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It’s tax season and as we accounting professional head into our even crunchier time where we are balancing our time between finalizing those returns which can be completed and those which are being extended, we are spending even more hours sitting at our desks.  I am also spending time balancing on my ” classic balance ball office chair” which I rotate onto from 2 other chairs throughout the day to literally “save my butt”.  I am also lucky to have a friend I lovingly call ” Julie of the magic fingers* who as a visiting physical therapist, shows up once a week and gives me a deep tissue massage.

This tax season I’ve added “rotating” my office chairs plus a few stints of running up and down three flights of stairs daily.  Yes, I am still working out and taking a short beach walk to start my day, but the long days are definitely taking a toll.  I am wondering what other people are doing to combat desk fatigue. This week I have spent most of my desk time sitting on my “classic balance ball office chair“.  We’ll see if the extra focus I need to sit up straight and balance will leave me with “abs of steel”. Doubtful, but one can hope (it’s advertised as a workout chair).

It’s been either overcast⛅🌨️🌥️⛅ or rainy☔⛈️ all week, I still took some shots, and for a change up, today’s photo share is of the thinner cloud cover as I faced West

I hope you have some great plans for the weekend, and for those of you who celebrate, Happy Easter

WEEKLY TAKE AWAY

During tax season when the stress levels reach their highest, I reach for chocolate (85% dark chocolate, for less guilt).  But every once in a while, I just need a piece of cake or cookies.  We had some overripe bananas so I baked banana bread using almond flour, less sugar, more vanilla and dark chocolate chunks🍫🍰.

Just happy I was snacking on frozen slices but then received a lesson in chemistry from my daughter who explained that food pairing can alter/lower the glycemic index of sugar and chocolate.  I checked and found that pairing nuts with chocolate is actually “healthy”.  How great is that – delicious snack that contains chocolate, sugar fruit and does NOT adversely affect my blood sugar.  Check out the article, pair your snacks and enjoy guilt free!

Win win win – anyone feel like baking and sharing ,we accept offers of healthy snacks all year long BUT especially during tax season

TAX ISSUES/TAX PLANNING

UNINTENDED CONSEQUENCES of INDEPENDENT DEPENDENT CHILDREN 🚸

Its ____ o’clock do you know where your child is? Its tax season do you know what your dependent children 👧🏻👧🏽👦🏻👦🏽are e-filing? They are cute, funny, brilliant, and so good at working on line, but they may not understand the consequences of those yes/ no boxes they check when they hit submit on that free or DYI software they are using to file their tax return.

Instead of do you know where your children are, let’s ask do you know if your kids are filing their own tax returns on line?  I am all for independence but NOT when it adversely effects the tax return filing status, tax liability and ability to submit a parent’s tax return via e-file.  Each tax season we see several 17++ year olds excited to receive their W-2 and e-file their own tax returns. They are usually still fully supported by their parents who are entitled to claim them on their tax returns.  The unintended consequences:  extra work to review and correct the situation for the child and parents. For federal tax purposes, the parents can claim their dependent child (after we file an amended tax return for their child) but are precluded from e-filing their tax return and receiving their refunds faster then with paper submissions.   Yes, that’s correct, even when we can amend to correct the child’s status, the IRS asks the parents to file via paper.  Ever have to wait for a refund from a paper filed tax return? It takes ….. (months, years, decades, etc. for the processing to hit the system!

So you’ve talked: alcohol, smoking, sex, safe driving, respect, work ethic, let’s talk tax…

And you will get a BIG thank you from the tax advisors in your life!!!!!

ITS BETTER TO EXTEND THAN AMEND

A reminder that as we approach April 1st and the time to prepare and send your tax professional your 2023 paperwork, please take your time and check to see your information is complete and accurate. Watch for next week’s blog where I will discuss pros & cons and myths related to extended and amended tax returns.

ECONOMY

FEDERAL RESERVE ISSUES FOMC STATEMENT

On March 20, 2024, the Federal Reserve raised the federal funds rate by 0.25 percentage points, aiming to achieve its dual mandate of maximum employment and price stability. The increase reflects the Federal Open Market Committee’s response to elevated inflation pressures and a strong labor market.

US BUSINESS ACTIVITY STABLE in MARCH; INFLATION PICKS UP

According to this article in Reuters:  “U.S. business activity held steady in March, but prices increased across the board, suggesting that inflation could remain elevated after picking up at the start of the year.”

GENERAL RESOURCES

• News about the Child Tax Credit
• The best source for up-to-date and accurate health information is the Center for Disease Control (CDC) 
• Our prior blog posts, videos and prior weekly newsletters 
• Entrepreneur put together a listing of free tech resources for remote work
• The Consumer Financial Protection Bureau has warnings about COVID-related scams 
• 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 
• How to create a strong password