Important Changes to be Aware of for the 2021 Tax Filing Season

Founder Mary Reha, EA talking tax with Hubbard News Radio about important changes to be aware of for the 2021 tax filing season.

Arete Financial Solutions, as highlighted in the recent "Valley Focus" radio talk show, stands out as a comprehensive service provider for both individual and business financial needs. The company's multifaceted approach includes offering tax, accounting, legal, and financial planning services, all under one roof.

Mary Rieha, an Enrolled Agent at Arete, shared her expertise during the show, emphasizing the company's commitment to providing a one-stop solution for clients. As an Enrolled Agent, Mary is federally licensed by the IRS, making her a credible authority in tax matters. Her role involves staying updated with IRS regulations and maintaining a thorough understanding of taxation.

Key Services and Advice for Businesses and Individuals:

1. For Businesses:

   • Tax Deadlines: Businesses, excluding sole proprietorships and LLCs, must be aware of the March 15th filing deadline.

   • New Tax Laws: Mary highlighted recent changes, including the switch from 1099-MISC to 1099-NEC forms for non-employee compensation.

   • Business Meals: The deductibility of business meals has increased, with certain meals now 100% deductible.

   • Employee Retention and Sick Leave Credits: These credits are available for businesses that paid employees during COVID-related absences.

   • Energy-Efficient Building Credits: A new incentive for businesses in commercial real estate.

   • Student Loan Payments for Employees: Businesses can contribute to their employees' student loan debts, an increasingly popular benefit.

2. For Individuals:

   • Child Tax Credit: Mary advised individuals to consult a tax professional regarding the changes in the child tax credit, particularly if they received payments during the year.

   • Increased Deductions: There are higher deductions available, necessitating professional advice to maximize benefits.

3. For Freelancers and Side Hustlers:

   • Separate Business Account: Mary recommends setting up a dedicated bank account for business transactions to ensure clear financial tracking.

   • Understanding Sales Tax Rules: Freelancers selling online must be aware of the sales tax regulations for different states.

   • Tracking Startup Costs: Even for those starting small, it’s crucial to track all expenses from the outset.

4. General Tax Advice:

   • Professional Assistance: Mary strongly advises consulting with a tax professional, particularly for businesses, to navigate the complex tax laws and changes.

   • Record-Keeping: Accurate and comprehensive record-keeping is vital for both businesses and individuals.

   • Filing Extensions: If not ready for tax season, filing an extension is a prudent step to avoid penalties and ensure accurate record submission.

Mary also stressed the importance of establishing a relationship with a tax professional. This guidance can be crucial for staying informed and compliant with the ever-evolving tax laws.

For those seeking tax and financial planning services, Arete Financial Solutions offers a thorough and knowledgeable approach, with experts like Mary Rieha ready to assist. Whether it's for personal tax needs, business financial planning, or navigating the complexities of freelancing, Arete's comprehensive services are designed to meet a wide range of financial requirements.