REPLAY: Preparing for Taxes with Tony, The CPA Dude
Hello Martinis and Your Money Listeners! I don’t usually air replays, except during the summer months; however, we are in the beginning of tax season prep, and I wanted to replay the conversation that I had last year with Tony, the founder of CPA Dude. I’ve had multiple tax conversations on this show in the past, and Tony’s has always stood out to me. I think he not only gives great and practical advice, but we have referred a number of FinGym clients to him and we’ve gotten nothing but rave reviews about his work. So I hope you enjoy learning more about taxes and realize that maybe you need to work with someone like Tony, or you’re like me and you just need Turbo Tax and a bottle of wine. Either way, we can’t avoid our taxes, so let’s shoot to get them done as soon as possible this year.
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.
A financial health journey can be long and feel lonely at times, but if you or someone you know would like to have a supportive best financial friend along for the ride, please check out financialgym.com. With memberships starting as low as $35 a month, we are the inflation-proof source for financial wellness for anyone. So head over or send friends to financialgym.com and schedule a warm up call today. As a reminder, our warm up call team is staffed with amazing and current Financial Gym clients that can answer any of your questions about our program without any pressure to join. We know that Financial Gym is an investment and we want to make sure that you’re confident in the choice you’re making before you commit.