TAX TIPS w/Tasca

Spring is in the air and we all know what that means: W2s, W4s, 1020s, 1098s, 1099s and 1095s! Welcome to tax season! To help us out with a few tax tips and strategies we turned to local mom, Tasca Russo, CPA.

TASCA MOVED FROM ATLANTA, GA TO SAN ELIJO HILLS 11 YEARS AGO AFTER HER HUSBAND ACCEPTED A JOB OFFER. SHE LANDED A POSITION AS A GLOBAL TAX DIRECTOR AT A LOCAL PHARMACEUTICAL COMPANY. WHEN MERCK BOUGHT THAT COMPANY SHE DECIDED, BACK IN 2014, THAT IT WAS THE PERFECT TIME TO START HER OWN TAX PRACTICE.

We had an opportunity to ask Tasca a few questions about her background and what tips she has for the current tax season.

MOMSTOWN: How did you get started in the accounting field?

TASCA: Interesting story. I was actually going to an Engineering School (Georgia Tech), but part of my core classes required me to take an entry level accounting class. My accounting professor pulled me aside and told me she thought that, with my understanding of accounting and strength in math, I would be a great CPA. I took a tax class and was hooked! To round out my education, I went on to Grad school for a Masters in Taxation. I’ve now been practicing for 27 years and love what I do.

MOMSTOWN: What is it about being a CPA that brings you the greatest joy?

TASCA: At my core, I have found that I get enjoyment out of teaching people financial and tax principles and seeing them implemented. There is an intrinsic reward seeing clients feel empowered and in control of their financial situation. Saving clients money is also a bonus!

MOMSTOWN: What is the most difficult part of your work?

TASCA: The way our tax deadlines are structured is challenging. Historically, the IRS is late to enact legislation and, post COVID, they are way understaffed and terrible about giving clear guidelines. The other challenge is combating some bad “TikTok tax advice” or “I heard on the internet that you can deduct...” We all know that not everything we read online is correct.

MOMSTOWN: What tips do you have for us this tax season?

1. ROTH IRAs: if you’re eligible, take advantage of contributing to these now and enjoy tax-free growth and tax-free distribution in retirement. Your future self will thank you. It’s never too early to start. Consult your financial planner if you have one.

2. STORM RELIEF: Due to the CA storms, the IRS and CA have special relief that has extended the tax deadlines to May 15, 2023 for some CA taxpayers for 2022: irs.gov/ newsroom/irs-california-storm-victims-qualifyfor-tax-relief-april-18-deadline-other-datesextended-to-may-15

3. ELECTRIC VEHICLE CREDIT: If you are considering purchasing an EV this year, be very careful to read the rules. There are income limitations as well as Vehicle Price limitations that may preclude you from being eligible. In addition, the EV must meet critical material and battery components manufacturing requirements meaning a % of production must be performed in the US. Here is a handy website to look up to confirm if your EV will pass the assembly test: afdc. energy.gov/laws/inflation-reduction-act

4. REAL ESTATE: Given the recent increase in real estate values, many people have decided to sell their house, but taxes are usually one of the later things that come to mind. You should consult a tax advisor to calculate if you could have a taxable gain from the house sale.

5. FILING EXTENSIONS: Just to clear the myth there is no increased audit risk solely because of filing an extension. The extension allows more time to file, but not to pay, so make sure you send in payments if you think you’ll owe when you file.

MOMSTOWN: What advice do you have to help us with our finances in 2023?

TASCA: If you end up owing when you file your 2022 tax return, consider increasing your withholding by filing a new W-4 with your employer. If you aren’t maxing out your regular 401k contributions, every dollar that you contribute reduces your taxable income and saves on taxes.

MOMSTOWN: Tell us how readers may contact you.

TascaRussoCPA.com