Learning Center for Tax and Financial Insights

The American Rescue Plan has passed, bringing great news for those who are unemployed. Watch this video for a summary of the expansion and changes to the unemployment benefits in 2021. .embed-container { position: relative; padding-bottom: 56.25%; height: 0; overflow: hidden; max-width: 100%; } .embed-container iframe, .embed-container object, .embed-container embed { position: absolute; top: 0; left: 0; width: 100%; height: 100%; }

If you're not a pet owner, you'd be forgiven for not really being familiar with Rover.com. A lot of people are, however - particularly in the entrepreneurial community. In 2011, Philip Kimmey was finishing up his junior year at Washington University in St. Louis. He was a computer science major that was confronting the fact that he would be out of school soon and wasn't quite sure which direction his life would take. A lot of his friends and classmates were getting internships, which certainly would have been an option. However, he decided that he'd prefer trying to start his own company to see what that might be like. It's a decision he's thankful for to this day. Rover.com: In the Beginning Looking at the calendar, Kimmey realized that Startup Weekend was coming up in his hometown of Seattle. As the name suggests, Startup Weekend is a weekend-long, 54-hour event that is designed to bring developers, business managers, marketing experts, and other professionals together. The goal is simple: using a contest-style format, event organizers wanted to get as many enthusiastic people together as possible to form a startup in just two and a half days. In that sense, anyone could be an entrepreneur. It was here that Kimmey was involved in the initial idea for Rover.com - something that participants saw as an "online matchmaking service" that would connect pet owners in need of pet care with people who might be able to offer those services in their area. That kernel of the idea was actually presented by a team of software developers and designers including Greg Gottesman, then a managing director at Madrona Venture Group. Even though this idea was the contest's first place winner, nobody left that Startup Weekend with a successful startup on their resume. But Gottesman was so impressed with Kimmey's performance over the last few days that he immediately called him up on Monday morning, asking if he wanted to devote as much time as possible for the remainder of the summer trying to bring the project to life. Indeed, this is a perfect example of just how important luck can be in the early days of developing and running a successful company. Everyone involved admits that if Philip Kimmey had gotten a full-time job that year or had taken a summer internship like so many of his friends, Rover.com would literally not exist today. Not only that, but the millions of pets that have benefited from Rover.com's services over the years would be in a worse position because of it. After Rover.com's other co-founder Aaron Easterly came onboard as CEO later in the summer of 2011, the company was ready for prime-time. The site went live and began connecting owners with pet carers in the areas around Seattle, Washington and Portland, Oregon. A Startup is What You Make of It Things started happening pretty quickly for the team behind Rover.com at that point. The company's first round of investment funding happened in April of 2012, during the expansion of their services into all 50 states. This was led by Madrona Venture Group. Another round of funding was secured in February of 2013, this time from The Foundry Group. But it was in July 2013 that Rover.com hit the map – it was then that Petco announced an investment in Rover.com not only in a business partnership capacity, but for cross-promotion with all of Petco's stores nationwide. Though the fee structure of Rover.com has changed somewhat over the years, the core business model remains the same. Rover.com acts as a broker, matching dog owners and dog sitters together. For this, it takes approximately 20% of each transaction that is booked through the website. Over the years Rover.com has expanded beyond dog walking and now offers both doggy daycare and drop-in visit options. As is true with so many other companies operating in the gig economy today, all the dog sitters on Rover.com are independent contractors – they are not considered to be employees. Flash forward to today and Rover.com has raised more than $91 million in venture funding. At the end of 2016, it had 181 employees - not bad for an idea that began over a long weekend. But more importantly, it has also managed to double its revenue for three consecutive years. They even recently acquired their first competitor – a company called DogVacay – in an all-stock deal that was valued at almost $300 million. For Kimmey in particular, his goal is to one day make Rover.com a household name - something that he acknowledges will not and cannot happen overnight. He said that overnight successes like that don't actually exist: For every company that seems to come out of nowhere and become enormous, there are a team of people who have been working for a decade to make that happen. This year marks the 10-year anniversary of the original founding of Rover.com over that Startup Weekend in Seattle, so it'll be fascinating to see just how correct Kimmey and the rest of the Rover.com team are on that point.

With the recently passed American Rescue Plan, the child tax credit has been expanded for one year, 2021. The plan also provides a new twist: an advanced payment option for this year only. Watch this video for details. .embed-container { position: relative; padding-bottom: 56.25%; height: 0; overflow: hidden; max-width: 100%; } .embed-container iframe, .embed-container object, .embed-container embed { position: absolute; top: 0; left: 0; width: 100%; height: 100%; }

Tax season is here. What if you end up owing tax to the IRS and can't pay them immediately? This video will discuss a few options to consider when you don’t have the funds to pay all of your tax liability. .embed-container { position: relative; padding-bottom: 56.25%; height: 0; overflow: hidden; max-width: 100%; } .embed-container iframe, .embed-container object, .embed-container embed { position: absolute; top: 0; left: 0; width: 100%; height: 100%; }

Article Highlights: IRS Announcement Limited to Individual Tax Returns Tax Due Payments Further Extensions 2021 Estimated Tax Payments Not Extended The IRS has announced they are extending the filing due date for 2020 individual tax returns from April 15, 2021, to May 17, 2021. This was meant to be a one-month extension, but since May 15 fell on Saturday it was extended to the next business day which is May 17, 2021. This extension only applies to individual 1040 and the 1040-SR tax returns. It extends not only the filing deadline but also the payment of any tax due including self-employment tax. Thus penalties, interest, and additions to tax for the individual returns will not begin to accrue on any remaining unpaid balances until after May 17, 2021.

When you were growing up, you dreamed of being able to one day play video games for a living – finding a way to make a career out of your favorite hobby. Technology has made it so that many gamers have turned that dream into a reality. However, gaming as a business is much more than simply playing video games; the business aspect is equally important. Here are some business tips for gamers that will help to ensure your passion can turn into a successful venture. DIVERSIFY YOUR TALENTS Earning money from gaming can extend well beyond simply playing video games on video or live stream. There are many other ways to use your video gaming expertise to make money. Consider creating additional revenue streams to increase your profits. Ad revenue Advertising revenue from a YouTube, Twitch, or other gaming channel can be an ideal way to earn passive income. Endorsement deals Popular gamers can work with companies to help them promote their products. This can be done via endorsements on their gaming channel, using the company’s products, or appearing in company advertising among other alternatives. Merchandise Some gamers use their popularity to sell clothing, gaming paraphernalia, and other merchandise with their gaming brand to bring in additional revenue. Social media advertising Social media is hugely popular, and companies are willing to pay influencers to promote their products to their followers. This can provide an additional revenue stream as you grow your gaming business. Esports tournaments Video gaming tournaments have seen a rise in popularity over the past few years. Professional gamers can generate significant income from the prize money provided from participating and winning these tournaments. These are just a few options to help to build and grow your gaming business. CREATE A BUDGET While this is not directly related to gaming, it is still an important part of running your business. Having your own business means that you will not have a consistent paycheck to cover your expenses. You will want to set a budget so that you can know where your money is going and set aside funds to cover those lean months. PLAN FOR THE FUTURE Retirement Working for yourself means that you will not have an employer retirement plan to set aside for the future. It is never too early to start saving. Consider working with a financial advisor who can help you to explore your options and create a plan that meets your needs. Emergency Fund In addition, you should consider setting up an emergency fund with at least 3 to 6 months of your living expenses in case things do not go as planned. Health and Disability Insurance As a gamer, keeping yourself healthy is a crucial part of running your business. Health and disability insurance will be helpful in not only helping you avoid financial disaster if you get sick, but also cover your needs should you experience an injury that prevents you from gaming. DON’T FORGET ABOUT TAXES As a business owner, you will be responsible for ensuring that Uncle Sam gets their cut. As a part of your budget planning, you will need to ensure that you set enough aside to make estimated quarterly tax payments. Failure to make estimated payments can result in interest and penalties. The Jock Tax Keep in mind that as a professional video gamer, you “may be subject to tax obligations in all of the states and countries that they earn income from.” Athletes (including esports “athletes,” aka gamers) usually have to pay personal income tax to their state of residence on any income they make worldwide; however, in states outside their state of residence, “athletes increasingly find themselves subject to aggressive enforcement of ‘Jock Taxes,’ which look to tax athletes on income ‘earned’ in non-resident states. Employee vs. Independent Contractor vs. Business Owner How you choose to operate in terms of status will make a big difference in your taxes. Are you a part of an esports team? Whether you are classified as an independent contractor or employee will determine “which party is responsible for paying any associated taxes, including but not limited to any unemployment or federal and state withholding taxes.” Starting a business for your gaming could give you the ability to deduct some expenses of running your operation. Talk to your accountant about the possibility of setting up a business entity. ASK FOR HELP Your passion is gaming. The business aspect of your gaming venture can be complicated. Consider working with our office to ensure that your financial plan will meet your lifestyle needs. Owning a gaming business can turn a dream into a reality for passionate gamers, however, the business and tax considerations cannot be overlooked. If you have any questions about running a gaming business, or you would like to learn more about our services, please feel free to contact us for more information.