In the Black: March 2024
2023 Child Tax Credit: will they or won't they? Congress, you tease!!!
For those of you with children, the last few years have likely seen you with a reduction in your tax bill or a larger refund. This is due to a Biden policy that provided an increased and partially refunded child tax credit. This sunsetted in 2022 but Congress is looking at extending to 2023 taxes.
The 2023 tax season has already started and without a decision yet- what should one do? Wait to file until the Senate votes?
Short answer: NO! If the legislation passes and you are owed a refund- the IRS will adjust your return and send you the difference .
The last few years have seen us in the scenario a few times. Why? There have been lots of late breaking Covid and economic relief programs that have come up for lawmakers late in the season. While it's 100% annoying - the good news is that when there’s a tardy tax reform it’s been in your favor!
The Great Accountant Shortage
Have you noticed that it’s harder than ever to find an accountant? You aren’t imagining things. Less people are entering accounting programs, with enrollment down about 33%. Compounding this issue, the AICPA came out and said that 75% of its members are at retirement age. Which means that the industry is headed squarely at a crisis, with the ‘ clift’ projected to drop off in 2025 and get worse from there.
Why don’t people want to be accountants anymore? The credentialing to do taxes (for EA ‘s and CPA’s) is time consuming. The pay is not seen as competitive for the long hours required. And it’s a profoundly old fashioned and non-diverse industry.
So why am I not worried? For the last 15 years, my whole ethos at LIAB is to cater to underserved clients and open up accounting to women, especially moms, and a more diverse population in general. We have recruited and trained more than 50 women, and a handful of men. Some of them are still here at LIAB, many have gone on to start their own practices. We train accountants in house and support them through their credentialing process. We work to create an environment that’s supportive and sustainable. It's taken a reimagining of what accounting COULD be - more flexible schedules, remote work and a co-operative mindset.
I hope that this looming crisis is a change for my industry to transform itself and throw the doors open to women , LGBTQI+ people and POC. That’s where the future is.
Annoying Updates (Deadlines):
Lest we forget, Scorp and Partnership returns are due 3/15.
Also, you should have everything in to me for your personal returns.
To make sure we have time for a call- We need EVERYTHING by 3/22.
The DROP DEAD deadline to file on time (no call- email review) is 3/29.
Liz is All Babies: Who loves a summer baby? WE DO!!
Liz Is All Biz is growing by two this summer. Both Nikole and Justine are expecting!
Conveniently, the summer is a slower time for us in the post tax lull, but you’ll see some returning staff (Aysha and Kadeem) come in to cover for our new moms on their maternity leaves.
