Learning Center for Tax and Financial Insights

When disaster strikes, Americans can always be counted on to help. That help comes in countless ways, but often the easiest way to help is by donating money to charities. Sadly, criminals are just as likely to answer the call after a disaster or emergency as the millions of people who open their wallets. Scammers solicit donations to fake charities and can pose as employees of legitimate charities or federal agencies to dupe disaster victims trying to get disaster relief.

November 13 - Social Security, Medicare and Withheld Income TaxFile Form 941 for the third quarter of 2023. This due date applies only if you deposited the tax for the quarter in full and on time.November 15 - Social Security, Medicare and Withheld Income TaxIf the monthly deposit rule applies, deposit the tax for payments in October.November 15 - Nonpayroll WithholdingIf the monthly deposit rule applies, deposit the tax for payments in October.Weekends & Holidays:

November 13 - Social Security, Medicare and Withheld Income TaxFile Form 941 for the third quarter of 2023. This due date applies only if you deposited the tax for the quarter in full and on time.November 15 - Social Security, Medicare and Withheld Income TaxIf the monthly deposit rule applies, deposit the tax for payments in October.November 15 - Nonpayroll WithholdingIf the monthly deposit rule applies, deposit the tax for payments in October.Weekends & Holidays:

As the business world becomes increasingly competitive – and increasingly digital – it is essential to maintain meticulous financial tracking and accurate recording of all incoming funds. QuickBooks Online (QBO) is an excellent resource for small business owners who are looking to do their recordkeeping in the cloud. Whether you're receiving payments for invoices, documenting instant sales, or conducting business on the go, the platform equips you with the tools you need to ensure that all of your income is correctly recorded.Delayed PaymentsIf your business involves sending invoices for products or services, QBO offers multiple ways to record payments when they come in. You can opt to open the invoice directly and click on the "Receive payment" option in the upper right corner. However, accessing the "All Sales" screen provides an opportunity to review the status of other pending transactions. To navigate to this screen, click on "Sales" in the toolbar, then select "All Sales."For those with extensive lists of sales transactions, using the Filter tool can streamline the process. Click on the down arrow next to "Filter" in the upper left to explore your search options (e.g., Status, Customer).Once you've located the correct invoice, navigate to the bottom of that row. In the "Action" column, you'll find the "Receive payment" option. Feel free to explore other available choices by clicking on the down arrow. When the "Receive Payment" window appears, specify the applicable payment method, leave the "Deposit to" field set to "Undeposited Funds," and double-check that all information is accurate. You can print the receipt or add attachments using the provided links, then save it.Pro Tip: Offering customers the option to make online payments tends to expedite the invoice settlement process. Instant PaymentsIn situations where your business receives payments at the time of product or service delivery, issuing a sales receipt – rather than an invoice – is the way to go. this is also essential for your records. Simply click on the "+New" button in the upper left and select "Sales receipt" under Customers to open a blank form. You'll fill it out in a manner similar to creating an invoice. Start by selecting the customer and proceed to input or select any necessary data for the remaining fields.

Article Highlights:Unexpected 1099-MISCCash WinningsPrize WinningsFamous Prize WinningsIf you like to watch game shows and enjoy all the excitement that goes with watching contestants win prizes, then you can add another element to your viewing pleasure by considering how the contestants will handle the IRS Form 1099-MISC they receive for the value of the items they won. You may not have thought much about it, but the contestants must pay federal and applicable state income tax on the cash and the value of the goods they win on game shows.The lucky ones are those who simply win cash. They will have money to pay the taxes—unless, of course, they overlook the tax issue, spend all the winnings, and end up with a tax liability they cannot pay when it’s time to file their income tax return(s) for the year in which they won the money. All that winning excitement turns into a stressful financial problem, and they probably end up wishing they hadn’t won.But what happens to the contestants who win a prize? They will have more complex issues. They will be taxed on the prize’s fair market value (FMV), which is usually full retail value. So, they will have to dig into their own pockets to come up with the cash to pay the taxes. And if a contestant wins something they have no use for, they are still stuck with taxes unless they refuse the prize or contribute it to charity. But if the item is donated to charity, the prize winner still needs to include in adjusted gross income (AGI) that FMV amount and can claim an offsetting deduction for the contribution only if they itemize their deductions. Having to include the winnings in AGI can cause undesirable tax consequences because various deductions and credits are limited depending on AGI.

Even though taxpayers use the standard deduction instead of itemizing their deductions, there are still some deductions that can be taken in addition to the standard deduction and should not be overlooked. These are commonly referred to as above-the-line deductions. Watch this video for a quick overview of what may be eligible for you.