Individual Strategies

Every tax season brings out the crooks and scammers trying to steal money and sensitive information using tax-related schemes, and even though we’re still a few months out from the beginning of filing season, it’s important to always be aware of threats out there and how you can combat them. Tax authorities like the IRS have countered these scams with electronic defenses that offer protection for both clients and tax preparers. Here’s a look at a few.

No client’s ever happy about having to pay state income tax in addition to federal, but at least in the past that chore was straightforward: Make money in a state, probably the one where you live and work, and you owe tax on what you made if that state has an income tax. Enter the computer and the fax machine, later the modem, email and Zoom. Then enter the pandemic and widespread remote work from home that’s largely lingered after Covid faded. Cap it off with the new maneuver of moving from a high-tax state to a low-tax one but not completely severing all former work and life connections. It is any surprise, really, that states would try to squeeze tax revenue out of that using regulations still unchanged from the past? And for punishing what that state suddenly thinks are tax cheats? Do you have a client a state might be interested in? How many states? And how do you actually know?

The past month we've explored how side hustles can affect your client's taxes. You're now equipped to help them avoid most side hustle tax tussles, but there is one other major area of the gig economy that we must cover. That is when your clients decide to share their personal property for a fee. Don't confuse this concept of the share economy with your client renting out real estate, like we discussed in part 2. The IRS has a different definition for personal property, one that does not include real estate. Which, you guessed it, means there are different tax implications. To help you avoid tax tussles for your clients, we're going cover the following: ● What's the difference between personal property and real estate? ● Where do we report personal property rental income? ● What can we deduct from personal property rental income?

I can recall looking for a part time job in local newspapers when I was in high school. Sometimes a friend and I would ride around with our $2.29 per gallon gas looking for places that were hiring. Facebook was gaining popularity but not for job posting. So, searching for jobs on my phone via an app was unimaginable. Advances in technology have changed the way that we do things in the world. Everything an individual needs to find a job is right at their fingertips. There are more opportunities to find gigs and be your own boss if that’s what one desires. There’s no question that the way people find ways to earn income has changed. What has not changed is the fact that the IRS wants their share of the income earned. But how do we apply the tax code to these new ways that taxpayers are earning money? We are going to break that down in this three-part series. Whether your client is doing odd jobs on an app like TaskRabbit, driving for Lyft, renting out their home or car, you will know how to guide them. This is what we are going to cover today with a focus on rideshare, delivery, and other service gigs.

Some clients marry into tax trouble – and then have no clue how to get out. Others are on the cusp of a separation or divorce and want the uncoupling (at least in the eyes of tax authorities) to start ASAP. Few clients who need the IRS tool called “innocent spouse relief” to unshackle themselves from a spouse’s tax mess (either one that spouse brought to the marriage or one they racked up later) seem to know about it. Here’s what to tell such a client about what this relief does and does not cover and what your client will have to prove before they can qualify – as well as how difficult this relief can be to get.

Even your most financially savvy client isn’t going to think clearly after the death of their spouse. Taxes will be last on their minds. That’s where you’ll come in, nudging them toward tax and money moves both immediate and long-term, from filing returns to budgeting income to taking a step-up in basis. Above all, don’t assume grieving clients know these details or that they’ll remember them in one of life’s toughest moments.

In the AI era, especially with tools like GPT, plagiarism isn't just copying another's work, but also presenting AI-generated content as one's unique thought without understanding or modifying its output. It's about intent and attribution. If someone blindly takes an AI's output and presents it as their own, especially in professional or academic settings, it can be considered a form of plagiarism. For certified tax planners, understanding and addressing this nuanced form of plagiarism is crucial for maintaining professional integrity and credibility.

If your clients are married, at this time of year they’re probably choosing to file their taxes under the status of Married Filing Jointly. But is MFJ the best move? Married folks have other options; one of them is Married Filing Separately (MFS). Despite this status sounding like someone’s dressing for divorce court, it can be useful in certain circumstances – or harmful.