The Hiking CPA

I have a new video! This is the final in a series from Kilarney provincial park. This one is about being an employee vs being a contractor and the tax benefits of being a contractor and some pitfalls.

Enjoy!

Employee VS Contractor From the pristine waters of Lake Nelle in Kilarney Provincial Park in Ontario Canada comes the tax advice of whether you should be an employee or contractor ...

Another video! This one is about the teachers and assitants deduction that people can take and is coming from my great trip to Kilarney Provincial Park in Canada. If you know a teach be sure that they see this video. Hopefully they already know about this deduction.

https://youtu.be/imn3ddLL_5I

Until next time

Teachers Deduction - A Tax Aid Coming from Grace Lake in Kilarney Provincial Park in Ontario is a continuation of my journey with the canoe. What a breath of fresh air.Starting at 1:22, in...

I have another Hiking CPA post

This one I discuss the Earned income tax credit what it is and who may qualify along with the Child tax credit.

This also comes from a canoe adventure in Killarney Provincial Park in Ontario Canada.

See my youtube video below:

https://youtu.be/8JDFAuLxPG4

EIC & CTC Made with Clipchamp 2 Today I am at Killarney Provincial Park in Ontario Canada!!! Ohhh Canadaaaa.This episodes covers two reasons to file your taxes even if you owe nothing.1) Th...

Educators Expenses:

Upto $300 for unreimbursed expenses.

Here are some of the expenses an educator can deduct:

Professional development course fees
Books and supplies
COVID-19 protective items to stop the spread of the disease in the classroom
Computer equipment, including related software and services
Other equipment and materials used in the classroom

IRS: Truckers need to file by August 31 deadline, e-file encouraged

WASHINGTON — The Internal Revenue Service today is reminding those who have registered, or are required to register, large trucks and buses that it’s time to file Form 2290, Heavy Highway Vehicle Use Tax Return. The IRS strongly encourages using e-file and filing before the payment deadline of Aug. 31, 2022, for vehicles first used in July 2022.

Truckers that have a highway motor vehicle with a taxable gross weight of 55,000 pounds or more registered in their name must file Form 2290 and pay the tax. However, on vehicles they expect to use for 5,000 miles or less (7,500 for farm vehicles), they’re required to file a return, but pay no tax. If the vehicle exceeds the mileage use limit during the tax period, the tax becomes due.

The filing deadline is not tied to the vehicle registration date. Taxpayers must file Form 2290 by the last day of the month following the month in which the taxpayer first used the vehicle on a public highway during the taxable period, regardless of the vehicle’s registration renewal date.

Taking care of a tax to-do list is a snap with the IRS2Go app

The IRS2Go app helps people find IRS tools and resources faster and with less scrolling. Taxpayers can use the IRS2Go app on their phone or mobile device to check their refund status, find tax help and more. Here are some things people can do with the app:

Check refund status
People can check the status of their federal income tax refund. The refund status is available within 24 hours after the IRS receives an e-filed return, or about four weeks after receiving a paper return in the mail.

Access IRS Free File
People can use IRS2Go to access IRS Free File from their phone. IRS Free File tax preparation software is available to taxpayers whose 2021 total adjusted gross income was $73,000 or less.

Find payment options
Taxpayers can access mobile-friendly payment options like IRS Direct Pay, a free, secure way to pay directly from a bank account. They can also make a credit or debit card payment through an approved payment processor.

Get tax help fast
If a taxpayer needs help, they can use IRS2Go to find a local Volunteer Income Tax Assistance or Tax Counseling for the Elderly site to receive free tax help. These programs are available to taxpayers who qualify.

Stay up to date
Taxpayers can follow the IRS on the agency’s verified social media accounts and sign-up for e-news subscriptions.

Reminder that taxpayers shouldn’t wait to file
Taxpayers who have yet to file their 2021 tax return – including those who requested an extension of time – shouldn’t wait to file a complete and accurate return electronically. There's no need to wait until the October deadline.

Business Travel:

Deductible travel expenses while away from home include the costs of:

• Travel by airplane, train, bus or car between your home and your business destination.
• Fares for taxis or other types of transportation between an airport or train station to a hotel, from a hotel to a work location.
• Shipping of baggage and sample or display material between regular and temporary work locations.
• Using a personally owned car for business which can include an increase in mileage rates.
• Lodging and non-entertainment-related meals.
• Dry cleaning and laundry.
• Business calls and communication.
• Tips paid for services related to any of these expenses.
• Other similar ordinary and necessary expenses related to the business travel.

Self-employed or farmers with travel deductions

• Those who are self-employed can deduct travel expenses on Schedule C ,Form 1040, Profit or Loss From Business, Sole Proprietorship.
• Farmers can use Schedule F, Form 1040, Profit or Loss From Farming.

I published another video this one about the CT child tax "rebate" refund. Be sure to sign up for this special rebate and claim your refund of $250 pet child up to $750. Starting today you can sign in and claim the rebate.

https://youtu.be/06DvBTJk9iw

IMPORTANT CT Child Tax Rebate 2022 I am hiking at the Saugatuck Trails starting at 41.28688452889367, -73.38500107040186 the "Saugatuck Universal Access Trail". This I would rate at about a 3....

There are different kinds of tax return preparers, and a taxpayer's needs will determine which kind of preparer is best for them.

Here are some things taxpayers should do when choosing a tax return preparer

• Check the IRS Directory of Federal Tax Return Preparers. This searchable and sortable public directory helps taxpayers find a tax return preparer with specific qualifications

• Check the preparer's history with the Better Business Bureau. Taxpayers should check for any disciplinary actions for credentialed tax return preparers. For CPAs, check with the State Board of Accountancy. For attorneys, check with the State Bar Association. For enrolled agents, verify the agent's status on IRS.gov.

• Ask about fees. Taxpayers should avoid tax return preparers who base their fees on a percentage of the refund or who offer to deposit all or part of the refund into their own financial accounts. They should be wary of tax return preparers who claim they can get larger refunds than their competitors.

• Ask if the preparer plans to use IRS e-file. Taxpayers should make sure their preparer offers IRS e-file. The IRS issues most refunds in fewer than 21 days for taxpayers who file electronically and choose direct deposit.

• Make sure the preparer is available. Taxpayers should consider whether the tax return preparer will be around after the filing deadline has passed. Taxpayers should do this because they might need the preparer to answer questions about the preparation of the tax return. Avoid fly-by-night preparers.

• Ensure the preparer signs and includes their preparer tax identification number. All aid tax return preparers must have a PTIN to prepare tax returns. Preparers must sign returns and include their PTIN.

• Understand the preparer's credentials. Enrolled agents, CPAs, and attorneys have unlimited practice rights and can represent taxpayers on any tax matter before the IRS. Tax return preparers who participate in the IRS Annual Filing Season Program have limited practice rights and may only represent taxpayers whose returns they prepared and signed, and only for exams and for customer service and Taxpayer Advocate Service inquiries.

Internal Revenue Service | An official website of the United States government Pay your taxes. Get your refund status. Find IRS forms and answers to tax questions. We help you understand and meet your federal tax responsibilities.

Seven common myths about tax refunds:

Myth 1: Calling the IRS or visiting an IRS office speeds up a refund
Many taxpayers mistakenly believe the commonly held myth that speaking with the IRS by phone or visiting in-person at an IRS Taxpayer Assistance Center will expedite their tax refund. The best way to check the status of a refund is online through the “Where’s My Refund?” tool at IRS.gov or via the IRS2Go mobile app. Alternatively, those without internet access can reach “Where’s My Refund?” by calling the automated refund hotline at 800-829-1954. IRS Taxpayer Assistance Centers operate by appointment and inquiring about a tax refund’s status does not expedite the process.

Myth 2: Taxpayers need to wait for their 2020 return to be processed before filing their 2021 return, or that all refunds are delayed due to the number of 2020 returns the IRS still needs to process.
The reality is that taxpayers generally will not need to wait for their 2020 return to be fully processed to file their 2021 tax returns. They should file when they’re ready. People with unprocessed 2020 tax returns, should enter $0 (zero dollars) for last year's AGI on their 2021 tax return when electronically filing.

Myth 3: Taxpayers can get a refund date by ordering a tax transcript
Ordering a tax transcript will not inform taxpayers of the timing of their tax refund, nor will it speed up a refund being processed. Taxpayers can use a transcript to validate past income and tax filing status for mortgage, student and small business loan applications and to help with tax preparation. But the “Where’s My Refund?” tool is the fastest and most accurate way to check the status of a refund.

Myth 4: “Where’s My Refund?” must be wrong because there’s no deposit date yet
While the IRS issues most refunds in less than 21 days, it’s possible a refund may take longer for a variety of reasons, including when a return is incomplete or needs further review. Delays can be caused by simple errors like an incomplete return, transposed numbers or when a tax return is affected by identity theft or fraud. The “https://www.irs.gov/refunds” tool only updates data once a day – usually overnight.

Myth 5: “Where’s My Refund?” must be wrong because a refund amount is less than expected
Different factors can cause a tax refund to be larger or smaller than expected. Situations that may decrease a refund can include corrections to any Recovery Rebate Credit or Child Tax Credit amounts, delinquent federal taxes or state taxes and past due child support. The IRS will mail the taxpayer a letter of explanation if these adjustments are made. The Department of Treasury's Bureau of the Fiscal Service may also send a letter if all or part of a taxpayer’s refund was used to pay certain financial obligations.

Myth 6: Calling a tax professional will provide a better refund date
Contacting a tax professional will not speed up a refund. Tax professionals cannot move up a refund date nor do they have access to any "special" information that will provide a more accurate refund date. The “Where’s My Refund?” tool provides taxpayers with the same accurate and timely information that a tax professional, or even an IRS telephone assistor can access.

Myth 7: Getting a refund this year means there's no need to adjust tax withholding for 2022
Taxpayers should continually check their withholding and adjust accordingly. Adjusting tax withholding with an employer is easy, and using the Tax Withholding Estimator tool can help taxpayers determine if they are withholding the right amount from their paycheck. Taxpayers who experience a life event like marriage or divorce, childbirth, an adoption, home purchase or major income change are encouraged to check their withholding. Withholding takes place throughout the year, so it's better to take this step as soon as possible.

Internal Revenue Service | An official website of the United States government Pay your taxes. Get your refund status. Find IRS forms and answers to tax questions. We help you understand and meet your federal tax responsibilities.

For all our CT followers: There will be a state sales tax holiday (no sales tax included on purchases) from April 10 to April 16 on clothing and footwear under $100.

Friendly tax reminders from your friend the hiking CPA.

Remember to pay your quarterly estimate due on January 18 if your tend to under pay your taxes and much more for the smal business employer.

Also, keep all your tax documents in one place either in a digital folder or in an actual folder and provide to your tax accountant once you have all the files.

Until next time...Happy Trails!

https://youtu.be/TGzWao7PdIo

Key filing season dates
There are several important dates taxpayers should keep in mind for this year's filing season:

January 14: IRS Free File opens. Taxpayers can begin filing returns through IRS Free File partners; tax returns will be transmitted to the IRS starting January 24. Tax software companies also are accepting tax filings in advance.
January 18: Due date for tax year 2021 fourth quarter estimated tax payment.
January 24: IRS begins 2022 tax season. Individual 2021 tax returns begin being accepted and processing begins
January 28: Earned Income Tax Credit Awareness Day to raise awareness of valuable tax credits available to many people – including the option to use prior-year income to qualify.
April 18: Due date to file 2021 tax return or request extension and pay tax owed due to Emancipation Day holiday in Washington, D.C., even for those who live outside the area.
April 19: Due date to file 2021 tax return or request extension and pay tax owed for those who live in MA or ME due to Patriots’ Day holiday
October 17: Due date to file for those requesting an extension on their 2021 tax returns

This is my most recent video...let's do some tax planning together and save.

https://youtu.be/GnmCJ6ksY-o

2021 Tax Planning Tips Today I am discussing tax planning tips for the year end of 2021. NOW is the time to act to save money. It will be nearly impossible to save after the close ...

Beginning on Jan. 1, 2022, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:



58.5 cents per mile driven for business use, up 2.5 cents from the rate for 2021,
18 cents per mile driven for medical, or moving purposes for qualified active-duty members of the Armed Forces, up 2 cents from the rate for 2021 and
14 cents per mile driven in service of charitable organizations; the rate is set by statute and remains unchanged from 2021.


The standard mileage rate for business use is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs.

For anyone who wants extra protection for taxes the IRS has a PIN system that can help deter tax fraud.

From IRS:
WASHINGTON – As part of a wider effort to increase security, the Internal Revenue Service today reminded taxpayers they can get extra protection starting in January by joining the agency’s Identity Protection Personal Identification Number (IP PIN) program.

Anyone who can verify their identity can protect themselves against tax-related identity theft by opting into the IP PIN program. More than 5.1 million taxpayers are now participating in the IP PIN program, enabling them to proactively protect themselves against identity theft. The IRS has made recent changes to the program to make it easier for more taxpayers to join. The fastest and easiest way to receive an IP Pin is by using the Get an IP PIN tool.

For Year End Tax Planning keep your charitable donations in mind.

A temporary law change now permits taxpayers to claim a limited deduction on their 2021 federal income tax returns for cash contributions made to qualifying charitable organizations.

To receive a deduction, taxpayers must donate to a qualified charity. To check the status of a charity, they can use the IRS Tax Exempt Organization Search tool

My wife sent this article over to me and since I am working from my home office I will be taking sometime later today to post a video about this.

In brief, if you get one of these 1099's don't ignore it...the IRS won't ignore them and you will receive a surprise tax notice if you do. Will describe in my video one way to handle it.

https://www.cnn.com/2021/11/09/success/payment-app-tax-reporting-feseries/index.html

If you use Venmo, PayPal or other payment apps this tax rule change may affect you If you're among the millions of people who use payment apps like PayPal, Venmo, Square, and other third-party electronic payment networks, you could be affected by a tax reporting change that goes into effect in January.

With a drum roll...🥁...here is my next video.

In this episode, I am visiting the Great Ledge in Redding, CT. Starting out by showing how to get to the trailhead from the parking.

Then, I jump into the Student Loan Repayment Benefit. Yup, an employer can offer to pay a portion of the student loans of their employees with a max benefit of $5,250 per year until Dec 31, 2025. This is potentially HUGE for those with student debt watch the video to find out more.

The employee section starts at about 9 min 30 sec.

The employer section starts around 3 min 30 sec.

Until next time...Happy trails.

https://youtu.be/LxxgqcQRRUQ

Employee Student Loan Repayment Benefit In this Hiking CPA episode, I start on a trail in Redding, CT call The Great Ledge trail just as the fall foliage is in full effect. The trail head is a bit ...

Next video coming soon. This will be on the $5,250 payment employer's can make towards an employees student loan. Will be wrapping up my research and planning my hike within the next few days. I put on this child carry pack and got that itch to go backpacking again. Love this new channel.

The journey has begun, I uploaded my first video to YouTube! It is about about child tax credit. Use the to find it. There will be many more in the weeks to come.

Quick summary, as a rule of thumb take the number of kids you have unde 17, multiply that by $2k and if your refund from last year wasess than that number then unenroll today.

See the video here:
https://m.youtube.com/watch?v=-2LfdcHSVCw&feature=youtu.be