Mr. Best Financial

The clock is ticking on filing your 2021 taxes (or extension filing).

Time to clear some room in your schedule...

Crowdfunding has been used for all sorts of things from charitable donations to movie making to the creation and selling of some great (and not so great) inventions.

Before this year, crowdfund recipients only had to report the income on their taxes if goods or services were given in exchange for 200 or more transactions adding up to the gross amount of $20k or more in a calendar year.

But with the passage of the American Rescue Plan, reporting requirements have changed significantly.

Now, any amount more than $600 accrued in a calendar year regardless of the number of transactions requires an accompanying 1099-K form (Payment Card and Third Party Network Transactions) to report as income.

Of course, this excludes charitable gifts (as long as the recipient demonstrates that funds have been transferred to the needy individual for whom the crowdfunding campaign was created).

Slinging cash toward school supplies for students who can't or for special classroom projects is common fare for a lot of teachers.

And we know it's not much, but the IRS does give a little kickback for that professional investment.

Eligible teachers can deduct up to $250 in unreimbursed expenses.

Deductible expenses include:
• Professional development course fees
• Books
• Supplies
• Computer equipment, including related software and services
• Other equipment and materials used in the classroom
• Personal protective equipment, disinfectants, and other supplies used for the prevention of the spread of coronavirus

The shock of the last two years hasn’t really worn off and new challenges are mounting as war affects the globe.

And the greatest concern among small business owners right now? Inflation and how it is affecting their business. Most are raising prices, some are reducing staff, some are taking out loans to keep their head above water.

So, even though we're in the thick of things over here ... I want to assure you that we're here for you as you face the effects of inflation in your business.