JCox Extends Office Hours for Tax Season!

At JCox CPAs & Advisors, P.C., we are committed to providing top-tier service during tax season. Due to an increase in the volume of tax preparation and advisory requests, we are extending our office hours—effective immediately through April 15, 2025, at 5:00 PM—to ensure every client receives the timely and professional attention they deserve.

Starting immediately, our office will be open during the following extended hours:

Monday – Saturday: 8:00 AM – 8:00 PM
Sunday: 8:00 AM – 3:00 PM

This temporary extension allows us to better accommodate your busy schedule while ensuring we meet all filing deadlines efficiently.

For questions or to schedule an appointment, call us at (404) 775-8960 or email ncox@jcoxcpa.org.

Thank you for trusting JCox CPAs & Advisors, P.C. with your tax and financial needs—we look forward to serving you this tax season!

Tax Filing & Refund Dates: What to Expect

At JCox CPAs & Advisors, P.C., we pride ourselves on delivering efficient and accurate tax preparation services.

Our current turnaround times are as follows:

• Individual Income Tax Returns: 3 days

• Partnerships, C-Corporations, and S-Corporations: 4 days

These timeframes encompass thorough review and quality control processes, ensuring that your tax filings are both prompt and precise.

Understanding the timeline for receiving your tax refund is crucial for financial planning. The IRS typically issues refunds within 10 to 21 days after accepting an electronically filed return. However, several factors can influence this timeline, including the date of filing, the method of filing (e-file or paper), and the specific credits claimed.

To provide a clearer picture, here's an estimated timeline for 2024 tax refunds based on the IRS acceptance date of your e-filed return:

Note: Returns claiming the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) may experience delays until March to verify credits. Filing during peak season (late March through April 15) can also result in slightly longer waits.

TAX TIME!

Tax Filing Season officially begins on January 27th, 2025, when the IRS will start accepting returns. Whether you’re an individual or a business owner, ensuring your taxes are filed accurately and on time is crucial to avoid penalties and maximize potential refunds. At JCox CPAs & Advisors, P.C., we’re here to make your tax season stress-free and successful.

Why Tax Filing Matters

Tax season is a critical time of year for everyone. Filing your taxes properly ensures that you remain compliant with federal and state laws while also giving you the opportunity to uncover valuable deductions and credits that could save you money. However, navigating tax laws can be overwhelming and complex—especially with the ever-changing regulations.

This is where our expertise comes in. At JCox CPAs & Advisors, we bring years of professional experience and personalized service to the table, helping you make the most of your financial situation. Our licensed team works diligently to ensure accuracy and efficiency, leaving no deduction or credit overlooked.

How JCox Can Help You This Tax Season

At JCox CPAs & Advisors, we offer a full range of tax services to meet your unique needs. Here’s what you can expect:

1. Expert Tax Preparation: From individuals to businesses, we handle tax filings of all types and complexities. Our team stays up to date on the latest tax laws and regulations to ensure compliance and accuracy.

2. Strategic Tax Planning: Don’t just prepare your taxes—plan for them. We offer proactive tax planning strategies to help you minimize your tax liability and maximize your savings for the future.

3. Personalized Support: Every client is unique, and so is our approach. We’ll take the time to understand your financial situation and goals, providing tailored solutions that work for you.

4. Year-Round Assistance: Tax season might be seasonal, but our support is not. Whether you need help with IRS inquiries, audits, or financial planning, we’re here for you all year long.

Why Choose JCox CPAs & Advisors?

Choosing the right CPA firm can make all the difference during tax season. At JCox, we pride ourselves on being committed, engaged, and responsive to every client’s needs. Our professional team works with precision and care to ensure that your taxes are done right—the first time.

Additionally, we’re offering a 30% discount on all services for the first year to new clients who make the switch to JCox. Don’t wait until the last minute to get started; the earlier you begin, the smoother the process will be.

Get Started Today

The clock is ticking, and tax deadlines will be here before you know it. Don’t let procrastination lead to unnecessary stress or missed opportunities. Schedule your appointment with JCox CPAs & Advisors, P.C. today, and let us take the worry out of tax season by visiting us at jcoxcpa.org!

Contact us at ncox@jcoxcpa.org or call us at 404-775-8960 to get started.

Get Prepared for Tax Filing 2024!

Here are some essential steps to help you get prepared:

1. Gather Your Documents:

• W-2s, 1099s, or other income statements

• Business expense records if you're self-employed

• Mortgage interest statements

• Proof of charitable donations

• Health insurance documentation

2. Review Last Year's Return:

• Look over your prior year’s tax return to ensure you don't miss any carryovers (e.g., deductions or credits) and to identify any possible changes.

3. Plan for Deductions & Credits:

• Don't forget about possible deductions for things like student loans, retirement contributions, or education expenses.

• Consider tax credits like the Child Tax Credit or Earned Income Tax Credit.

4. Track Any Life Changes:

• Changes like getting married, having a baby, or buying a home could affect your tax situation. Make sure you account for these.

5. Set Up Your Tax Payment Plan:

• Estimate if you will owe taxes and start setting aside money now, or adjust your withholdings to avoid surprises.

6. Consider Professional Help:

• Tax laws are always changing, and getting professional advice ensures you don’t miss out on any savings or deductions you may qualify for.

Don't wait until the last minute! Plan ahead to ensure a smooth and stress-free tax season. If you need help getting started, reach out to us at JCox CPAs & Advisors! We’re here to make your tax filing easy and efficient.

A Comprehensive Guide for Sole Proprietors on Paying Quarterly Estimated Taxes

Understanding Sole Proprietorship

A sole proprietorship is the simplest and most common form of business structure. It is owned and operated by a single individual, meaning there is no legal distinction between the owner and the business. This structure offers full control to the owner and allows for simple tax reporting. However, it also means that the owner is personally liable for all debts and obligations of the business.

As a sole proprietor, you report your business income and expenses on your personal tax return, specifically using Schedule C (Form 1040). This form allows you to detail your profits and losses from your business activities.

Why Pay Estimated Taxes?

The IRS requires taxpayers, including sole proprietors, to pay estimated taxes if they expect to owe $1,000 or more in tax for the year. This is essential because sole proprietors typically do not have taxes withheld from their business income, unlike employees who have taxes withheld from their paychecks.

Steps for Paying Quarterly Estimated Taxes

1. Determine Your Tax Liability: Calculate your expected adjusted gross income (AGI), taxable income, taxes, credits, and other payments for the year.

2. Use IRS Form 1040-ES: Form 1040-ES is used for estimating your tax payments. It includes a worksheet to help you estimate your taxable income and tax liability.

3. Calculate Quarterly Payments: Divide your estimated tax liability by four to determine your quarterly payment amount.

4. Know the Due Dates: Estimated tax payments for sole proprietors are typically due on the following schedule:
   - First Quarter: April 15
   - Second Quarter: June 15
   - Third Quarter: September 15
   - Fourth Quarter: January 15 of the following year

5. Make Your Payments: Payments can be made electronically through the IRS Direct Pay system, or you can send a check or money order along with the payment voucher from Form 1040-ES.

6. Keep Accurate Records: Maintain accurate records of your income and expenses throughout the year.

Relevant Tax Codes and Forms

- Federal Forms:
  - Form 1040: U.S. Individual Income Tax Return, which includes income from your sole proprietorship.
  - Schedule C (Form 1040): Profit or Loss from Business, where you report your business income and expenses.
  - Form 1040-ES: Estimated Tax for Individuals.

- Georgia State Forms:
  - Form 500: Georgia Individual Income Tax Return, used to report income, deductions, and credits for state tax purposes.
  - Form 500-ES: Georgia Estimated Tax Payment Coupon, which is used to make estimated tax payments to the state.

Caution

The examples provided (below) assume that the sole proprietor is a Georgia resident who is a single filler. Tax laws and rates can vary significantly by state, so it’s essential to consult local regulations or reach out to JCox CPAs & Advisors, P.C. if you're operating outside of Georgia.

Example Breakdown

Example Scenario

- Total Expected Income for the Year: $50,000
- Total Expected Business Expenses: $15,000
- Filing Status: Single
- Standard Deduction for the Year: $13,850 (for 2023)

Step 1: Calculate Federal Tax Liability

1. Calculate Net Income:
   Net Income = Total Income - Total Expenses
   Net Income = 50,000 - 15,000 = 35,000

2. Adjust for Standard Deduction:
   Taxable Income = Net Income - Standard Deduction
   Taxable Income = 35,000 - 13,850 = 21,150

3. Apply Federal Tax Rates:
   The 2023 federal income tax brackets for a single filer are as follows:
   - 10% on income up to $11,000
   - 12% on income over $11,000 up to $44,725

   Calculate Tax:
   - First $11,000: 11,000 × 0.10 = 1,100
   - Remaining income ($21,150 - $11,000 = $10,150): 10,150 × 0.12 = 1,218
   - Total Federal Tax Liability: 1,100 + 1,218 = 2,318

4. Calculate Quarterly Payments:
   Quarterly Federal Estimated Tax Payment = Total Tax Liability / 4
   Quarterly Federal Estimated Tax Payment = 2,318 / 4 = 579.50

Step 2: Calculate Georgia State Tax Liability

1. Apply Georgia Tax Rates:
   Georgia uses a similar tax bracket system. The 2023 tax brackets for a single filer are:
   - 0% on income up to $750
   - 1% on income from $751 to $2,250
   - 2% on income from $2,251 to $3,750
   - 3% on income from $3,751 to $5,250
   - 4% on income from $5,251 to $7,000
   - 5% on income from $7,001 to $10,000
   - 5.75% on income over $10,000

2. Calculate Georgia Tax:
   Calculate Tax:
   - First $750: 750 × 0.00 = 0
   - From $751 to $2,250: (2,250 - 750) × 0.01 = 15
   - From $2,251 to $3,750: (3,750 - 2,250) × 0.02 = 30
   - From $3,751 to $5,250: (5,250 - 3,750) × 0.03 = 45
   - From $5,251 to $7,000: (7,000 - 5,250) × 0.04 = 70
   - From $7,001 to $10,000: (10,000 - 7,000) × 0.05 = 150
   - Over $10,000: (21,150 - 10,000) × 0.0575 = 643.75

  Total Georgia State Tax Liability:
   0 + 15 + 30 + 45 + 70 + 150 + 643.75 = 953.75

3. Calculate Quarterly Payments:
   Quarterly Georgia Estimated Tax Payment = Total Tax Liability / 4
   Quarterly Georgia Estimated Tax Payment = 953.75 / 4 = 238.44

Summary of Estimated Tax Payments

- Total Federal Tax Liability: $2,318
- Quarterly Federal Estimated Tax Payment: $579.50
- Total Georgia State Tax Liability: $953.75
- Quarterly Georgia Estimated Tax Payment: $238.44

Fundamentals of Small Business Bookkeeping

Accurate financial management is essential for small business success because it facilitates compliance and allows for growth tracking. The tax experts at JCox CPAs & Advisors, P.C. have put together this concise guide with crucial bookkeeping advice for small business owners.

Keep personal and business finances apart.

Establishing a specific bank account and credit card for business use only is one of the first steps in preparing your company for financial clarity. By keeping personal and business transactions apart, this makes filing taxes easier and reduces issues in the case of an IRS audit. This division is essential for accurate financial reporting for all business entities other than sole proprietorships.

Use Automation to Simplify Accounts Payable

Managing bills and invoices can be made easier with a trustworthy tool like Bill.com. With its integration with QuickBooks, it streamlines your accounts payable and receivable procedures and provides safe payment methods such as international wire transfers, credit cards, checks, and ACH transfers. Automating these processes with digital tools reduces errors, saves time, and aids in maintaining vendor payment organization.

Make Expense Tracking Digital

Keeping track of expenses for several employees can be challenging, particularly when dealing with physical receipts that are prone to being misplaced or destroyed. You can assign specific funds to team members and maintain digital records with an expense tracking tool like Divvy. Workers can upload receipt photos straight into the app, which simplifies record-keeping and improves budgetary control.

Use Financial Information to Make Strategic Choices

Your financial records are vital tools for strategic planning, not just for tax purposes. Making informed business decisions can be facilitated by routinely examining your profit and loss statements and comprehending important financial ratios, such as debt-to-equity and return on assets. Monthly or yearly analysis of these records can help identify areas for growth and cost reduction.

Get Ready for 1099 Forms in Advance

You must provide a 1099 form for independent contractors who are paid more than $600 in a single year if you work with them. Requesting a W-9 form from each contractor at the start of your working relationship will streamline this process. The last-minute rush during tax season is avoided and 1099 preparation is made simpler when their tax information is on file.

2024 Tax Proposals: A Closer Look at Trump and Harris’s Plans

Both Trump and Harris have proposed several ideas on taxes, some of which are still evolving. Here's an overview of their most significant tax proposals:

Tax Cuts and Jobs Act (TCJA) Provisions
The TCJA, which introduced lower tax rates and a larger standard deduction, will see many of its provisions expire in 2025. Trump aims to extend these cuts and potentially lower taxes further, though he hasn't provided specific details yet. Harris, who voted against the TCJA, has promised not to raise taxes for those earning less than $400,000 a year. However, to keep that promise, some TCJA tax cuts might have to stay in place. She supports raising the tax rate for high earners back to 39.6%, similar to pre-TCJA levels, and has suggested higher taxes on investment income and Medicare for those earning over $400,000.

Corporate Taxation
Trump plans to reduce the corporate tax rate to 20% and eliminate the corporate alternative minimum tax (CAMT), introduced in the Inflation Reduction Act. Harris, meanwhile, proposes increasing the corporate tax rate to 28%, and she would raise the CAMT to 21%. She also wants to increase the tax on stock buybacks and prevent large companies from writing off compensation over $1 million for top employees. Additionally, her proposal includes increasing the tax deduction for small business startup expenses from $5,000 to $50,000.

Individual Income Tax Changes
Trump suggests exempting restaurant and hospitality workers’ tips from income and payroll taxes, and he also wants to make overtime pay tax-free. However, experts warn these changes could be exploited by businesses. Harris supports exempting tips from income taxes as well but proposes safeguards to prevent employers from cutting wages in response. She also has measures to stop high earners from reclassifying their bonuses to avoid taxes. Trump has expressed interest in removing taxes on Social Security benefits as well.

Child Tax Credit
Trump's running mate, J.D. Vance, has proposed a $5,000-per-child tax credit, but Trump hasn’t officially backed it. Harris advocates for increasing the child tax credit to $3,600 for children under age six and to $3,000 for older children. She also supports expanding the Earned Income Tax Credit and healthcare subsidies for low-income families.

Capital Gains Taxation
Harris plans to tax unrealized capital gains for individuals with a net worth over $100 million, meaning they'd be taxed on the appreciation of assets they haven’t sold yet. She also wants to increase the capital gains tax for high-income earners and tax these gains at ordinary income tax rates. For those inheriting large estates, she proposes taxing unrealized gains at death, with exemptions in place for smaller estates.

The Current Housing Proposals
Trump has hinted at offering tax incentives for first-time homebuyers but hasn't given any specific details yet. In contrast, Harris has a more detailed plan, which includes down-payment assistance for families who have rented responsibly and tax incentives for builders creating affordable homes for first-time buyers.

Tariff Policies
Trump has been vocal about raising tariffs, including a standard 10% on imports, with much higher rates for products from countries like China. He has even floated the idea of replacing income taxes with tariffs, though critics argue this would increase costs for lower-income Americans.

Overall Impact
While Trump’s tax plans are estimated to add $5.8 trillion to the federal deficit over the next decade, Harris’s proposals are projected to increase it by $1.2 trillion. However, the actual impact will depend on how Congress shapes and approves these policies. Refer to the tax overview for business tax provisions and individual tax provisions outlined in more detail from sources summarized here.

Sources:

Tax Cuts and Jobs Act

Budget of the U.S. Government Fiscal Year 2025