1099 Reports and Deadline

Reminder! The reporting deadline for 1099 NEC and 1099 MISC is approaching. Generally, payments from a business to any unincorporated contractor or business of $600 or more during a year need to be reported on these forms. If these forms are not filed penalties can be as high as $550 per statement not filed. Feel free to contact the firm with any questions or service needs.

Beware of the Tax Refund Advance

Many large tax preparation chains are promoting these advances. BEWARE! In most cases the client pays interest or some form of fee. The APR on a tax refund advance can be over 30%. Some chains promote a no fee and or no interest advance, but you don’t see cash. The funds are transferred to a prepaid debit card and the cards come with restrictions and various fees when you want to use them. Such as when making an ATM withdrawal. You can avoid these high fees and interest if you wait for your refund. A refund with direct deposit typically takes less than 3 weeks. No fees, no interest and no restrictions.

One final note, the Banks pay a kickback to the chains who steer their clients to these products. Explaining why tax refund advance products are being heavily promoted.

Balanced Accounting will prepare your tax return and maximize your refund to the extent the law allows. We encourage all taxpayers to use direct deposit for their refunds and avoid the high costs and restrictions of a tax refund advance.