Our Financial Blog
The IRS Backlog is Causing Taxpayer Heartburn
Before the COVID-19 pandemic, the IRS was getting refunds out swiftly and responded to calls and correspondence in a reasonable amount of time. However, COVID-19 brought about a perfect storm of delays, initially caused by employees having to stay home because...
Filing as Married Separate? Better Read This!
Married taxpayers have two options when filing their 1040 or 1040-SR tax returns. The first and most frequently used filing status is married filing joint (MFJ), where the incomes and allowable expenses of both spouses are combined and reported on one tax return. The...
Virginia’s New Electronic Payment Requirement for Some Individual Income Taxpayers
Following an amendment to legislation approved by the Virginia General Assembly, some taxpayers may now be affected by a new requirement for certain tax payments. Effective for taxable years beginning on or after January 1, 2021, taxpayers who make estimated tax...
Minimizing Tax on Social Security Benefits
Whether your Social Security benefits are taxable (and, if so, the amount that is taxed) depends on a number of issues. The following facts will help you understand the taxability of your Social Security benefits. For this discussion, the term “Social Security...
Small Businesses: Here’s How the U.S. Supreme Court Wayfair Decision Affects You
If you are a small business owner, chances are good you’re paying more attention to your accounts receivables and deliverables than to a three-year-old Supreme Court decision. But knowing what happened in the Wayfair decision on June 21st of 2018 is important if you...
What You Need to Know About the IRS & Tax Audits
The IRS has long been a bogeyman for the American public, and there’s good reason for that. They have the unique ability to do what few other creditors can: taking your home and selling it out from under you. Still, despite its remarkable powers, fear has created...
The Story Behind Method CPA
Learn how a passion for business at an early age resulted in a thriving accounting & consulting firm that is eager to help small businesses move forward with making smart financial and business decisions. https://www.youtube.com/watch?v=Fk91KosDiQA
Higher Income Individuals Beware
The House Ways and Means Committee has released an extensive list of proposed tax changes that impact individual, retirement, international and corporate tax law. We have been selective and have only included a portion of the proposed changes. A full list of proposed...
Should You Get an IRS Identity Protection PIN?
An Identity Protection PIN (IP PIN) is a six-digit number assigned to eligible taxpayers by the IRS to help prevent the misuse of their Social Security number by ID thieves to file fraudulent federal income tax returns. The IP PIN aids IRS in verifying a taxpayer's...
Employment Opportunities
Method CPA is currently seeking to add top notch individuals to their Accounting team! If you are an experienced Bookkeeper or Certified Public Accountant and are looking for a new employment opportunity, please check out our job postings for additional details. CPA:...
Day Care Providers Enjoy Special Tax Benefits
A taxpayer who is in the business of providing family day care in their home may deduct the ordinary and necessary expenses of their business. The two primary deductions include the business use of their home and the cost of providing meals and snacks to children in...
Sole Proprietorships – Don’t Overlook the Liability Issues
If you are considering starting a business, the simplest and least expensive form of business is a sole proprietorship. A sole proprietorship is a one-person business that reports its income directly on the individual’s personal tax return (Form 1040) using a Schedule...
Tax Deductions Related to Charity Auctions
It is common practice for charities to hold auction events where attendees will bid upon and purchase items. The questions often arise whether (1) the money spent on the items purchased constitutes a charitable donation and (2) what kind of charitable deduction the...
Relocating? How to Do It with Taxes in Mind
If you’re thinking about moving from your current locale, you’re not alone. Americans are on the move for many different reasons: Remote work is increasingly popular and allows employees to live wherever they have access to WiFi, while tax changes introduced by the...
Tax Issues Related to Renting Your Vacation Home
Do you own a second home at the beach, in the mountains, or some other getaway location, or are you thinking about buying one? If so, then you may have thought about the possibility of renting it out. Though many people would never consider inviting renters into their...
Taxes and Divorce
If you are recently divorced or are contemplating divorce, you will have to deal with or plan for significant tax issues such as asset division, alimony, and tax-return filing status. If you have children, additional issues include child support; claiming of the...
Restaurants and Businesses Benefit from Temporary Tax Break
Congress has provided businesses with a temporary tax break as a means of helping the restaurant industry, which has been devastated by the COVID pandemic. Although the Tax Cuts and Jobs Act eliminated the business deduction for entertainment, it continued to allow a...
Raising Capital for Your Startup: The Basics
Creating a successful business requires a good idea combined with skill, talent, and ambition. But even if you have all of those elements, you may end up falling short if you can’t raise the capital that you need to move forward. No entrepreneur wants to think about...
IRS Unveils Online Tool to Register for Monthly Child Tax Credit Payments
Congress has made substantial changes to the child tax credit (CTC) for 2021. The CTC has been increased to as much as $3,000 per child ages 6 through 17 at the end of 2021, and$3,600 per child age 5 and under at the end of 2021. For taxpayers who have their main...
Advance Child Credit Payment Online Tools
We highly recommend that our clients with children who might receive these funds, unenroll from receiving the monthly payments. Tax projections made during the preparation of the 2020 tax return already took into account the child tax credit in the calculation....