The Tax-Filing Deadline Is Drawing Near

 As a reminder to those who have not yet filed their 2022 tax returns, April 18, 2023, is the due date to either file a return (and pay the taxes owed) or file for an automatic extension (and pay an estimate of the taxes owed). The traditional April 15 filing date is moved to the 18th because of a holiday in the District of Columbia. Taxpayers in certain disaster areas have additional time to file.

Tips on How to Push Through a Recession

Recessions can be worrisome. Factor in uncertain times globally and you may wonder where this leaves you financially if you find yourself in this position. The key is not to overthink your situation and remain flexible. However, that doesn’t mean that you should simply wing it. There are some strategies you can use to help get yourself in a stable financial position so that you can weather the challenges presented by a recession. Alliance Financial & Income Tax explains more in this post.

Know Your Budget

One of the best ways to put your mind at ease in uncertain economic times is to know what you're working with budget-wise. Having a firm grasp on the numbers will help you know where to go from here, whether that is to eliminate all forms of unnecessary spending or look for ways to earn additional income through side jobs and gig work.

Look for a Side-Hustle

Traditional work has changed for the better, with remote work and side hustles taking center stage rather than a back seat. This is where you should take the bull by the horn and take hold of money-making opportunities that come your way, whatever that may be. Popular side hustles that many are looking into nowadays include offering repair services (if you're a practical person with a practical skill set, of course). If you're good at crunching numbers, consulting as an accountant or a bookkeeper might be worth your while. Becoming a tutor or writer is another option if you want to become a freelancer and work at your leisure.

If you're looking into side hustles, it’s best to have your resume updated and ready to go when an opportunity emerges. Use a free resume creator tool that comes with many resume templates. You can choose one that fits your industry and experience. Just add your information, modify the content however you see fit, and you are ready to apply.

Work Towards a New Career

A helpful long-term strategy is to improve your earning potential by training for a new career. If you’re interested in information technology, this page deserves a look. Working toward an IT degree online that also offers many professional certifications can be an excellent way to make more money. Best of all, flexible scheduling means it’s easy to work into your busy schedule.

Pay Off Your Debts

Paying off your debts is an effective way to beat the recession blues, as you'll have less to worry about at the end of the day. Principal explains that you should start with the ones with the highest interest rates and then work your way down to smaller loan amounts with lower interest rates.

Build Up Your Savings

It's never too late to start saving. Moreover, when you start putting away money for a rainy day, you'll have more options to fall back on. Other alternatives to your more traditional savings account with a higher interest-earning potential include a Certificate of Deposit, a Cash Management Account, a High-yield Money Market Account, Peer-to-Peer lending, and more. Diversify your portfolio by investing in different stocks, bonds, and even property further to minimize risk in times of a financial recession.

Manage Your Stress

While it's easy to fret about the current state of affairs, be sure to take care of your mental and physical health during this time to ensure you have the fortitude to handle whatever life throws at you. If financial stress has left you perplexed, don't go it alone, but talk to someone who can help guide the way, such as a financial advisor or business coach.

You can also choose to learn something from this experience. If you are in a financial position before the recession to tuck some money away, do it. But that isn’t an option for everyone. Just remember that the financial situation will pass. Remember to get good sleep and maintain a healthy diet in the meantime, and stick to your budget.

Having a pet is another way you can handle stress. Did you know that petting a dog releases the feel-good hormone oxytocin and decreases cortisol, which is responsible for stress? While it’s important to know that you can handle the financial aspect of pet ownership, having an animal can bring many physical and emotional benefits. If the time is right for you to adopt, find helpful pet care advice online, like what harness is best for your little Houdini and which pet insurance you should choose.

Use Your Plan to Persevere

Overcoming the woes of recession is possible as long as you stay focused. But don't forget to make the most of this disguised opportunity, as you may just end up discovering a hidden passion for business you never knew you had! In the meantime, take steps to stay on budget and pay down debt as quickly as you can. But don’t neglect your mental health during this stressful time. Whether you meditate or buy a dog, find the best solution for you as you endure this recession.

 

For financial services, financial coaching, and tax preparation, visit Alliance Financial & Income Tax today!

 

Protecting Jackson County Missouri People from IRS Scams

 

Here we are … already February is in the rearview. 

And while this is undoubtedly a less hectic tax season than the past three, it doesn’t mean things are easy. Taxes have traps for the unwary all over the place. A 400-page tax code ensures that. 

More importantly, with the IRS finally getting on top of its backlog and taking in more funding to boost its compliance efforts, you need to make sure your return is solid and mistake-free …. more than ever. 

It’s easy to overlook things, claim things incorrectly, and even miss new tax law changes that come out. Unfortunately, the IRS doesn’t leave much margin for error and isn’t worried about sparing you when they come for you. That’s a problem. (For you, to be clear.)

And, keep in mind, when you’ve filed your taxes, you’ll also have to face the IRS alone if you run into trouble — that can often mean getting bulldozed by the system. 

There’s an easy button solution to all that (and if you’re reading this, there’s a good chance you’ve already pressed it), which is letting us here at  Alliance Financial & Income Tax handle things for you. We root out errors. We check items twice. We stay on top of changes. We are familiar with every line of that complicated tax code. 

And, BIG BONUS, once you file with us, we can also take on the role of advocate if you end up having to face the IRS via audit or some other questioning letter.

If you haven’t scheduled your appointment, let’s get that on the books soon. 

https://www.afitonline.com/appointments 

Now, a quick note before I jump into today’s look at tax scams (a subject I stay on top of and look at carefully for the sake of my contacts). The tennis-style back and forth in Washington continues over student loan repayment and forgiveness. While everyone’s enjoyed the repayment reprieve for going on 3 years, the Biden forgiveness plan is on the chopping block at the Supreme Court this week. 

What’s important about that (besides the forgiveness part) relates to repayment. 

Currently, repayment is set to begin in August this year, but if that plan gets the ax, then that timeline could get bumped up — something to be prepared for if you’re still paying back student loans.

OK … I obviously have a lot that I wanted to talk about this week, because there are a bunch of scammers coming after my Jackson County clients these days, and I needed to get this information to you so you can be on your guard when it comes to IRS scams.

Read on …

Protecting Jackson County People from IRS Scams

“The best protection for the people is not necessarily to believe everything people tell them.” – Demosthenes

 

I’ve gotta hand it to scammers: They’re innovative, always coming up with new ways to trick you out of your money or personal financial info. 

For example, it was probably just minutes after President Biden announced forgiveness of student loan debt last year that con artists hit the internet and started dialing phones to trick people out of hard-earned money with promises of big, quick payoffs on their debt. 

Tax season has always been a favorite scammer playtime to prey on fears of the IRS and other tax authorities. Year after year, crooks come up with new schemes and new lies to fool victims. 

So as we find ourselves in the throes of tax season once again, I want to prepare you to steer clear of IRS scams. Here’s how you can start protecting yourself right now. 

New twists in the world of IRS scams

Phone scammers have been impersonating the IRS for ages, usually claiming the victim owes back taxes and threatening immediate arrest unless you cough up the dough with your credit card number or via a prepaid debit card, gift card, or wire transfer. This old trick has unfortunately worked on victims who didn’t know what to look for. 

HOWEVER, recent times have added new wrinkles to IRS scams: 

1.   Bogus tax-debt relief. For this strategy, scams promise a new Biden program guaranteeing tax-debt forgiveness. They mention a federal “Empowerment Program” to relieve your debt — but you have to send a “tax fee” of some three figures and shipping costs before you get your debt relieved.

Your first question: Do you even have tax debt? Your next action: Call us. 
 

2.   Saying you owe taxes on something you bought recently. Fraudsters typically bait victims with claims of purchases of big-ticket items on their account. This rip-off uses small dollar claims — often no more than a couple of bucks — in unpaid taxes to lure you into clicking dodgy links. 

If you bought anything big recently, reach out to the store or vendor. It’s almost guaranteed that the store didn’t just forget to charge you enough tax… 
 

3.   Form W-2 scam. These thieves ask for a copy of your IRS Wage and Tax Statement. There are many flavors of this scam; some also try to use wire transfers, titles/escrows, fake invoices, and so on. 

Simple response: Don’t send your W-2. Period. Or anything else. If scammers try this one, mail the IRS at phishing@irs.gov (Subject: W2 Scam), or for the other variations contact the FBI’s Internet Crime Complaint Center. 

Know what’s happening with IRS scams

The IRS will never call to essentially shake you down for quick payment (or to offer an out-of-the-blue refund). They’ll mail a bill first — several, in fact. They’ll also give you plenty of chances to air your side of a tax dispute over a long time, with representation for you and impartial judges making the decision. 

If a scammer calls, record the number and hang up immediately. Call us, of course, but you can also call the Treasury Inspector General for Tax Administration at (800) 366-4484 or see TIGTA’s hotline page. Also, report the number to phishing@irs.gov and put “IRS Phone Scam” in the subject line. 

If you receive an email that claims to be from the IRS asking for your personal information or spouting nonsense about taxes from a large investment, inheritance, or lottery, don’t reply and for heaven’s sake don’t click on any links or open any attachments (hello malware …). Email phishing@irs.gov and they can tell you more. 

The same goes for text messages: Forward the text as-is to the IRS at 202-552-1226. If you can, in a separate text, forward the originating number to the same number. 

And should you get an old-fashioned letter in the mail, don’t be fooled by well-copied logos and a lack of typos. Show it to us ASAP if you think something’s fishy and do not call the number on the letter. 

Targeted IRS scams: Anti-social behavior

While we’re on the topic, here’s the latest word on scams involving Social Security (another favorite area of crooks). 

In addition to the shopworn threats of immediate arrest if you don’t cough up the cash, scams threaten to suspend your Social Security number or claim to need your personal info or payment to activate a cost-of-living adjustment or other benefits increase. Scammers have also been known to use legitimate names of Office of Inspector General or Social Security Administration employees, spoof government or even police phone numbers, and send official-looking documents by mail or attachments through email, text, or social media messages. Don’t open and don’t reply. 

You can keep up with the latest word on scams from the IRS and the Social Security Administration on LinkedIn, Twitter, and Facebook or by subscribing to email alerts. 

Taking care of taxes can feel hard enough without worrying about potential scams. That’s why we’re here to help Jackson County people like you deal with tax season in all ways — including when a crook tries to take advantage of you.   

Looking out for you, 

 

Mike Mead, EA, CTC

Who should inherit your wealth?

 

The decision of who should inherit your wealth is a personal one and will depend on your individual circumstances and preferences.

One option is to leave your wealth to your spouse or other family members, such as your children or parents. This can be a way to ensure that your loved ones are financially secure after you are gone and can help to maintain family harmony.

Alternatively, you may choose to leave your wealth to charitable organizations or causes that you care about. This can be a way to give back to your community and make a lasting impact on issues that are important to you.

It's essential to consider the financial needs and circumstances of those who will inherit your wealth, as well as any potential conflicts or issues that may arise. For example, if you have children from a previous marriage, you may want to consider how to fairly distribute your wealth among them.

It's also a good idea to consult with a financial advisor or attorney to ensure that your wishes are properly documented and carried out.

In conclusion, deciding who should inherit your wealth is personal and will depend on your circumstances and preferences. It's essential to consider the financial needs and circumstances of those who will inherit your wealth, as well as any potential conflicts or issues that may arise. By carefully considering your options and seeking professional guidance, you can ensure that your wealth is distributed according to your wishes.

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 

AFITOnline.com

 

Who is Alliance Financial & Income Tax

 

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The benefits of having a Kansas City tax refund direct deposited.

Receiving a tax refund is happy news to any taxpayer; getting it quickly is even better. Direct deposit is the safest and most convenient way to receive a tax refund. The IRS encourages taxpayers to file when they are ready and choose direct deposit to receive any refund they may be owed.

Benefits of choosing IRS direct deposit:

• It's fast. The fastest way for taxpayers to get their refund is to file electronically and choose direct deposit. Visit IRS.gov for details about IRS Free File, Free File Fillable Forms, free tax return preparation and more. Taxpayers who file a paper return can also choose direct deposit, but it will take longer to process the return and get a refund.
• It's secure. Since refunds are electronically deposited, there's no risk of having a paper check stolen or lost in the mail.
• It's easy. Taxpayers can simply follow the instructions when selecting direct deposit as a refund method and enter their account information as directed. They must enter the correct account and routing numbers when they file.
• It provides options. Taxpayers can split a refund into several financial accounts. These include checking, savings, health, education and certain retirement accounts. They should use IRS Form 8888, Allocation of Refund, Including Savings Bond Purchases to deposit a refund in up to three accounts. This form cannot be used to designate part of a refund to pay tax preparers.

Taxpayers should deposit refunds into U.S. bank accounts in their own name, their spouse's name or both. They should avoid making a deposit into accounts owned by others. Some banks require both spouses' names on the account to deposit a tax refund from a joint return. Taxpayers should check with their bank for direct deposit rules.

Get a bank account
Taxpayers who don't have a bank account can visit the FDIC website for information on banks that let them open an account online and how to choose the right account. Veterans can use the Veterans Benefits Banking Program for access to financial services at participating banks.

Mobile apps may be an option
Some mobile apps and prepaid debit cards allow for direct deposit of tax refunds. They must have routing and account numbers associated with them that can be entered on a tax return. Taxpayers should check with the mobile app provider or financial institution to confirm which numbers to use.

Taxpayers must have their routing and account numbers for direct deposit available when they are ready to file. The IRS can't accept this information after a return is filed.

There is a limit of three direct deposit refunds made into a single financial account or prepaid debit card.