QBS Tax Services

2020 brought many businesses into an even more digital approach to running their businesses. But it wasn't just necessity that incentivized this shift. One study, by Nucleus Research, found that small businesses that go paperless see a return of more than $8 in cost savings for each $1 they spend on digitization. That adds up in a hurry. Other studies have shown that paper creates more data breach risks than being digital. In large companies, paper records account for nearly ...2/3 of all data breaches, according to the US Department of Health and Human Services. So how do you start going paperless? To start with, consider the low-hanging fruit: - Start sending invoices to customers by email. - Use electronic funds transfers in lieu of checks. - Use cloud-based document sharing services within the office. - Use software to set employee schedules and replace the old time clock. What other methods have you found to be effective in your business?

For 2021, you may be eligible to claim as much as $16,000 in qualifying dependent care expenses that you pay in order to go to work. This can yield as much as an $8,000 tax credit -- subject to a bunch of rules and limitations, of course. So if you pay child or dependent care expenses that are directly related to your ability to be employed, let’s have a discussion about helping you max out this valuable tax credit.

According to multiple sources, as well as our oh-too-personal experience, the IRS has run at a limited capacity during 2020, and even into 2021, which has caused a major backlog in its ability to process tax returns and send out stimulus checks. Although the IRS is now running at an increased capacity and processing mail, tax returns, payments, refunds and correspondence ... the pandemic continues to cause delays in many services. The IRS said it's issuing most refunds "in le...ss than 21 days", but many are taking longer. Some 2020 returns require review -- such as determining recovery rebate credits, amounts for the first and second stimulus checks or figuring earned income tax credit and additional child tax credit amounts. We have seen refunds taking longer even when this is NOT the case. You can always track your refund status by going here... https://bit.ly/3x6ARHT

Some of the new Child Tax Credits will come in the form of advance payments, via direct deposit or paper check. Taxpayers can expect to receive up to $300/month per qualifying child on July 15, August 13, September 15, October 15, November 15 and December 15. The remainder of the credit can be claimed on 2021 tax returns.

Did you know that the federal government taxes crypto like property? Yep, they look at it the same way they look at houses, cars, paintings, baseball cards... So, say you buy "bitcoin" (or any other kind of cryptocurrency) today for $10K, sell it in December for $30K, take some transaction costs (something like 10%) into consideration, and you’ve made a pretty $17K profit in 2021. Now, it's time to pay the capital gains tax on it. And since you held the "bitcoin" for less tha...n 12 months, your capital gains tax is going to be the same as your normal income tax rate. Something to keep in mind while you're out there trading and selling in the volatile world of crypto markets.

We want to encourage struggling businesses out there. Almost every successful business owner we know has crashed and burned at least once in their career. Entrepreneurs know that hard work and a great idea don't guarantee success. In this season, but really in every season. Keep going. Try again.

The plethora of new tax breaks and credits from the two big COVID relief bills are not automatically applied to your taxes. You have to know about them and apply the appropriate information and forms to your return manually. Yet another reason to confer with a professional who can help you do that. It works that way for back taxes as well. If you don't know your options and how to utilize them, you're out of luck.

A new benefit from the newest stimulus package... The $300 ($600 for joint returns) above-the-line charitable giving deduction for all taxpayers, whether they itemize or not, has been extended through the end of 2021. Corporations will also be allowed to deduct up to 25% of their taxable income for charitable contributions, which is an increase from the normal 10% allowed.

Have you heard about The Work Opportunity Tax Credit? This is a new credit available for business owners as part of the most recent relief bill. It's a nice bonus, depending on your hiring practices and the state of your business. This is a credit for hiring a person from certain categories (veterans, ex-felons, welfare recipients) but, more pertinent for many: people who have been jobless for more than six months. The credit, which is calculated per employee, ranges from $1,...200 to $9,600, and you would take this on your BUSINESS tax return. This is also available for pass-throughs (i.e. S-Corps, Partnerships). Be sure to bring this up when you file your taxes, and keep it in mind for future hires.

This is what you'll need to bring in for your tax appointment this year. This list has been updated to reflect both stimulus bills and their respective benefits.

Hey folks--we're here with a mission to help you keep the IRS off your back, and your taxes and books looking GREAT! We'll post daily updates, pertinent stories and fun items for your family and your budget. And make sure to grab our free mini-ebook while you're here! Feel free to post any questions or thoughts you have over the weeks and months!