Mike McVay, Tax Accountant * 850-725-5696 * Mike@MikeMcVay.com
FREE Consultation with No - Fee QuickBooks Online Subscription
Mike McVay, Accountant * 850-725-5696 * Mike@MikeMcVay.com * www.QuickBooksPensacola.com
McVay has built his accounting business with start up small businesses. Now, many of these businesses have become stable, high volume, high profit businesses. McVay starts most his small businesses at $150.00 per month bookkeeping services. McVay also provides a full QuickBooks Online Subscription with all monthly services.
Need more information about this service? Book a remote online appointment and we will give you a complementary consultation to see if our service fits your needs. We customize all services to fit y our needs and budget! Mike McVay, Accountant 850-725-5696 * Mike@MikeMcVay.com
Mike McVay, Tax Accountant * 850-725-5696 * Mike@MikeMcVay.com
The federal government also issued a $1,200 payment earlier this year with similar eligibility criteria. If you did not receive the first check, you can also use your tax return to claim the money.
“For 2021, eligible taxpayers who did not receive the full amount can claim it as the Recovery Rebate Credit when they file their 2020 tax return,” the IRS said. “Use IRS Free File to file and claim this important benefit.”
Some Americans aren't eligible to receive the cash payment: College students and dependents over the age of 17 won't receive the money, nor will immigrants who don't have a Social Security number. Some high earners who received a check during the first round of stimulus payments will also not qualify for the second round.
Mike McVay, Tax Accountant
New PPP Loans Available
On December 27, 2020, the President signed legislation to reopen the Paycheck Protection Program (PPP), with over $284B available in forgivable PPP loans. First-time borrowers must have 500 or fewer employees and meet other eligibility criteria.
In addition, second PPP loans are available to businesses that received a PPP loan previously if they have 300 or fewer employees and meet other eligibility criteria.
PPP loans are available until March 31, 2021, or until all allocated funds are disbursed.
FFCRA Update: Mandated Leave Ending, Credits Extended
The FFCRA created new paid family and paid sick leave provisions for certain reasons related to COVID-19. The COVID-related Tax Relief Act of 2020 (CTRA) extends the tax credit portion of the FFCRA for employers that voluntarily offer paid leave, but not the mandatory leave portion, through March 31, 2021. FFCRA earnings and memo codes needed for employers to claim these tax credits will be available for use through March 31, 2021.
CARES Act Employee Retention Tax Credit, Extended
The CARES Act provision for refundable tax credit against employer Social Security tax has been extended through June 30, 2021. CARES Act memo codes are applicable on qualifying wages paid through June 30, 2021.
Mike McVay - Payroll & Tax Accountant
New 1099 form requirements are in place for 2020 forms reporting. New forms (NEC) for your non-employee compensation (Independent Contractors) that make 600.00 for more in a calendar year. Heavy penalties for not reporting these earnings. In most cases, if you do not follow these requirements, you will not be able to take these paid expenses on your business tax return,.
Mike@MikeMcVay.com * www.PensacolaFLTax.com
Report on Form 1099-MISC only when payments are made in the course of your trade or business. Personal payments are not reportable. You are engaged in a trade or business if you operate for gain or profit. However, nonprofit organizations are considered to be engaged in a trade or business and are subject to these reporting requirements. Other organizations subject to these reporting requirements include trusts of qualified pension or profit-sharing plans of employers, certain organizations exempt from tax under section 501(c) or (d), farmers' cooperatives that are exempt from tax under section 521, and widely held fixed investment trusts. Payments by federal, state, or local government agencies are also reportable.
Don't open yourself up for huge I.R.S penalties for not filing your business 1099's for 2020. We can do it all for you!
- How do I upload my tax documents for a remote meeting?
- Can I upload my tax documents to the secure portal via my cell phone or tablet?
- How do I make a tax appointment?
- I want a remote meeting, however I don’t have any of the meeting apps.
- How can we get you our tax documents if we can’t upload to your secure portal?
- Do you only use QuickBooks in your practice for clients?
- Can I still get my accounting done by your firm if I still use QuickBooks Desktop?
- Do we have to subscribe to QuickBooks Online for you to do our bookkeeping?
The I.R.S has special coding that looks at your return and scores the return based on many factors, including but not limited to if the return was self-prepared, expenses are not an average ratio based on others in your geographical area or by business industry type.
The IRS has a computer system called Discriminant Information Function (DIF) that's specifically designed to detect anomalies in tax returns. It scans every tax return the IRS receives. DIF looks for things like duplicate information—maybe two or more people claimed the same dependent—as well as deductions and credits that just don’t make sense.
The computer compares each return to those of other taxpayers who earned approximately the same income. For example, most people who earn $40,000 a year don’t give $30,000 of that money to charity and claim a deduction for it, so DIF is pretty much guaranteed to throw a flag if you do. DIF's flag prompts review by human agents.
Many of the current tax software use an array of questions to determine your ability to deduct or apply credits you may be intitled to. If one of these questions are answered wrong or by mistake, then your return could be incorrect when you complete it. Current law needs to be applied to your individual circumstances. These questions are broad and sometimes confusing.
Sole proprietors and freelancers are entitled to a host of tax deductions that most other taxpayers don’t get to share, such as home office deductions, mileage deductions, and deductions for meals, travel, and entertainment. These expenses are tallied up on Schedule C and are deducted from your earnings to determine your taxable income from your business.
DIF is on the lookout for deductions that are above the norm for various professions. It might be expected that you would spend 15% or so of your income on travel each year if you're an art dealer, because that's about what other art dealers spend. You can probably expect the IRS to take a closer look at your return if you claim 30%.
Have you noticed those occupational codes that appear on your tax return? The IRS uses those to make sure that your travel expenditures are in line with others who report those same codes. You'll most likely get a second look from the IRS if you've claimed a lot more than the average for your profession.
Likewise, if you use your car for business purposes and you want to deduct your expenses or mileage, the IRS doesn’t want to hear that 100% of your travel was solely for business purposes, especially if you have no other vehicle available for personal use. Presumably, you drove to do personal errands at some point.
Mike McVay is a licensed Tax Professional with over 25 years experience preparing individual, sole-proprietor, partnership, LLC, S-Corp and C-Corp tax returns. McVay charges fees that will fit your budget and has many options when it comes to tax appointments. Remote tax appointment available in 2021.
McVay says that many new clients have come to seek his professional tax preparation that used self-prepare tax software in the past. In some cases McVay has found additional money due to the taxpayer when reviewing past years returns. Many are not paying much more than the past years tax software cost to get their taxes done professionally.
Mike McVay, Tax Accountant * 850-722-5696 * Mike@MikeMcVay.com
Year-End is the perfect time to change your payroll service. At McVay Business Services we know payroll and we have great prices. Voted #1 for Payroll Customer Support Services!
Call Mike for a quote ASAP and if you come on board we will reimburse all your set-up fees!
Hurry don't wait!
Best Price * No Compromise
Need Workers Comp for your business? We have you covered 100%
Mike McVay - 850-725-5696
The coronavirus pandemic has caused an unemployment crisis unlike any other. While the jobless rate has declined since hitting a record high in April, millions of Americans are still out of work and have grown reliant on unemployment benefits to cover their bills. But it's these same workers who may be in for a very unpleasant surprise when they sit down to file their 2020 taxes next year.
Many other tax surprises could be on your doorstep for 2020 taxes. PPP loans could increase your taxes and you did not even know it.
Don't get caught off guard
Generally, you'll be given the option to have 10% of your weekly benefit withheld for this purpose before you start collecting that money. Otherwise, you can collect your benefits in full and then make estimated quarterly tax payments to the IRS.
But you can't sit back and assume that you won't face any tax liability on those benefits, because that's just not reality. And unfortunately, a lot of people are uninformed in this regard. In a recent survey, 38% of respondents said they didn't know that unemployment benefits were taxable in the first place. Furthermore, 61% of respondents have not withheld or set aside money from their unemployment pay for their 2020 income taxes.
Remember, our tax system works on a pay-as-you-go basis. The IRS wants its share of your unemployment income as you collect it. The better you prepare now, the less likely you'll be to encounter a shock when April rolls around.
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With the impending recall of all 2016 tax reform, most every income bracket may see a substantial tax increase over the next few years. Prepare now. There are options if you run your business as a sole-proprietor, some LLC's or partnership. These entities are taxed at the highest percent. Sole-proprietors can pay 25 to 45% of there net profit in income tax. We can save you 14-16% off these numbers. There are some requirements and rules we would need to follow, however the tax savings are real, they are guaranteed and completely legal.
Come see why Mike McVay. Tax Accountant is saving his clients thousands of dollars on their business income taxes.
S-Corp LLC's can provide substantial tax savings in 2021!
Call Mike for a free consultation.
A full tax review and recommendations are available.
Certified QuickBooks ProAdvisor & Licensed Tax Accountant Pensacola, FL
Mike McVay, Accountant Experienced IRS Tax Resolution Specialist
With over 20-years experience working with individuals, families & small business owners. McVay has long term knowledge in taxation to help with their income tax, I.R.S tax issues and businesses management.