Uncategorized

File a Tax Extension in 2024: What You Really Need to Know

Sometimes life happens, and meeting that tax deadline isn’t feasible. A tax extension can give you up to six extra months to file your return, which is a relief when you need some breathing room. Filing for an extension is straightforward—you can submit it online or enlist a tax professional to help. Best of all? Extensions are almost always granted, and there are no hoops to jump through.

That said, an extension doesn’t push back your payment deadline. Taxes are still due by April 15^th, so while you get extra time to file, you don’t get extra time to pay.

❗When Life Gets in the Way

Most taxpayers are unable to pay taxes on time due to various reasons, including illness, death of a family member, natural calamity, and other such scenarios. That is when Insogna CPA’s team of professionals can step in to help you find your way out of the trouble with the IRS.

💵 The Cost of Delay: Penalties for Late Payments

No matter when taxpayers file their tax returns, if they do not pay the tax owed by the standard deadline, IRS penalties and interest might begin to accrue. Even if you are unable to pay taxes, filing a return is a must, as the penalties for failure to file are much more severe than failure to pay penalties.

We’ve Got You Covered—For Free!

For our clients who have engaged us to file their 2023 tax returns and need extra time, we automatically file extensions at no extra charge. It’s one less thing for you to worry about.

Looking for a proactive CPA team that does more than just crunch numbers? Let us help you navigate the tax landscape, uncover deductions, and reduce your tax bill. Contact us today to get started!

10 Ways to Avoid Accounting Horror This Halloween

To keep the financial ghouls and gremlins out of your books this fiscal year, here’s your 2024 guide to preventing accounting nightmares:

Horror Prevention Checklist:

1️⃣ Keep Software from Turning Zombie – Update your accounting software regularly to avoid it turning into a glitchy, rogue monster.
2️⃣ Ghoul-Proof Your Internal Controls – Solid checks and balances are like garlic for financial vampires, keeping any mischief out of your books.
3️⃣ Backup Before the Apocalypse – Always back up your financial data. You never know when tech troubles (or financial zombies) will strike.
4️⃣ Witch-Watch Your Cash Flow – Keep stirring that financial cauldron, and watch for any odd bubbles that might spell trouble.
5️⃣ Audits: The Ghostbusters of Accounting – Regular audits will help you exorcise unwanted financial surprises.
6️⃣ Don’t Let Taxes Haunt You – Stay up to date on tax laws so that IRS specter doesn’t pop up unexpectedly.
7️⃣ Employee Vetting: No Vampires Allowed – Make sure your employees are only sucking up knowledge, not company funds.
8️⃣ Double, Double, Two-Factor Trouble – Secure your financial accounts with two-factor authentication for extra protection.
9️⃣ Guard Your Financial Treasures – Store important documents in a password-protected vault, preferably guarded by a digital dragon.
1️⃣0️⃣ Summon Your Financial Wizards – Consult with accounting experts regularly to keep dark forces (and tax surprises) at bay.

With this handy checklist, your 2024 financial books will be free from any scary surprises—no ghouls, goblins, or gremlins in sight!

Ready to ward off accounting nightmares?

Our team of financial wizards is here to help you make 2024 your most profitable (and least spooky) year yet. Reach out today, and let’s ensure your business is as safe as a password-protected vault!

Paralympics 2024: Proactive Tax Strategies for College and Pro Athletes

Hey, athletes! As you shine on the Paralympic stage, don’t let taxes steal the spotlight. With Name, Image, and Likeness (NIL) earnings rolling in, and your Olympic Medal monies piling up, understanding tax savings is your new game plan. Here’s the deal—all your money is taxable. Yep, you owe the IRS. But don’t sweat it; we’re here to help you keep more of your hard-earned cash in your pockets!

🎾For College Athletes

Set Up an LLC for Tax Savings
Setting up an LLC isn’t just for businesses. It’s a smart move, we have our athlete clients setup too. This helps to separate your personal finances from your athletic business income streams. And allows our team the option to elect your LLC with the IRS to file as an S-Corp, potentially saving you thousands of dollars in unnecessary self-employment taxes. Think of your own LLC as your secret weapon for keeping more in your pocket.

Track Your Expenses Like a Pro
Training, travel, equipment—these are just a few expenses that can lower your taxable income.

There are many apps to help separate expenses if you run everything through one account. However, if you want months to categorize things, will you remember that one meal where you talked business?

Keeping detailed records is like nailing that perfect routine—essential for reducing your taxable income.

So, we always suggest keeping a separate business checking and credit card to help you identify what is personal and business when you have time in your business schedule to finally categorize things. Or, if you just want a CPA team to help with this our amazing accountants are always ready to help. With a CPA on your team, you’ll know exactly what counts as a deductible expense.

Plan for Self-Employment Taxes
Having business taxable income likely mean you’re paying Social Security and Medicare taxes payroll taxes. Not fun! With some proactive tax planning – before December 31^st – you can potentially avoid parting ways with your cash to the IRS. Our team stays on top of this for our monthly clients so you’re not overpaying these pesky FICA self-employment taxes every year.

🏅For Professional Athletes – Mastering Your Tax Strategy

You’ve made it to the pro level—congrats! Now it’s time to play smart with your finances. A solid tax strategy isn’t just a nice-to-have; it’s crucial for your long-term success. Our team likes to do a formal Q4 tax planning engagement with our monthly clients so we have a game plan together before December 31^st avoiding taxes where we can.

Optimize Your Earnings with Strategic Investments
If you cash flow allows for, and you are a qualify for registered investor status, you can take advantage of things like oil & gas leases and wildlife funds that provide large tax deductions to help you offset your taxable income.

Understand State Tax Implications
Earning business income in multiple states with events? Each state wants there piece of your state income. A CPA can help you navigate the maze of state tax laws to ensure you’re not paying more than you owe.

Retirement Planning—Start Now
It’s never too early to think about retirement. Investing in a 401K or an IRA today can reduce your taxable income and set you up for a financially secure future. Plus, it’s a great way to ensure your earnings work for you long after you’ve left the field. And these monies are asset protected!

💡 Seeking Professional Advice?

Don’t leave your financial future to chance. A licensed CPA can provide the expert advice you need to manage your money wisely. From tax strategies to retirement planning, having a trusted advisor in your corner is a game-changer.

Whether you’re a rising college star or a seasoned pro, understanding your taxes is crucial to keeping your finances on track. At Insogna CPA, we’re here to help you navigate the complex world of athlete taxes. Don’t let taxes sideline your success—reach out to us today and let’s build a game plan for your financial future.

Contact our team today! We really do call you back and respond to your inquiries.

Last Minute Tax Filing Tips 2024

Haven’t filed your taxes yet? It’s okay, you’re not alone. Believe it or not, many people don’t file in early February when tax season starts. In fact, about one-third of taxpayers in the U.S. wait until the last two weeks before the April deadline to file!

But waiting too long can cause headaches. Rushing to meet the deadline increases the risk of errors, which could cost you more in the long run.

With the deadline looming, now is the perfect time to get organized—whether you file yourself or seek professional help. Ignoring your tax prep won’t make it disappear (unfortunately), and filing late will only add interest charges, which could end up costing you hundreds.

Start by Getting Your Tax Paperwork Organized

We get it—paperwork isn’t fun. Tax forms tend to mix with junk mail, old bills, and receipts from last year. But even if the thought makes you groan, organizing your tax documents is the first essential step for smooth tax filing. You’ll feel a weight lift once it’s done, trust us.

Here’s what you’ll likely need for tax filing:

📌 W-2 forms
📌 1099 forms
📌 Mortgage interest statements
📌 Receipts for deductions, like charitable donations or medical expenses
📌 Health Savings Account (HSA) statements

💡 Pro Tip Create a dedicated folder and collect your tax docs throughout the year. That way, when the next tax season rolls around, you’ll be ready—and you might even file early!

❓ Should You Take the Standard Deduction or Itemize?

Time is ticking, so it’s tempting to take the standard deduction just to get it over with. But before you rush, check if your expenses might exceed the standard deduction. Even though the Tax Cuts and Jobs Act doubled the standard deduction, itemizing could still save you money, especially for state taxes.

Need help figuring out if itemizing is the right move? We’re here to assist you, but don’t wait too long—accountants get busy fast as the deadline approaches.

❓What Happens If You Miss the April 18th Deadline?

If the April 18th filing deadline passes by and you still have not filed, there will definitely be repercussions from your decision, however, the severity depends on if you owe the government or not.

💡 Late-Payment Penalties

Even if you can’t pay your full tax bill, file on time to avoid the steeper “failure-to-file” penalty. It’s the smart, cheaper choice.

💡The Earlier You File, The Less You Pay

If you can’t pay the full amount, contact us ASAP to get your filing done. The sooner you file, the less you’ll end up paying in penalties. Remember, it’s not just about paying—it’s about filing first to minimize your financial hit.

💡Consider Filing for an Extension

If you’re still missing key documents, you can request a six-month extension by filing IRS Form 4868. But don’t forget: an extension only gives you more time to file, not more time to pay.

💡Pay What You Can Now

If covering the entire tax bill is out of reach, pay what you can when you file the extension. Then, work on settling the rest before the IRS comes knocking. If needed, you can set up a payment plan online.

Get Your Taxes Done Right

Feeling overwhelmed by tax filing? We’re here to help! Whether you need assistance with tax prep or an extension, contact us today. We’ll get your taxes squared away in no time, so you can stop stressing and avoid those costly penalties.

Ready to avoid those last-minute tax filing stress headaches? Get in touch with us today. Let’s get your taxes done right—and on time!

8 Smart Year-End Tax Planning Tips

Year-end is just around the corner, but you still have time to make some smart tax-saving moves before the clock runs out. These Power 8 strategies can help you lock in savings and set yourself up for a successful tax season.

1️⃣ Check Your Paycheck Withholding

Hey, check your paycheck withholding. Too much? Hello, refund! Too little? Hello, surprise bill from Uncle Sam! Aim for a break-even to make your money work harder, not the government.

2️⃣ Defer Your Income

Got a bonus coming? See if you can push it to next year and lower your tax bill. Self-employed and filing accrual basis? Consider delaying those invoices to your customers.

3️⃣ Adjust Retirement Account Contributions

Boost those pre-tax retirement contributions and save on taxes. Or look at maxing out your ROTH contributions by year-end. But remember, this money is for your golden years, so only boost if you have extra cash lying around.

4️⃣ RMDs for the 73+ Club

If you’re 73 or older, don’t forget to make your RMD withdraw from your retirement accounts by Dec 31st! Miss it, and Uncle Sam hits you with a hefty penalty. No one wants that.

5️⃣ Use Your Gift Tax Exclusion

Feeling generous? Use your $17,000 exclusion to give money to each person without Uncle Sam dipping into it. Stay under the radar of the IRS’s gift grab.

6️⃣ Maximize Tax Deductions and Credits

Pay property taxes and January’s mortgage early for deductions. Donating big? Itemize for tax breaks. Going electric? Enjoy those EV credits. And finish those eco-friendly home upgrades!

7️⃣ Consider a Roth Conversion

Switch to a Roth for tax-free growth and withdrawals. It’s a savvy move but chat with a pro first. Keep those dollars away from the taxman!

8️⃣ Consult a Tax Professional

End-of-year tax planning? Get a tax pro on your side, like us! Make smart moves, cut your tax bill, and stride into tax season like a boss.

Let’s turn these tax tips into real savings!

Call us today, and together, we’ll craft a personalized tax plan that ensures your 2024 year-end tax strategy is rock solid. Finish the year strong and stride into tax season with confidence!

6 Year-End Tax Planning Strategies to Consider Now

Have you kicked off your year-end tax planning yet?

As we are approaching the final quarter, it’s the perfect time for strategic tax planning to reduce your tax bill. If you’re a business owner, tax planning isn’t a one-and-done deal—it’s an ongoing process.

Tax Planning Tips

Here are six essential year-end tax planning strategies for 2024 that you should consider:

1️⃣ Review Your Business Structure
(see What’s the best business formation setup in this booklet). As your business grows, your structure (entity) may change.
2️⃣ Maximize Your Retirement Plan: Save on taxes by contributing to a retirement plan. Whether it’s a SERP IRA, Solo 401(k), or a combo of a 401(k) with a defined-benefit pension plan, these are effective tools for slashing your tax bill.
3️⃣ Utilize the Home Office Deduction: This valuable tax break can save hundreds, or even thousands, of dollars in taxes each year.
4️⃣ Ditch the Shoebox Accounting: Track income and expenses throughout the year using a cloud-based tool your accountant can access.
5️⃣ Consider First-Year Bonus Depreciation
80% bonus depreciationon new property acquired and placed in service during 2021. If you’re having a big income year, consider moving up big purchases before year-end (see Should I buy equipment for year-end in this booklet).
6️⃣ Be Proactive with Income and Deductions: If you expect to be in the same or lower tax bracket next year, deferring some income to 2025 could be beneficial. Conversely, if you expect a higher tax bracket, accelerating income into 2024 or delaying deductions until 2025 might make sense.

💡 More Tips

Don’t miss out on additional year-end tax planning strategies. Download our comprehensive 2024 Year-End Tax Planning Guide for business owners and ensure you’re making the most of every opportunity to reduce your tax liability.

Ready to put these strategies into action?

Schedule a consultation with us today, and let’s tailor a tax planning strategy that works for your unique business needs—because smart planning now means fewer headaches later.