Software TrainingTax ResearchTax Prep School
Tax Tools
Knowledge BaseClient Portal
Facebook
Twitter
LinkedIn
YouTube
Instagram
866-386-4769
White logo
  • Tax Software
    • Sigma 1040-EZ
    • Sigma 1040-CL
    • Sigma 1040-DR
    • Sigma 1040-TW
  • Bank Products
    • PayDash
    • TPG
    • EPS Financial
    • Refund Advantage
    • Republic Bank
    • Refundo
  • Mobile Apps
  • Managed Services
    • Bank Product Offices
    • E-File Offices
  • Creative Services
    • Website Design
    • Social Media
    • Brand Identity
    • Co-Branding
  • Revenue Boosters
    • Audit Assistance Program
    • Resellers Program
  • About
    • About Us
    • Meet The Team
    • Contact Us
    • Customer Support
    • Press Releases
    • Video Library
    • Blog
    • Sigmania
Product was added to your cart

Cart

DOWNLOAD DEMOS

NEWS / PRESS

accountant phone calls

Accountants- Receiving Calls About Stimulus Checks and Taxes?

April 9, 2021Sigma Tax Pro

Accounting firms are presently in one of the busiest parts of the year, and  many people have questions about how their stimulus checks will impact their taxes. Some people have already received all three stimulus payments, while others have yet to receive anything. These different timeframes for receiving stimulus payments often creates even more confusion on how it will impact their taxes.

Expect Calls and Use Them to Expand Services Offered

Accounting firms should expect to receive a large number of phone calls related to stimulus checks and taxes. Educating each client is essential in eliminating any confusion related to these payments while also providing you a great way to build rapport with each person. These phone calls give you a perfect opportunity to discuss your accounting services and how your business can help them manage all of their taxes.

Highlighting the benefits of using your tax pro software is an excellent way to create a valuable partnership with businesses. Offering tax and accountant services for business development is a great way to keep costs to a minimum while also saving each customer time and effort. Phone calls related to stimulus payments and taxes will only continue to increase, as it provides a perfect opportunity to offer additional accounting services.

Question to Expect: Will I Get a Stimulus Check If I Owe Taxes?

Many people are concerned about not receiving their stimulus check if they owe the government taxes. For example, the IRS will automatically use a tax refund to pay off any outstanding taxes, student loans, or child support payments. However,  most taxpayers will not have to worry about the government withholding stimulus money due to taxes.

These stimulus checks are designed to give the economy a boost while also helping to cover basic needs. Eligible recipients will receive a check from the IRS even if they owe taxes. However, this may not be the case if the stimulus was not sent directly to the taxpayer, and has to be claimed on the income tax return as a tax credit and  it’s always a good idea to pay off tax debts as soon as possible to avoid significant legal problems and additional fines.

Question to Expect– Are Stimulus Checks Taxable?

Receiving a stimulus payment is one of the few times you can gain money without having to report it as income on your tax return. This additional source of income is perfect for paying off debts or helping to pay for necessities. In many cases, the IRS uses tax returns from 2018 to determine eligibility for these benefits or use 2019 tax returns if taxes are already filed.

Not Your Typical Tax Credit

These stimulus payments are technically a tax credit, but even better, it is a refundable tax credit.

For example, if you owe $1,500 in taxes but had a refundable credit of $1,800, you would get a $300 tax refund from the government.

How to Recover Missed Stimulus Payments

You can also receive your stimulus check from 2020 on your tax return if you could not get the first or second stimulus payments you were eligible to receive last year. Many taxpayers who used a bank product to receive their tax refund experienced this problem. You will also not have to worry about paying the stimulus back if your income in 2020 was much higher compared to your 2018 or 2019 tax return.

Closing Thoughts

Keeping up with all of the various rules impacting taxes and stimulus checks isn’t an easy task for most people unless you are a tax accountant. Misconceptions about taxes are an all too common occurrence, as accounting firms will continue to play a critical role in educating clients about how their stimulus checks will impact their taxes. Keeping all of these questions in mind is important for accounting services to meet each client’s needs best.

 

Categories

  • Press Releases
  • Professional Tax Articles

Recent Posts

  • Tax Preparation Firms: Client Capital Loss Deductions
  • How To Start or Grow a Successful Tax Business
  • Tax Preparation Firm Challenges in Tax Season 2022
  • Tax Preparation in the Era of Cloud Migration
  • Benefits of Bank Products with Professional Tax Software

Contact

Sigma Tax Pro LLC:
955 NW 17th Ave #E
Delray Beach, FL, 33445

Phone: 1 (561) 450-6422
Toll Free: 1 (866) 386-4769

Fax: (888) 742-6013

Email: [email protected]

Facebook
Twitter
LinkedIn
YouTube
Instagram
Click for the BBB Business Review of this Tax Software in Delray Beach FLInc5000 logo2020 Software

Services

SIGMA 1040-EZ Tax Software
SIGMA 1040-CL Tax Software
SIGMA 1040-DR Tax Software
SIGMA 1040-TW Tax Software
Managed Services
Creative Services

Bank Products:
Tax Products Group
EPS Financial
Refund Advantage
Republic Bank
Refundo

Tax Preparation Support

About Us

Sigma Tax Pro is dedicated to providing professional tax preparers with high grade, comprehensive solutions at the lowest prices available. Our mission is to enable tax preparers to maximize their revenue and increase their client satisfaction. We have a deep understanding of our clients’ needs and aim to provide an unparalleled overall experience.

Copyright © . Sigma Tax Pro LLC. Returns and Refunds Policy / Terms of Use / Privacy Policy . All rights reserved. Another site by Damn Good Agency.

Thank you for your feedback!