We’re so pumped about our conversation with Gloria Simpson. Gloria is a Tax Professional, AFSP and is also a content partner. Content partners help Voyage in so many ways from spreading the word about the work that we do, sponsoring our mission and collaborating with us on content like this. Check out our conversation with Gloria below.
Gloria, it’s been too long since we last connected. Thanks so much for taking the time to share your thoughts with our community again. Some readers might have missed our prior conversations, so maybe you can kick things off for us with a quick intro?
My name is Gloria Simpson, I am from New London Conn, currently living in Georgia. I have 29 years work experience in accounting corporate world. I am the founder and own of Prosperity Services for You, with 7 years in business. I am a Registered Tax Professional, member of BBB (Better Business Bureau), member of National Association of Tax Professionals, member of National Society of Tax Professionals, and AFSP (which allows me to represent my clients before IRS). Prosperity Services for You is open all year around with estimates, questions, delinquents filing or payments. We Specialize in Tax Preparation, Individuals Returns, Small Business Taxes (Form’s 1065, 1120, and 1120-S) Independent Truck Drivers, Quarterly Taxes, Bookkeeping, Payroll, Assistance Individual and Small Business Audit, and Assistance with Startup business. Prosperity Services for You takes great pride in proving services to our clients. We will always treat you like a client that matters. I will thoroughly and conscientiously study your personal/business situation and tailor my advice to your specific needs. No matter what obstacles/challenges anyone faces, we all can overcome it. We have the strength and the power within ourselves to overcome any obstacles/challenges. Therefore, no matter how big or small your tax issue is, we can overcome it.
So before we get into some expertise related questions, we just want to remind our readers that this interview is just meant to be educational and for entertainment purposes only and should not be construed as advice and that you should always consult the relevant experts.
Okay, so to start, what are the Filing requirements for 2020?
You must file a return if your gross income for the year was at least the amount shown on the appropriate. The filing requirements for 2020: Single under 65 $12,400 and over 65 $14,050 HOH (head of household) under 65 $18,650 MFJ (married filing jointly) under 65 $24,800 (both spouse), 65 or older (one spouse) $26,100, 65 or older (both spouses) $27,400 MFS (married, filing separately, any age $5 Qualifying widow (er) under 65 $24,800, 65 or older $26,100 2020 Filing requirements can be found in IRS Publication 501 https://www.irs.gov/pub/irs-pdf/p501.pdf
What are Filing Status requirements?
Your filing status generally depends on whether you are single or married. Whether you are single or married is determined at the end of your tax year, which is December 31 for most taxpayers. Filing status is discussed in detail later in this publication. There are five filing statuses list below. Single: Your filing status is single if you are considered unmarried and you do not qualify for another filing status. Married Filing jointly (MFJ): Both you and your spouse must include all of your income and deductions on your joint return. Both of you may be held responsible, jointly and individually, for the tax and any interest or penalty due on your joint return. This means that if one spouse doesn’t pay the tax due, the other may have to Married filing separately (MFS): You can choose married filing separately as your filing status if you are married. This status may benefit you if you want to be responsible only for your own tax or if it results in less tax than filing a joint return. If you and your spouse don’t agree to file a joint return, you must use this filing status unless you qualify for head of household status, Head of Household (HOH): You may be able to file as head of household if you meet all the following requirements. 1. You are unmarried or considered unmarried on the last day of the year. 2. You paid more than half the cost of keeping up a home for the year. 3. A qualifying person lived with you in the home for more than half the year. Qualifying widow (er) with dependent child: You may be eligible to use qualifying widow(er) as your filing status for 2 years following the year your spouse died.
What is considered gross income?
Adjusted Gross Income (AGI) is defined as gross income minus adjustments to income. Gross income includes your wages, dividends, capital gains, business income, retirement distributions as well as other income. Which means all income you received in the form of money, goods, property, and services that isn’t exempt from tax, including any income from sources outside the United States or from the sale of your main home.
What are considered business expenses?
For tax years 2018 through 2025, miscellaneous itemized deductions subject to the 2% AGI limitation, including unreimbursed employee expenses, are not deductible. Business expenses are only deductible for business enti-ties, self-employed taxpayers, and statutory employees. All of the ordinary and necessary expenses incurred to carry on a trade or business are deductible. An ordinary expense is one that is common and accepted in the tax-payer’s line of work. A necessary expense is one that is helpful and appropriate for the work. An expense need not be required in order to be considered necessary. Facts and circumstances must be considered to determine whether an expense is ordinary and necessary. Please find list of business expenses on IRS Pub. 463 and IRC $162, Trade or business expenses.
Are business meals deductible?
The cost of meals is deductible if: it is necessary for the taxpayer to stop for substantial sleep or rest to properly perform his or her duties while traveling away from home on business, or the meal is business related. 50% limit on meals. In general, the cost of meals is subject to a 50% deduction limit. However, see Special rules for transportation workers. The meal expense can be computed under one of the following methods 1. The actual cost, or 2. The standard meal allowance. Standard meal allowance. The standard meal allowance can be taken as an alternative of keeping records of the actual cost of meals. It allows the taxpayer to use a set amount for daily meals and incidental expenses, regard-less of the actual cost of meals. However, the taxpayer must still keep records to prove the time, place, and business purpose of the travel.
Is entertainment deductible?
IRS issues final regulations on the deduction for meals and entertainment on September 30, 2020. Internal Revenue Code Section 274(a)(4): Disallowance of certain entertainment, etc., expenses. Entertainment, amusement, recreation, or qualified transportation fringes. (1) In general. No deduction otherwise allowable under this chapter shall be allowed for any item (2) Activity, With respect to an activity which is of a type generally considered to constitute entertainment, amusement, or recreation.
It was so great to reconnect. One last question – how can our readers connect with you, learn more or support you?
You are welcome to connect with me, show support, or follow me on my website: prosperityservices4you.com, Facebook, LinkedIn, and Twitter.