A Thank You To Our Queens Clients For A Successful 2019 Tax Season

This has been one of the wildest tax seasons in recent memory. I saw a note from the IRS last Friday (the 12th) that as of that day, 50 million taxpayers had yet to file. LOTS of extensions happened out there, as all of the tax law changes caused a bunch of confusion.

It’s our hope that our Queens clients didn’t experience what so many software users and clients of other firms did — mass confusion and frustration. In fact, we heard from quite a few of our clients who were pleased by the process.

But we are, in fact, human. And we are, in fact, tired. But we are (in fact) not letting up.

You see, unlike some Queens tax and accounting professionals, we make it a point to do a bit more than simply “fill out forms” on your behalf. I’ll tell you more about that in a moment.

Because the loudest thing I want you to hear from this post is this: THANK YOU for your trust.

It is no small matter to place your family’s financials in front of another, and I know that for some it can bring with it some anxiety or discomfort. That’s why we work so hard to be people that you can trust to understand, to come alongside, to advise, and to help.

It’s why I make it a point to send you these strategy notes every week (even when we are slammed with work), and it’s why we work so hard to stay up-to-date on all of the latest tax code updates and regulatory changes that come like clockwork, every year. Especially this year.

We take your trust seriously. THANK YOU for it, and for your business.

But this work also brings with it a certain joy — because this past season, we got to see remarkable lives of generosity, love and integrity laid out before us with regularity. For some, this was reflected by their financial statements — and for others, this was displayed by the warmth, kindness and delight by which you communicated with us during this process.

So again, THANK YOU.

This much is clear to me: No matter the state of your financial life, nobody (not the IRS, not anyone) can take from you the strength derived from a life lived with gratitude and joy.

You’ve reminded us of that once again, this year. What a privilege it has been to serve you this 2019 tax season … and we look forward to years of service to come.

More thoughts to come soon, of course. As I said, we’re not letting up.

But for now, I’m taking a nap.

Warmly,

 

Salvatore Candela

(718) 894-1500

The TaxAdvocate Group, LLC

2018 Tax Extensions and Payment Options for Queens Taxpayers

Yep. This is the final week, and the personal filing deadline (April 15th) is *so* close.

It’s officially the final week of tax season — and we are working our tails off for you and our other Queens clients.

But I’m still taking the time to step away for a moment and write to you, my friend. And if you have all your papers in, and are waiting for our completion — fear not — my team is hard at work, as I type…

Oh, and if for some reason you haven’t done ANYTHING with your taxes yet, it’s actually not too late. More about that in a moment.

But first, there’s a lot of “business” in this note, so please make sure you read it all — it could make a huge difference. (Honestly, I much prefer writing the notes that are a little more “interesting”, but this is really crucial information.)

And you know what else would make a huge difference? If we heard from you. Would you leave us a review on Google or other online platforms for potential clients to see? We have found that these sources can be so helpful for people evaluating their options, and would love to have as much information there as possible. Thank you!

But yes — this is often our busiest week of the year (so please be understanding), and it’s also the week when we receive, with clockwork regularity, many questions about extensions and payment options.

But before I get to that: other deadlines that fall on April 15th this year:

1) Estimated taxes for the first quarter are due.

2) Want to open or contribute to an IRA or Roth IRA for 2018? Gotta get that done by Monday the 15th.

3) Final day to max out contributions for your 2018 HSA (Health Savings Account).

4) Claim any refund money from an unfiled 2015 return. (There is $1.4 BILLION in unclaimed refund money out there for that year — but only available if you didn’t file.)

5) Most states’ tax deadlines also fall on the 15th. (Exceptions – DE 4/30; HI 4/22; IA 4/30; LA 5/15; ME 4/17; MA 4/17; OK 4/20; SC 5/1; VA 5/1; any state with no income tax.)

Alright — let’s dive into my thoughts on extensions and payment options (if you aren’t able to pay your tax bill right away)…

2018 Tax Extensions and Payment Options for Queens Taxpayers

“If you spend too much time thinking about a thing, you’ll never get it done.” – Bruce Lee

As you know, this upcoming Monday, April 15th is the filing deadline for a federal tax return (except for you Maine and Massachusetts people — you get until the 17th). If you need more time to get your paperwork complete, you need to file (or have us file on your behalf) this form: http://www.irs.gov/pub/irs-pdf/f4868.pdf with the IRS by the end of the day on the 15th (the 17th for ME and MA residents). This gives you an automatic six-month (until October 15, 2019) extension of time to file. 

Here’s the deal: An “Extension of Time to File” is not an “Extension of Time to Pay”, unfortunately. The extension simply gives you an automatic six months of additional time to get your paperwork together and file that return. But, if you owe more than what you paid with your estimate, you’ll be accumulating penalties and interest on the difference — so PLEASE don’t take the entire six months to do this!

So, when filing your “Extension of Time to File”, you’ll need to estimate what you think you owe to the IRS. This should not be pulling numbers out of thin air (or other various body parts). You’ll still need to go through your receipts and tax documents and get them “somewhat” organized. 

From here, you can estimate both your income and your expenses, and then approximate what you owe Uncle Sam. Keep in mind that this is an ESTIMATE. Then you’ll have to pay what you estimate you owe at the time we file for the extension.

You can do this all electronically through our office, you can mail in the form WITH estimated payment (must be postmarked by the 15th), or you can call a specialized provider and pay by credit card. We can provide you with the appropriate number to call.

If you cannot pay your taxes due for some reason:

1) Pay as much as you possibly can right now.

2) You can ask for (and often receive) an extension of up to 120 days to PAY: https://www.irs.gov/taxtopics/tc202.html. It requires a phone call to the IRS. 🙁

3) “Financial hardship” delay: This is if paying your tax bill would demonstrably affect your ability to pay your other bills. Interest and penalties still accrue, but it’s better to register this with the IRS than to simply ignore the bill.

4) Installment payment plan: If you owe less than $50K in taxes, you should usually be able to get an installment payment plan of up to 72 months, simply by asking for it. If this is something you are considering, please let’s talk it over to make sure we come up with the best plan. But you can apply online for this here: https://www.irs.gov/Individuals/Online-Payment-Agreement-Application

5) Negotiate: This is NOT something to try on your own. We can help, but the number of “Offers in Compromise” that get accepted each year are quite small and a knowledge of how the system works is important.

6) Using existing credit sources (credit card, HELOC, private loans): Some tax advisors would quickly recommend this, but I would NOT recommend you go this route. If you’ve exhausted the options above, do this instead…

7) Sell something you don’t need anymore. Always a pretty good plan anyway.

That was a lot of information. I truly hope it is helpful.

But regardless, we’re in your corner.

Warmly,

 

Salvatore Candela

(718) 894-1500

The TaxAdvocate Group, LLC

An Under-Utilized Tax Break For Queens Taxpayers: Summer Day Camp

Okay, that’s a joke. We’re so busy with our client work, we can’t really enjoy the college basketball or the new baseball season, but at least we still have April Fools.

And yes, I know that day has already passed. More coffee please.

But speaking of things getting past us — are YOU procrastinating with your taxes?

If so, you’re not alone. The most recent IRS data we’ve seen as practitioners shows that overall, tax filing is slower than in recent years. The new tax laws, the earlier government shutdown, and lots of confusion out there has meant a lot of late-filers.

Perhaps that’s you? Or some of your Queens friends?

In fact, did you know that some tax firms (and “off the shelf” software companies) actually raise their prices on procrastinators? That’s not how I believe clients should be treated.

Now, speaking of things that are often missed…

An Under-Utilized Tax Break For Queens Taxpayers: Summer Day Camp

“Deep summer is when laziness finds respectability.” – Sam Keen

As our weather has finally (maybe?) turned toward spring, we know summer is right around the corner. I want to give you three ways you can look out for tax savings when it comes to summer day camps. Taking this information into account will help you plan your summer accordingly, as you think about signing your children up for this win-win opportunity.

Decisions, Decisions

Before we get to the tax part, a quick word on summer day camps.

You might have noticed I’m not saying just “summer camp”. Traditionally, overnight summer camps have been a fun experience for kids, but without a doubt, day camps have grown exponentially across the U.S. as they are often cheaper and more convenient.

If you are curious about summer day camps for your kids or grandkids, just Google “summer day camps in Queens (or your specific area)” and a plethora of options should come up for you to check out.

Summertime Taxes

Ready for the good news now (and something your parents might not have known)?

The Child and Dependent Care tax credit directly applies to summer day camp costs. The tax credit covers up to $3,000 for one child and $6,000 for two or more.

However, you won’t see a tax break for the exact same amounts you pay. Why? The tax credit you receive will merely be a percentage based on your annual income. There is some math involved, and this outline via IRS.gov will help on the technical side of things, but let me throw something else your way:

The summer is a great time for us to schedule our first meeting related to your 2019 taxes. I would love to help you approach tax season next year with more confidence than ever before. As this tax season winds down, please reach out and give me a call. Some of these tax credits (like the Child and Dependent Care credit), the math and legal terminology can be confusing. But that’s why I want to help.

Right here: (718) 894-1500

Now, while the kids are away, make sure some cash can stay.

Worthy To Note

Lastly, it’s important to note this summer day camp tax break only applies to children under 13 years old. The child also needs to be considered your dependent. And remember the break won’t count towards overnight camps, only the growing-in-popularity day camps like we mentioned before.

As you gear up for seasonal sunshine and kids running rampant, know there is some cash (and sanity?) you could save … all you need to do is send your kids to day camp and give me a call.

And don’t forget the sunscreen.

Warmly,

 

Salvatore Candela

(718) 894-1500

The TaxAdvocate Group, LLC

Salvatore Candela’s Under-Utilized Pet Tax Deductions

Apparently, there are some politics things happening these days.

But even more apparently, the tax deadline is three weeks away.

Politics? As the young people say, ain’t nobody got time for that.

But you know what we DO have time for? Saving you a boatload on your taxes, and finding creative ways to do that, even if you don’t think about it.

I have an example for you today, but before I get there, allow me also to inform you that there is currently $1.4 billion (yes that’s with a B) in unclaimed tax refunds sitting on Uncle Sam’s books right now from 2015. If you somehow didn’t file a tax return in 2015 (or maybe you did, and you just … aren’t quite sure it was done right), well, we’re right here. Let’s help you get what is rightly YOURS.

It’s what we’re here for.

And you know what we’re also here for? Creative tax deductions. You “pet”cha

Salvatore Candela’s Under-Utilized Pet Tax Deductions

“The better I get to know men, the more I find myself loving dogs.” – Charles de Gaulle

I’m going to dip into the “something you don’t hear every day” file with an interesting bit of information: our pets can save us some serious cash.

Well, it may not be serious cash in terms of a massive amount, but I am serious about this interesting set of pet tax deductions.

Here are a few ways a pet could save you, or someone you know, money in the future. Man’s best friend just got friendlier…

Medical-Related Expenses

Many Queens individuals have been diagnosed with a physical or mental condition that requires a trained therapy animal.

I’m here to tell you a therapy animal can be counted as an itemized medical expense.

However, I’ll reiterate … this is only the case if your doctor has prescribed you one of these therapy animals. No matter how comforting it is to get home and snuggle with your dog after a long day at work, that’s not the kind of thing that qualifies.

The write-offs mostly pertain to food, veterinary bills, training and grooming.

On Guard

If you have a guard dog that looks over your Queens business after-hours, you might be eligible to write off similar expenses (food, vet, training, etc.) for a job well done.

I say “might be eligible” because it’s important you take notes of the hours your dog works on a weekly basis.

But the IRS might call you to question when they realize that your “guard dog” is your Corgi lounging around the office. Make sure, if you are going to go through the effort of keeping solid records for your guard dog, that it’s actually a guard dog.

Fostering Hope

Here is something you might not know about in the first place: there is a need out there for fostering animals while shelters find long-term homes for a pet.

This is certainly a noble cause, especially if you already have pets of your own. And write-offs accompany your effort to find those pets a permanent place. Again, it’s important you keep scrupulous notes and documentation about what you spend on your foster pets before you apply for a charitable deduction.

Of course, any pet-owner will tell you that pets are certainly more than tax write-offs. And hopefully you are now aware of one more way they help us out.

All the more reason to treat our animals well. They clearly care for us.

Warmly,

 

Salvatore Candela

(718) 894-1500

The TaxAdvocate Group, LLC

How Queens Taxpayers Can Support The Alabama Disaster Relief Effort

The college hoops brackets are set, and the madness begins. And, per the American Gaming Association, 47 million of us will be wagering $8.5 BILLION on this event.

Which, of course, means that my mind immediately goes here.

You see, we’ve already been knee-deep in our own version of March madness over here at Team The TaxAdvocate Group, LLC, and we don’t really have much time for basketball because, well … you probably understand.

With all of the changes this year, we’ve noticed a marked increase in procrastination. Which means that we are very busy, even during a time that is sometimes a calm before the April storm. But we still have a few slots open in the next couple weeks, so … we’ve set aside some capacity for friends and family of our Queens clients.

Now, with the news from New Zealand over the weekend, the world is rightly reeling. It’s a reminder that pain and disaster can strike any time, any place. And, as a result, you also might have forgotten about what happened in Alabama and Georgia just over two weeks ago. So many terrible things seem to happen over and over that we can get numb to it all.

But I don’t want to live that way, and I bet you don’t either. So I have some thoughts today.

How Queens Taxpayers Can Support The Alabama Disaster Relief Effort

“There is no exercise better for the heart than reaching down and lifting people up.” -John Holmes

Over the last year, we have seen all sorts of natural disasters plague our nation. And anytime possible, I want to help you help others in need. From wildfires to floods to tornadoes … life is sadly full of devastating surprises.

Currently, the community of Lee County, Alabama is literally in shambles after tornadoes ripped through their towns and killed 23 individuals in early March.

Before I get to how you can help their community, please know that if you, or any friend or family member, is ever personally affected by a natural disaster, I will be here to walk you through pertinent tax questions related to your losses. There is a great IRS resource page which helps walk victims through tax-related issues following recent disasters. Tuck this info away for a day I hope never happens to you.

The IRS has already helped residents of the affected Alabama areas by pushing back their tax deadline to July 31st. Until this community can get their feet back beneath them, and towns cleaned of debris, here are a few ways you can help…

If you donate using this link to the American Red Cross, your contribution will go towards disaster relief and help communities across the country who are rebuilding from rubble.

If you want to keep your efforts focused solely on the areas affected by the recent tornadoes, the American Red Cross of East Alabama will help provide food and shelter for hurting victims.

When you donate to the Community Foundation of East Alabama, 100% of your donation will go toward families in need. The Salvation Army is providing a way for you to assist through “food and drinks, cleaning supplies and other essential commodities, financial assistance to disaster survivors, long-term recovery assistance programs including repair and reconstruction projects, or to support disaster relief workers serving in impacted communities”.

When you donate, are those contributions tax-deductible? Yes. But more importantly, when debating over giving to these organizations, know the day may come where you or someone you know is impacted by a natural disaster. It’s times like these when we realize we’re all in this together.

If you have any questions about the tax ramifications following a natural disaster, please give me a call so I can walk you through the options available.

I’m in your corner. Now go let hundreds of strangers know you’re in theirs.

Warmly,

 

Salvatore Candela

(718) 894-1500

The TaxAdvocate Group, LLC

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