Carolina Hurricanes. San Jose Earthquakes. Chicago Fire. Colorado Avalanche. Am I talking about sports teams? No. I’m talking about the disasters behind the names. Disasters cause massive losses and often cost far beyond what insurance can cover. When the federal government helps by declaring a federal disaster area, federal money… Read More »Can I use my Retirement Funds after a Disaster?
Property flipping has been a popular side hustle since the housing market crash in 2008. Buy a property with some wear and tear and outdated décor at a low price, fix the problems, make it look nice, and resell it at a profit. There are countless classes you can take,… Read More »Property Flipping: Record-keeping to Pay the Least Taxes
The Secure Act 2.0 was passed in December 2022 and made a lot of changes to what you can do with your retirement money. The first Secure Act in 2020 allowed for a $5000 penalty-free hardship distribution for the birth or adoption of a new child. Section 311 of Secure… Read More »Can I Use My Retirement Money if I Have a Baby?
Your 1099K is on hold again. It isn’t coming. I knew it. As the end of the year grew closer, I started writing blogs and planning strategies to deal with the incoming 1099K nightmare. I was figuring ways to reconcile the 1099K sent by the bank and the 1099-NEC or… Read More »The 1099K On Hold Again
“Is there anything else going on?” I can tell there is. You wouldn’t be in my office if there wasn’t a problem somehow. Often, that last-minute question is on Child Support: paying, receiving, and employers getting letters to withhold. Everyone gets nervous about Child Support. No one wants to talk… Read More »Plain Talk About Child Support
How do I report my Uber and Lyft income? Rideshare driving is so confusing. Most jobs are fairly simple: Here’s your form, plug in the numbers, taxes are done. Rideshare driving is different. You are self-employed. Why? Because they don’t tell you when to come to work or what to… Read More »Taxes for the Gig Economy
August 1980-something, somewhere in New Jersey: My senior year was about to begin. I went into school on registration day to pick up my books and settle my super easy Senior schedule. Everything was looking perfect until I met with Sister Delores, my class counselor. (Yes, there were nuns at… Read More »Why Am I Here? – An Accounting Origin Story
I hear it all the time: “I paid the taxes on that and I’m not going to pay taxes on it again.” Gambling wins, retirement and 401k withdrawals, legal settlements, bonuses for selling plasma, and other payments have the taxes held out. Often, I have clients that are resistant to… Read More »“But I Already Paid the Taxes on That!” – Taxes Held Out on Payments
“But it’s MY money. I already paid taxes on it!” That is true. Roth IRAs are funded with after-tax dollars. Therefore, Roth IRA withdrawals should be tax-free, right? Unfortunately, that is not always true. What is a Roth IRA? Roth IRAs were created by law in 1997. Rather than putting… Read More »Are Roth IRA withdrawals taxable?
Your tips are your money. Your manager, supervisor, or the owner cannot take your tips. The law on tips is in Federal Department of Labor Fact Sheet 15 HERE. You are not required to split your tips or ‘tip out’ non-tipped employees. Pooled tips – such as from a… Read More »Your Tips Are Your Money
I love it when I get a call from someone asking me how much tax they will have to pay on something, and I get to say ‘zero.’ They get so excited when they have tax-free income and the taxman isn’t going to take half of it. That makes my… Read More »15 kinds of Tax-Free Income
Yes, I am an Enrolled Agent in all 50 states, but I get it all the time… “This is Diane. She’s my CPA.” Me: “No, I’m an Enrolled Agent.” Them: “Huh?” Me: “Enrolled Agent” Them: “You’re an IRS agent?” Me: “Nevermind…” I’ve given up explaining. My license is on my wall… Read More »You’re a What? Enrolled Agent? What’s that?
A 1031 exchange is also known as a ‘like-kind’ exchange and it a method or deferring the taxes on the sale of a piece of property.
I can deduct the work I do on my house, right? I get asked this often. The answer is… maybe? I think I give that answer to everything, so let’s see how selling your home is taxed and what you should be doing NOW to minimize future taxes. There are… Read More »Can I deduct my home improvement expenses?
Gambling. People try to hide it sometimes. Others wear winning like a badge of honor. But when you win more than a few hundred on the lottery or at the casino, the government knows. Form W2-G You will know when it happens. You need to go to the lottery… Read More »Gambling Winnings on Form W2-G
January 2024 Update 2024 is upon us already and tax season is all year long at Grass Roots Taxes. If you have no idea what to bring to do your taxes, check out my list of most forgotten documents, below, and download this year’s updated checklist. You can also scroll… Read More »What to Bring to Do Your Taxes
The worst part of getting a new job is filling out that dreaded paperwork. The new boss asks about everything. They need to see your ID and Social Security card. They need your emergency contact and next of kin. But one of the most important things you fill out is… Read More »Tackling the New W4
You know what’s frustrating? When regular customers tell me they signed up for some new service with another accountant. Or used some online legal service. Or bought some scammy service that they don’t need. “You do that? I had no idea!” they’ll say. It’s so frustrating for me. I want… Read More »36 Things Your Accountant Can Do for You
I got a text the other day from a client asking if I could pull a copy of his 1994 tax return. My first gut reaction was, “Why on earth would you need it?” I learned a long time ago not to ask ‘why’ unless there is a good reason.… Read More »Can I get a copy of my old 1994 tax return?
