Everything You Need to Know About Our Services
Frequently Asked Questions
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Getting started is easy. Simply contact us to schedule an initial consultation. During this meeting, we will discuss your needs and how our services can help. After the consultation, we will provide a customized service proposal and agreement for your review.
Aphrodite Bookkeeping and Accounting offers a range of services including bookkeeping, payroll processing, tax planning, and tax preparation. We tailor our services to meet the unique needs of each client. To learn more about our services packages check out our services page.
Tax Preparation Checklist
To ensure a smooth and efficient tax preparation process, gather these documents and information before meeting with your tax professional:
Personal Information
Full legal name, Social Security number (SSN), and date of birth for yourself, spouse, and dependents
Current contact information (address, phone number, email)
Income Documentation
W-2 forms for employment income
1099 forms for freelance work, rental income, or investment gains
Income statements for side businesses or self-employment
Documentation of unemployment compensation
Investment and Retirement Income
Statements of investment earnings and losses (1099-B and 1099-DIV forms)
Records of contributions or distributions from retirement accounts (401(k) or IRA statements)
Deductions and Expenses
Mortgage interest statements (Form 1098) and property tax records
Receipts for medical expenses, including health insurance premiums and out-of-pocket costs
Documentation of charitable contributions (cash and non-cash donations)
Records of business expenses (travel, office supplies, mileage logs)
Education-Related Expenses
1098-T form for tuition payments and education expenses
Records of student loan interest paid during the year
Health Insurance Coverage
Forms 1095-A, 1095-B, or 1095-C to verify health insurance coverage
Other Documents
Correspondence from the IRS or state tax authorities
Records of estimated tax payments made during the year
Note: This checklist serves as a general guide. Your specific tax situation may require additional documentation. Organizing your records and providing accurate information will help identify all eligible deductions and credits.
You can schedule a meeting at https://calendly.com/aphroditetax/meeting or calling the office 907.772.2332
https://www.irs.gov/payments/online-account-for-individuals
The distinction between a hobby and a business is crucial for tax filing, as they are treated very differently by the IRS. The primary difference is that businesses operate with the intent to make a profit, while hobbies are pursued for pleasure or recreation.
Key Considerations
When determining whether your activity qualifies as a hobby or business, consider these important factors. No single factor is decisive—you should evaluate all aspects together:
Profit Intent and Performance:
Do you have a genuine intent to make a profit from this activity?
If the activity generates profit, how significant is it?
Can you reasonably expect future profits from asset appreciation related to the activity?
Do you depend on income from this activity for your livelihood?
Business Operations:
Do you operate the activity in a business-like manner?
Do you maintain complete and accurate books and records?
Do you adjust your operations to improve profitability?
Do you and your advisors have the knowledge necessary to run this as a successful business?
Loss Analysis:
Are any losses due to circumstances beyond your control?
Are losses typical for the startup phase of your type of business?
Important Tax Implications
Regardless of whether your activity is classified as a hobby or business, all income received is taxable and must be reported on your federal tax return. This includes payments received through payment apps, which may result in receiving IRS Form 1099-K.
Why Good Record Keeping Matters
Whether you're running a business or pursuing a hobby that generates income, maintaining thorough records throughout the year is essential for accurate tax filing and can help support your classification choice.
Additional Resources
For more detailed information, see the official IRS Tax Tip 2025-42: Help to decide between a hobby or business and visit the IRS Small Business and Self-Employed Tax Center.
Need Help Deciding?
The hobby vs. business determination can be complex and significantly impact your tax situation. Our team at Aphrodite Bookkeeping & Accounting can help you evaluate your specific situation and ensure you're making the right classification for tax purposes.
Contact us for personalized guidance on your hobby or business tax questions.
An Offer in Compromise (OIC) is an agreement with the IRS that allows you to settle your tax debt for less than the full amount you owe. It’s a legitimate option for individuals or businesses experiencing financial hardship or who simply cannot pay their full tax liability.
To qualify, the IRS looks at your unique financial situation — including income, expenses, and the equity in your assets — to determine if a reduced settlement makes sense.
Key things to know:
There’s a $205 application fee and an initial payment required, but low-income taxpayers may qualify for a waiver.
You can check your eligibility online through the IRS Online Account for Individuals.
Full details and forms are available in the OIC Booklet (Form 656-B).
Beware of predatory "OIC mills" — companies that charge large fees and make false promises to people who likely don't qualify.
You can learn more at the IRS’s official Offer in Compromise page, and review additional FAQs here.
Need help? At Aphrodite Bookkeeping & Accounting, we can walk you through your options and help determine whether an OIC is right for your situation. We only recommend this strategy if you’re truly eligible — no false promises, just real solutions.
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