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Unemployment Insurance is Taxable

Let’s talk about the unemployment insurance that goes with the income taxes in this 2020. All the unemployment compensation IS taxable on your federal income tax return. It IS NOT taxable on the California tax return. A form 1099-G will be sent out to you via mail in January. You can also get the 1099-G at the State Department of EDD. In the past years, my experience is that EDD usually provides the 1099-G around the middle of January in CA. I would check around then. I can not promise that will happen this year. They do have until Jan 31 to put it up on their website and mail them out by law.

You might ask “what might happens if I do report it on my taxes?” You most likely will get a letter from the IRS stating that you did not report your unemployment income this year, and therefore you own us XXX amount of dollars plus late and penalties fees. Yes, you can amend the return if you forgot that you received unemployment. I would suggest that you try not to do that. In my viewpoint it is better to make sure you get all the information on the return the first time in order that you don’t have an amended return also.

A word of caution; according the IRS website https://www.irs.gov/pub/irs-pdf/p5444.pdf it says all unemployment compensation is taxable which includes the federal portion of the $600 per week earlier in the year and $300.00 later in the year. When I was getting my unemployment, I requested that they withhold for federal income tax. The State of California only withheld the state portion of the unemployment but nothing for the federal portion of $600 or $300.00 per week. I personally made an estimate payment to cover the federal portion of my unemployment income.

We are providing a Protection plan which covers you for: 1) Id Theft Assistance, 2) Tax Debt Relief, 3) Interpretation and Guidance. It is a group of Experienced Tax Professionals who deal with these issues though out the year. More details are on the website. No addition cost.


We team up with Refund Advantage it is with Medabank and is an option to file the return now. Once the bank receives the refund from the IRS, then the tax prep fees are taken out and the rest of the refund goes to you. Direct deposit only option for you. Your cost for this Refund Advantage is $39.95 first distributor of funds and 12.00 for the second distributor of funds refund.


He will take credit cards and e-checks for the payment for the tax prep work at the end of process and when you are ready to e-file the return.


Falls Vital Accountant Services

Russ Falls

661-526-4983

https://www.rfvas.com/tax-services

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Introduction to Russ Falls

Russ Falls is a long-time resident of Palmdale CA. He went to school here and graduated from Palmdale High School. He first did income taxes for HR Blook for eight years then worked for Jackson Hewitt

 

661-526-4983

Book Clean up Services:

 

I will find the errors in the books and clean them up. If the accounts have not been reconciliation in six months or less. Or if the books have not been updating with in the past 6 months or so. If is it longer than six months, it might begin necessary for you do download all the transaction to excel spread sheet from the bank and then I can start the clean up process at that time.

Provide Eight Reports:

 

Using QuickBooks Online I will provide the weekly report to the owner. Reports will be Balance Sheets, Profit and loss, Cash Flow statement, Accounts Payable, Accounts Receivable, Bank and Credit Card Report last 30 days, Uncleared Transactions and Uncategorized income and uncategorized Expenses. I will set up the chart of accounts and maintain their books. I will provide them with eight reports on a weekly basis. I will explain the reports to the client so they will be able to understand what is going on. This is the top-of-the-line services that I going to offer to the client.

Balance Sheet: A report that consists of the asset’s accountant balances minus the liabilities and the owner equity or the shareholders equity.

Income Statement:  A report that gives your all the income the company minus all the expenses which the company had during in period of time. There are some expenses that was prepaid expenses which show up on the statement that was not paid with cash in that period of time.

 

Cash Flow Statement: This is a statement shows the cash inflows by the operation of the business and the investment income. The out of cash flow show the payment of the operations activities along with the investment in each period of time.

Accounts Payable Summary: This report shows the company owns money due. The time frame that the own amount is either current or past do and how far past due.

Accounts Receivable Summary: This report is important to you as an owner operator truckdriver because it show if one of your customer is failing behind on paying you.

Hopefully I will finish this page up tomorrow 2/12/2021.