News & Tax Tips

Tax & News Tips Fall 2022

Tax & News Tips Mid Year 2022


News Updates from the Team @ Breedlove & Co., P.C.

2022 Mileage Logs

Please keep your mileage logs for 2022. If you are a sole proprietor or have a disregarded entity and claim miles on your Schedule C you will be asked to provide a mileage log documenting total miles driven for the year, as well as, providing business miles from January 1 through June 30, and from July 1 through December 31. The rate changed mid-year so having the proper documentation regarding why the business mileage was incurred, for what purpose, when it occurred, and how many miles were driven is not only important, but required by law in order to claim the deduction. Keeping good business records is essential to good business.

 

Going Paperless

Electronic delivery of documents is still preferred. We will provide you with an electronic copy of work completed such as tax returns. We prefer to go as paperless as possible. We hope to save a tree or two.

You may provide your documents electronically through one of the following methods:

1 – Scan and upload copies of your tax, or other relevant, documents to your secured personal Sharefile folder.  Please click here to login and access your folder.  If you have not activated or accessed your Sharefile recently you may need to reset your password. Look for the “forgot password” link. Once logged in, you may need to click on the shared folder icon before you will see your folder. If you are having difficulty, please contact us for assistance. Please note that sometimes emails from this service may go directly to your junk or spam folder, so be sure to check these.

2 – Scan and password protect your documents, attach to an email, and send them to us.  Please be sure to call the office to advise us of the password.  For your protection and safety, please do not send your password in the email with your documents.

Please feel free to follow up with an email when you have uploaded documents to Sharefile to confirm we have received them.

When available, work to review will be uploaded into Sharefile and sent through RightSignature for electronic signatures.

In person meetings are limited.

If you require a meeting, to protect our staff, we do ask that you do not schedule a meeting if you have traveled in the last two weeks, been exposed to the Coronavirus, or if you have been sick or are experiencing symptoms. Our staff is limited and we wish to be able to remain available to all our clients.

 

Here are some things people should know about the new IRS Tax Withholding Estimator

Taxpayers who haven’t yet checked their withholding this year should do so ASAP. All taxpayers can do this by using the new mobile-friendly Tax Withholding Estimator. This new tool can be used by workers, as well as retirees, self-employed individuals and other taxpayers. It’s a user-friendly step-by-step tool to help taxpayers effectively adjust the amount of income tax they have withheld from wages and pension payments. This helps them make sure that they are paying the right amount of tax as they earn it throughout the year.

Here are some things people should know about the new tool:

  • Using the tool to do a Paycheck Checkup can help taxpayers avoid an unexpected year-end tax bill and possibly a penalty when they file their 2019 tax return next year.
  • The new tool allows taxpayers to separately enter pensions and other sources of income. Taxpayers who receive pension income can use the results from the estimator to complete a Form W-4P. They then give this form to their payer.
  • It’s important for anyone who had an unexpected tax bill or a penalty when they filed this year to do a checkup.
  • It’s also an important step for those who made withholding adjustments in 2018 or had a major life change.
  • The new Tax Withholding Estimator makes it easier to enter wages and withholding for each job held by the taxpayer and their spouse.
  • At the end of the process, the tool makes specific withholding recommendations for each job and spouse. It also clearly explains what the taxpayer should do next.
  • Those most likely to owe tax because they’ve had too little tax withheld include:
    • Those who itemized in the past but now take the increased standard deduction.
    • Two-wage-earner households.
    • Employees with nonwage sources of income.
    • Those with complex tax situations.