deposit information with the IRS (which you can still update here: https://www.irs.gov/coronavirus/get-my-payment).

Feel free to share this with your friends:

Taxpayer AGI | Check Mailing Date

• Less than $10,000 | April 24
• $10,001 - $20,000 | May 1
• $20,001 - 30,000 | May 8
• $30,001 - 40,000 | May 15
• $40,001 - 50,000 | May 22
• $50,001 - 60,000 | May 29
• $60,001 - 70,000 | June 5
• $70,001 - 80,000 | June 12
• $80,001 - 90,000 | June 19
• $90,001 - 100,000 | June 26
• $100,001 - 110,000 | July 3
• $110,001 - 120,000 | July 10
• $120,001 - 130,000 | July 17
• $130,001 - 140,000 | July 24
• $140,001 - 150,000 | July 31
• $150,001 - 160,000 | August 7
• $160,001 - 170,000 | August 14
• $170,001 - 180,000 | August 21
• $180,001 - 190,000 | August 28
• $190,001 - 198,000 | September 4
• Remaining checks | September 11

This might be frustrating, but again -- fill out your direct deposit info, and you might be able to speed up that process.

Secondly, allow me to address some myths that are somehow going around about these payments:

Myth 1: Everybody is getting a payment.

Nope. You won't get any COVID-19 relief money if your AGI is more than $99,000 for single filers; $136,500 for head-of-household taxpayers; or $198,000 for married couples filing jointly.

Myth 2: Unemployment benefits disqualify you from getting the payment.

Again, nope.

The federal relief payments being distributed now are based on the amount of money you made either in 2018 or 2019. The Treasury and IRS don't care what you're making (or not) in 2020.

Myth 3: The stimulus payments will be taxed.

The relief money is not income. It is a tax credit. Just like the Child Tax Credit or Earned Income Tax Credit, it's a tax break that's calculated based on your eligibility and is used to offset any tax you owe. Tax credits aren't taxed.

Which is why you probably should have someone who knows what they're doing to file your taxes (ahem).

Myth 4: If you got "too much", you have to pay it back.

Thankfully, no. If you got an overly large amount based on your 2018 or 2019 returns, don't worry about it.

The IRS says that even if your 2020 tax return (for which the payment is an "advance tax credit") shows you should have received less, you get to keep the overpayment that the government gave you this year.

That's because at the time the IRS calculated the COVID-19 relief amount you were due, the agency was using the latest info it had, your prior filings. So even though it technically is a 2020 tax year advance credit, the timing of its early delivery means that the IRS doesn't care about your 2020 money, at least as far as the COVID-19 economic relief payment is concerned.

Myth 5: I can speed up my payment with this one trick.

The only surefire way to get your COVID-19 economic relief payment more quickly is to get your direct deposit data to the IRS using the enhanced Get My Payment tool. If the IRS doesn't have that information, it will mail you a paper check via the U.S. Postal Service. But you need to hurry. If, when you do try to let the IRS know your bank info, you find that it's already decided you'll get a paper check, you can't change that. You'll get a paper check.

So don't fall for "offers" that promise to get you your COVID-19 money more quickly.

Myth 6: You should handle all of this alone.

No way.

We're in your corner.

You know where to find us, and we have your back.

Warmly,

Mike Mead, EA, CTC
Alliance Financial & Income Tax
807 NW Vesper Street
Blue Springs, MO. 64015
P - 816-220-2001 x201
F - 816-220-2012

"CRISIS Action Plan" for my clients:

1) Don't marinate in other people's panic. Be mindful of your social media consumption.

2) Continue to stay financially and logistically prepared for worsening situations.

3) Make sure you have some ready, liquid assets if you are able. (I.e., cash in the bank, and in hand.)

4) Set aside plans for any big spending until the dust settles -- but especially lookout for your small business owner friends and vendors.

Businesses Score Big Tax Benefits With The Cares Act

Businesses Score Big Tax Benefits With The Cares Act: As part of the stimulus package to help offset the financial damage inflicted on businesses as a result of the COVID-19 crisis, Congress restored the

880-page stimulus bill

We're already digging into the 880-page stimulus bill, that we're sure you've heard rumors about, so we wanted to quickly let you know some more first-blush details.

>>Cashflow Loans - Be VERY careful rushing into these things without guidance, as this section seems to indicate that they don't want someone taking the money out of the business for personal use. Since many small business owners use the S Corp structure and take some payment in salary and some in distribution, exactly HOW this will get handled is unclear.

>>Net Operating Loss Carryovers - If your business is struggling and you will have a loss this year, we can take those losses, amend previous returns and get MASSIVE refunds for your business on tax already paid.

This is a complete change from the existing code, where you could only carry losses forward.

You will want someone in your corner for this, so don't rely on any "hype" you see in the media about this bill. Talk to a professional to get the help you need. 816-220-2001 https://www.afitonline.com/p/proactive-tax-planning

Looking for Tax Preparation

It's important to know where your money's going.

If you need help getting things in order to do your taxes this year, my team has put together some awesome resources to help you along the way:   https://www.afitonline.com/p/pdf-tax-organizer

IRS wants all they can get...

Feel like this at tax time?

Come see us to make sure you're not missing any deductions or credits, so you can keep more of your hard-earned money in your pocket.

Learn more about our income tax preparation services.

Have questions? Give us a call at 816-220-2001

Do we have to come in...?

We have had several new and current clients ask ‘do we have to come into the office to have our taxes prepared?’

The answer is no. You may elect to use our TaxDome Secure Portal to upload all your supporting documentation. We also have an app so you are able to send us all your documentation from your phone. Then schedule a phone call with us to answer any questions and to discuss your unique situation. When we have prepared your tax return, we will upload it to your portal account for your review and schedule a telephone call to discuss and answer all your questions.

Of course, you are always welcome to come to the office.

Learn more about our tax preparation services.

Taxpayers should remember these tips when searching for a tax preparer.

Taxpayers should remember these tips when searching for a tax preparer

The tax filing season is upon us, and many people will be looking for someone to help them file a tax return. These taxpayers should choose their tax return preparer wisely. 

This is because it’s ultimately the taxpayer who is responsible for all the information on their income tax return. It’s important for people to remember that this is true no matter who prepares the return. Here are some tips for folks to remember when selecting a preparer. Taxpayers should:

Check the Preparer’s Qualifications. People can use the IRS Directory of Federal Tax Return Preparers with Credentials and Select Qualifications. This tool helps taxpayers find a tax return preparer with specific qualifications. The directory is a searchable and sortable listing of preparers.

Check the Preparer’s History. Taxpayers can ask the local Better Business Bureau about the preparer. They should check for disciplinary actions and the license status for credentialed preparers. There are some additional organizations about specific types of preparers:

•Enrolled Agents: Go to the verify enrolled agent status page on IRS.gov.

•Certified Public Accountants: Check with the State Board of Accountancy.

•Attorneys: Check with the State Bar Association.

Ask about Service Fees. People should avoid preparers who base fees on a percentage of the refund or who boast bigger refunds than their competition.

Ask to e-file. The quickest way for taxpayers to get their refund is to electronically file their federal tax return and choose direct deposit.

Make Sure the Preparer is Available. Taxpayers may want to contact their preparer after this year’s April 15 due date. People should avoid “fly-by-night” preparers.

Provide Records and Receipts. Good preparers will ask to see a taxpayer’s records and receipts. They’ll ask questions to figure things like the total income, tax deductions, and credits.

Never Sign a Blank Return. Taxpayers should not use a tax preparer who asks them to sign a blank tax form.

Review Before Signing. Before signing a tax return, the taxpayer should review it. They should ask questions if something is not clear. Taxpayers should feel comfortable with the accuracy of their return before they sign it. Once they sign the return, taxpayers are accepting responsibility for the information on it.

Review details about any refund. Taxpayers should make sure that their refund goes directly to them – not to the preparer’s bank account. The taxpayer should review the routing and bank account number on the completed return.

Ensure the Preparer Signs and Includes their PTIN. All paid tax preparers must have a Preparer Tax Identification Number. By law, paid preparers must sign returns and include their PTIN.

Report Abusive Tax Preparers to the IRS. Most tax return preparers are honest and provide great service to their clients. However, some preparers are dishonest. People can report abusive tax preparers and suspected tax fraud to the IRS. Use Form 14157, Complaint: Tax Return Preparer.