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End of Year Tax Wrap-Up: 4 Tips to Prepare for the New Year

End of Year Tax Wrap-Up: 4 Tips to Prepare for the New Year

It’s beginning to look a lot like … end-of-year project wrap-ups, holiday gatherings and celebrations, and time off to rest and reset for the new year. Before you log off, there are a few things to do as a small business owner to button up 2022 and prepare for your tax filing. Crossing these items off your list will bring peace of mind and give you more time to focus on those 2023 goals as soon as the ball drops. Here are four things you can do before the end of the year to make tax time less stressful: 1. Update your payroll records or hire out This is the time to verify all employee wages, benefits, and deductions. Be sure to double-check employment tax rates that tend to change annually. You or your payroll specialist should also make sure all paychecks, year-end bonuses, and payments have been recorded. 2. Gather or prepare financial documents for your accountant Year-End Balance Sheet: This statement includes assets, liabilities, and owner’s equity of your business. The Balance Sheet can help you determine if you may want to look at working on collecting receivables or paying down debt in the coming months. Year-End Income Statement: Here, you’ll see the comparison between earnings and spending throughout the year and will determine a company’s net income for the year. The sheet should have a clear list of revenue in one section and a list of expenses and losses in the other. Subtracting the expenses and losses from the revenue will show the net income. The Income Statement results can help you determine where to cut...
The Student Debt Relief Plan and Your Taxes

The Student Debt Relief Plan and Your Taxes

President Biden, Vice President Harris, and the U.S. Department of Education developed a three-part plan to help federal student loan borrowers transition back to making regular payments post-pandemic. As a part of this plan, the Administration introduced the Biden-Harris Student Debt Relief Plan in August, which would forgive a certain dollar amount of student loan debt for qualifying borrowers. There have been several updates to the plan since its introduction, which we will share with you today.  Currently, the Student Debt Relief Plan has been blocked by multiple lawsuits. The plan is currently blocked pending a ruling in the Supreme Court which will hear oral arguments regarding the plan in February 2023 with a decision expected by June 2023. In the meantime, the Department of Education has extended the pandemic-era pause on federal student loan repayments until 60 days after the Department is permitted to implement the program or the litigation is resolved. If the program is not implemented and the litigation has not been resolved by June 30, 2023, payments will resume 60 days after that.  Those who have already submitted applications for the program will receive communication from the Department of Education about whether the application qualifies, if the program is implemented. Until the final ruling is delivered by the courts, applications are closed.  If the program is implemented, eligible borrowers that fall below income levels of $125,000 for individuals and $250,000 for married couples or heads of households could receive the following:  Up to $20,000 of student debt cancellation for Pell Grant recipients  Up to $10,000 of student debt cancellation for most other non-Pell Grant recipients ...