Stephen Merritt, CPA, PC  |  Certified Public Accountants  |  (757) 420-5778
233 Business Park Drive, Suite 104, Virginia Beach, VA 23462

Your monthly news & updates

Just look at this face!!!

What’s Inside

• Tips for a Smooth Tax Season
• Ideas to Help Set Financial Goals
• The Problem with Fakes
• January Days
• Office Hours

Tips for a Smooth Tax Season

With tax season officially underway, here are tips to make filing your return as stress-free as possible:

• Gather your tax information for filing. Items you’ll need include W-2s, 1099s, K-1s and other forms you receive from your business, employers, brokers, banks, and others. If you find any errors, contact the issuer immediately to request a corrected copy.
• Organize your records. Once you’ve started gathering your information, find a place to put all the documents as you receive them, or consider scanning documents to store on your computer. You can also take pictures of the documents with your phone as backup. Missing information is one of the biggest reasons filing a tax return is delayed.
• Create an April 15th reminder. This is the deadline for filing your 2023 individual income tax return, completing gift tax returns, making contributions to a Roth or traditional IRA for 2023, and for paying the first installment of 2024 individual estimated taxes. So create a reminder that works for you.
• Know the deadlines for business returns. If you are a member in a partnership or a shareholder in an S corporation, the deadline for filing these business returns is March 15th. Calendar-year C corporation tax returns are due by April 15th.
• Clean up your auto log. Create and review the necessary logs to support your qualified business miles, moving miles, medical miles and charitable miles driven by you. Gather the logs and make a quick review to ensure they are up to date and totaled.
• Review your child’s income. Your child may be required to file a 2023 income tax return. A 2023 return is generally required if your child has earned more than $13,850, or has investment income such as dividends, interest, or capital gains that total more than $1,250.
• Contribute to your IRA and HSA. You can still make 2023 IRA and HSA contributions through either April 15th or when you file your tax return, whichever date is earlier. The maximum IRA contribution for 2023 is $6,500 ($7,500 if age 50 or older). The maximum HSA contribution is $3,850 for single taxpayers and $7,750 for families.
• Calculate your estimated tax if you need to extend. If you file an extension, you’ll want to do a quick calculation to estimate your 2023 tax liability. If you owe Uncle Sam any money, you’ll need to write a check by April 15th even if you do extend.

Ideas to Help Set Financial Goals

With the new year underway, it may be time to come up with a list of goals and that could make 2024 the most financially rewarding year for your entire family. Your motivation can be nearly anything, from saving for retirement or paying for college. Consider these resolutions that can also provide a financial boost:

• Declutter for cash. Go through every room of the house as a family and collect items that nobody uses or needs anymore. Sell these items through sales platforms, then use the cash to pay down debt or add to your emergency fund.
• Work together to reduce food waste. With inflation running high over the last few years and grocery prices on the rise, everyone in the family can to do their part to reduce food spending. This means creating meal plans and shopping for groceries based on those plans, but it also means eating leftovers and cooking more at home instead of dining out.
• Set up automatic savings. Setting up automatic savings is another great way to make progress toward financial goals. You can set up your bank account to automatically transfer money to a dedicated savings account on a certain day each month, or on each payday.
• Save for something fun. Set a family savings goal for something to work toward, whether that’s saving for a family vacation or the building cash to purchase a backyard playground. Having a goal can help family members part with items they don’t need but can sell, or to cut their spending to help reach a common goal.
• Develop investing basics. Set up online access for your own retirement accounts or taxable investment accounts so you can show your family the power of compound interest firsthand. You can even consider setting up investments for your kids. If they have earned income, for example, they can start investing with a Roth IRA.

Financial goals can be a family affair if everyone in your crew understands what you’re working toward and what’s at stake. By keeping communication open and getting your entire family on the same page, you can all work together toward the lifestyle you want.

I wonder what Oxford is thinking about

The Problem with Fakes

Protect yourself from modern-day counterfeiters

Finding brand name products at a great price can leave you feeling like you won the lottery, but there are hidden dangers that come into play if the goods aren’t what they seem.

Here are some commonly counterfeited items and what you need to know to protect yourself.

Commonly Counterfeited Items:

• Currency. The U.S. Treasury estimates that there are nearly $9 million of counterfeit bills in circulation. While creating an excellent counterfeit $100 bill would seem difficult, criminals can trick you if you aren’t paying attention.
• Shoes & Clothing. Manufacturing a low-quality knock-off and slapping a brand name label on a shirt or a pair of shoes is a tale as old as time. It’s much harder to spot a fake through online pictures and videos than seeing and touching it in person.
• Collectibles. Watches, coins, jewelry and artwork are often faked and sold for far less than anyone should believe.
• Electronics. As technology continues to evolve, so does the ease of assembling electronics. Using cheap components and labor, companies can slap together their version of the real thing. This process cuts corners and sometimes skirts safety procedures that can lead to knock-off electronic products that can pose a hazard to your health.
• Replacement parts. Fake parts are common within the electronics and auto repair industries and are especially difficult to spot. Unfortunately, parts not produced by the original manufacturer often fail to meet their operational specifications.

How to Protect Yourself

Knowing that counterfeit items are out there is the first step to avoiding them altogether. These additional tips can help you avoid fakes and the damage they cause:

• Know the real thing. The best way to spot a fake is to know the real thing inside and out. In the case of currency, the new $100 bills have plenty of watermarks, different textures and a security ribbon that make it difficult to fake. For products, do your research to know the characteristics of the legitimate item before you buy. Clues often come from irregularities in logos, colors and packaging.
• Buy from authorized retailers. Shopping around for the lowest price is a wise practice. Automatically going with the cheapest option is not. If your purchase is important, stick to an authorized retailer or reputable vendor.
• Research, research, research. The more you know the product, the less likely you will be tricked. Look at products from local stores and read through reviews of online vendors. Conduct research on scams and common tricks used by counterfeiters. Be wary of reviews from the website you are thinking about making the purchase from. Instead, conduct a web search of both the product and the vendor to see what people have to say.
• Trust your gut. Remember that something that seems too good to be true probably is. If you believe an item is probably counterfeit based on the price of the item or the person/website selling it, you’re probably right.

Oxford Part 2

Oxford Part 2

The car abruptly shut off perfectly in the nearest parking space at the convenience store. Steve went into the store and explained everything to the clerk about what was happening with the car. She tells him the closest auto parts store is about 8 miles down the road.

Steve hopped back into the car, quickest I’ve seen him move in a long time to check his phone for the auto parts store hours. The auto parts store closes at 10 pm. its 9:20 pm.

After a few attempts, I am able to restart the car. All the warning indicators were lit on the dashboard. Lights came up that I never knew existed. Looked like Christmas lights. The headlights were extremely dim. The road had no street lights. We were in Amish country. So no one was on the road at night either. All the farms were dark. It was not the best driving conditions.

About 4 miles down the road the car begins to slow down and the steering wheel just locks up. I was able to get the over to the side of the “road”. Actually, it turned out to be a homeowner’s front yard. At this point the road and the grass looked the same.

Fortunately, the homeowner pulled into their driveway just after I parked my car in her yard. She and her friend immediately came running over to our car and asked if they could help. Steve explained what was going on with the car. The woman who owned the home immediately jumped into action. Crawled under the hood, disconnected the battery and checked the alternator. Then she tried to jump the battery. No luck. So, her husband comes wandering out of the house with a battery he just happened to have in his garage.

Steve needed a wrench to take the old battery out of the car. So he asks me if I have any in my car. I said sure do, they are in a basket in the back of the car. He is not thrilled, he pulls out many items from the basket, paper towels, wipes, anti-freeze, and shopping bags. I tell him keep looking there are two wrenches. My dad gave them to me a few years ago and said someday I may need to use them.

Guess what, in the bottom of the basket are the two wrenches and they were the perfect size to take out the battery.

To be Continued…

January Days

Here are some Days to Remember in January!

January 1st – New Years Day

Happy New Year!

January 10th – Houseplant Appreciation Day

National Houseplant Appreciation Day serves as a reminder to give your houseplants a little extra attention and to show the benefits houseplants have. Houseplants can boost productivity, reduce anxiety, reduce air pollutants, and improve humidity in your home.

January 15th – Martin Luther King Jr Day

On the third Monday in January, Martin Luther King Jr Day honors the American clergyman, activist, and Civil Rights Movement leader. He is best known for his role in advancing civil rights using nonviolent civil disobedience.

January 20th – National Cheese Lover’s Day

On National Cheese Lover’s Day, don’t feel bleu, throw a feta or act capriciously. January 20th is a gouda day to kummin over and have some cheddar or asiago or fontina!

January 24th – National Compliment Day

This is a wonderful way to brighten someone’s day or give credit for a job well done!

January 31th – Inspire Your Heart With Art Day

Of the broad spectrum of art created in the world, the pieces that move us to tears or cause us to burst out into joyous laughter remain with us for a lifetime. Whether we are touched by music or see into an artists soul through their work, art has the power to change us, to inspire our hearts.

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