Jeffrey Campbell - March 2021

Jeffrey Campbell - March 2021

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March 2021

Will COVID-19 Relief Affect Next Month’s Taxes?

Only one year after the first lockdowns and closures, March 2021 is shaping up to be an interesting one. Despite fluctuating virus numbers and the efforts to vaccinate more people across the globe, I have to confess: I’m more focused on April 15, the much-dreaded Tax Day. Many people received some form of assistance last year, so what kind of impact will it have when they go to file? It doesn’t look like Tax Day is going to move this year. (In 2020, the pandemic caused it to shift to July.) So, you need to be ready to do your taxes by April 15. Here are a few common types of COVID-19 relief and how they could impact your tax situation. Just remember, this is general information, not advice specific to your situation. For those of you who received the benefit of an extra $600 per week in unemployment last summer, the tax bill is going to be a bit of a surprise. We saw more Americans taking unemployment during that time than ever before, and many of those people were first-time users of the unemployment system. Unemployment has always been taxable income, and that extra $600 means you’ll have to pay more taxes than you normally would, albeit at the same rate as before.

I do have some good news, though. The $1,200 checks many people received last spring and summer — the direct COVID-19 relief — is considered a tax credit for filing 2020’s taxes. That means you don’t have to pay it back, nor do you have to pay taxes on it. At the same time, it won’t reduce the amount of taxes you have to pay, either. For tax purposes, those checks, along with the $500 per child, don’t matter one way or the other. For those of you who didn’t qualify for the stimulus money last year, there may still be hope. When you file next month, if it turns out that you actually made less than the high-income cutoff in 2020, you may be able to get that $1,200 on your tax return. Finally, we have the last common type of COVID-19 relief you may have received last year: salary assistance for businesses. Many companies applied for assistance from the government, usually in the form of grants, to assist in paying employees covering other unforeseen expenses that came up as a result of the pandemic.

Unfortunately, every indicator shows that if your business took money in that way, you will have to pay taxes on that money next

month. In fact, last summer, the IRS said the money was going to be taxable. It did nothing to slow the flood of applications, but I’m sure a few business owners will be upset next month when they run the numbers. I agree that it isn’t necessarily fair, but money from the government almost always comes with strings attached. It is my sincere hope that when we file taxes next year, it will be back to “business as usual,” without all of the tax credits and financial assistance to worry about. Until then, though, I encourage all of you to get a jump-start on your taxes, make sure you’re paying what you owe, and look into the many tax credits offered by the IRS due to COVID-19. They can help offset many of the costs discussed above. -Jeffery Campbell

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Are Micro-Investing Apps a Good Way to Build Wealth? Examining the Pros and Cons

To outside observers — and probably quite a few people within — the world of investing is overwhelming. Nevertheless, common wisdom dictates that building investments, whether as part of a retirement plan or for other reasons, is an indisputably good thing, but it’s hard to figure out where to begin. Could micro-investing apps be a good place to start?

some basic knowledge of financial markets, and make it easy to view your portfolio. The cost of the initial deposit is usually very affordable too, with Acorns starting at $5, Clink starting at $1, and Stash starting at just 1 cent. On top of that, the subscription fees are also very affordable, usually only costing users a few dollars every month. Cons As affordable as those monthly fees are, they can easily lead to a less-than-favorable expense ratio. For example, say you invested $100 in a mutual fund with a 1% expense ratio, which would amount to a dollar per year. If you invest with Acorns or Stash, you’re paying at least $12 per year because of the flat $1 per month fee. That’s a 12% expense ratio, which is not great. And at the end of the day, micro-investing might be easy, but the fees and minimal investment amounts lead to mere micro-gains. So, if you’re looking for a way to familiarize yourself with the market and figure out how it works, micro-investment apps might be a good place to start. However, if you want to retire on your investments one day, then it might be best to invest somewhere that will net higher returns.

What is a micro-investing app? Micro-investing apps, such as Acorns and Stash, allow users to invest small amounts of money in the market. Many of these apps will round up purchases made with a debit or credit card to the nearest dollar amount, then invest the difference in your portfolio. Other apps, like Clink, will encourage users to invest 1 dollar per day. Pros Most investing apps are incredibly user-friendly and require very little oversight. They offer tutorials on how to invest, give users

Improve Your Attention Span And Transform Your Life!

Since the COVID-19 pandemic swept across the world last year, many things have gotten shorter, like school days and our patience. But perhaps the main thing that’s grown shorter for all of us is our attention spans. In 2019, researchers from the Technical University of Denmark reported that our collective attention span is indeed narrowing — and it may be because we’re bombarded with tons of information that we don’t want to “miss out” on, whether we’re scrolling through Facebook or finding new videos on YouTube. Unfortunately, a poor attention span can affect us in many ways. It may risk our performance at school or work or cause communication difficulties in relationships. It may even result in poor health related to self-neglect and an inability to practice healthy habits. How do you fix it? Is it even possible to improve your attention span? Yes, you can! But it will take time. Here are a few ways you can get started. First, accept that you may make yourself a little mentally uncomfortable while expanding your attention span. It simply won’t feel natural to focus on a single task for a longer period of time than normal, but, with a routine, it’ll get more comfortable as time goes on.

has gained a lot of attention over the years as a brain workout, and it’s a great way to slowly expand your attention span while accomplishing tasks. To get started, think of a small task. Then, adjust a timer to 25 minutes (or longer, if your attention span will allow). Work on your task for 25 minutes straight. Then, take a five-minute break. After you break, repeat the process. After four rounds, take a break of 15–20 minutes. Congratulations, you’ve used the Pomodoro method, which you can repeat as many times as you want. It’s very handy for getting your tasks finished in a flash, despite any attention span issues! Third, meditate, work out, or adopt new, educational interests. Anything that keeps your brain, body, and spirit engaged can help you learn how to focus better. There’s plenty of research that shows the benefits of meditation and exercise to your focus — the trick is exploration. Not every form of meditation, exercise routine, or hobby will work for you, so don’t give up right away! Stay curious and keep exploring. We’re living in a technological age where we can learn almost anything and reach almost anyone at the tap of a button, so we have to learn how to create opportunities for ourselves. We hope these tips help you get started!

Second, give the Pomodoro method a try. Named after a tomato-shaped timer that its creator used, the Pomodoro method

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TAKE A BREAK

A Little Distraction This One Small Thing Is Killing Your Productivity

Distractions in your workplace destroy your productivity, regardless of where you actually work. But here’s the kicker: Some distractions don’t always register as distractions because they’re often minor, like a knock at the door or a conversation you can hear from two cubicles over. However, even when a distraction doesn’t feel like a distraction, it still kills your productivity. But one distraction in particular can absolutely ruin productivity. It isn’t as obvious as an unexpected phone call or a meeting that could have been an email. It’s a small, normal part of our everyday lives: the notification . We get notifications on our phones, tablets, laptops, desktops, and even our smartwatches. Notifications are everywhere, and we’re conditioned to accept them. Take email, for example. You’re likely in the habit of checking email periodically — or whenever you get a notification. It can feel natural to quickly check your email and then get back to what you were doing. Except that never happens. When an email, text, or other random notification distracts you, it completely diverts attention away from what you were doing. If it’s spam, you may delete the email. Or, if you need to respond, it might take a few minutes or more. You may spend anywhere between 20 seconds to 20 minutes on any given email. However, this isn’t where time is lost. If you’re responding to a customer email, for instance, that is part of your productivity. The time is lost when you attempt to get back to what you were doing before checking your notifications. A University of California, Irvine study found that it takes an average of 23 minutes to get back to your task after every distraction, not just email. Over the course of a day, that adds up to a significant amount of wasted time. How do you overcome this? Your best bet is to turn off notifications. Most devices let you customize your notifications so you can turn them off during working hours. Here’s another quick tip: Set aside specific time during the day to check emails, texts, and other messages. You will significantly reduce the amount of time spent trying to refocus on the important tasks at hand.

Corn Dogs for All The Development of National Corn Dog Day

National Corn Dog Day began in March 1992 when two Corvallis, Oregon, high school students needed a snack while watching a basketball game. They got some corn dogs and called it good. But somehow, this simple snack and sport pairing turned into something huge. Though it’s not clear how, it spread across Oregon and eventually the rest of the country. It’s likely that people just heard about it from friends and family and thought it was a great idea. In 2012, in honor of the original Corn Dog Day, the then-governor of Oregon issued an official proclamation naming March 17 National Corn Dog Day in the state. Today, it’s celebrated with thousands of events every March. An article printed in The Oregonian in 2009 revealed that National Corn Dog Day parties have been celebrated on nearly every continent — including Antarctica!

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INSIDE THIS ISSUE 6110 Mayfield Road Mayfield Heights, OH 44124 www.MayfieldHeightsCPA.com (440) 720-0959

Will COVID-19 Relief Affect Next Month’s Taxes? The Pros and Cons of Micro-Investing How to Improve Your Attention Span!

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Where Does National Corn Dog Day Come From? Don’t Let This Tiny Distraction Destroy Your Productivity

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3 Irish Travel Destinations for Your Bucket List

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3 Irish Travel Destinations for Your Bucket List Don’t Miss These Historic Spots!

Traveling to Ireland might not be an option for you right now, but like a leprechaun hoarding gold, you can still fill up your bucket list with all of the pubs, rolling hills, and lucky sites you’d love to see. This month when you’re planning your trip to Dublin, Galway, or Cork, add these spots to your itinerary.

considering it has already survived the bubonic plague and the Spanish flu, odds are good that it will make it through this, too! Soon, you’ll be able to raise a glass in the same rooms where the noblemen of nearby Athlone Castle shared drinks in the 12th century. Find more historical tidbits at SeansBar.ie.

on that very site — beginning its long and bloody history. Read more about its haunted priest’s house, murder hole room, and bloody chapel at LeapCastle.net and meet the many ghosts that haunt its halls.

A Famous Smugglers’ Shortcut – Newcastle, County Down

Get ready to tie up your hiking boots! This roughly 2-mile hike, called Hare’s Gap, is one of the most famous and beautiful routes in Ireland. When you climb through this pass in the Mourne Mountains, you’ll be rewarded with views of glacial cliffs, boulder fields, and ancient-looking stone walls. Legend has it that the pass was part of the Brandy Pad smuggling route, used to ferry goods like soap, leather, spices, and coffee.

The Oldest Bar in the World – Athlone, County Westmeath

Ireland’s Spookiest Castle – Coolderry, County Offaly If you’re a fan of thrillers and true crime podcasts,

When Sean’s Bar closed because of the COVID-19 pandemic, the entire country of Ireland groaned. The pub is famous for its Irish whiskey, music, and history, which stretches back to 900 A.D., far enough to earn it the title of “Oldest Bar in the World.” As of this writing, Sean’s is slated to reopen when it’s safe again, and

you won’t want to leave Ireland without visiting Leap Castle. This 16th-century haunt was built by the fierce O’Bannon clan, who famously ordered two brothers to throw themselves off a rocky cliff as a test of strength. The survivor was named clan chief, and later Leap Castle was built

Safe travels, and ádh mór (good luck)!

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