Tim Thompson CPA - March 2021

Tim Thompson CPA - March 2021

March 2021

My Inspiring Daughter

Honoring Women’s History Month

On a Friday afternoon in September, I was running a few errands before I went back to the office to finish a few things. Apart from a few bank-related tasks, I also needed to head across the street to Barnes & Noble to pick up a book. As I walked through the bookstore, I happened to notice “My Own Words” by Ruth Bader Ginsburg, which reminded me of my daughter, who looks up to this accomplished and dedicated woman. In fact, ever since my daughter was in middle school, she’s viewed RBG as an inspiring and motivating figure in her life. For some time, I’d wanted to surprise my daughter with a care package from home because I knew she was going through a hard time. With the pandemic and its impact on her as she tried to attend her college classes, it was a lot to manage. Knowing how much RBG meant to her, I knew the book would be just the thing to lift her spirits. However, as I was driving back to the office, I heard the breaking news over the radio: RBG had just passed away. It was shocking for me and such a strange coincidence that I had purchased her book only 30 minutes earlier. I knew the news would be heartbreaking for my daughter. When I got to the office, I FaceTimed her. I explained how I purchased the book right before I heard the news as she fought back tears. Though I was distressed to see her upset, I was happy that I could at least give her that small comfort. RBG continues to inspire people all across the country, just as she did my daughter. I can’t help but think of all the daughters RBG has influenced in her life as she fought against gender discrimination and the many other challenges she

faced. Her constant battle and unflinching nerve did not deter her in any way; my daughter could not have found a better person to look up to. My daughter is ambitious, and she, like RBG, won’t let anything get in her way. There is a fire in her that pushes her forward, no matter what obstacles might rise up to try and stop her. At the same time, she doesn’t let that blind her to the people around her. She understands that family is important and is very inclusive of her loved ones. Her determination to do good and unwavering pace as she forges her path in life are inspirational. I’m so proud of her.

accomplishments of women after it passes. I’ve had many women in my life inspire me, including my daughter, who is one of the most motivational, determined people I know. I know that if the generations to come are filled with women as determined and caring as she is, there is nothing they won’t be able to achieve.

Women’s History Month may be happening now, but we don’t have to stop celebrating the

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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. A Little Distraction

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 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.

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

Red Flags That Attract the Eye of the IRS How to Avoid Tax Audits

With the tax due date returning to April 15 this

Often, the numbers could be the result of a mistake, or maybe some expenses or income were accidentally not reported. To avoid an audit, it’s best to double- and triple-check income and expense numbers before filing these tax forms. CHARITABLE CONTRIBUTIONS Our tax system awards charitable contributions with tax deductions. While this has proven to be a powerful incentive for some people, it’s also a source of temptation. To counter this, the IRS uses an automated computer program that analyzes nearly every return to identify figures that seem high compared to an individual’s income. The IRS will issue an audit if a return exceeds the IRS discriminant function (DIF) score that the program assigns to each return. CLAIMING DEPENDENTS It’s not uncommon for families to accidentally claim the same dependent, especially if they have been recently divorced or split custody alternating years on their tax forms. Unfortunately, even if it is an accident, it will trigger an audit. Before making the final step in your taxes, make sure it is your year to claim your dependents. One of the best ways to avoid mistakes on your tax forms is to speak with a professional tax resolution specialist. Call 877-829-7847 to schedule an appointment with Tim Thompson today.

year, everyone is keen to get their taxes completed on time. However, nothing is worse than feeling relieved your taxes have been submitted, only to receive a letter in the mail from the IRS alerting you that your taxes are about to be audited. To help you avoid the eye of the IRS, here are a few red flags they look for. TAX FORMS AND REPORTED INCOME

The IRS will compare all income information that you report. This includes any persons who submit a W-2, 1099, or both forms. If any of the information doesn’t add up, the IRS will want to know why and conduct an audit. BUSINESS INCOME AND EXPENSE Similarly, the IRS will look into any expenses that don’t make sense in a business. In some cases, they are looking for people who are trying to take business expense deductions for what is really a hobby, not a business.

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Stimulus Payments and Recovery Rebate Credit Since the new year started and people began to file their taxes, confusion on how to properly report the first and second round of stimulus checks from 2020 has grown significantly. This is because some people did not receive their checks until this year, making them believe they don’t have to file these until 2022. However, it is important to keep in mind that the IRS understands this and has taken this into account through the Recovery Rebate Credit. Filing Your Taxes

SUDOKU

WHAT IS IT? As defined by the IRS, the Recovery Rebate Credit “was eligible to be paid in two rounds of advance payments during 2020 and early 2021,” also known as the first and second Economic Impact Payments or stimulus checks. In simplest terms, it’s a tax credit against a person’s 2020 income tax that will either increase tax returns or decrease the amount owed to the IRS. WHAT IS THE AMOUNT? In short, this credit can give eligible individuals up to $1,200 and married couples up to $2,400. This may change depending on how much a person

ENGLISH GROUND BEEF PASTIES

was to receive in their payments. These payments included the $1,200 ($500 additional for each qualifying child) received in 2020 and $600 ($600 additional for each qualifying child) in early 2021. Anyone who has received these full amounts from the Economic Impact Payments does not need to complete information regarding the Recovery Rebate Credit on their tax files. WHO CAN CLAIM IT? Anyone who has not received the full amounts of both stimulus checks can file a claim. In order to be eligible for the Recovery Rebate Credit, you must:

• 3/4 lb ground beef • 1 medium onion, diced • 2 medium potatoes, peeled and diced • 2 sheets store-bought puff pastry dough

• 1 tsp dried parsley • Salt and pepper, to taste • 1/4 cup beef broth (as needed)

1. Preheat your oven to 400 F and line a baking sheet with parchment paper. 2. In a large bowl, combine the beef, onion, and potatoes. 3. Roll out the pastry dough into roughly 10-inch circles or squares. 4. Spoon 1/2 of the beef mixture onto each sheet of dough, then top the mixture with parsley, salt, and pepper. 5. Fold the edges of the dough over the filling, pinching each pasty shut and tucking in both ends. 6. Transfer the pasties to the prepared baking sheet, then cut several small slits in each pasty for ventilation. Bake for 45 minutes. 7. Remove the pasties from the oven and reduce the heat to 350 F. Spoon 1 tsp beef broth into each slit, then bake for an additional 15 minutes. 8. Serve and enjoy!

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Be a U.S. citizen or resident immigrant in 2020 Not be a dependent of another taxpayer

• Have a valid Social Security number issued before a 2020 tax return

Additionally, you must also complete the Recovery Rebate Credit Worksheet for Form 1040 and 1040-SR, regardless if you are required to file a tax return or not. Instructions on how to complete the worksheet will be included with both forms.

If you have any questions on how to report your stimulus payments for 2020, schedule a consultation with Tim Thompson today.

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My Inspiring Daughter Inside

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Don’t Let This Tiny Distraction Destroy Your Productivity

Beware These Tax Red Flags

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Tax Season and Stimulus Payments English Ground Beef Pasties

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True-Crime Podcasts With Real-World Impacts

2 True-Crime Podcasts That Had Real-World Impacts FROM PODCAST TO PROSECUTION

‘IN THE DARK’ Season 2 of this popular true-crime podcast centered on Curtis Flowers, a man from Mississippi who’s been tried six times for the murder of four Winona residents at a local furniture

How Americans have long loved murder mysteries, whether they’re fictional plays performed on stage or true stories told on television. So, it’s no surprise that as podcasting has skyrocketed in popularity, so have true- crime podcasts. While there is some debate about whether gruesome crimes should be aired for entertainment value, the best shows in the genre are supported by high-quality investigative journalism — and some are having real-world impacts. ‘SERIAL ’ One of the best-known and most popular true-crime podcasts of all time, “Serial” first aired in 2014. Season 1 focused on the case of Adnan Syed, who was convicted of murdering his high school girlfriend in 1999. “Serial” called into question whether Syed’s trial was fair and if there was enough evidence to convict him. The groundbreaking series helped bring Syed’s case back to life. In 2018, a Maryland appeals court ruled that Syed should be granted a new trial based on “ineffective legal counsel” who failed to call a witness to testify who would have corroborated Syed’s alibi, according to The New York Times. Though this was a triumph for Syed, the ruling was appealed, and a year later, the Maryland Supreme Court refused to hear the new case. Syed and his counsel continue to appeal to higher courts.

store. Despite very little evidence linking Flowers to the murders, he was convicted and sentenced to death

in 1997. “In the Dark” investigated Flowers’ four overturned convictions and two mistrials and uncovered an indisputable pattern of racial bias in prosecutor Doug Evans’ jury selection process. Flowers’ case was eventually appealed to the U.S. Supreme Court in 2019, which overturned the latest conviction. While Evans contemplated bringing a seventh trial against Flowers, he did not. All charges were eventually dropped, and Flowers was freed in late 2019 after spending 23 years in prison.

These two podcasts show that good journalism and strong storytelling can not only captivate an audience but also help bring long-delayed justice.

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