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Archives for March 2023

The Tax Man Commeth – Are You Ready

Tax time is right around the corner and if you haven’t already filed your taxes, now is the time
to get your paperwork in order and get the deed done. No one enjoys filing their taxes, but
waiting until the last minute opens the door to mistakes and the potential for missed deadlines.
You’re going to need a variety of documents, depending on your filing status. The following are
just some of the most common forms that may apply.

These detail all the income you had from employers throughout the year, whether you were
employed full- or part-time.

Form 1099
If you worked in the gig economy or had side hustles, the IRS considers that as being self-
employed. That makes you subject to a higher rate of taxation. Due to third-party payment
platforms, it can be difficult to differentiate self-employed income from gifts or repayments.
Form 1099 tells the IRS how much you made via self-employment. Be sure to keep accurate
records of expenses associated with self-employment or a small business.

Form 1098
This is provided by your mortgage company if you’re a homeowner. It will tell how much
mortgage interest was paid.

Form 1099-DIV
The form is for any income or dividends received from investment distributions. That includes
stocks and bonds, along with investment or rental properties.

Form 1098-E
Report student loan interest from this form. Depending on your income, it could potentially
qualify you for a deduction of up to $2,500.

Form 5498
Contributions throughout the year to your individual retirement account are reported on this
form. The amount may be tax deductible.

Form 1095-A
It’s a statement from the Health Insurance Marketplace. You can receive a tax credit for
premiums paid, offset by healthcare costs.

Letter 6419
Anyone who received advanced child tax credits will receive a letter outlining the amount they


At Peavy and Associates PC our mission is to assist you with all your tax preparations, payroll and accounting needs.  We provide our clients with professional, personalized accounting services and guidance in a wide range of financial and business needs. Give us a call today (843) 347-0849 and discover why our clients return to Peavy and Associates, PC year after year!

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Why You Need a Certified CPA for Tax Season

The most important reason you need a certified CPA is that they can save you money. Tax
preparers typically undergo a basic course before embarking on tax preparation services. A
certified CPA has years of specialized education and experience to draw upon. There are many
levels and specialties in the realm of CPAs and its important to find the right professional for
the task.

More Money
A certified CPA utilizes specialized, sophisticated software and is cognizant of the changing tax
laws. They’re knowledgeable in credits, deductions, extensions, and amendments of which the
average individual wouldn’t be aware. They can even amend returns from previous years. The
experts are able to identify errors that could result in higher taxes or an audit and maximize

IRS Representation
Everyone fears an IRS audit and it’s difficult to justify a tax return when you’re in a panic. A
certified CPA has the authority to represent you in an audit. The professionals deal in facts,
figures, and speak the same financial language as the IRS.

They can also aid in lowering the financial cost of an audit and negotiate on your behalf if the
findings go against you. Just remember that even if the return is completed by the CPA, you’re
still responsible for the information that it contains.

Confidentiality & Documentation
Home filing systems can be haphazard, incomplete, and completely unsuitable if they pertain to
a business endeavor. A certified CPA retains your records and treats them with the utmost

Future Planning
A certified CPA is a licensed professional qualified to prepare your taxes, plan for future tax
returns, retirement, investments, and business success.

Peace of Mind
Tax returns are complex and complicated. The peace of mind that comes with a certified CPA is
worth the extra cost. Consumer software and even online preparation sites are essentially a
one-size-fits-all solution for “easy” tax returns. They don’t provide the same level of experience
and expertise that’s provided by a certified CPA.


At Peavy and Associates PC our mission is to assist you with all your tax preparations, payroll and accounting needs.  We provide our clients with professional, personalized accounting services and guidance in a wide range of financial and business needs. Give us a call today (843) 347-0849 and discover why our clients return to Peavy and Associates, PC year after year!

Contact Us Today

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Raising Money Smart Kids

In days gone by, personal finance skills were taught in school. The courses went by the wayside
as other subjects were deemed more important. An example is algebra, which is a required
course, but one that few students use after leaving school. Be advised that youngsters tend to
emulate the financial attitudes of their parents and good financial habits can be learned.

Begin in Childhood
Parents shouldn’t be afraid to discuss money matters in front of the children. The age of 7 is a
good time to begin financial education by teaching children good spending habits. Young
children can be given a weekly amount, while teens can receive an amount at 2-week intervals.
It’s a good idea to tie the stipend to chores to encourage a work ethic.

The ability to save money rather than spending it for instant gratification is one of the best
lessons a child can learn. If the youngster wants something specific, suggest they save a portion
of their funds until they have the required amount.

Extra Earnings
The opportunity to earn extra money provides children with more control over how they earn,
save and spend. It also teaches a work ethic.

Introduce children to the concept of philanthropy. Parents that give to charitable endeavors
should take their children with them when they contribute and talk about why they’re giving
back to the community.

Resist Temptation
It’s difficult for parents to see their children want something and struggle to achieve it. Resist
the temptation to give youngsters extra money before the allotted time. The negative
consequences of being careless with their money is a strong and powerful lesson. Be sure to
discuss spending habits with children and ways they can do better in the future.

The early foundation for budgeting as a child will help teens. Show them how to create a
budget that accounts for the things they need vs things they want. It’s a lesson in prioritization.

It’s equally important to discuss the pitfalls of high-interest student loans and credit card debt,
along with paying bills on time, as youngsters mature into adults.

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How to Become an Accountant

Certified public accountants (CPAs) are in high demand and not just at tax time. They act as
trusted consultants on financial matters and maintain information on accounts for individuals,
businesses, and even non-profit organizations. CPAs assist clients in attaining their financial
goals. The professionals can choose to specialize in a particular area of accounting
encompassing taxation, personal finance, forensic accounting or environmental accounting.

College Level Accounting
CPAs in Florida are required to complete 150 semester hours of college-level education in
accounting by an accredited educational institution.

Acquire Experience
Those desiring to become a CPA must also complete a required 2,000 hours of experience over
12 months of work or a minimum of 20 hours per week. A CPA that’s currently licensed or an
approved chartered accountant must verify the hours. Individuals can begin working toward
the completion of their work experience after completing 120 hours of classwork from an
accredited educational institution.

CPA Exam
Prospective CPAs must pass the Uniform CPA Exam. Created and developed by the American
Institute of Certified Public Accountants (AICPA), it’s the only pathway to being able to practice
as a CPA. Candidates must apply to the Florida Dept. of Business and Professional Regulation
(DBPR), Division of Certified Public Accountants to receive authorization to take the exam. The
4-part exam must be passed within an 18-month time period.

Licensing is required of CPAs to pursue their chosen profession. They must create an account
with the DBPR to apply for a license. Individuals must also provide documentation that they’ve
completed all the educational requirements; work experience; exam results; pay a fee; and
submit their application. This must be accomplished within 3 years of passing their exam via a
printable form or an online portal.

Licenses must be renewed every 2 years. CPAs are required to complete 80 hours of ongoing
education, of which 8 must be in accounting, auditing and technical business. In addition,
behavioral coursework must be completed, limited to no more than 20 hours, along with a
minimum of 4 hours in ethics.

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