Although this meme is a generalization, it's also reasonably accurate.

  

Many potential clients who call my office will inquire about my fee as their primary concern.

I understand this because none of us wants to be hit with a price tag beyond our means.  

I am okay with you inquiring about my price tag as long as it is not the first thing you ask. 

 

I want you to care about my quality, my education, the amount of experience I have, and my wonderful customer service.  

I charge a fair fee. I'm not the most expensive, but I'm also not the cheapest.  

These days with as many variables as there are, it is only possible to give an accurate estimate when we know what you need from a simple phone conversation.  

Since people tend to not know what they have, how will I know what it will cost? I charge by the form and by the amount of data you have.  

Does your mechanic tell you what it will cost before you bring your car in for a diagnosis? Will he charge the same for an oil change as for a transmission rebuild? 

Not likely.  

I will do my best for you, I will be available to you, and my fee will be reasonable for my level of experience and knowledge. 

If you base your automotive decisions on the lowest-cost mechanic, your car may break down again as you drive away. 

And, if you base your tax preparation decisions on the lowest-cost provider, you may wind up with IRS or state issues, but your tax pro is nowhere to be found.  

Trust your car to an expert, and trust your tax preparation to the Enrolled Agents at Alliance Financial & Income Tax.

Worth every penny.

How to Help Your Employees Embrace Digital Transformation

 

Digital technology can improve business operations in many ways. For example, cloud-sharing platforms simplify document sharing, while project management software makes it easier to track deliverables within teams. As a business owner, you want to harness the power of such tools. However, you don't want your employees to feel like they're being replaced or to resist digital transformation.

 

Alliance Financial and Income Tax explains how you can keep your workers happy while encouraging them to embrace new technologies.

 

Strategically Choose What Technology to Implement

 

Be smart when selecting technology for your company by choosing products that will serve your employees well. Enginess explains how you can do a technology assessment to see what tools will help your company. Start by understanding the technology's potential. Then identify which employees could use the tool and how. Next, assess how the technology would impact broader market dynamics beyond your own company. Finally, create your strategy to either capitalize on that technology or counter its effects.

 

Highlight How Technology Can Help Your Workers

 

If you want new technology to be successfully implemented in your company, you need worker buy-in. To this end, make sure you're telling teams how tech can help them. Communicating about innovation early on is essential. Help employees become more engaged with the tools by explaining and, ideally, demonstrating the benefits. For example, you might run a test pilot program or provide a case study of how software will save them time, energy, or stress.

 

Create a Comprehensive Onboarding Program

 

Nobody wants to have a new technology thrust upon them and then have to spend hours trying to figure out how to use it. Create a comprehensive onboarding plan when adopting new innovations. Make sure you communicate a deadline by which everyone is expected to use the new tool. Then, provide hands-on tutorials, giving people a chance to test out the product and ask questions. You should also create comprehensive training manuals and appoint a point person who is well-versed in the new tool to answer questions going forward.

 

To encourage buy in, explain that this new process will ensure that your new hires will be good fits for your teams and company culture. Taking the time to clarify position descriptions, prescreen applicants, and conduct background checks will actually save time in the long run because you will be more likely to find the right people the first time.

 

Embrace Business Process Management

 

If you're still struggling to get employees to embrace new innovations, consider business process management, BPM. With BPM, you can automate workflows and establish guidance for digital process automation, giving workers the opportunity to concentrate on more complex tasks instead of grunt work. BPM can help reduce errors and improve efficiency—and it's also useful for tech implementation. When you create your BPM framework, track progress to see how effective it is. With regular monitoring, you can continually improve output.

 

Make Employees Feel Appreciated

 

Taking the steps above can help improve employee satisfaction when it comes to new technologies in the workplace. However, you also want to take other steps to make sure workers are happy. Offering comprehensive benefits, like paid personal days and extra vacation, will make acquiring and retaining top talent easier. You can also look into less traditional benefits, such as gas reimbursements, fitness plans, treadmill desks, investment programs, free flu shots, and more.

 

It’s also important that you provide your employees with the tools they need to be productive and perform their duties properly. Asking team members to do tasks without adequately supporting them will foster resentment and frustration. Instead, get them what they need, whether it's a whiteboard for their office, a moderate allowance for team lunches, or a library of stock videos to help with marketing efforts.

 

While each requires some financial investment, putting money into, say, videography shows that you appreciate the effort your team puts into their projects and that you understand that video stock footage can help them do their jobs well. It’s an inexpensive way to properly gear up your staff, plus it’s a vote of confidence in your team’s skills and capabilities.

 

Solicit Feedback from Your Employees

 

There's only one way to make sure your workers are happy with new technology—and on the job in general. Ask them. There are many ways to solicit employee feedback. Officevibe provides tips for getting honest opinions, from ensuring their anonymity to establishing trust. Also, consider the medium you use. Face-to-face feedback can be tough, for example. Many people prefer providing feedback in a less personal format, such as via a written survey.

 

Solicit Feedback from Your Employees

 

Technology can help your business achieve great things. However, you don't want to implement cutting-edge tech at the expense of employee satisfaction. The above guide explains how to strike the right balance.

 

If you want to provide more benefits to your employees, but you aren’t sure if you can manage it financially, contact the experts at Alliance Financial and Income Tax. We can help you create a realistic plan that honors your staff and maintains your finances.

When to Hire a Tax Professional

Your income tax preparation needs are as individual as you are. Alliance Financial & Income Tax takes an active approach to our tax planning and tax preparation services, giving you the personalized guidance you need. Today's tax laws are so complicated that filing taxes, no matter how simple, can quickly become confusing.

10 million taxpayers missed out on a chance to receive a bigger refund last year simply because they neglected to fill out one line on their tax return. Will you miss a similar opportunity this year?

https://www.afitonline.com/p/income-tax-preparation

#AFITtaxprep

 

2022 Individual Taxpayers: The Year in Review

 

As we close out the year and prepare for tax season, here's what individuals and families need to know about tax provisions for 2022.

Personal Exemptions
Personal exemptions are eliminated for tax years 2018 through 2025.

Standard Deductions
The standard deduction for married couples filing a joint return in 2022 is $25,900. For singles and married individuals filing separately, it is $12,950, and for heads of household, the deduction is $19,400.

The additional standard deduction for blind people and senior citizens in 2022 is $1,400 for married individuals and $1,750 for singles and heads of households.

Income Tax Rates
In 2022 the top tax rate of 37 percent affects individuals whose income exceeds $539,900 ($647,850 for married taxpayers filing a joint return). Marginal tax rates for 2022 are as follows: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. As a reminder, while the tax rate structure remained similar to prior years under tax reform (i.e., with seven tax brackets), the tax-bracket thresholds increased significantly for each filing status.

Estate and Gift Taxes
In 2022 there is an exemption of $12.06 million per individual for estate, gift, and generation-skipping taxes, with a top tax rate of 40 percent. The annual exclusion for gifts is $16,000.

Alternative Minimum Tax (AMT)
For 2022, exemption amounts increased to $75,900 for single and head of household filers, $118,100 for married people filing jointly and for qualifying widows or widowers, and $59,050 for married taxpayers filing separately.

Pease and PEP (Personal Exemption Phaseout)
Both Pease (limitations on itemized deductions) and PEP (personal exemption phase-out) have been eliminated under TCJA.

Flexible Spending Account (FSA)
A Flexible Spending Account (FSA) is limited to $2,850 per year in 2022 and applies only to salary reduction contributions under a health FSA. The term "taxable year" as it applies to FSAs refers to the plan year of the cafeteria plan, which is typically the period during which salary reduction elections are made.

Long-Term Capital Gains
In 2022 tax rates on capital gains and dividends remain the same as 2021 rates (0%, 15%, and a top rate of 20%); however, taxpayers should be reminded that threshold amounts don't correspond to the tax bracket rate structure as they have in the past. For example, taxpayers whose income is below $41,675 for single filers and $83,350 for married filing jointly pay 0% capital gains tax. For individuals whose income is at or above $459,750 ($517,200 married filing jointly), the rate for both capital gains and dividends is capped at 20 percent.

Miscellaneous Deductions
Miscellaneous deductions that exceed 2 percent of AGI (adjusted gross income) are eliminated for tax years 2018 through 2025. As such, you can no longer deduct on Schedule A expenses related to tax preparation, moving (except for members of the Armed Forces on active duty who move because of a military order), job hunting, or unreimbursed employee expenses such as tools, supplies, required uniforms, travel, and mileage.

Business owners are not affected and can still deduct business-related expenses on Schedule C.

Individuals - Tax Credits

Adoption Credit
In 2022 a nonrefundable (i.e., only those with tax liability will benefit) credit of up to $14,890 is available for qualified adoption expenses for each eligible child.

Child and Dependent Care Credit
If you pay someone to take care of your dependent (defined as being under the age of 13 at the end of the tax year or incapable of self-care) to work or look for work, you may qualify for a credit of up to $1,050 or 35 percent of $3,000 of eligible expenses in 2022. For two or more qualifying dependents, you can claim up to 35 percent of $6,000 (or $2,100) of eligible expenses. For higher-income earners, the credit percentage is reduced, but not below 20 percent, regardless of the amount of adjusted gross income. This tax credit is nonrefundable.

Child Tax Credit and Credit for Other Dependents
For 2022, the child tax credit reverts to $2,000 per child, under the age of 17. The refundable portion of the credit is $1,400 in 2022, so that even if taxpayers do not owe any tax, they can still claim the credit. A $500 nonrefundable credit is also available for dependents who do not qualify for the Child Tax Credit (e.g., dependents age 17 and older).

Earned Income Tax Credit (EITC)
For the tax year 2022, the maximum earned income tax credit (EITC) for low, and moderate-income workers and working families increased to $6,935 (up from $6,728 in 2021). For taxpayers with no qualifying children, the maximum credit is $560.

The maximum income limit (three or more qualifying children) for the EITC increased to $59,187 (up from $57,414 in 2021) for married filing jointly and $53,057 for taxpayers whose filing status is single or head of household. The credit varies by family size, filing status, and other factors, with the maximum credit going to joint filers with three or more qualifying children.

Individuals - Education Expenses

Coverdell Education Savings Account
You can contribute up to $2,000 a year to Coverdell savings accounts in 2022. These accounts can be used to offset the cost of elementary and secondary education, as well as post-secondary education.

American Opportunity Tax Credit and Lifetime Learning Credit
The maximum credit is $2,500 per student for the American Opportunity Tax Credit. The Lifetime Learning Credit remains at $2,000 per return. To claim the full credit for either, your modified adjusted gross income (MAGI) must be $80,000 or less ($160,000 or less for married filing jointly).

Employer-Provided Educational Assistance
As an employee in 2022, you can exclude up to $5,250 of qualifying postsecondary and graduate education expenses that are reimbursed by your employer.

Student Loan Interest
In 2022, you can deduct up to $2,500 in student-loan interest as long as your modified adjusted gross income is less than $70,000 (single) or $140,000 (married filing jointly). The credit cannot be claimed if your modified adjusted gross income (MAGI) is more than $85,000 for single filers ($170,000 if married filing jointly).

Individuals - Retirement

Contribution Limits
For 2022, the elective deferral (contribution) limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government's Thrift Savings Plan is $20,500. For persons age 50 or older in 2022, the limit is $27,000 ($6,500 catch-up contribution).

Retirement Savings Contributions Credit (Saver's Credit)
In 2022, the adjusted gross income limit for the saver's credit for low and moderate-income workers is $68,000 for married couples filing jointly, $51,000 for heads of household, and $34,000 for married individuals filing separately and for singles. The maximum credit amount is $2,000 ($4,000 if married filing jointly). As a reminder, starting in 2018, the Saver's Credit can be taken for your contributions to an ABLE (Achieving a Better Life Experience) account if you're the designated beneficiary. However, keep in mind that your eligible contributions may be reduced by any recent distributions you received from your ABLE account.

If you have any questions about these and other tax provisions that could affect your tax situation, don't hesitate to call.

Tax Preparation with Accountants: What You Need to Know

 

Accountants are valuable and trusted partners during tax season–find out how they operate.

Unless you have a passion for taxes, chances are that you are not overly fond of doing them. Every year, U.S. citizens scramble to get their taxes processed and paid. The truth is that doing taxes isn’t easy, which is why most people rely on external assistance to get them done. One of the more popular options is to work with an accountant. Let’s take a look at what accountants can offer you.

Working with an accountant is an excellent way to get your taxes handled correctly—but that isn’t the only benefit that these experts bring. Making the decision to work with an accountant is one that you won’t regret. It can make your life quite a bit easier. Read on to learn how!

Why is it Good to Work with an Accountant on Taxes?

You might be wondering why it is such a good thing to work with an accountant on your taxes, and the answer all comes down to one word—expertise. Accountants have expertise in this niche that make them very effective at it. This means that you can trust that your taxes are being handled correctly, so you don’t need to worry about fines and fees!

What Do You Need to Bring to an Accountant?

When you visit an accountant for your taxes, they will give you a complete checklist of what to bring depending on your circumstances. Any clear tax paperwork from your employer will be on the list, but they might also ask for additional documentation depending on what kind of tax breaks you qualify for. Every case is unique.  

How Do Accountants Handle Taxes?

Accountants handle taxes by taking the information that you provide them with and then filling out the appropriate paperwork. The paperwork that needs to be submitted will vary based on your individual circumstances. They will review the paperwork, provide the necessary information, and check for any potential errors.

Choosing an Accountant You Can Trust

Before you can experience the benefits of working with an accountant, you need to find a good one. Look for a local accountant in your area that offers tax handling services. Be sure to choose someone with years of expertise and glowing reviews!

The Takeaway

Partnering with an account for tax season is one way to take the stress right out of this time of year. Your accountant will work with you to ensure that your paperwork is processed correctly. Even better, they will make sure that you get the tax breaks that save you the most. To learn more about the tax preparation Blue Springs offers, contact us today. We are here to make tax season easy for you every year!

Haven't you got enough on your plate?

The Saver's Tax Credit

 

The Saver’s Tax Credit is a tax benefit for workers who make contributions to a retirement plan or Individual Retirement Account (IRA). The Saver’s Tax Credit, is referred to in IRS tax forms as the “Credit for Qualified Retirement Savings Contributions.” This non-refundable credit may be particularly valuable for workers in areas where matched-savings plans, such as Individual Development Accounts (IDAs), are not available or when saving for retirement is a high priority.

Eligibility

To claim the Saver’s Tax Credit, taxpayers must:

• be age 18 or older;
• not be full-time students;
• not be considered a dependent for tax filing purposes; and
• have adjusted gross income in 2021 under:
  • $66,000 if married filing jointly
  • $49,500 if filing as head of household
  • $33,000 if filing single or married filing separately

Unlike the Earned Income Tax Credit (EITC), workers who don’t owe income tax cannot claim the Saver’s Tax Credit. Some moderate-income workers with children may get a larger EITC when they contribute to a retirement account through pre-tax salary deductions and claim the Saver’s Tax Credit.

Most EITC claimants who make contributions for retirement through pre-tax salary deductions are in the “phase- down” range of the EITC, where the credit decreases as taxable income increases. Since the salary deductions made for retirement reduce the worker’s taxable income, the worker will qualify for a larger EITC.

Example: Randy and Meg are married, earned $30,000 in 2021, and have two children attending college full-time. They ordinarily would owe income tax of $490 and would qualify for an EITC of $5,021. Since they made contributions of $1,000 to Meg’s retirement plan at work through pre-tax salary deductions in 2021, their taxable income is reduced to $29,000. Their income tax is now $390 and since only their $29,000 in taxable earnings is considered in calculating the EITC, they qualify for a higher credit of $5,231. They can claim the Saver’s Tax Credit (in their case worth up to 50 percent of their $1,000 contribution — as much as $500 in reduced income tax), which eliminates their $390 income tax. Overall, by making the $1,000 contribution to Meg’s retirement account and taking the Saver’s Tax Credit, the couple gets a tax benefit of $700.

Qualifying Contributions

Employer-Administered Retirement Plans

Retirement contributions made through pre-tax salary reduction to the following types of plans are eligible:

• a 401(k) plan, including a SIMPLE 401(k)
• a section 403(b) annuity
• a governmental 457(b) plan
• a SIMPLE IRA plan
• a salary reduction SEP (Simplified Employee Pension)

Individual Retirement Accounts

Contributions to both traditional and Roth IRAs are eligible for the Saver’s Tax Credit. Workers that can deduct IRA contributions can do so and also claim the credit.

Voluntary after-tax contributions to a qualified retirement plan or 403(b) annuity also qualify for the Saver’s Tax Credit.

Designated beneficiaries who contribute to Achieving a Better Life Experience (ABLE) accounts qualify for the Saver’s Tax Credit.

Benefits

Workers can receive a tax credit worth up to 50 percent of a maximum $2,000 contribution. Married workers may each make the maximum contribution. The credit amount is based on the worker’s adjusted gross income for the tax year.

2021 Adjusted Gross Income

Married Filing Jointly	Head of Household	All Other Filers	Credit
$0 – $39,500	$0 –  $29,625	$0 –  $19,750	50% of contribution
$39,501 –  $43,000	$29,626 – $32,250	$19,751 –  $21,500	20% of contribution
$43,001 –  $66,000	$32,251 – $49,500	$21,501 – $33,000	10% of contribution
More than $66,000	More than $49,500	More than $33,000	Credit not available

Claiming the Credit

Workers must complete IRS Form 8880,“Credit for Qualified Retirement Savings Contributions,”  enter the amount of the credit on Form 1040 or 1040A and submit Form 8880 with the tax return.

Additional Resources

See Chapter 3, “Retirement Savings Contributions Credit (Saver’s Credit),” in the following IRS publication:

• Publication 590-A, “Contributions to Individual Retirement Arrangements (IRAs)”