Weekly Update – August 26th, 2022
If you live in the right place, even if you are an annoying parent, your kids may come for a staycation, may invite their friends, and if you are really lucky bring their kids and/or pet. The timing is great for me, this week I progressed to walking for 2 miles barefoot on the beach with no cane and no pain. While I am grateful to my husband who accompanies me at this slow steady pace and welcome the occasional friend who helps me through the rock jetties, I am excited to have handsome Sampson join us as he plays with other dogs.
Sampson was the first one up this morning, his whole body wagged as he greeted me, so nice to be loved unconditionally.
No cane, no limp, no shoes, no pain, I think it’s been 2 years since I can say that.
I am enjoying the harvest; it’s so great to be able to invite friends over for an easy summer bar-b-que. This weekend we just picked the salad, added fresh picked herbs to some grilled shrimp and glazed our heirloom tomato, basil, and fresh mozzarella salad with some balsamic vinegar glaze and Wala, who has room for chicken and burgers?
I am hoping we are all able to take advantage of the great weekend weather we are expecting…
Weekly Take Away
No Regrets! I don’t think I am alone, as I look back on missed opportunities or choices I didn’t pursue. Admit it, I can’t be the only one. It took me long enough, but I stopped second guessing myself a while ago and just started taking chances on a hunch or feeling. What’s the worst that could happen (as long as it’s not a reckless safety issue). Of course there is a long list which I will not share as you would probably cringe. The good news is that I taught my children well. My daughter and her husband took a week long vacation to New Mexico with Emily’s college friends and their spouses. They did the usual: slept late, caught up with each other during late night hangouts at their Airbnb, took hikes in the woods, and explored the town. We caught up after they returned, it was great to hear about their friends and the wonderful time they had and then spoke about some great art studios they visited. Are you holding your breath, yes they bought a few pieces they fell in love with. No regrets!
TAX ISSUES/TAX PLANNING
NYS is Sending Out Bonuses to Our Health Professionals & Their Staff
NYS has enacted a NYS Healthcare Workers Bonus Program which “allows” “eligible employers” to submit applications for their medical practice and “eligible employees”. This program “allows” you to apply for up to $3,000 in bonuses funded by NYS, and includes you as an employee as well.
This is very nice, but quite a bit of work is involved in creating the supporting documentation which you can do on your own or with the help of your CPA. As an “eligible employer” (check the site for specifics) you may be subject to penalties for non-compliance. This is an ongoing program which has 5 vesting/reporting periods. If you/we determine you are a “qualified employer” please be aware the first vesting period reporting due date is September 2 and again requires specific reports, supporting documentation and signed attestations (employer and employee).
Teachers Save Those Receipts!
Teachers have long been able to deduct the cost of up to $200 of classroom supplies as an adjustment to income. They will now be able to deduct up to $300 of out-of-pocket classroom expenses in 2022, up from the $250 that has been set since the incentive first started in 2002. “The limit will rise in $50 increments in future years based on inflation adjustments,” the IRS said.
Student Loan Forgiveness for Many
On Wednesday August 24th, President Joe Biden announced in the white house fact sheet his Student Loan Relief for Borrowers Who Need it Most . This is a three-part plan and offers targeted debt relief as part of a comprehensive effort to address the burden of growing college costs and make the student loan system more manageable for working families. The President is announcing that the Department of Education will:
- The Department of Education will provide up to $20,000 in debt cancellation to Pell Grant recipients with loans held by the Department of Education, and up to $10,000 in debt cancellation to non-Pell Grant recipients. Borrowers are eligible for this relief if their individual income is less than $125,000
- the pause on federal student loan repayment will be extended one final time through December 31, 2022.Borrowers should expect to resume payment in January 2023.
- The Department of Education is proposing a new income-driven repayment plan that protects more low-income borrowers from making any payments and caps monthly payments for undergraduate loans at 5% of a borrower’s discretionary income—half of the rate that borrowers must pay now under most existing plans. This means that the average annual student loan payment will be lowered by more than $1,000 for both current and future borrowers.
- proposing a rule that borrowers who have worked at a nonprofit, in the military, or in federal, state, tribal, or local government, receive appropriate credit toward loan forgiveness.
IRS Provides Broad-Based Penalty Relief for Certain 2019 & 2020 Tax Returns
This week the IRS issued IR-2022-155, Notice 2022-36 which provides broad-based penalty relief for certain 2019 and 2020 returns due to the pandemic; $1.2 billion in penalties being refunded to 1.6 million taxpayers. This is automatic but limited in scope and qualify for this relief, any eligible income tax return must be filed on or before Sept. 30, 2022. You can visit IRS.gov/penalty relief for details.
Back to School Costs More this Year
The cost of everything is going up, and that includes back to school supplies. The Wall Street Journal provides a breakdown of just how much more those supplies cost this year.
Stock Futures Fall Ahead of Economic Symposium
Fears of aggressive interest rate hikes returned to Wall Street this week as stock futures fell. Investors are anticipating a volatile week as the Fed holds its annual Jackson Hole economic symposium.
Home Showings and Deals are Down Even as Mortgage Rates Fall
As inflation rates seem to stabilize, mortgage rates have started going back down. Many potential buyers are holding out on their big purchase as they try to find their footing in the volatile market.
The Best States to Start Your Own Business
Branding and design website Looka has released their breakdown of the five best states to quit your job and launch your own business, based on the success rates of each state’s startups after one year.
It Now Costs Over $300,000 to Raise One Child
New figures from the Brookings Institute found that the average amount a married, middle-income couple with two children would spend to raise a child born in 2015 through high school is now estimated to be $310,605, or $18,270 a year.
The Most Expensive Grocery Store Picks Heading into Fall
With the cost of living rising, Eat This Not That has compiled a list of five grocery products that have become so much more expensive that they’re worth skipping if you can help it.
Yes, We Still Want Fries With That
With volatile markets, higher prices for almost everything, and rising inflation rates, a peculiar anecdote known as the “fry attachment rate” seems to be holding steady, and please make them well done.
- IRS resources for stimulus payments:
- Use the Get My Payment tool to check on EIP payment status
- Eligibility and general information about Economic Impact Payments
- A list of frequently asked questions for stimulus payments
- IRS information about the Advance Child Tax Credit Payments
- Portal to update information
- A list of frequently asked questions on the advance Child Tax Credit Payments
- The best source for up-to-date and accurate health information is the Center for Disease Control (CDC)
- Our Covid-19 Resource Center with relevant blog posts, videos and prior weekly newsletters
- Payroll, HR and benefits company Gusto has put together An Employer’s Guide to Navigating the Coronavirus
- Accounting Today has a special page for articles on COVID-19
- Intuit QuickBooks has a dedicated page to help small businesses
- Entrepreneur put together a listing of free tech resources for remote work
- The Consumer Financial Protection Bureau has warnings about COVID-related scams
- Fast Company has a listing of the best productivity apps for 2020
- The New York Times has an online newsletter on K-12 and higher education
- The Wall Street Journal has a collection of articles on education
- The Louvre has digitized 482,000 artworks from its collection
- PC Magazine explains how to carry your vaccination card on your phone
- How to create a strong password
We sincerely hope that you and your family are well and remain well. If you have any questions or concerns, don’t hesitate to reach out to us. We are all in this together!
If you need help with your accounting, want to create a tax minimization plan, want to discuss your business growth plan or your finances, are concerned about retirement goals or need to be held accountable for your 90 day action plan, contact us for a complimentary discovery session or an appointment to just get started.
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