Mobile Payments and Taxation

Nowadays, people get paid in all kinds of ways. While cash or a check used to be the standard, business owners now get paid through both credit card and debit card payments, as well as through mobile payments, such as those made through a service like PayPal.  

Sometimes, new business owners are a bit wary about accepting mobile payments. However, as long as you understand how these payments work and how they affect your taxation situation, they are perfectly fine and incredibly convenient to use.

Why Use Mobile Payments

So, you may be wondering, why should you bother accepting mobile payments?

To start with, mobile payments are super convenient for doing non-local business. Someone can send you funds via PayPal or Venmo no matter where they live. You then simply ship out the item, allowing you to expand your business all over the world.

Another nice thing about mobile payments is that the mobile payment service will typically keep accurate records of who paid what and when. These records are easily accessible and do all of the “paperwork” for you.

Mobile payments are also convenient and easy for everyone involved. No one has to count cash or schedule a meetup. Payments can be made anytime and from just about any device.

Mobile Payments and Taxation

Mobile payments are so convenient that it’s often easy to forget about them. However, any money you earn via mobile payments needs to be reported on your taxes.

You can go through the records kept by the service when it comes time to file taxes. Or, in some cases, you can link the mobile payment account to your accounting software. At any rate, it’s very easy to get the information you need to properly and honestly file your taxes and to include income made via mobile payments.

As you can see, mobile payments are a wonderful thing and can make your life easier in many ways. If you do run into any questions about how to make proper use of mobile payments or how they affect your taxes, just remember that your accountant is your best resource.

Being a Supportive Alumnus

Many of us hold deep ties to the colleges we graduated from. As a result, many of us also wish to donate to these organizations in some way.

One of the most common ways of “giving back” to a college or university is buying a personal sport license for a sporting event or a series of sporting events. In the past, making this purchase meant you could claim 80% of the price as a deduction.   

Recent tax reform has done away with that allowance, but don’t worry. There are still other ways in which you can support your alma mater and still benefit yourself in the process.

Sports-Related Deductible Donations

To start off with, if you are a sports fan, there are many other ways to support your alma mater’s athletic department and still deduct the money spent. In fact, doing any of the following can still earn you a tax deduction:

·        Supporting the Booster Club via a donation, providing the booster club is a 501(c)(3) organization.

·        Attending charity dinners or other events

·        Donating items to an auction or raffle held by the sporting department

·        Giving a direct monetary donation to the sporting department

Other Ways to Give Back

Of course, the athletic department is never the only part of a university that needs your donations. If you would like to donate elsewhere, you can give directly to the college or university or any of its specific departments. Just like the Booster Club, though, the organization in question should have a 501(c)(3) status that you can verify. Otherwise, your donation is not likely to count as a tax deductible one.

A Few Caveats

No matter how you choose to donate or to which department, make sure to get a receipt for your donation or some other proof of the donation.

Also keep in mind that anytime you receive a gift or other item for your donation, you will need to deduct its value from your donation so that your deduction amount will be accurate.

As long as you can follow this advice, you can benefit greatly from your donation while helping your alma mater at the same time.

Filing Taxes On Your Phone

These days, it seems that people do everything on their phones or on other mobile devices, like their tablets.

It’s no wonder, then, that so many people are asking about whether or not it’s possible to file taxes on these devices. The answer, surprisingly, is yes!

Turbo Tax is one of many companies that is now offering an easy way to file your taxes via a mobile device.  

How to Use the App

To use this particular app, which is one of the most popular, you simply go to the Turbo Tax website or search in your app store to find and download the Turbo Tax Mobile App.

From there, you’ll be asked to take a photo of your W-2 form. The information on the form will automatically transfer to the online form.

Another option is to have the information sent directly from your employer.

No matter how you do it, fill out all of the required information, ask any questions you may have via the special Smart Look feature, and then file from your mobile device. Easy, right?

Remember, App-Based Filing Isn’t for Everyone

One final caveat to keep in mind is that mobile filing apps aren’t for everyone. If you have a special or complex tax situation or have a lot of questions that need answering, a quick session using an app probably isn’t going to be enough to get your taxes filed the right way.

For these situations, make sure you get professional tax help from a real, live accountant. You can use apps like the Turbo Tax app as a great tool to get you started, but there’s really no substitute, especially in specialized situations, for professional help.

As you can see, apps can be nice tools, but make sure you know when you need real help and that you seek it out when required.

How to Get Fit without Breaking the Bank

Getting more physically fit is a big goal for a lot of us. Unfortunately, though, not everyone can afford to buy an expensive gym membership, sign up for costly dance lessons, or buy a fancy piece of exercise equipment. 

If you’re in the “can’t afford” category, don’t worry, and don’t make excuses. There are still many ways that you can get in great shape, all without breaking the bank.

Get Outside and Use Your Body

To start with, know that it’s a complete myth that you need anything special to get in your exercise. In fact, some of the best exercise involves nothing but your body.

If you want to run, walk, or jog, you don’t need anything except yourself and access to the outdoors. Pretty easy, right? So, with that in mind, lace up your sneakers, no matter how old they are, and get outside!

Buy a Workout DVD or Two

Another super easy and super affordable way to workout is to buy a workout DVD or two. You can generally find these for under $20 at your local department store. Or, if you really want to save some money, head to your local thrift store for used DVDs, which are even cheaper and still work just as well. 

And, if you don’t want to spend a dime, don’t worry. YouTube has workout videos and instructions on pretty much every kind of workout you can imagine.

Get Your Taxes in Shape

If none of these free or cheap ways of getting into shape appeal to you, that’s okay. There are some people out there who just really prefer to hit up a gym or take a class. 

If that’s you, the key is to get your finances in better shape so that you can afford to do the things you love. By working with a financial advisor, applying deductions where possible, and getting your taxes in tip-top shape, chances are that you can afford to exercise in any way you desire.

Tuition Help

We all know that college can be expensive. Whether you’re having to pay for education for yourself or for a child, you should know, however, that you’re not completely stuck doing it all on your own. If you’re “in the know,” there are actually many things you can do to get some tuition help, including these little-known but highly-effective tips.  

Go for Scholarships that Aren’t “Run of the Mill”

First of all, there are the big, well-known scholarships that everyone applies for. There is nothing wrong with such scholarships. Indeed, they help a great many people. The only problem is that so many people apply for them that your chances of actually being selected as a recipient are not so great.

When you seek out those lesser-known, less popular scholarships, however, you greatly increase your chances of getting selected as a recipient.

Look for scholarships that may be offered for those with special talents or skills that you have. Look for scholarships related to workplaces or parents’ line of work. The key word in all of this is “look.” Research, research, and then research some more to find those obscure scholarships that you or your child have a really great chance of qualifying for.

Use Your Home Equity

If you’re fortunate enough to own your own home, you may be able to dip into your home equity line of credit to help pay for college.

The good news about this is that interest rates tend to be good on home equity lines. You can find out more about this option and whether it’s available to you by speaking with your mortgage lender.

As you can see, there are lots of great options out there for paying for college, whether it’s for yourself or a child. Talk to your accountant to learn about other options out there, as well as to learn how to maximize your tax returns for the most money-saving options. After all, every cent you save on taxes can be applied to education costs.

What you Need to Know about Estimated Taxes

Being self-employed has a lot of amazing benefits. However, there are also some things about it that can be a little on the annoying side. One of those things is having to pay quarterly estimated taxes. Of course, not every self-employed person has to pay these taxes, but it’s important to know what they’re all about and whether or not you’re required to pay them.   

Who Has to Pay Estimated Taxes?

If you are self-employed and do not have any kind of taxes withheld from your pay, then it’s your job to make quarterly estimated tax payments each year. The general rule is that you if you are going to owe over $1,000 in taxes each year, you’re going to have to make these quarterly payments.

When are Quarterly Tax Payments Due?

As the name “quarterly” implies, these payments are due four times a year. For the year 2018, the due dates were:

·        April 18, 2018

·        June 15, 2018

·        September 17, 2018

·        January 15, 2019

What if You Missed a Payment?

If you’re new to being self-employed and found yourself confused about these estimated tax payments or if life got crazy and you missed an estimated tax payment, it’s a good idea to adjust any remaining payments to try and help reduce what you will owe come tax time.

Unfortunately, you may have to pay a penalty for missing the payment, which is why it’s best to get and stay on a payment schedule, preferably with the expert help of a skilled accountant.

As you can see, there’s a lot to know and think about when you become self-employed. Estimated taxes are really just the tip of the iceberg. Thus, if you are going to be self-employed, strongly consider hiring an accountant and/or financial adviser to assist you in filing all taxes correctly and making sure you get everything taken care of as required by the IRS.