To make informed decisions about your clients’ investments, it is essential to understand how capital gains and losses work. This article will explain the basics of capital gains and losses and the different strategies for capital gains. What Are Capital Gains and Losses? A capital gain or loss is the difference between an investment’s purchase and sale prices. Investors have a capital gain if they sell an asset for more than they paid but have a capital loss if they sell an investment for less than they paid. How Are Capital Gains and Losses Taxed? Most individuals are taxed at a maximum rate of 15 percent on their net capital gains. You may be able to deduct some or all of the net capital gain if the taxable income is less than or equal to $40,400 for single filers, $80,800 for married filers filing jointly, or qualifying widows. The capital gain rate is 15 percent if the taxable income is: What Is the Distinction Between Short-Term and Long-Term Capital Gains Tax? To accurately calculate the net capital gain or loss, you must classify gains and losses as either long-term or short-term. The capital gain or loss will be long-term if investors hold the asset for more than one year before selling it. The capital gain or loss will be considered short-term if they keep the investment for less than one year. To determine how long they held an asset, count from the day you acquired it until they sold it. What Are Some Strategies for Investing for Capital Gains? There are several ways to approach investments to achieve capital gains. Many invest in stocks, bonds, and other securities to accomplish this goal. Some basic strategies that can be used to achieve capital gains include: 1. Diversification Diversification is a risk management technique that involves investing in a variety of different securities. By diversifying a portfolio, an investor can minimize the impact of an adverse event on the overall portfolio. 2. Invest for the Long Term This means holding onto securities for extended periods, which can help smooth out any short-term volatility. Investors may avoid the temptation to sell when markets are down by investing for the long term. 3. Review Your Portfolio Regularly It is essential to periodically check in on investments and ensure they are still aligned with the goals and risk tolerance. This means investors should take some time – at least once a year, ideally more often – to sit down and review their investment portfolio. Conclusion Investors should keep track of their capital gains and losses to minimize their tax liability. However, it’s also important to remember that investments should be made to earn a return, not just to avoid taxes. Are you searching for the best professional tax software? Look no further than Keystone Tax Solutions! We are here to provide our clients with award-winning professional tax software at the most competitive prices in the industry. Contact us now for more details.

A professional tax preparer helps taxpayers file their taxes correctly and on time. They also keep up with changes in the tax code and help taxpayers take advantage of any deductions or credits they may be entitled to. If you are interested in being one, here are the things that you need to do: Find the Education and Certification Needed To become a professional tax preparer, you must obtain the necessary education and certification. The first step is to get a bachelor’s degree in accounting or a related field from an accredited college or university. Once you have obtained your degree, you will need to take the Certified Public Accountant (CPA) exam and pass it with a 75 percent or higher score. After passing the CPA exam, you must obtain a state license by passing the Uniform CPA Examination (UAE). Research the Requirements To become a registered tax preparer with the IRS, you must: Once you have met all the requirements and have been issued a PTIN, you can prepare federal tax returns for clients. Determine What Type of Experience You Need There is no one-size-fits-all answer to this question, as the type of experience you need to become a professional tax preparer will vary depending on your qualifications and the job’s specific requirements. However, in general, you will need to have some experience working with taxes to be considered for a position as a professional tax preparer.  This could include experience working in a tax office, preparing taxes for individuals or businesses, or even working as a volunteer tax preparer for a local organization. No matter your specific experience, be sure to highlight it on your resume and during interviews to demonstrate your knowledge and skills in tax preparation. Pass the Registered Tax Return Preparer Test by the IRS To become a Registered Tax Return Preparer (RTRP), you must pass an IRS-administered competency test. The test covers fundamental tax law and ethics and demonstrates your ability to complete IRS forms and schedules. To register for the RTRP test, you must create an account on the IRS website. After logging in, you will be asked to provide your Social Security Number and contact information and select a testing location. Once registered, you can schedule an appointment to take the test. Apply for a Preparer Tax Identification Number (PTIN) If you are paid to prepare federal tax returns, you must have a Preparer Tax Identification Number (PTIN) from the IRS. This unique identifier is assigned to you and used on all tax returns you prepare. You can apply for a PTIN online, by mail, or by fax. To apply online, you must create an account on the IRS website. Once you have created an account, you can log in and complete the online application. Conclusion The bottom line is that you must get the proper training and education if you want to be a professional tax preparer. There are many ways to do this, but the most important thing is to ensure that you get an education from an accredited institution. And to give you more confidence in your work, you can find the best professional tax preparation software to help you. Keystone Tax Solutions provide award-winning professional tax software at the most competitive prices. Contact us now for more details.

Congress enacted the American Rescue Plan Act of 2021 in March, and it has helped many college students and those with student loans. This bill allocated $40 billion to be given to colleges and universities, and it has also created new tax breaks for student loans that have been forgiven. The funds from this bill have impacted college students and those with student loans in a positive way. As someone in the tax preparation business, it is necessary to understand how the American Rescue Plan can affect the income of regular taxpayers, especially those with student loans. In addition, the American Rescue Plan Act creates new tax breaks for student loan borrowers. Student loans forgiven under specific programs are now exempt from income taxes. Borrowers are not liable to pay taxes on the forgiven portion of their loans. The American Rescue Plan Act is a positive development for college students and those with student loans. The funding and tax breaks provided in the bill will help many people pay for their education and reduce their overall debt burden. What Is HEERF American Rescue Plan and How It Impacts Students The Higher Education Emergency Relief Fund (HEERF) was created under the CARES Act to fund colleges and universities. A large portion of this funding must be given directly to students through grants. Schools that have already received HEERF funding from the CARES Act must use at least as much funding for emergency student grants as they did the year before. Schools receiving HEERF funding for the first time must use at least 50 percent of the funding for grants. If the school is a for-profit institution, it must use 100% of the funding for grants. When awarding grants, schools must prioritize students with exceptional financial needs. The CARES Act provides grants to students to help with expenses related to the coronavirus. These expenses include school-related costs, food, housing, and child care. The gifts do not need to be repaid and are tax-free. Knowing these basic facts will be helpful in tax preparation. How Can the HEERF Funds Be spent? The Higher Education Emergency Relief Fund (HEERF) was created in response to the COVID-19 pandemic. The fund provides financial assistance to colleges and universities to continue operating and serving their students during this crisis. HEERF funds can cover various expenses related to the pandemic, including payroll, staff training, technology, and other necessary costs. This financial assistance is vital for helping schools keep their doors open and continue providing quality education to their students. With the HEERF funds, colleges and universities can operate as often as possible during this difficult time. It is a critical investment in our future and will help ensure that students can continue getting the training to succeed in the workforce. Conclusion The American Rescue Plan will have a significant impact on college taxes. For one, the Plan will make college tuition and fees tax-deductible. It will help make college more affordable for many Americans. Additionally, the Plan will create a new tax credit for eligible students and their families. This credit will cover up to $4,000 of tuition and fees per year. Finally, the Plan will make it easier for people to refinance their student loans. As someone in the tax preparation business, being aware of these provisions can help you deal with clients with student debt better. If you need tools for your tax preparation business, you should contact Keystone Tax Solutions. We provide top-notch tax preparation solutions. Please schedule an appointment now so that we can talk about your firm.

As a manager, you now have to deal with an unstable economy. In addition, you also have to deal with staffing issues. These two factors can have a significant impact on running your business. In this article, we’ll share three things you should know about expanding your tax preparation firm. The unstable economy can make it difficult to predict the future of businesses. They might need to make last-minute changes to your plans to stay afloat. In addition, the economy can also make it challenging to find and retain good employees. For this reason, people will always need tax help regardless of the economic situation. 1. Utilize Diverse Marketing Strategies If you want to start a tax preparation firm or already have one, you can be sure there will always be a market for your services. But how can you grow your tax business and bring in more revenue, even in tough economic times? The key is to have a diversified mix of marketing strategies and revenue streams. By promoting your business in multiple ways and offering various services, you can insulate yourself from economic downturns and keep your business thriving no matter what the future holds. 2. Focus on a Niche When it comes to the tax preparation business, it pays to specialize. When you focus on one area, you can present yourself as an expert to potential clients who need help with their taxes. Specializing can help you attract more clients rather than fewer. There are a few reasons why specializing can be advantageous. First, you can become an expert when you specialize in one area. It can make you more attractive to potential clients, as they will know you know what you are doing. Second, specializing can help you build a reputation in that particular area. It can make getting referrals from satisfied clients and word-of-mouth recommendations easier. If you want to focus on a particular area of tax preparation, there are many benefits to doing so. Specializing can help you attract more clients, build your reputation, and become an expert in your field. Keep in mind, however, that you should understand the tax code in that area before you begin specializing. 3. Reach Out Using Social Media Social media is a great way to connect with potential customers who might need your tax preparation business. You can join relevant groups on Facebook or subreddits and introduce yourself and your firm in a non-intrusive way. These groups often have specific threads where users can post about services and products they need, which is a perfect opportunity to let them know how you can help. As a professional, you likely have much knowledge and advice to share with potential customers. Writing posts is a great way to reach out to them and show them what you know. You can discuss topics related to your business, such as tips for choosing the right professional, or you can write about more general issues that will be of interest to your target audience. Either way, blog posts are a great way to connect with potential customers and show them that you’re an expert in your field. Conclusion Despite the current uncertain economic climate, there are still opportunities for tax preparation businesses to grow. By being savvy about marketing and operations, companies can take advantage of the potential growth in the market. Most importantly, you should invest in top-notch taxation software from Keystone Tax Solutions. We take great pride in providing software solutions for tax professionals. Do not waste another minute. Call us now so that we can talk business.

The general public believes that accountants are simply bookkeepers who also prepare tax returns. This narrow perspective may persuade some people to file their taxes using diy tax preparation software rather than doing it themselves. Perhaps you are assuming that diy tax preparation only involve punching in some numbers. The truth is that tax preparations involve a myriad of things, many of which non-professionals overlook. To combat the trend of individuals preparing their own tax returns, accounting professionals must establish themselves as trustworthy advisors. Read on to learn how the pros do it today. Professional Accountants Offer Efficient Consultations The importance of compliance services is not diminished by a greater emphasis on becoming a strategic partner. Manually entering the same data over and over again is no longer necessary due to advancements in tax automation technology. Technology has the potential to automate previously labor-intensive tasks, improve accuracy, and streamline the diy tax preparation workflow. It is financially feasible for smaller organizations. If you have the right tax technology, you can increase productivity and broaden the scope of your client advisory services. Professional Accountants Define Client Relationships Differently To gain a client’s trust as a trustworthy business partner, you must assist them in pulling the appropriate financial levers to achieve their professional goals. Inquire about their intended goals, such as objectives for the coming year, what they can offer clients, and how they will pursue such achievements. Asking the right questions will help you differentiate yourself and your company from the trend of individuals preparing their own tax returns by positioning you and your company as trustworthy advisors dedicated to your clients’ success. Professional Accountants Know the Latest Developments Both tax laws and tax trends are constantly changing. With expert knowledge and the right research tool, you can easily navigate the complex and ever-changing tax landscape and find reliable answers quickly. This allows you to make confident decisions and provide valuable client insights, both of which can distinguish your company from the competition. You can enhance your company’s reputation by consistently advising clients on taxation issues. Take into account the repeated advice of customers. Is it worthwhile to share this information? Consider how your clients’ businesses and lives have benefited from the advice you’ve given them. Consider how the relationship would suffer if you withheld damaging information about the client’s company. Take advantage of your advantages. Conclusion As you and the rest of your team gain a better understanding of the expertise that your customers require, your company will be in a better position to identify additional support opportunities. As a result, both client relationships and work scope are altered. Because there are no billable hours to worry about, stress levels are lower. You will be in a better position to choose which potential customers to work with once you have an idea of how much your consulting services are worth. This change allows you to maintain a relationship throughout the year and shows that you are not a transactional cost. If you can demonstrate your expertise, you will be perceived as a strategic partner rather than a number cruncher, and your company will avoid the trend of filing their taxes on their own. You will have the satisfaction of knowing that you are helping your clients’ businesses and finances succeed. Keystone Tax Solutions offers the best professional tax software. With an experienced team and a loyal clientele, our team can help you through access to professional tax software, services, and unrivaled rates. Get a FREE demo today!

Taxpayers have had to deal with Additional Medicare Tax since 2013. Despite this, some people still don’t completely understand how this works. This is why we thought it would be useful to put together a brief article about this subject. If this is something that you’re interested in learning more about, read on as we break down everything you need to know about Additional Medicare Tax. What Is the Additional Medicare Tax? The Additional Medicare Taxs is a surtax on income that is levied on individuals earning more than a certain amount of money per year. The tax is 0.9 percent of the individual’s income over the threshold amount. The Additional Medicare Taxs was introduced as part of the Affordable Care Act in 2010. It is intended to help offset the cost of providing healthcare to those who do not have coverage through their employer or through a government program like Medicare or Medicaid. What Income Is Subject to the Additional Medicare Tax? The Additional Medicare Taxs applies to all types of wages and self-employment income, including tips, commissions, bonuses, and net earnings from self-employment. It does not apply to income from investments or to distributions from retirement plans, such as 401(k) plans or IRAs. If you are subject to the Additional Medicare Taxs, it will be withheld from your wages by your employer. If you are self-employed, you will be responsible for paying the tax yourself. What Are the Income Thresholds for the Additional Medicare Tax? The Additional Medicare Taxs is a 0.9 percent tax on income above a certain threshold. The threshold is $200,000 for individuals and $250,000 for married couples filing jointly. This means that any income above these amounts will be taxed at a rate of 0.9 percent. The Additional Medicare Taxes applies to all forms of income, including wages, salaries, tips, commissions, self-employment income, and investment income. It does not apply to income below the threshold amounts. The Additional Medicare Taxs is only paid by taxpayers with income above the threshold amount. If you earn less than the threshold, you will not owe any additional tax. There are several ways to calculate your tax liability. You can use a tax calculator, or you can use the IRS’s Interactive Tax Assistant tool. If you have questions about the Additional Medicare Tax, you can contact the IRS. Their phone number is 1-800-829-1040. You can also visit the IRS website or contact your tax preparer for help. Conclusion We hope this article proves to be useful when it comes to helping you figure out how Additional Medicare Taxs works. Understanding Additional Medicare Taxs is important for taxpayers who earn more than a certain amount of money. The additional Medicare taxs is a 0.9 percent tax on income over a certain amount. The tax applies to both employees and employers, and it is used to help fund Medicare. If you need a quick refresher on Additional Medicare Taxs, feel free to refer back to this article. We understand how difficult it can be to deal with taxes. Luckily, you don’t have to do everything yourself. If you’re looking for professional tax preparation software to streamline and optimize your processes, our products at Keystone Tax Solutions are just what you need. Get in touch with us to begin your free demo today!

You can make money year-round by helping people with their taxes as a tax preparer. You can do a few things to ensure you get the most out of your tax preparation business. One of the main concerns for many new tax preparers earn and those who have considered entering the field is how to make money year-round from a career that often relies on seasonal work. Discover and explore your options as a tax preparer if you want to boost your earnings and provide more services, and where find the best professional tax software to support you. Do Tax Preparers Earn Follow a Certain Routine? Yes and no. Even if you continue to anticipate that some taxpayers will miss the deadline for filing their taxes and will require your help filing returns, asking for an extension, or modifying filings, this will generally not carry you over to the next year. Therefore, if you’re looking for ways to earn some extra money after the busy season starts to wind down, you need to learn more than just taxes. These tactics might help you diversify your revenue sources as a tax preparer. Accounts Payable Bookkeeping services are a fantastic solution if you’re looking for a year-round requirement for your additional business service. Bookkeeping can be a straightforward addition if you already handle taxes for a business. You could also locate customers for your bookkeeping services who might come back to you for tax preparation. The certification required to work as a bookkeeper may be obtained by taking a course like the one offered by the National Association of Certified Public Bookkeepers. In addition, the industry standard in bookkeeping and tax pro software will be needed. Payroll Services If you’re attempting to give another outstanding service to company clients, payroll services could be a great way to build your business connection. Financial Services Your clients may have already started to ask you non-tax-related financial questions. Your client relationships will improve, and your income will increase if you include financial planning in your services list. Unless you provide fee-based financial services, you will need securities licenses and a link with a broker-dealer like HD VEST, which works with tax preparers earn. Additional information is available on the American Institute of CPAs website. Representing the Taxpaying Public Enrolled Agents (EAs) have unfettered representation rights before the IRS and are authorized to advocate for their clients in any circumstance. Without the EA certification, tax preparers’ rights to representation are somewhat constrained. Only clients whose returns were prepared and signed by non-EA tax preparers are eligible for counsel. There are more ways to diversify your tax preparation job, even if these are the most typical ways tax preparers earn choose to boost their revenue. Outsource Tax Preparation Many accounting firms are attempting to outsource the tax preparation of their clients. This might be a great way to boost sales for your business. Real Estate Brokerage Real estate can be used as a source of additional funding. Real estate brokers are required by state regulations to have a higher level of education than real estate agents and to pass a broker licensure exam. Brokers have two options for working: on their own or through agents. Insurance Selling insurance on behalf of large insurance firms, comparable to being a real estate broker, is another option if you want to further your tax preparation career. Insurance “Navigator” for the ACA People can now work as brokers or agents for the Health Insurance Exchange because the Affordable Care Act is fully operating. There are helpful resources accessible if you want to sell health insurance as a broker or agent on the open market. Conclusion The best tax preparation is a great option if you’re looking for a way to make money year-round. There are some ways to get started, and the potential earnings are significant. With a little research and preparation, you can be on your way to becoming a tax preparer. Look no further than what we have to offer at Keystone Tax Solutions if you’re searching for the greatest tax preparation software available today to assist you with the numbers. For those tax preparers who wish to make their work more convenient in the long term, we offer our proprietary professional tax software. Contact us now to learn more about our tax pro software and services.

It’s that time of year again: tax season! For many tax preparers, that means dealing with the IRS CI Interview. If you’re selected for an interview with CI, it can be a daunting experience. But don’t worry! We’re here to help. To help you successfully go through an interview with CI, here are six things you can do to help prepare for your CI interview: 1. Know Why the Interview Is Happening Understand the purpose of the interview. The IRS Criminal Investigation Division conducts interviews to gather information and evidence. The information gathered during an interview can be used to determine if a taxpayer has committed a crime. So, with that knowledge, enter the interview prepared! 2. Get Ready To Answer Questions Be prepared to answer questions about your tax preparation business. The IRS will want to know how your business operates, who your clients are, and what type of tax return preparation services you provide. So, be ready for those types of questions because if you can’t, you might find yourself in a pickle. 3. Always Speak the Truth Be honest and truthful when answering questions. It is important to be honest and truthful when answering questions during an IRS CI interview. Remember, lying to the IRS is a crime, and if you are caught purposefully lying, whether it be tweaking or leaving out the requested information, you will get into deep trouble. 4. Only Share Requested Information Do not offer any information that is not requested. You are not required to provide information that is not requested during an interview. If you do provide information that is not requested, it may be used against you. This also applies to relevant documents, where you should only collect documents that are relevant to the IRS CI’s investigation. Any unnecessary document may be taken and used against you. 5. Stay On Point Keep your answers brief and to the point. The IRS interviewer will ask you questions in order to gather information. It is important to answer the questions directly and to the point. Not only does this save time, but it also helps you avoid sharing too much information that, once again, may be used against you. 6. Don’t Share Cases Do not discuss the case with anyone other than your attorney. It is important to keep the information you provide during an IRS CI interview confidential. Discussing the case with anyone other than your attorney could jeopardize the investigation and may lead to more trouble for your business. Conclusion From all of that, you might be incredibly worried about the upcoming CI interview. Fortunately, if you know you’ve done nothing wrong, there’s nothing to worry about. Just be prepared for the investigation by collecting all relevant documentation and thoroughly understanding how your business works. With that out of the way, you can show up to the interview and appropriately answer any questions the IRS CI may ask of you. Also, be prepared for the aftermath, especially if there is a risk of facing the consequences of tax crimes or related offenses. Overall, minimizing uncertainty sets you up for a smooth and trouble-free interview, and if an issue does pop up, it allows you to get it tackled quickly. Keystone Tax Solutions offers professional tax software to help tax preparers better their effort to provide excellent services. If you are looking for the best professional tax software to help you run your business, check out what we offer!

Truck drivers have to follow many rules and regulations that are unique to their profession, including their taxes. Many Truck Drivers – Taxes are self-employed, so they have to deal with the complexities of running a small business on top of the unique tax rules that apply to them. When their taxes get too complex and overwhelming, they may seek out the help of a tax professional. To help truck drivers stay compliant and reduce their tax liability, here is what every tax pro needs to know about taxes and deductions for truck drivers: For Employed Truck Drivers – Taxes Employed truck drivers who get a W2 will have a much simpler tax return compared to self-employed drivers. Employees could potentially deduct work-related expenses their employers have not reimbursed on Schedule A. However, if they take the standard deduction, they won’t be able to make those deductions. Since employees typically don’t own the vehicles they’re driving, they won’t have to deal with the Heavy Highway Vehicle Use Tax. Employed drivers’ returns are often as straightforward as the returns of most other W2 employees. For Self-Employed Truck Drivers Because most self-employed truck drivers own or sometimes lease their trucks, they are subject to self-employment taxes and taxes that are trucking-industry specific. Self-Employment Taxes and Tax Payment Estimates Self-employed individuals, including truck drivers, are responsible for paying 15.3% of their taxable income. This is imposed through self-employment taxes. It’s vital to make estimated tax payments every quarter to avoid incurring penalties. Heavy Highway Vehicle Use Tax The federal government imposes a Heavy Highway Vehicle Use Tax (HVUT) on particular commercial trucks, buses, and other vehicles operating on public highways. This tax is imposed on vehicles with a gross vehicle weight (GVW) of 55,000 pounds or more. The HVUT is imposed annually and is paid by the vehicle owner when the vehicle is registered with the state. The tax is based on the vehicle’s weight and the miles the car is driven on public highways. The tax rate for vehicles with a GVW of 55,000 pounds or more is $100 per year, while for vehicles with a GVW of 60,000 pounds or more, the tax rate is $550 per year. The HVUT is in addition to the federal fuel tax and the state and local fuel taxes. The tax is being imposed on the use of the highway, not on the purchase or operation of the vehicle. Keeping a Tax Home As a truck driver, it’s crucial to maintain a tax home. This is where you file your taxes and where your tax liability lies. If you move around frequently, keeping track of your tax home is essential so that you don’t end up owing taxes in multiple states. There are a few different ways to maintain a tax home. The most common is to maintain a permanent residence in one state and file your taxes there. This can be tricky if you move around frequently, but you should be fine as long as you keep your permanent residence in one place. Deducting Truck Business Expenses Like any profession, truck drivers – taxes can also submit deductibles for potential reimbursement. Here are some expenses that you can deduct as a truck driver: Conclusion Familiarizing yourself with the complexities of tax regulations for truck drivers can equip you with the knowledge you need to help drivers make informed decisions about their taxes and help them avoid penalties. In addition, you must use the best professional tax software to ensure you provide the best services to your clients. Keystone Tax Solutions is a trusted professional tax preparation software that can make it easier for tax preparers to provide reliable services. Browse its features to learn more about our software!

Tax season is understandably one of the most dreaded times for tax preparers. It’s when clients constantly bombard them with seemingly endless questions, and workers usually work overtime to plan, prepare, and file federal taxes. This process takes up much of their priceless time, especially when they do it manually.  Fortunately, professional tax software allows tax preparers to do their work efficiently without worrying about expensive mistakes. However, like other significant business investments, you must find the right professional tax software suitable for your company’s needs.  This article provides eight factors tax preparers must consider when finding the right professional tax software.  1. Compatibility with Your Device The first step you must consider when finding professional tax software is to ensure it’s suitable for your device, especially when using desktop tax software. Ensure to check the requirements on the software’s website or packaging box. Otherwise, you’ll encounter several expensive mistakes.  2. Find the Most Suitable Version Whether your device needs primary, deluxe, or premium prospective professional tax software, you must review each version’s features to determine which suits your company’s tax preparation needs.  The basic level offers the minimum quality level and features a company has, while the deluxe level provides more. On the other hand, the premium level would be the highest quality and features offered. 3. Choose between a Desktop or an Online Tax Software Whether you download and install professional tax software’s on your computer or use an online application, you must consider which works best for your company’s needs. While both choices have their advantages and disadvantages, we highly encourage using online software. The online counterparts are easier to use, and they don’t require you to track updates or protect against viruses.  4. Help with Tax Deductions  Tax preparation can be time-consuming and stressful, especially because you’ll be dealing with tax laws and recent publications. For this reason, it’s always best to find reputable professional tax software’s to help you work more efficiently. You must also ensure it has a tax deduction finder feature to help you find deductions you might forget sometimes.  5. Help with E-files Unlike physical copies, electronic files, also known as e-files, are a more environmentally friendly option for companies, mainly if you have limited space. Most tax preparers also prefer this filing method because they only need to send the file through mail, not print it out.  If you want to file your documents electronically, you can include the additional eFile costs in the professional tax software’s total price. Ensure your budget fits the electronic filing’s software charges.  6. Easy Access to Help Training your staff to use the new professional tax softwares correctly can be time-consuming because they’ll usually encounter a steep learning curve. It occurs when you introduce them to new software.  For this reason, it’s always best to find professional tax software’s that provides urgent chat support and answers several tax-related issues. The application must also have online resources for frequently asked questions. Moreover, ensure the professional tax software’s has a toll-free number and email address where you can inquire about the application. 7. Ensure the Guarantee The best professional tax software’s will always ensure the most significant refund guarantee. Any professional tax software’s manufacturer must confidently defend the product’s accuracy. If your company undergoes an audit, you must determine if the manufacturer offers free or charged professional help.  8. Updated Software Lastly, you must ensure that the manufacturer updates the professional tax software’s to keep up with the latest tax laws.  Ensuring Smoother Operations Modern technological advancements continue to help tax preparers work efficiently, especially during the dreaded tax season. Considering your company’s needs will help you find the best professional tax software’s for everyone.  Keystone Tax Solutions offers professional tax software in the United States to help tax preparers work more efficiently and avoid expensive mistakes. Visit our website for your free demo today!

In this country, we employ a “pay as you go” federal estimated taxes. Employers are obligated to deduct and send income tax to the IRS at the end of each pay period in order to help the government track income accurately. To be eligible for a tax refund, you must file your return before the deadline. Due to the lack of a human resources department that may deduct taxes from earnings, small business owners and independent contractors are compelled to submit quarterly anticipated tax payments. Thus, they need all the advice and guidance they can get. Read on to discover this new guide to online payment of federal estimated taxes. The Taxpayer’s Profile – The Self-Employed Worker & Small-Business Owner This category involves corporate entrepreneurs and independent contractors. As such, sole proprietors, shareholders of S corporations, partners, self-employed persons, and single-member LLCs must pay taxes in the form of estimated payments. – The Freelancer With a Regular Income This category involves contractors who work on a regular basis as independent contractors. If you have a full-time job that withholds taxes plus additional income, you should figure out how much of your income is tax-free. If you make a lot of money from freelancing, you should pay taxes on a regular basis. The Calculation of Estimates Form 1040-ES generates four vouchers that you can use to mail your estimated tax payments. Make sure to follow the directions on Form 1040-ES when calculating your estimated tax payments. In the event that payments are mailed, vouchers are included with Form 1040-ES. If your income is erratic owing to self-employment, you have the option of paying varying sums to match it. This way, you can also avoid incurring late fees by making payments before the quarter’s minimum due date. Additionally, you are not restricted to making four payments every three months. You can print a 1040-ES payment voucher for your extra payment online. However, note that with erratic income, taxes on self-employment earnings make it difficult to forecast total tax liability. Here is the formula for self-employment tax: Multiply your Schedule C earnings by 92.35% and 15.3%. This is your self-employment tax. You could be eligible for a tax deduction from your annual income, but it all depends on the tax category you fall into. Make sure to include the exact amount of your self-employment tax in your tax payment. When tax software prepares vouchers for the 1040-ES form, it takes the self-employment tax into account. The Payment When it comes to making payments toward anticipated taxes, you have several alternatives. Such alternatives are as follows: Transfer funds through mail. Pay through an electronic channel with a “convenience” fee. Enroll and pay through the free-of-charge Electronic Federal Tax Payment System (EFTPS). Use the IRS Direct Pay ACH transfer service at no cost. Use IRS2Go for mobile transactions. Use tax preparation software. With all these options available, filing and paying your estimated taxes could be simple. All you have to do is ensure that you have a bank account, a Social Security number (or Employer Identification Number), a phone number, and an address. Once you have mailed to the IRS, wait a week for an IRS PIN. Using this PIN, you will be able to perform an online transaction. With this, you will be able to make withdrawals once EFTPS has been established. You can make scheduled payments, such as quarterly payments. Meanwhile, direct debits are supported by a variety of tax programs. This is great for freelancers since it can give them control over both the amount and the due date of the payment. Conclusion Indeed, regularly filing and paying your taxes is a daunting task. To make your life a lot simpler, consider not only seeking professional guidance but also making the most out of the resources available to you. With this new guide to online payment of federal estimated taxes, together with tax software, you shall never miss a deadline again! Keystone Tax Solutions offers the best professional tax software you need today. With us, you can rely on excellent service at a reasonable price. Reach out to us today to get your FREE demo session!

Travel-related expenses can be tricky to understand, even in the best of times. Fortunately, federal per diem rates help simplify travel expenses for employees and employers alike. To teach you about these rates, we’ve prepared a quick guide for you and your clients to manage the finances. What Are Federal Per Diems? Per diem rates are essentially rates that the federal government sets in order to help employers budget for the cost of travel. Employers can reimburse their employees for travel expenses based on these rates instead of the actual cost of hotels, cab fares, and restaurant meals. How Per Diem Rates Are Set The federal government establishes federal per diem rates through regulations. These regulations set the maximum amount employees can claim for food and incidental expenses. The rates for lodging and transportation costs are updated yearly. For the fiscal year 2022, the standard rate for meals and incidentals is $59, while the standard for lodging is $96. The General Services Administration (GSA) also sets rates for around 320 specific destinations where the cost of living tends to be higher than average, including Hawaii, Alaska, and U.S. territories. Foreign per diem rates are set by the Department of State and are updated monthly. Per diem rates for U.S. territories are set by the Department of Defense. Per Diem Rates from the IRS Employers must use the IRS simplified “high-low” rates for federal employees if their location is in an area with a higher cost of living. These rates are published in IRS Notice 2021-52. Yet most private employers choose to use the GSA rates instead because they vary less from year-to-year and are easier to use. Federal Per Diems Are Not Taxable Employees do not include per diems in their taxable income. However, they will still be important when filing taxes. Per diems must be reported on an expense report, including travel date, location, and business purpose. Additionally, the per diem rate must fall within the allowances set by the GSA; anything above this is considered wages and is taxed. If the employee is not reimbursed for the expense, they can claim them as a deduction if their expenses exceed 2% of their Adjusted Gross Income. Can employers deduct per diem? Employers can deduct most of their spending for meals, lodging, and incidental items on business trips as long as they spend within a given number of dollars per diem. This includes deductions for lodging when the trip expenses are higher than the per diem limit. The federal per diem compensation method usually simplifies their bookkeeping and deductions since they no longer have to keep track of every spending item on their expense report. However, a sole proprietor cannot use the lodging rates when traveling on business. Instead, they must keep track of every single expense during the trip, even if the spending is less than $75. In general, business owners will incur the same amount of paperwork as employees with regard to their expense claims. Conclusion Overall, per diems are an excellent tool for employers to use in order to track their business travel. It’s not always easy to figure out what taxes and fees you’re legally required to pay when finding out the cost of your trip. However, per diems are a standard rate that will help simplify that process. Simplify financial management with the help of the best professional tax software. Let our software help make your job easier. Get a free demo and see for yourself!

A solid business strategy provides several benefits to the entrepreneur. It’s more of a strategic tool that helps company owners to focus on key tasks that are critical to the success of writing a business plan. Not only that, but a smart business plan will help entrepreneurs reach their short- and long-term business goals. Writing a business plan for your tax firm does not have to be difficult or time-consuming. That is entirely dependent on how comprehensive your strategy is. The business plan categories most relevant to tax preparers are shown below. You should be able to finish something like this during a typical work week. 1. The Highly Detailed Business Plan This type of business plan is usually required by entrepreneurs seeking outside funding from investors, banks, or grant-making organizations. If this is the case for you, plan on spending several weeks – if not months – researching and writing your business plan. 2. The Minimalist Business Plan The minimalist business plan is just what it sounds like: a stripped-down version of a traditional business plan that contains only the bare essentials. This type of business plan can be especially helpful if you’re pressed for time or if you’re not seeking outside funding. 3. The One-Page Business Plan If you really want to simplify the business planning process, try distilling your entire plan down to one page. This can be a great exercise in focus and can also be very useful if you need to quickly communicate your business plan to others. What Your Business Plan Should Have A standard business plan should include an executive summary, market analysis, company description, and other important information. You can see each of them and how they should be written down below: 1. Executive Summary The executive summary is a brief overview of your business plan. It should include your company’s mission statement, a description of your products or services, your target market, and your business goals. 2. Market Analysis The market analysis should include information on the target market, the competition, and the potential for growth. This section will help you convince investors that there is a demand for your product or service and that you have a solid plan for reaching your target market. 3. Company Description The company description should provide an overview of your business, including its history, ownership structure, and location(s). This section should also describe your company’s key personnel, such as your management team and Board of Directors. 4. Product or Service Description This section of your business plan should provide a detailed description of the products or services you offer. Be sure to include information on why your product or service is unique and what needs it meets for your target market. 5. Financial Data The financial data section should include information on your company’s past financial performance and your current and projected financials. This section is important in demonstrating to investors that your business is financially viable and that you have a good understanding of your financial situation. 6. Business Goals The business goals section should describe your business’s short-term and long-term goals. This is an important section in convincing investors that you have a clear vision for your business and that you are committed to achieving your goals. Conclusion A well-written business plan can be a valuable tool for any entrepreneur. It can help you focus your business idea, communicate your plans to others, and attract investment. When writing your business plan, be sure to include the key components described above. If you are looking for the best professional tax software in the market today to help you with the numbers, look no further than what we have to offer here at Keystone Tax Solutions. We have our own patented professional tax software for all tax preparers who want to make their work easier in the long run. Call us today for more information about our software and services.

A refund transfers allows your clients to pay you for your tax preparation services directly from their refund. The refund transfer process starts with the IRS directing the taxpayer’s money to a refund settlement bank. The bank deducts all relevant fees and splits the money between you and your client. Your clients can choose to have their fee deducted from their refund using a refund transfer rather than paying it upfront, a beneficial option for both of you. 1. Refund transfers Lets You Provide a New Option Refund transfers are a great way for you to provide a new option to your tax clients. With a refund transfer, your clients can move money from their refund to pay you for tax preparation services. Compared to your traditional payment options, like check or credit card, refund transfers provide a less costly alternative for your clients. In addition to being less costly, refund transfers make it easy for your clients to pay you. Your clients don’t have to write a check or go out of their way to deposit it. 2. Broadens Customer Base The refund transfer process specifically serves clients who can’t pay upfront due to a low income or poor credit score. The refund transfer process eliminates the need for your clients to obtain a checkbook or credit card. It’s also a convenient option for clients who lack checkbooks or bank accounts. 3. Promotes Punctual Payment Refund transfers allow you to collect payment promptly. When you receive your clients’ refund, you receive a payment at the same time. The refund transfer process is unlike the check or credit card payment option. These two payment options allow your clients to leave it up to you to collect the payment. 4. Provides Instant Cash Flow Refund transfers provide instant cash flow for your small business. When you receive a refund transfer from a client, that money is coming directly from the IRS, meaning it’s not yet subject to the typical wait time associated with receiving a paper check. This all translates to a quicker cash flow and a higher overall payment than a paper check. 5. Reduces the Risk of Missed Payments Refund transfers A refund transfer also reduces the risk of missed payments. Your clients can pay you from their refund even if they lose their checkbook or forget to make a payment. The refund transfer process gives you the option to deduct the fee from the refund before sending the money to your client. This is a huge perk for you, especially if the client often misses payments. Conclusion Refund transfers are a great method for you to accept early payment for your tax services. While this option may seem similar to the refund anticipation loan, refund transfers eliminate the need for you to make a credit decision. It’s also easier on your clients, given they’re not required to pay upfront in order to receive their money. While refund transfers may not be ideal for everyone, they’re a great option for those who can’t afford to pay upfront. Try it, and see for yourself how valuable an option it is! Improve your service further with the best professional tax software around! Try our all-in-one package to streamline your processes. Check the demo out now!

Tax preparation software can be a great asset when it comes to preparing your taxes. However, there are a few things you should keep in mind to get the most out of your software. Here are five tips for using tax preparation software effectively: 1. Make Sure You Have All the Necessary Information Before you begin using tax preparation software, be sure that you have all of the necessary information. This includes things like your Social Security number, income statements, and receipts for any deductions or credits you plan to claim. If you don’t have all of the information you need, the software may not be able to prepare your taxes properly. 2. Enter Your Information Accurately When you’re entering information into the tax preparation software, it’s important that you enter it accurately. This includes things like your income, deductions, and credits. If you enter your information incorrectly, it could result in an inaccurate tax return. 3. Use the Software’s Help Features Most tax preparation software comes with help features that can be extremely helpful if you’re having trouble using the software. If you’re having trouble understanding how to use the software or you’re not sure how to enter your information, be sure to take advantage of these help features. 4. Stay Organized It’s also important that you stay organized when you’re using tax preparation software. This means keeping track of things like your income, deductions, and credits. If you’re organized, it will be much easier to use the software and prepare your taxes. 5. Review Before You File Once you’ve prepared your taxes using the tax preparation software, it’s important to review your return before you file it. This way, you can be sure that everything is accurate and that you’re claiming all of the deductions and credits you’re entitled to. How to Choose the Best Tax Preparer Software Now that you know what to look for in tax preparation software, you can start comparing your options. Here are some of the most important factors to consider: 1. Cost Tax preparation software can range in price from free to hundreds of dollars. The price you pay will depend on the features you need and the complexity of your taxes. If you have a simple tax return, you can probably get away with using a free software program. However, if you have a more complex return, you may need to pay for a more robust software program. 2. Ease of Use When you’re comparing tax preparation software, it’s important to find a program that’s easy to use. The last thing you want is to use a software program that’s difficult to understand. Ideally, you should find a program that comes with step-by-step instructions so you can prepare your taxes quickly and easily. 3. Accuracy Of course, you also want to find an accurate software program. The last thing you want is to file your taxes and then find out that you made a mistake. Make sure you find a program that comes with built-in checks and balances so you can be confident that your taxes are being prepared correctly. 4. Support If you run into any problems while you’re using the software, you’ll want to be able to get help from the software company. Make sure you find a company that offers customer support so you can get help when you need it. 5. Updates Tax laws change all the time, so you’ll want to make sure you find a software program that offers regular updates. This way, you can be confident that the software is always up-to-date. Conclusion If you want to use tax preparation software effectively, you should keep a few things in mind. First, make sure you have all the necessary information and documents on hand. Second, take your time to enter everything accurately. Third, don’t forget to double-check your work. Fourth, use the software’s help features if you need assistance. And finally, remember to file your return on time! If you are looking for the best professional tax software in the market today to help you with the numbers, look no further than what we have to offer here at Keystone Tax Solutions. We have our own patented professional tax software for all tax preparers who want to make their work easier in the long run. Call us today for more information about our software and services.

Tax software is a computer program that helps individuals and businesses prepare their tax returns. Tax software can be used to calculate taxes owed, prepare tax returns, and file taxes electronically. Tax software can also be used to track expenses, create tax-friendly financial reports, and manage tax information. But with so many tax software out there, how do you know which one is right for your needs? Your Tax Proficiency When it comes to preparing your personal or business taxes, there is no one-size-fits-all solution. The right tax software for you will depend on a number of factors, including your tax proficiency. If you’re a tax novice, you’ll want to choose tax software that is easy to use and understand. The last thing you want is to be struggling with a complex tax return. There are a number of tax software solutions available that are designed for those with little to no tax experience. If your tax situation is somewhat more complex, you’ll need to choose a tax software that can handle your specific needs. There are a number of tax software solutions available that are designed for those with more complex tax situations. The Price When it comes to selecting tax software, one of the most important factors to consider is the price. There are a variety of tax software products on the market, and their prices can vary significantly. First, you have to make sure the software you’re considering is actually worth the price. There are a lot of tax products on the market that are overpriced and don’t offer much in terms of features or functionality. Second, it’s important to consider what you’re actually getting for your money. Some tax software products include a lot of bells and whistles that you may never use, while others are more basic but still get the job done. Finally, it’s also important to keep in mind that the price of tax software can vary depending on the version you choose. For example, some products offer a free basic version that includes only the most essential features. If your tax situation requires more advanced features, you’ll need to upgrade to a paid version. Customer Support When it comes to choosing the right tax software, customer support is an important factor to consider. No one likes dealing with taxes, but it is, unfortunately, a necessary evil. And when things go wrong, it’s good to know that you have someone to turn to for help. There are a few different ways you can get customer support from your tax software provider. The first is through email. Most tax software providers have an email address that you can use to contact them with any questions or concerns you may have. Another way to get customer support is by phone. This is usually the best way to get help with your tax software, as you can speak to a real person representing the software company who can help you troubleshoot any issues you’re having. Finally, some tax software providers also offer live chat support. Live chat support can be a great option if you need help with something but don’t want to wait on hold for a customer support representative. Final Thoughts There are many tax software programs available on the market. Some are free, while others are paid. Each has its own set of features and benefits. When choosing a tax software program, it is important to consider your own needs and budget. Take the stress out of preparing your taxes with the help of Keystone Tax Solutions. We are the best professional tax software that is designed for small and large tax offices with multiple offices and many employees. We offer everything from remote signatures to paperless office capabilities and a strong customer support team. Get a free demo now!

Two of the most noteworthy days on the American calendar are December 25 and April 15 when it comes to Income Tax Forms. The initial one marks the anxiously awaited conclusion of a wonderful season of celebration, gift-giving, and all-around benevolence. For many people, the second date—the day we must file our income tax returns—is a day filled with dread, stress, wrath, and anxiety. Nobody enjoys tax season, although about three out of every four filers receive a tax refund. There are ways to lessen the chaos and make it simpler to get through tax season, including using tax return software. How to Complete Your Income Tax Form Less Anxiously The secret to a good, stress-free outcome, especially when you do your taxes yourself or for your company. It is frustrating and time-consuming to try to make sense of a rat’s nest of paper receipts, canceled checks, brokerage statements, and other random pieces of information. Additionally, it raises the likelihood that you may calculate tax liability erroneously. You can face a tax audit and more fines if you pay too little. Paying too much is equivalent to donating to the government. By using these suggestions, you can prevent such issues. Gather Relevant Income & Expense Data Employers, suppliers, and financial institutions compile and send numerous tax forms and information necessary for your file every year around the end of January. To sort and segregate the data into one of the following categories, create a series of files, whether it’s a massive multi-pocket accordion file, a collection of substantial manila envelopes, or a digital filing system on your hard drive: Individual Details Your legal name, your spouse’s legal name, and the legal names of every dependent are all included in this information. Additionally, you must set their dates of birth and Social Security numbers. Income Typical forms include W-2s from employers, 1099s for extra sources of income, including self-employment, investments, and payouts from retirement accounts, and K-1s for any partnerships in which you have a stake. Keep your security transactions in a separate folder so you can easily calculate holding periods from the buy and sell dates to make sure you qualify for capital gains treatment whenever possible. Personal Costs (Deductions) Vendor contributions to your IRA and health savings account will be reported on Forms 5498 and 1098, respectively. However, most of the data proving permissible tax deductions, including company expenses, must be gathered from other financial records, like check registers, canceled checks, bank statements, and credit card statements. Download and print summaries of each credit card’s transactions from the previous year, then go through each one to see whether any of them might be deductible. Underline the transactions that might impact my filing so they are easy to find later. For canceled checks, a similar culling procedure can be used. Commercial Information You must keep your business revenue and cost items distinct from your personal information whether you run a small business, work as a freelancer, or earn additional side income. For a business, some expenses are deductible; for a personal filer, they are not. Review Schedule C of Form 1040 if you have any concerns regarding the kind of data to save. Fund IRAs and SEPs Up To The Permitted Limits The deadline for contributions is December 31 if you participate in an employer-sponsored qualifying retirement plan, like an individual 401(k) plan or 403(b) retirement plan. The IRA gift cutoff remains April 15, though. Suppose all or a portion of your income is from self-employment. In that case, you have until the filing deadline for your tax return, including extensions, to open a simplified employee pension (SEP) IRA and contribute up to 25% of that income. It should be simple to decide if you have the option of choosing between paying income taxes and saving for retirement. Automate or Contract Out Tax Preparation and Filing Although the IRS has made an effort to streamline tax forms and lessen the time and complexity of completing a tax return, it is still a difficult chore that is frequently stressful since it must be done just once a year. The good news is that organizations provide tax pro software packages to assist filers in completing the work swiftly and reasonably priced. Even free tax preparation software is available from the IRS to taxpayers with an adjusted gross income of $72,000 or less. Check your 2018 tax return for your adjusted gross income, which is reported on line 82 of the 2019 Form 1040, to see if you qualify for the free software. The IRS offers free fillable forms for electronic filing for people with earnings over $72,000. These forms only provide the most basic instructions; therefore, you must be familiar with tax preparation procedures. Most filing tools let you keep track of any refunds that may be owed and choose your preferred payment option, such as direct deposit, paper check, or keeping the refund and using it for the subsequent tax year. Conclusion The best professional tax software guides you through intricate questions to confirm quantities and the proper tax treatments. Take into account the income, the complexity of the return, any odd occurrences that significantly affect income or expenses, and anxiety over a tax audit when preparing your employee’s tax documents. Managing taxes may be difficult for anyone, even a seasoned tax preparer. Our best professional tax software might make things easier for you if you’re seeking creative ways to expedite the tax preparation procedure. Call us at 1.800.504.5170 to learn how we can ensure your tax business is growing.

Did you know that by making a few changes to your workflow, you can reduce the amount of time you spend on administrative tasks during tax season better? This will allow you to spend more time preparing returns and less time managing your office! To summarize, some changes you can make include: Automation Client Follow-Up Going Paperless Going Virtual with a Software for Tax Preparers Website Optimization Automation The beauty of using electronic workflows is that you can automate your computations ahead of time! Excel allows users to set formulas in each cell to arrive at the correct result depending on the values placed. Thus, all you need to do is input your earnings for a particular month or quarter; then, the formula will automatically calculate it for you! Amazing! You can also set up electronic reminders through your email or computer calendar, so it automatically updates you on whose taxes you need to prioritize. Client Follow-Up One of the best ways to increase returning clients and maximize profits during tax season is to follow up with former clients. However, this can be very time-consuming, especially if you have to track who has and hasn’t returned this year and send reminders. This is also why it’s better to automate client reminders so you can track them electronically from the moment you power on your device! Going Paperless Analog interrupts, or paper-based workflows, are a considerable time black hole for businesses. They’re inefficient and can interrupt productivity. Plus, if you lose track of them, your official records can go missing! However, filing, organizing, and ensuring client security are much easier when you have a paperless document management system! You can start with Microsoft Office or Google Docs to get a feel for this style before transitioning to something more permanent, like software for tax preparers. Going Virtual Many clients, especially younger ones who are used to the convenience of online filing, will be happy to avoid an in-person meeting and send you their documents electronically. You can communicate with them through various messaging or social media apps like: Facebook Messenger Gmail (or any email app) Instagram Slack Telegram Viber Zoom Through any of these apps, clients can take pictures of their records and send them to you securely through the app. They’ll get automatic updates when you start and finish their return, and the messaging feature lets you answer any questions quickly. Clients love how easy it is to file and view documents this way since they occur in real-time. Website Optimization We separated this tip from the fourth because you should already have an up-and-running website before social media accounts! This is your central virtual real estate where customers can find you, especially if they’re leads! Having a good website makes it easier for clients to see you and get the answers to their questions. You can also embed scheduling software so clients can automatically schedule appointments with you. Use PNG files for photos to maximize quality and size (they’re not large) and also have content like tax-related articles to boost your SEO! Need All These in One Go? Get a Software for Tax Preparers Now If you want to consolidate all these workflows in one platform, get in touch with Keystone Tax Solutions today! We create software for tax preparers so you can work with clients seamlessly and efficiently even before the taxman comes a-knockin’! Check out our solutions on our website!

The American Rescue Plan Act (ARPA) has already delayed the tax filing deadline to May 17, but what else should tax professionals know about the bill? The American Rescue Plan of 2021 is summarized below and how it may affect you, your clients, and your tax return next year. Continue reading to learn more about ARPA and professional tax preparers software. What Resulted from the American Rescue Plan? The American Rescue Plan was formed to provide financial assistance to families and people while recovering the economy from the COVID-19 pandemic’s effects. Much of the $1.9 trillion bill’s financing went directly to states, counties, and other local governments or went toward expanding existing programs in education, food aid, healthcare, and other social services. The ARPA’s parts relating to direct financial aid, such as unemployment, stimulus payments, tax credits, and the PPP, are the ones that have the largest impact on your clients. Unemployment Benefits Increased The ARPA extended many of the increased unemployment benefits granted in the CARES Act. The ARPA, in particular: Extends the $300 weekly payment until September 6, 2021 (Though many states have now chosen not to offer this additional benefit). Extends Pandemic Unemployment Assistance (which allows independent contractors, part-time workers, and other workers who would not normally qualify for unemployment insurance to receive benefits) and Pandemic Emergency Unemployment Compensation (which allows those who have already used standard unemployment benefits to continue receiving benefits) until September 6, 2021. (It increases a person’s eligibility for PUA payments from 50 to 79 weeks and PEUC benefits from 24 to 53 weeks.) Provides a tax credit for certain unemployment benefits received in 2020. Unemployment payments up to $10,200 are not taxable for persons with an annual income of less than $150,000. The Child Tax Credit The Child Tax Credit saw considerable adjustments as a result of the ARPA. However, most of these modifications are only temporary and will expire in 2021. Families will receive a fully refundable $3,000 credit for children ages 6-17 and $3,600 for children ages 0-5. (The old CTC gave each child a $2,000 tax credit, of which only $1,400 was refundable.) The EITC (Earned Income Tax Credit) For your clients without dependents, the maximum Earned Income Tax Credit (EITC) will rise from $540 to around $1,500. Furthermore, the EITC income level will be raised from around $16,000 to at least $21,000, and age limits will be temporarily lifted. If you need help preparing EITCs, you can use tax preparer software. The Child and Dependent Care Credit The Child and Dependent Care Credit enhanced 35% to 50% of qualified child and dependent care expenses. A credit of up to $8,000 per child and $16,000 is available to families. For the tax year 2021, the credit is also refundable. The FFCRA and Paid Leave Credits The Families First Coronavirus Response Act (FFCRA) was extended by the American Rescue Plan until September 30, 2021. The FFCRA, on the other hand, is no longer required. The FFCRA previously required employers to provide paid sick, and family leaves to employees who had COVID-19 or cared for a COVID-19 family member. Employers were entitled to claim these expenses as refundable tax credits. Employers are no longer required to give this paid time off, but if they do, they can still collect FFCRA Paid Leave Credits for any qualifying time off taken before November 20, 2021. Employee Retention Credits Employee Retention Tax Credits for Small Enterprises were also extended by the ARPA until December 2021, motivating and making it simpler for small businesses to retain staff. The Paycheck Protection Program The Paycheck Protection Program received additional funds from the American Rescue Plan, creating a second application period that closed on May 31. Payments for Economic Impact The third phase of economic impact payments of $1,400 per person was included in the ARPA for persons with an AGI of less than $75,000. Dependents above the age of 17 were also eligible to receive a payout, unlike the previous two stimulus checks. Conclusion The American Rescue Plan Act, which Congress passed and which President Biden is anticipated to sign on March 12, will benefit tens of millions of people, alleviate high levels of suffering, assist school districts in addressing student learning loss, and strengthen the economy. If you’re having difficulty preparing taxes, just like the ARPA, the best professional tax software is here to lessen your load and ease the process. For tax preparers, Keystone Tax Solutions offers the best professional tax software to boost accuracy and simplify the process. For a free demo, contact us today!

When the tax season kicked off this year, the IRS sent out a helpful piece of information to those who received the Additional Child Tax Credit. This is the IRS Letter 6419. It’s designed to help you report your Child Tax Credit for the current tax year, something you’re more likely to need if you have a lot of dependents. Not everyone seems to be familiar with this IRS Letter 6419, however. For this reason, many taxpayers are surprised to find out they can’t claim the Child Tax Credit on their tax returns. They might even have to go through the trouble of filing an amended return. In this guide, we’ll tell you all you need to know about IRS Letter 6419 and answer some of the most common questions taxpayers have about this important document. What is a Letter 6419? Basically, a Letter 6419 is an informational notice that the IRS sends taxpayers. It explains what is known as the Additional Child Tax Credit. It’s a means-tested credit that can help you lower your tax bill. If you qualify for the credit, you could get between $1,000 and $1,400. This amount is applicable per dependent, and it is refundable – meaning you get the money even if you don’t pay any income tax for the year. You probably received this IRS Letter 6419 if you reported an income tax liability of $3,000 or more. If so, the IRS sends you a Letter 6419. It informs you of the amount of additional Child Tax Credit you can claim. Letter 6419 is pretty straightforward and shouldn’t be confusing. You’ll get an estimate of your Child Tax Credit and discover how much you can get back through the Additional Child Tax Credit. Who Should Use the Letter 6419? You should look at IRS Letter 6419 if you have more than one dependent and you’re eligible for the Additional Child Tax Credit. This is a credit to help you offset the cost of raising your children. If you meet the eligibility requirements, which we will go over in a moment, it can bring down your tax liability. If you file a joint tax return with your spouse, the IRS will send both of you a copy of IRS Letter 6419. One document is good enough to cover both spouses. In fact, you don’t need to request additional copies of IRS Letter 6419. It’s sent to you automatically. What Happens if You Didn’t Get Letter 6419 or Lost It? If you don’t get the IRS Letter , you can contact the IRS and request a copy. You should make this request as soon as possible to ensure you file your return on time. If you already filed your taxes, however, you can file an amended return instead. You can also use the CTC Update Portal of the IRS to check your records. Conclusion The IRS Letter 6419 is a concise and straightforward document. It explains the Additional Child Tax Credit to you so you can get your money back. If you qualified for the tax credit and got this IRS Letter , you should go ahead and calculate your refund or tax liability. Keystone Tax Solutions is here to help you make better sense of your taxes. As the leader in the professional tax preparation software industry, we are focused on developing intuitive tools for accountants and tax professionals. If you want to get the best tax preparation advice and tools for your career and business, Keystone Tax Solutions has what you need. Contact us today to get started!

A tax client strategy niche is a group of people with a shared interest or need. When you focus on a niche, you’re able to better serve your clients because you understand their unique needs. This, in turn, makes it easier to market your business in the long run. That said, below are just a few reasons why you must develop a good niche tax client strategy. 1. Your Clients May Prefer Specialists Instead of Generalists By becoming an expert in a few areas of tax law, you can provide more value to your clients and become more successful in your career. Clients who know you are knowledgeable about their tax needs are more likely to trust you and use your services. 2. You Will Be Able to Establish a Stronger Marketing Strategy Small businesses need to focus their marketing efforts on speaking to the specific needs of their target consumers. This will make the marketing more effective and are likely to result in sales. Individuals seeking tax-related assistance will generally prefer to work with someone with specific expertise in the area they need help with rather than someone with just a general knowledge of it. A specific focus in an area can help ensure that individuals get the most accurate and helpful information possible. 3. You May Reach More Remote Clients Narrowing your focus to a specific niche allows you to be the go-to expert for that particular type of client, making it easier for them to find you. As a result, you can end up with more clients overall, even though you’re only catering to a specific group. This means that your sole focus will likely land you clients from all over the world, not just from your local area. 4. You May Be Able to Raise Your Rates If you offer a service that is in high demand, you can charge more for it. This is because people are willing to pay more for a service that they need in the nick of time. When you are able to manage the difficult or confusing parts of your client’s taxes, they will be more than happy to pay extra for the assurance. 5. You Can Become an Expert in a Specific Area By focusing on a specific niche, you can become an expert in that area. This will make it easier for you to attract clients, as they will know that you are an expert on the topic and can help them with their needs. When potential clients see that you are well-versed in your field, they will be more likely to trust your advice and work more with you. 6. You Can Earn More Money When you become an expert in your field, you can earn more money than if you were just a generalist. This is because people are willing to pay more for services that they know are quality and from a reliable source. When potential clients see that you have experience and expertise in what you do, they will be more likely to hire you often and work with you on their taxes moving forward. Conclusion There are a number of compelling reasons to develop a niche tax client strategy. First, by focusing on a specific niche, advisors can develop greater expertise in that area and provide more valuable services to their clients. Additionally, targeting a niche allows advisors to build strong relationships with clients in that industry, which can lead to more referrals and increased business. Finally, developing a niche tax strategy can help advisors stay ahead of the curve and stay up-to-date on the latest tax laws and regulations that impact their clients. If you are looking for the best professional tax software in the market today, look no further than our innovative platform here at Keystone Tax Solutions. Our software has a wide range of features that are sure to make your tax preparations a breeze. Call us today for more information about our tax software and its other notable features.

Taxes come in multiple forms, and depending on your financial situation and professional obligations, you may be responsible to minimize different taxes throughout the year. We all know that taxes are due on April 15th, but that’s not the only tax Americans are on the hook for. Depending on your occupation, you may be responsible for paying taxes throughout the year, rather than once a year. In fact, there are seven types of taxes, each with its own characteristics, due dates, and distinct strategies to minimize them. 5 Different Types of Taxes You Should Know Since the idea of paying taxes might make you want to duck under a rock and not come out for six months, we’ve broken down these taxes for you and their associated due dates. Pay attention, because you don’t want to have to pay a fortune this April. 1. Income Taxes The first type of tax that you might be required to pay is income tax. Income taxes are due at the end of every year on your tax return. The amount of income tax you pay is based on the amount of yearly income you have received. here are the gross income limits for the 2021 tax year: Single: $12,550 ($14,250 if age 65 or older) Head of Household: $18,800 ($20,500 if age 65 or older) Qualifying Widow(er): $21,500 ($26,450 if age 65 or older) Married Filing Separately: $5 Married Filing Jointly: $25,100 ($26,450 if one spouse is age 65 or older; $27,800 if both spouses are age 65 or older) Contributing to a retirement plan, checking for flexible spending accounts at work, or claiming work deductions are a few ways to reduce your income tax. 2. Excise Taxes The second type of tax that you may be responsible for paying throughout the year is an excise tax. Excise taxes are the fees that you pay for various items, such as alcohol, tobacco, or motor vehicles. These taxes usually only apply to certain products, businesses, or activities. For example, the sale of tobacco is subject to an excise tax, while the sale of cereal is not. Keep in mind that excise taxes cannot be included as an itemized deduction for your federal tax return. 3. Sales Tax The third type of tax that you’ll need to keep track of throughout the year is a sales tax, which is the tax you’ll pay when you purchase an item from a store or online. Sales taxes vary from state to state, so you’ll need to be aware of the amount of sales tax your state charges, as well as the amount of sales tax the company you are purchasing from charges. Due to the fact that some states like Alaska, Delaware, Montana, Oregon, and New Hampshire do not impose a sales tax, you’ll need to be aware of any taxes your employer is deducting from your paychecks. 4. Property Taxes The fourth type of tax you’ll need to keep an eye on throughout the year is property tax. Property taxes are the taxes you’ll pay on your home or other real estates. You can cut down your property taxes by reducing home improvement projects, exploring neighboring home values, or checking whether you qualify for tax exemptions. 5. Estate Taxes The fifth type of tax you’ll want to be aware of is estate tax. Estate taxes are applied to a deceased person’s assets and are due after the person’s death. The estate tax is applied to the transfer of assets over a certain amount, and they are due nine months following the individual’s death. If you are caring for an aging parent, it’s important to know the estate tax implications as they apply to your family. Making charitable gifts and setting up marital trusts are tried-and-true ways of lowering your estate taxes. The Bottom Line: Understanding Minimize Different Taxes You Owe Now that you know about all of the different types of taxes you may be responsible for paying, you can take steps to minimize them. We’re here to make your life easier, and we believe in giving you the tools you need to manage your finances and make smart choices. How Can We Help? Dealing with taxes can be challenging for anyone, even as an expert tax preparer. If you’re looking for innovative solutions that can streamline your tax preparation process, our professional tax software for CPAs can help simplify matters for you. Our affordable technology can empower tax preparers and help you start a tax business with no EFIN, so get in touch with us today at 1.800.504.5170 to see how we can ensure your tax business is booming.

Taxes are a bit complicated to resolve, and most adults need to file taxes. As a result, many people hire professional tax preparer to help them with the problem. That being said, they are one of the most in-demand personnel nowadays, with people clamoring to get help as much as they can with their taxes. This is the perfect opportunity for you to become one yourself, but before you can even qualify as a certified tax preparer, you will need to develop a couple of skills. Below are just a few examples. 1. Multitasking Capabilities This is a must-have ability to become a tax preparer. Just like in any other occupation, you will have to deal with several tasks at the same time. This means that you need to be able to multitask before you can do this job. Otherwise, you might not be able to cope with the various tasks you will have to tackle on a daily basis. 2. Math Skills This is another skill that you will need to have. As a tax preparer, you will have to deal with various mathematical issues, including taxes, among others. There will also be times when you will be required to do some sort of calculations. Nevertheless, if you are skilled in math, this will not pose a problem for you. 3. Writing Skills This is another very important skill that you will need to develop. After all, one of your main tasks as a tax preparer is to write. No matter what, you will have to write, whether it is a letter to your client or just a correction to a mistake that you may have made along the way. Writing will be one of your most important responsibilities. 4. Communication Skills Just like writing, you will also have to develop your communication skills. This is important, especially when you have to communicate with your clients according to their needs. You will also have to communicate with other employees, including your boss and other employees. Of course, you should also be able to communicate with your clients on the phone. 5. Computer Skills Most tax preparers are required to work with a computer. It is one of the most significant requirements for this job. Most tax preparers use software to organize their work, as well as to keep records. As a result, you will have to be adept at using a computer, or you might find your job very challenging. 6. Keen Attention to Detail One of the most important requirements in any occupation is attention to detail. If you are not equipped with it, you won’t be able to get the job done well. As a tax preparer, you will be required to understand even the smallest details about your clients. Whenever you have questions, you should be able to find answers immediately. Otherwise, you might have to find ways to avoid problems that may arise. Conclusion If you are looking for a stable job, then you might want to consider becoming a tax preparer. It is a suitable job opportunity for you, as long as you have the right skills. Remember that you also need to understand the details of your clients, including their financial records. You can develop these abilities to become a success, as long as you want it and you work hard for it. If you are looking for the best professional tax software in the industry today, look no further than our platform here at Keystone Tax Solutions. Our software brings you a variety of solutions that are sure to help your tax preparation tasks be easier than ever. Call us today for more information about our tax software and its various features.

Taxpayers are legally required to filing taxes on time. They have to file their taxes and pay the government any taxes they owe by April 18 of the following year. If they don’t, the government can charge them with a penalty, and depending on the amount of tax they owe; they could be charged with a misdemeanor. There are times when taxpayers can get a tax extension, like if they are serving in a combat zone or out of the country. In those cases, they have to file their taxes by the regular deadline and then have until two and a half months after leaving the combat zone or country to file. If it is almost the deadline and your client has only asked you to taxed dues, you might find these tax filing tips helpful: 1. Take Note of the Deadline Be mindful of the deadline. Remember that your submission should show the timestamp (if submitted online) or postmark (if submitted via mail) that your forms have reached the office before midnight of April 18, 2022. 2. Double-Check Deductions Make sure you take every deduction that you can claim for your client. If they qualify, include all their dependents, including their spouse and children. Check with the IRS website to know if you have missed any. 3. Make Sure They Contribute to IRA Make sure that your client has made their IRA contribution. Many IRA plans are available, but they must choose the right one. You can reduce your client’s tax bills if they contribute to a traditional IRA. Meanwhile, contributions to Roth IRAs are not tax-deductible. Still, it will allow you to max out the annual IRS limits on retirement savings. It will give your client’s money more time to grow. 4. Claim Their Unemployment Benefits If your client has been recently laid off or been out of work for a while, they can claim unemployment benefits as a tax deduction. If they do not make a claim, they will not be able to take advantage of this deduction in the future. Your client is eligible to receive unemployment benefits if: They were laid off They were fired because of misconduct They quit their job because of a labor dispute Note: They can get unemployment benefits for up to 26 weeks. 5. Gather All Important Documents Ensure you have all your client’s relevant tax documents, as some forms are necessary to claim certain deductions. 6. Make Sure There Are No Errors Revisit your prepared tax return to ensure there are no mistakes. Check if the numbers are correct and make sure the right tax forms have been filed. More importantly, make sure that your client has signed the documents. 7. Submit the Return You should submit the return before the deadline. If you are mailing it, you should make sure you have done it before the post office or drop it into the mailbox on or before April 17. Make sure to use the correct address to avoid any delay. Conclusion If your client has not made their taxes and you are running out of time, you should make every effort to complete their taxes as soon as possible. Submitting tax returns on time is essential to avoid any penalties. Start looking for the best tax software if you are ready to complete their tax forms fast. Keystone Tax Solutions is a leader in the professional tax software industry, offering 100% web-based tax software to help thousands of tax professionals in the US do their job. Our software gets you the best tax preparation tool and will surely give you more than you pay for. Contact us today to find out more.

One of the biggest challenges in opening a tax preparation service or any business is securing clients. In this particular business type, tax preparers must find individuals or business owners who will entrust their crucial information and money, which can be somewhat tricky. There is no shortcut to achieving success in this aspect, but new businesses can find clients by knowing the right steps to take. Here is how you can jumpstart your client search. Tip 1: Have a Business Card and Always Carry It Around Tax Preparation Service It is one thing to have business cards and another to always carry them with you. It may appear to be a minor thing, but it is a wise habit. Business cards contain essential information to introduce yourself to potential clients. They also serve as your calling cards when you are out and about. The problem with most business owners is that they have business cards but forget to actually use them. If you truly want to use your business cards, then ensure to place them in strategic places and have them on you at all times. Tip 2: Know Where Your Target Clients Are For Tax Preparation Service One of the biggest mistakes business owners make is not knowing where to find potential clients. And the biggest reason for this is that they do not really know who their target clients are. If you are a new tax preparer, your target customers may be individuals or small businesses. But once you establish a clientele, your business could expand, and your target clients may evolve into small companies, large corporations, and independent professionals. You cannot go on a random hunt for business owners. That would be quite a waste of your time and effort. You have to direct yourself on when and where you will approach your target clients to get their business. A good example is attending tax preparation seminars or other programs discussing business-related issues. You can find your potential clients here and start making connections. Tip 3: Start a Website Having a website is an excellent way to let people know about your business. It is also a good way to drive traffic and find potential clients. You may have the best service in the world, but if you do not have a website, people may not be able to know you even exist. However, it’s best to note that starting a website is not enough. You have to have a website that can sell your business. If you are a tax preparer, your website should help you showcase your services and experience. Tip 4: Encourage Referrals One of the best ways to get clients is through referrals, as you do not have to go out of your way to get them. Just focus on doing an excellent job so that clients will actively recommend you to their friends and family. Most tax preparers have a referral program to offer discounts on their services. For example, one can get 10% off on their bills if they refer a friend or colleague. Doing this is a win-win situation. You will get new clients, and your client will also get a discount on their tax preparation fees. Tip 5: Offer Free Consultations or Tax Preparation Service While you actually should not give out free consultations just for prospects, you should use them as opportunities to learn more about your target clients and their business. Use this opportunity to find out more about their business, the challenges they face, and their goals. This way, you will know more about your clients and can offer them better solutions. Conclusion These are just some ways you can find new clients for your tax preparation service. You will get more business and more income when you successfully do these steps. But remember to take things slow. Too many people get too excited about the goal that they fail to follow a marketing plan. If you follow the tips above, you will surely have more clients to propel your business forward. Make sure that you also offer excellent and efficient service by utilizing professional tax preparation software. Keystone Tax Solutions is a leader in the professional tax software industry, offering 100% web-based tax software to help thousands of tax professionals in the US do their job. In our software, you get more than what you pay for. Contact us today to find out more.

It is easy to overlook Common Tax Mistakes as a business owner since you have many obligations. However, it is time to focus on this vital, somewhat unpleasant topic now that tax season has arrived. You may think you’re aware of the issues you might encounter, but certain obstacles can trip up even the best-prepared business owner. Tax season mistakes are often at their peak when the business is new, or the company is undergoing a significant change. It’s important to know what to expect from your taxes. It is not a surprise that tax preparation is a significant part of the manager’s job. Business owners who are not prepared with the necessary knowledge and skills to correctly complete the tax forms are the most common tax mistakes. Here are the common tax mistakes to avoid as business owners: 1. Ignoring the Tax Process Even though tax preparations are a necessary part of the business owner’s job, many small business owners commit the mistake of not taking this process seriously. Consequently, they find themselves in a lot of trouble. This applies to both their personal and business tax returns. Business owners may be quick to claim expenses, but they fail to take the time to fill out the necessary forms. They even utterly neglected following up with the IRS to ensure that all taxes were paid. For a small business owner, it may be challenging to find the time to complete the tax-related paperwork and put in the effort to follow up with the IRS. However, this is necessary, and you must arrange your schedule to make it happen. Furthermore, many small business owners assume they don’t have to file taxes because their businesses are not making a profit. The truth is that any company that is earning income must file quarterly and annual tax returns. If you are not filing tax returns or paying taxes, you are not just avoiding the payment of taxes but also creating a lot of legal problems for yourself. 2. Omitting or Exaggerating Sales or Expenses The main objective of filling out a business tax form is to report taxable income. However, it is possible to overstate or understate sales or expenses. The IRS is generally suspicious of excessive deductions and will require additional documentation to prove those deductions. 3. Filing Late File your business tax return on time, even if you think that you don’t have enough income to be taxed. The penalty fees will be based on how many days late you file your tax return. In addition, if you are not filing your taxes promptly, the IRS will assume that you are intentionally neglecting your taxes and will trigger an audit. As a precautionary measure, you should consider seeking the assistance of an accountant before attempting to fill out any tax forms. They will ensure that you report all income, available deductions, and credits and that there are no mistakes. Conclusion Tax mistakes are common business tax issues that cost many business owners thousands of dollars. This can be not very comfortable and can affect your company’s credibility, profitability, and reputation. It will be a good idea to seek tax assistance from an experienced accountant or tax preparer to avoid the hassle and penalties. Avoid the traps noted above, whether you are a business owner who wants to do it alone or a professional accountant who handles the taxes of multiple enterprises. Consider using the best professional tax software available. With over 15 years of expertise, Keystone Tax Solution is the market leader in professional tax software. Thousands of tax professionals around the United States rely on our 100% web-based tax software to help them with their work. Right now, you can get a free demo.

Those with a four-year degree in accounting may think that their job involves nothing but accounting and number crunching in Tax Professionals. While this is true much of the time, there’s much more to it than that. An accountant’s day-to-day tasks probably focus on money, but many people don’t realize that accounting is more than just math. Most people overlook that a tax professional can be an invaluable resource beyond the numbers. Of course, a tax accountant has to know things like tax laws and legal aspects, but they can also provide advice on sales tax and VAT exemptions, as well as be a valuable resource in planning tips. However, another aspect that many people should consider is an accountant’s client service. A tax accountant will help companies and individuals to stand out from the competition by providing such advice. For this reason, they must always maintain healthy relationships to keep loyal clients Here are six tips tax professionals should follow to provide better client service: 1.   Be Available Even if a tax accountant doesn’t answer the phone every time it rings, they should be available to provide a certain level of service to their clients. This is especially true when it comes to accounting. Tax professionals face pressure to be available 24/7, and those that aren’t may not be taken seriously. Clients are likely to go elsewhere with the myriad options available if they can’t reach their tax professional. 2.   Be Familiar With Your Client’s Business A tax professional needs to know their client’s business from top to bottom. It’s also vital to keep up to date with changes in the industry. To be helpful and provide good customer service, tax professionals need to know what’s going on in the business world, especially in their client’s industry. 3.   Keep Your Clients Updated To maximize the relationships a tax professional has with their clients, it’s important to keep clients updated about what’s going on. This is especially true for taxes. Keeping clients in the loop about tax-related developments lets them know that tax professionals have their best interests at heart and will not let them down. It’s also an excellent way to make them feel like they are a part of the process, rather than just a number. 4.   Make Your Client’s Life Easier A tax professional can help clients make their lives easier, particularly when it comes to tax-related situations. When a tax professional is aware of a client’s financial situation, they can make suggestions that lead to better outcomes. People who do taxes will become more than just valuable resources if they develop ways to make their clients’ lives easier. 5.   Make Clients Feel Like a Priority You can make tax professionals more than just helpful resources in the long run if you keep your clients up to date and find ways to make your life easier. People want to feel like someone is looking out for them, and a tax accountant can provide that for anyone working within the financial sector. 6. Get the Best Professional Tax Software While some people may think that tax professionals are responsible for doing all the work, a good tax accountant will use the best tax software available for their clients. A good tax professional knows that picking the best tax software for their clients can go a long way toward helping them to be more efficient and effective. A tax pro software can help accountants stay on top of their client’s taxes, which can make them very effective in their role. Conclusion It’s important to remember that many people who don’t work in accounting or finance think tax experts are just people who do the math. There’s more to it than that, however. To be successful and make clients feel valued, tax professionals need to add value to their clients’ lives, not just money-making assets. Tax professionals can build a solid reputation, attract new clients, and grow their businesses by adhering to these tips. The benefits are sure to be plentiful. If you want to make work easier with the best professional tax software, Keystone Tax Solutions is a leading provider of affordable tax pro software and business management services with 15 years of experience helping thousands of tax professionals jumpstart their businesses through technology-driven tax software. We offer huge discounts and impeccable customer service to help you every step of the way. Contact us today!

Word-of-mouth marketing is regarded as the most trustworthy method of promotion due to this high level of trust. Today, personaly requesting referrals are trusted by 83% of consumers. Word-of-mouth advertising is the most efficient and cost-effective technique of marketing. You will lose leads if you do not request client referrals. As such, you must find the best method to ask for what you want without appearing aggressive or needy. If you employ these strategies, you will boost your chances of receiving referrals. Read on to discover these tips for requesting referrals from your clients. Mind Your Timing Before approaching a client for a referral, you should first build a rapport with them and gain their trust. If you move too quickly, people may believe you are looking for work or that you do not value them as a customer. Tax return preparers must be aware of seasonality. Prospective clients may have filed their taxes with a different preparer up until the conclusion of the tax season. Before the tax season begins, send an email to prior clients who found your services useful. Give them a tax season discount or gift card for every new customer they bring in. If you are new to the tax preparation industry, you might ask prior clients for referrals. Requesting for Referrals When you have good relationships with your clients, it is time to implement these referral techniques. Mix and match the information to determine what is true. – Do it Face-to-Face If a consumer is delighted with your work, you should urge them to tell their friends and family about it (or any of your other services). Give them your business card as a memento of your visit. Even if the cards are never distributed to the recipients, seeing them will serve as a reminder to contribute. – Send an Email A call to action can be included in ordinary emails; however, it is more productive to send a separate email requesting advice. To avoid coming out as unpleasant, express gratitude for the customer’s patronage and mention how much you’ve liked doing business with the individual in question. – Offer Incentives Customers may be enticed to promote your firm if you provide them incentives. When you offer a minuscule incentive to your clients’ contacts, they will believe they are assisting their close buddies. – Provide Materials Provide promotional items such as business cards, email templates, or social media posts to your consumers if you want them to help spread the word about your company. Generosity is proportionate to one’s level of effort. Mistakes to Avoid Avoid these pitfalls if you want your firm to thrive and preserve your consumers’ trust. Don’t try to obtain referrals from new customers. To begin, demonstrate both your work and your persona. Don’t beg. Be accurate and courteous, but avoid pestering clients. Don’t over-ask. Don’t try to insert your referrals at every chance encounter. Don’t make promises you can’t keep. The expense of word-of-mouth promotion is relatively inexpensive. Offering exceptionally steep discounts may increase referrals but decrease income. Conclusion Knowing how to request referrals appropriately is all a part of running a business and becoming successful. So, if you have never done this before, you should start doing it right now. By asking the right questions, referrals may aid in the income of your company or your business. Are you looking for the best professional tax software? Keystone Tax Solutions has over 15 years of experience helping tax professionals in the US start their own businesses, and thousands more obtain access to cheap technology-driven professional tax software. We offer quality and excellence with unrivaled rates and services to help you develop a profitable tax practice. Get a FREE demo today!

As a new tax preparer, it’s important to understand the different stages you need to go through when growing your business. By taking the time to plan and set goals, you can ensure that your business grows at a healthy pace and reaches its full potential. There are four main stages that a tax preparer business will go through as it grows: startup, growth, maturing, and decline. Each stage has its own challenges and opportunities that need to be taken into account in order to ensure the success of the business. Here are a few tips to help you get started. The Steps it Takes to Grow Your New Tax Preparer Business Step #1: Pre-Startup In the pre-startup phase, you may feel overwhelmed because there are many things to do, and it’s hard to know where to start. It’s important to have a plan and work on building a strong foundation so you can avoid failure and achieve the results you want. The main tasks for this stage are to first understand the problem that you are trying to solve and then to develop a plan or strategy for solving that problem. This will involve breaking the problem down into smaller pieces that you can then work on one at a time. Once you have a plan, you can then start to implement it and test it to see if it works. This means that you should build the basic infrastructure for your business in a timely and effective manner, but try not to get too bogged down in the details. Many entrepreneurs get stuck at this stage because they get caught up in the details and lose sight of the big picture. To that end, this is the stage when you need to find a way to make money so you can pay your bills and do the work required to get everything set up. Step #2: Early Startup You are beginning to make some money, but you are still very anxious about whether or not this will be successful. This can lead to feeling like you have to work hard all the time without seeing any results. In this phase, you have some clients, but you are still doing everything yourself. You have no team, no contractors, or maybe one VA or an administrative assistant. Before you start spending money on marketing, it’s important to have a basic framework in place. This will help you determine which marketing strategies are the most effective for your business. Once you have a framework in place, you can start testing different marketing strategies to see what works best for your company. Step #3: Late Startup The Late Startup phase is when you start to focus more on your business and delegate tasks to other people. You also start to create systems and processes to make things more efficient. In order to maintain a consistent income and see continued growth, you need to put systems in place. By creating systems, you can streamline your process and ensure that everything runs smoothly. This will allow you to focus on other aspects of your business and continue to see success. Step #4: Growth New Tax Preparer This is about you moving into more of a visionary or CEO role and scaling your business by growing your team, big time. If you want to be successful, you need to keep hiring talented people and learn how to manage them effectively. There is no one-size-fits-all solution when it comes to building a team, so you need to figure out what works best for you and your business. It’s all about taking the next steps to make a real difference in the world. This means moving away from a one-to-one model and into something that is much more sustainable and has the potential to make a lot more money. This will also have a greater impact on the world as a whole. The Bottom Line: Building Your New Tax Preparer Business from the Ground Up As a new tax preparer, you have the opportunity to build a thriving business from the ground up. However, before you can do that, you need to understand the ins and outs of the tax preparation industry and how to start and grow your business. The key to success in the tax preparation industry is hard work and dedication. With enough effort, you can build a thriving business to help you achieve your financial goals. How Can We Help? Dealing with taxes can be challenging for anyone, even an expert tax preparer. If you’re looking for innovative solutions that can streamline your tax preparation process, our professional tax software for CPAs can help simplify matters for you. Our affordable technology can empower tax preparers and help you start a tax business with no EFIN, so get in touch with us today at 1.800.504.5170 to see how we can ensure your tax business is booming.

The American Rescue Plan essentially modified Form 1099-K reporting requirements for third-party payment networks (such as Cash App), which previously had been based on credit and debit card payments. Now, it actively includes electronic payment transfers as well. These networks process payments and have exploded over the last several years. This means you’re going to have multiple clients that have Form 1099-Ks. It’s important to be consistently up-to-date on the way reporting requirement changes will affect 2022 taxes. Form 1099-K: A Review Every single payment received by way of payment settlement entities (PSEs) is detailed on a Form 1099-K. “Entities” includes payment credit cards like debit and credit cards, alongside payment networks from a third party, such as Venmo. The form can be sent to businesses (using their Tax Identification Number or TIN) and individuals (using their Social Security number). Clients should get a separate Form 1099-K from every PSE where the client’s number of transactions or gross payments went beyond the reporting threshold. Changes in Form 1099-K For the Year 2022 The most notable 1099-K requirement change involves the de minimis threshold for payment networks that are third-party. During tax years prior to 2022, networks only had to send a Form 1099-K if a business or individual had over 200 transactions and got more than $20,000 in gross payments. For this year onwards, however, third-party payment networks now have to send out 1099-Ks to anyone who has any number of transactions alongside over $600 in gross payments. Given the major downturn in the reporting threshold, filing 2022 tax returns will involve a lot more Form 1099-Ks coming in. The new laws also attempt to ensure more accurate tax returns from smaller businesses or individual taxpayers who were not previously subject to 1099-K reporting requirements. It should be noted that the changes apply to third-party payment networks only. Card payment reporting requirements, on the other hand, are still the same. Payments that come from debit or credit cards have never been subject to a de minimis threshold. As a result, a Form 1099-K must be sent by PSEs to anyone and everyone that gets them. Individuals will need to file a Schedule C (Form 1040) while businesses should file Form 1065, 1120, or 1120S (depending on the structure of their business). Will 1099-Ks Be Sent Out To Clients for Personal Transactions? Personal transaction reports should not be a concern. If a client receives over $600 in reimbursements through an app like Cash App, for example, but it’s all from family and friends and linked to events such as eating out, don’t fret. That transaction and others like it are excluded from the reporting requirements. Clients should not be receivers of a 1099-K in that case. Typically, third-party payment networks are able to differentiate personal and business transactions based on short questionnaires asking if the transaction is for the service or good. Another solid basis often used for this is user agreements. Conclusion Form 1099-K is a crucial document that previously only covered debit and credit card payments. For 2022, it’s been updated to include third-party payment networks like Cash App and Venmo. It should be noted that personal transactions do not require 1099-Ks. Need the best professional tax software? Keystone Tax Solutions has you covered. We have professional tax software for tax preparers. Get in touch with us today!