Bruce L. Fosdick, CPA, PC

Crowdfunding has been used for all sorts of things from charitable donations to movie making to the creation and selling of some great (and not so great) inventions.

Before this year, crowdfund recipients only had to report the income on their taxes if goods or services were given in exchange for 200 or more transactions adding up to the gross amount of $20k or more in a calendar year.

But with the passage of the American Rescue Plan, reporting requirements have changed significantly.

Now, any amount more than $600 accrued in a calendar year regardless of the number of transactions requires an accompanying 1099-K form (Payment Card and Third Party Network Transactions) to report as income.

Of course, this excludes charitable gifts (as long as the recipient demonstrates that funds have been transferred to the needy individual for whom the crowdfunding campaign was created).

Slinging cash toward school supplies for students who can't or for special classroom projects is common fare for a lot of teachers.

And we know it's not much, but the IRS does give a little kickback for that professional investment.

Eligible teachers can deduct up to $250 in unreimbursed expenses.

Deductible expenses include:
• Professional development course fees
• Books
• Supplies
• Computer equipment, including related software and services
• Other equipment and materials used in the classroom
• Personal protective equipment, disinfectants, and other supplies used for the prevention of the spread of coronavirus

Long days and shorter nights... we all know the tiredness that sets in from a busy work week.

If you think your boss should institute mandatory naps at work, raise your... thumb.

The shock of the last two years hasn’t really worn off and new challenges are mounting as war affects the globe.

And the greatest concern among small business owners right now? Inflation and how it is affecting their business. Most are raising prices, some are reducing staff, some are taking out loans to keep their head above water.

So, even though we're in the thick of things over here ... I want to assure you that we're here for you as you face the effects of inflation in your business.

The IRS is all about accountability with income reporting... so it only seems fair that they also be held accountable for the backlog of returns and the ensuing complications.

Bipartisan group of lawmakers pushes IRS for answers on 'numerous problems' facing taxpayers A group of bipartisan lawmakers is pressing the IRS for answers regarding "numerous" concerns amid a challenging tax season.

Notice the new checkbox on your 1040 that says: “At any time during 2021, did you receive, sell, exchange, or otherwise dispose of any financial interest in any virtual currency?”

Here are the situations that would require a check in the "YES" box:
- Someone paid you in virtual currency for goods or services you provided
- Transferring or receiving virtual currency for free (that isn't a gift)
- Receiving new virtual currency from mining and staking activities
- Receiving virtual currency from a hard fork
- Exchanging virtual currency for services, property, or goods
- Exchanging/trading virtual currency for a different kind of virtual currency
- Selling virtual currency
- Any other financial interest in virtual currency.

Not sure if this applies to you? Reach out - we can help figure that out.

Well... this is a bit unsettling. Can they invade before the tax deadline?

Giant spiders expected to drop from sky across the East Coast this spring The Joro spider is native to Japan but began infiltrating the U.S. in 2013, concentrating in the southeast and specifically Georgia.

Using your personal finances to fund your business can be tempting and convenient.

But mixing the two can cripple your chances at future commercial loans, not to mention potentially creating tax troubles when you try to claim business expense deductions.

Take the example of using personal credit cards and home equity loans to fund a business. Far better you transfer your personal credit card balance to a clearly designated business credit card (same deal with auto loans and real estate).

The protection isn’t 100% – you’ll still probably have to sign a personal guarantee for the debt on the card – but it is a way to keep business and personal debt more distinct.

If you or a dependent were on the higher education track in 2021, it could mean good things for your tax return.

Two tax credits available to active post-secondary learners in 2021 are the American Opportunity Tax Credit (maximum benefit of $2,500) and the Lifetime Learning Credit (maximum benefit of $2,000).

Tax Benefits for Education: Information Center | Internal Revenue Service Do you pay tuition or other education expenses? Learn about tax benefits for higher education.

In celebration of Women's History Month, the U.S. Small Business Administration is holding an online event on March 31st from 1-2pm EDT focusing on providing support to women-owned small businesses.

Industry experts will talk about financial wellness, increasing opportunities, and SBA resources for female business owners.

And bonus: It's free.

Register here: https://bit.ly/3Ji7nx6

SBA Celebrates Women's History Month SBA’s Elevating Small Business Series Webinar: Celebrate Women’s History Month with the U.S. Small Business Administration

Though this might be the opposite of spring cleaning, it's something you should consider putting on your to-do list:

Log on to your online banking and download your monthly statements for the past year (or however long it's been since you last did so).

The bank won't keep these records forever, but they are something you should have.

The rising trend of paperless statements means you likely don't have a bulging file cabinet at home with papers from the bank, but that doesn't mean you won't need these records.

(And of course, be sure to back up those records on an additional external hard drive.)

It's time to start thinking about a business savings account. When you can cover your payroll and keep the lights on, this additional account allows you to stash extra money for expansion and other long-term moves.

Think of it as a way to invest in your own company that comes in handy if you’d prefer not to take out an expensive loan.

Typically, they yield more than personal savings accounts – but do come with the usual catches of fees, limited withdrawals, and minimum initial deposits and balances. Business savings accounts are especially popular with online banks.

Tip reporting deadline is today! If you accrued $20 or more in tips during the previous month, you'll need to report the amount to your employer.

As more and more companies are joining "Back-to-work" March, employee response is a mixed bag. Some can't wait to be back among co-workers and the bustle of a busy office. Others are dragging their feet as they've come to enjoy the freedom of working from home.

Where do you stand?

Returning to the office, a moment of joy for some. Others, would rather stay home Many companies are calling employees back on-site now that the pandemic is winding down. They're also being flexible to keep workers who appreciate the comforts and conveniences of working from home.

Time is flying by, and you have less than 5 weeks until your tax return is due. Though we're busy, we can still make space in our schedule for you -- but please do contact us soon.

Did you know about the expansions to the Earned Income Tax Credit for 2021?

Here are some highlights from the IRS's recent fact sheet release on the EITC:
- Available to individuals who have earned income of less than $21,430 qualify (spouses filing jointly with less than $27,380)
- No age limit caps
- Maximum amount increase to $1,502 to filers with non-qualifying children
- Can calculate with 2019 income if higher than 2021 income

IRS Issues Questions and Answers about the Tax Year 2021 Earned Income Tax Credit | Internal Revenue Service FS-2022-14, March 2022 — This Fact Sheet provides frequently asked questions (FAQs) for Tax Year 2021 Earned Income Tax Credit. More people without children now qualify for the Earned Income Tax Credit (EITC), the federal government's largest refundable tax credit for low- to moderate-income famil...

Increasing prices is an inevitability in business (if you want it to keep growing, that is), and businesses across the board are being forced to do it right now - thank you supply chain shortages, reduced labor, raw supply cost increases, rising inflation.

The key many business owners have found to getting customers on board with the increases? Honesty.

As Prices Rise, Brands Find Friendly Ways to Share Bad News Brands are choosing transparency to communicate price changes—and consumers are still buying

Well, it's officially March. Which camp are you in right now?

1) Sharpening your pencil in preparation for your office bracket competition 🏀
2) Realizing you only have 6 weeks until your taxes are due (or 2 weeks for some businesses) 😳

We're here to help. With the taxes, that is. But good luck with your bracket. 😉

Last week the IRS rolled out some changes to the K2 & K3 schedules to make 2021 reporting easier for certain domestic partnerships and S corporations.

There's also an additional exception available (with some qualifiers).

Read for more info: https://pwc.to/3IBnoy4

IRS finalizes international reporting Schedules K-2 and K-3 for pass-throughs, but provides transition relief The IRS has released final versions of Schedule K-2/K-3 forms that should be added to the tax returns of pass-through entities for tax years beginning in 2021

In the days when it seems like people are being split so easily by their differences (and a lot by outside forces), it's helpful to remember that we have more commonalities than we think. As we reach to understand our similarities, may those join us together in difficult times.

Before I talk about preparing for your tax appointment, let's first make sure you've got an appointment scheduled. Haven't had a chance yet? You'll want to jump on that ASAP - our calendar is nearly full!

Now, for those with an appointment coming up, there are a few things you can do to make things go quickly and smoothly including:

- Identify what paperwork you'll need to bring to your appointment
- Gather all the appropriate documents and either submit them electronically (24 hours in advance) or print them out and bring them with you.
- Review last year's documents to be sure you're not missing anything

Doing these few things in advance will ensure a timely and efficient filing appointment.

Tax scams abound and can look like anything from unemployment fraud to email phishing to text message scams about stimulus payments to threatening messages from the "IRS" about money owed.

Whatever form they come in, the one measure you can take is to prioritize securing your digital presence and online information.

Another way to combat scams is to familiarize yourself with the known ones, so take a few minutes to check out this year's list of scams to watch out for.

Tax Scams / Consumer Alerts | Internal Revenue Service Don't fall victim to tax scams. Learn how to spot a scam and what to do.

It's Black History Month, and we want to honor the African American entrepreneurs and influencers who have made great strides ahead for all of us.

UNICEF USA BrandVoice: Black History Month And The Power Of Remembrance UNICEF USA works with many Diaspora and Multicultural partners, our fellow champions for children in the U.S. and globally. For Black History Month, we pause to honor these partners and look forward to future collaborations.

Rather than asking "Is this expense deductible?" (the answer to which is often NO), start asking "How can I turn this expense into a deduction?"

Uncovering hidden deductions isn't about spending money on things to get a tax break. There's not a lot of money to be had there. What it really looks like is examining where you're already spending money and then turning it into something that works for you.

Are your money and time spent regularly on something outside the scope of your business that could actually be turned into a legitimate business venture? It might be time to consider turning that "play" into a lucrative work endeavor that not only brings in a profit but also means tax breaks for you.

We'd be glad to look things over for you and give you insight on where to begin.

America Saves Week is here and today's focus -- Saving for the Unexpected -- is something we should all be thinking about post-pandemic. Because if we learned anything from the past two years, it's that things can change suddenly and with little warning.

If you want some resources on how to achieve financial stability, tips on how to start saving and reach financial goals, and other helpful information for your savings journey, hop on over to the America Saves Week website.

America Saves Week | America Saves Since 2007 America Saves Week has been an annual celebration as well as a call to action for everyday Americans to commit to saving successfully. Through the support of thousands of participating organizations, together we encourage individuals to do a financial check-in that allows them to get a cl...