Preparing For Taxes with Tony Hoong, The CPA Dude
April is Financial Literacy Month, our favorite time of year at The Financial Gym. An entire month that’s focused on the importance of financial literacy. I always say that financial literacy is just as important as regular literacy and while there are so many resources for us out there to get better at it, I still feel as though we have a financial literacy crisis in the US.
Every day new clients come to the Financial Gym feeling ashamed that they aren’t as adept in their personal finance knowledge as they think they should be and my response is always the same. Why should you feel confident? Most of us didn’t learn about personal finance at home, at school, or on the job, yet the second we start receiving paychecks, we’re responsible for managing our money and navigating the world of personal finance.
Today we’re starting with Taxes. If you’re like me and you haven’t filed yours yet, you won’t want to miss this episode. Joining me today is Tony, the founder of The CPA Dude to talk about taxes, common questions, how you can plan throughout the year, and what to do if you haven’t filed in a while.
What are we drinking?
Tony the CPA Dude - Black Coffee
Shannon - Black Cherry Schweppes
Podcast Notes
Tony got into accounting at a very young age. His parents own and run a Chinese food restaurant and put him to work early! At age 11, he started packing orders, and from there started adding up tickets. After that he learned about sales tax and payroll tax. It sparked a natural interest in accounting. He spent some time working at KPMG, doing state and local taxes. He started doing taxes for friends and family and expanded the network from there.
When should you hire someone to help with tax prep? For most folks, is Turbotax and a glass of wine a good option?
If you don’t have time, don’t want to think about numbers, or just want a professional to walk you through it.
If you have complexities like stock compensation, crypto, investments, a new home, or are newly married.
Sole proprietors/freelancers can benefit from working with a professional
If you are a W2 employee, there are only so many levers you can pull to reduce the amount of taxes owed. The codes aren’t written to benefit W2 workers.
If you end up with a large bill, what are the next steps?
Develop a plan! There’s a fine line, and a huge refund isn’t always the best goal.
You can make adjustments to your withholdings
If you know you will owe, set up an auto-draft from your paycheck and save money throughout the year for taxes owed.
What happens if you haven’t filed taxes in the last few years?
If you don’t file a tax return, the IRS will mock up the worst-case scenario and assess the bill. Filing your own return counteracts that.
The statute of limitations for refunds is three years, so if you are due a refund, you’ll want to get those years completed first. The rest are for compliance.
Final Thoughts:
If you are investing in or dabbling in Cryptocurrency, remember it is subject to the same classic rules that apply to stocks.
Tax preparation vs. tax planning are different. Once you start dealing with real estate, crypto, stocks, and freelance income, diving into comprehensive tax planning may be beneficial!
Takeaway: My biggest takeaway comes from the words of Benjamin Franklin, nothing is certain except death and taxes. No matter how much we might dread filing them or dealing with them, they’re always out there so as painful as it is to deal with them now, it’s much less painful than dealing with them later.
Random Three Questions
If you were not an accountant, what would you be doing?
What is a show you like to binge?
If this was your last meal on earth, what would it be?
Connect with Tony at The CPA Dude
Website: https://thecpadude.com/
TikTok: @TheCPADude
Instagram: @TheCPADude_
If you have any topics you would like me to cover on this podcast, or if you’d like to get in the financially naked hot seat, I encourage you to email me at Shannon@fingyms.com, or join the private Martinis and Your Money Facebook group, and let me know what you want to hear.
The Financial Gym has so many ways that you can work with us. If you’re looking for a career shift, we’ve started a Financial Trainer Certification Program where you can have the greatest job in the world. We have online courses for you to learn on your own. If you’re looking for financial products like a new credit card or high yield savings account, we have all of our favorites on the BFF Approved Products Page. And finally, if you want one-on-one coaching with a compassionate and empathetic person, our Financial Trainers are here to help you and remember, Martinis and Your Money listeners get 15% off of one-on-one Financial Training at The Gym. We’re here to meet you wherever you are on your financial health journey.