Bank building and people drown in the water. Financial bankruptcy. Vector illustration After the collapse of Silicon Valley Bank, Signature Bank and the rescue of First Republic Bank, there are many questions about what happened and how you can protect yourself. Q&A: Why did Silicon Valley Bank Collapse? There are several reasons. We all know that there was a run on the bank, but let’s dig a little deeper. SVB focused on technology start-ups, which have struggled recently and decreased deposit balances. A strong bank should have a diverse base of depositors and minimize a concentration of ..read more

The man’s hand holds a 10000 Korean won, which crushes and flutters in the wind. The concept of currency devaluation and economic crisis.collapse, stagnation ·economy.Spending and loans,covid 19. The reported inflation rate for the year 2022 was 6.5%, and many tax brackets were increased due to inflation. Well, not really, and this is another way inflation will take a bite from you. For example, when looking at the 2022 tax brackets for a single person and comparing those brackets to 2021, you will see that the brackets increased. However, the brackets only increased by 3.1% vs. the inflation ..read more

Wooden Blocks with the text: Risk Business is about taking risks to earn a profit. However, there are some risks that can creep up on you slowly or swiftly that can either destroy or greatly damage your business. Health Issues: As we get older, health issues become a larger risk. Common and sudden issues can include heart attacks and strokes. The recovery time can be long, and your business may not survive if you are not there to tend to it. Make sure to keep yourself healthy, work out and eat right. Market & Technology Changes: The pace of change has been dramatic over the recent past and ..read more

Starting a few tax seasons ago, the IRS started to ask the question. “At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?” What does this have to do with the price direction of Bitcoin? Let me explain. Tax preparers have to ask this question when preparing tax returns and check the box as “Yes” or “No.” But how is this relevant to the price of Bitcoin? The answer is simple, and even though many clients had purchased and did not sell, it showed an enormous interest in cryptocurrencies. Bitcoin peaked during the ye ..read more

Shoreline scene with an old rusty anchor on wet sand. 3d illustration. There are several positive tax changes that NJ has implemented this year regarding education, child tax credits, and property tax relief. Education: A deduction of up to $10,000 of NJBest contributions, and a deduction of up to $2,500 of principal and interest paid on student loans if your gross income is $200,000 or less. You can also deduct up to $10,000 of tuition to a New Jersey institution of higher education. Child Tax Credits: A refundable child tax credit of up to $500 for each dependent child aged 5 or younger. You ..read more

Do you want to better understand what is happening in the economy and sound extra smart? Here are 4 terms you should know and understand. Inflation: Inflation is the decrease of purchasing power of your money. What used to cost $10 now costs $12 because your money is not as valuable. Good economists know that inflation is caused by a growth in the money supply. Money supply: This is the amount of money in circulation. For example, if more money is “printed” then this will increase the supply of money and increase inflation. There are also other ways to increase the money supply by having the ..read more

Can you guess how many tax returns are unprocessed by the IRS as of the middle of March? The number is 7 million unprocessed individual returns. It is taking the IRS more than 21 days to issue any related refunds and in some cases it can take 90 to 120 days. If there are any issues related to items such as the Recovery Rebate Credit or Child Tax Credit, the IRS will send taxpayers an explanation. You can also view the Where’s My Refund tool at the irs.gov website.   If you like what you just read, then don’t hesitate to forward/share with your friends, comment below, and/or click like on ..read more

The recovery rebate is a credit for taxpayers who either did not receive or received less than the full amount of their Economic Impact Payments. Here’s how it works for the 2021 tax year: Economic Impact Payments and plus-up payments were issued during 2021 from March through December. If you received the full amount of the third Economic Impact Payment, then you do not need to include any information about this when you file your return. However, if you didn’t qualify for the payment or received less than the full amount, then you can claim this as a credit on your 2021 tax return. If you ar ..read more

The IRS is facing many challenges that have carried over from last year. According to the IRS, its workforce has shrunk by 17% from 2010, while its workload, as measured by the number of individual return filings, has increased by 19 percent. What are some issues and what can you do for this tax filing season? Avoid filing anything by paper when possible. The backlog at the IRS is in the millions. Even returns that were e-filed last year were suspended during processing, which was mostly due to Recovery Rebate Credit discrepancies. Use the ‘Where’s My Refund?” tools at irs.gov. However, this ..read more