Author Archives: Mississippi Accountant CPA

Retirement Financial Planning Tips

Preparing for retirement is something that we rarely think of when we’re young and busy with life. Establishing a career, opening a business, raising a family, enjoying social engagements and other aspects of a busy life tend to become all-consuming. Yet retirement planning is crucial for financial stability and peace of mind later in life. When considering your golden years, you may have questions about how much you need to save, the best methods of financial planning for retirement, which investments are the most sound, and more. Watkins & Co. is your go-to partner in retirement financial planning, providing sound guidance and financial advice, as well as assisting you in carrying out an established plan.

How Much Should I Save for Retirement?

When thinking about how much you should save for retirement per month or how much should you have saved for retirement by age 55, or any other retirement-related question, you first have to assess your retirement needs and goals. You’ll want to plan for your expected retirement needs. This means you’ll need to estimate how much you’ll require annually for essential expenses such as housing, food, health care, utilities, transportation, and so forth. It’s also important to account for inflation, fluctuations in the market (if you’re not relying solely on savings in your bank account), cost of living increases, and for your life expectancy – it’s always wise to plan for living longer than expected, just to be safe. Then factor in any expenses for travel, hobbies, activities, family responsibilities, and other costs you’ll likely incur in retirement. Sound like a lot? You do not have to figure all this out on your own! You can use retirement calculators or consult with a Watkins & Co. financial planner to determine a specific savings target based on the above factors, your age, current savings, and expected retirement age.

What’s the key takeaway? Most financial advisors for retirement planning will tell you to save 10-15% of your income before tax. The ultimate goal would be to save this for at least 40 working years (for instance, when you are working from the ages of 25 to 45 years old).

The reality of the situation, however, is that many Americans have not saved for retirement in their younger years and you may find yourself close to retirement with little to no savings. Do not panic! Sitting down with a Watkins & Co. financial retirement advisor can help you determine how to proceed based on where you are currently. Every situation is unique and you will deeply benefit from the expertise and guidance of a certified financial planner for retirement. At Watkins & Co., we take a full accounting of your financial situation, retirement savings objectives, and savings thus far to help determine a sound course of action moving forward. We can help you implement a savings and/or investment plan from this point on that will provide you with financial stability for your retirement years.

Financial Planning Services for Retirement Jackson, MS

For the most reliable and best retirement financial planning services near Jackson, MS, stop by Watkins & Co. After decades of working in business and personal financial planning and accounting, our team has the qualifications and experience to help you achieve your financial goals for retirement. We are here to help pave the way to a smooth and enjoyable retirement! Give us a call today to learn more!

How to Maximize Your Tax Refund in 2025

Filing for taxes can be a stressful and daunting task even in the most straightforward of cases. Instead of losing sleep over filing, keep it stress-free with the assistance of the tax professionals at Watkins & Co.. After over 30 years of experience as a thriving accounting firm in Jackson, Mississippi, the tax pros at Watkins & Co. are your go-to local tax experts. We offer a comprehensive suite of accounting services designed to provide for every accounting need of individuals and businesses in the Jackson area.

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Mississippi Tax Law Changes 2025

A new year brings with it important changes in tax laws that are vital for every individual and business in Mississippi to know. With both federal and local state tax laws changing, individuals across every income bracket are likely to be affected, as well as businesses operating in the great Magnolia State. Not only is it important for you to know the new tax laws to ensure you’re in complete compliance with the IRS but it’s also crucial to be aware of when you’re doing any financial planning for the years ahead. Watkins & Co. has proudly provided businesses and individuals across Mississippi with experienced and knowledgeable tax services. Offering everything from financial planning to filing taxes for individuals, tax advice, estate planning, and serving as business tax accountants, we’ve helped our local community members navigate the tax world successfully. Our skilled tax accountants strive to keep you fully informed so that you can make the best decisions for your financial future.

What’s Changing in Mississippi’s Tax Laws in 2025

In addition to the federal tax changes in 2025, as discussed in the previous article, Mississippi’s new tax laws also hold several changes.

Mississippi is considering various tax reforms for 2025 that will affect residents and business owners across the state.

Individual income tax in Mississippi 2025: Mississippi has planned to eventually bring state income tax to a flat 4%, and with that goal in mind, has been conducting a phased reduction in individual income taxes. 2025 continues that process with a reduction of individual taxes with the top marginal rate decreasing to 4.4% (it was 4.7% in 2024).
Mississippi property tax law changes 2025: This year, Veterans who are 90 years or older will be exempt from ad valorem taxes on homestead properties.
Hazardous waste cleanup tax: This tax is applied on the sales of petroleum and petroleum products, and it will increase to 1.12% this year (up from 0.675 last year).
Corporate income tax law changes in MS 2025: Another tax aspect that the state of Mississippi is phasing out slowly is capital tax stock, although no changes have occurred this year.

What can you expect as upcoming changes in tax laws over the next several years?

As of now there is legislative interest in making changes to various aspects of Mississippi’s tax laws.

Sales tax: Currently, Misssippis has the highest grocery sales tax in the nation at 7%. Legislators are pushing to reduce this over the next several years.
Individual income taxes: The phase out will continue until these taxes are established at a flat rate of 4%. As of now, it is projected to end next year (2026) at a flat rate of 4%.

Best Tax Accountants Near Me

For experienced guidance in filing for taxes and tax planning for yourself of your business, visit Watkins & Co. Working with Watkins & Co. brings several advantages for you. As Mississippi natives, we are well-versed in Mississippi tax laws as well as federal tax requirements. We offer proactive planning designed to keep you fully informed and able to make wise financial decisions that adapt to the changing tax laws each year. From individual tax preparation to complicated business tax filing and planning, we offer comprehensive services that cover every aspect of your financial needs. Watkins & Co. is your knowledgeable, local tax accounting firm and you can rely on us to protect your financial interests for years to come.

2025 Tax Law Changes

A new year often brings with it numerous federal tax and state tax changes which can greatly impact your financial planning for the year. Watkins & Co. is here to break down the anticipated tax law changes for 2025 and ensure that your tax knowledge is current so that you can make fully informed financial decisions this year.

Federal Tax Law Changes 2025

Are you wondering, “Will personal exemptions come back in 2025?” Or, “What are the standard deductions in 2025?” You’re on the right track. In 2025, there are a few key considerations for upcoming tax changes that may play a large role in your tax planning.

The main 2025 federal tax changes revolve around the Tax Cuts and Jobs Act (TCJA) which was enacted in 2017 and which changed deductions, expensing, depreciation, and tax credits for individuals and businesses. At the end of 2025, TCJA is set to expire which means that without any legislative action, the end of this year will bring with it a reversion back to federal tax laws before TCJA was passed. What does this mean for you?

Individual tax rates will revert back to levels before TCJA which will result in the top rate increasing from 37% to almost 40%.
Standard deductions and personal exemptions were doubled and when TCJA expires, the standard deduction will decrease and taxable income calculations will increase. Essentially, you’ll be paying higher income taxes and the standard deduction will go down.
An entire slew of deductions and depreciation factors were adjusted in TCJA to be more friendly to the individual or business. With TCJA ending, many of these are reverting back to original rates which will ultimately affect both personal and business bottom lines.
Businesses will lose many of their tax credits that worked in their favor with TCJA.

This entire year, we can all enjoy the benefits TCJA brings but planning for the expiration of this provision is essential. What we’ve shared here is simply a general overview of the tax reforms that you can expect. For more information on the changes that will come at the end of this year with the expiration of the Tax Cuts and Jobs Act, contact your tax professional at Watkins & Co. We can break down the ins and outs of the changes for you and determine which aspects may affect you the most. Most importantly, we can help you plan for these changes and minimize the impact of the TCJA expiration.

Tax Reforms for 2025

Other notable changes for the 2025 tax year are also important to consider. Standard deductions increase to $15,000 for individuals and joint filings increase to $30,000. Heads of household can expect $22,500 for the standard deduction in 2025. For this year, the top tax rate remains at 37% (but will increase to around 40% when TCJA expires). There are also changes to the alternative minimum tax exemption amounts, earned income tax credits, qualified transportation fringe benefit, health flexible spending cafeteria plans, medical savings accounts, foreign earned income exclusion, estate tax credits, annual exclusion for gifts, and adoption credits. Most changes this year work in the favor of the individual or business. To learn more about the tax changes this year and how they may affect you, contact our team at Watkins & Co.

Our experienced tax accountants are standing by, ready to assist you with tax planning for the upcoming year. Watkins & Co. is here as your reliable partner in ensuring your financial future is stable and solid for this year and years to come.

CPAs for Small Business Startups Jackson, MS

Starting a business is an exhilarating and potentially terrifying endeavor. As a new business owner, you’ll face a whole host of challenges in every arena from staffing to administrative and financial. With all that in mind, are you debating about using the services of a CPA for your small business startup? In our last article, the professionals at Watkins & Co. discussed five reasons that partnering with a local CPA is a smart move for your company. Now, we’re here to finish up sharing all the benefits of hiring a CPA for your new business in Mississippi.

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5 Reasons Why Small Business Accounting Is Important

As a small business owner, you wear many hats and fill many roles. From marketing and sales to operations, you have to rely on yourself for many aspects of business. One area that will pay for itself time and time again is to outsource your accounting. Solid accounting practices are the lynchpin for many small businesses and is the bedrock of your company’s financial health and long-term success.

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5 Ways a CPA Can Help Your New Business Startup

If you’re in the process of starting a new business in Mississippi, congratulations! That’s exciting news, although in reality, it can come with its fair share of stress. Ensuring all the aspects of your business are accounted for is no small feat, one that must be taken on when you already have a full plate. One major component of a successful business startup is to make sure that you have a solid financial foundation on which to build. A CPA can be an invaluable partner on this journey, providing crucial financial expertise and support so that your business gets up and running smoothly.

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The Importance of Good Small Business Accounting

Experienced small business owners across America will all agree that proper business accounting can make or break your business. The value of accurate recordkeeping, payroll, cash flow, tax reporting, business analysis, and other business accounting tasks cannot be overstated. For those just starting a new business, it’s imperative to set up your accounting systems for success and ensure that you’re on the right track from the very start. To do so, it’s crucial to know what good small business accounting looks like and what you can expect from following a structured accounting plan.

Watkins & Co. has spent decades guiding small business start-ups in Mississippi through the ins and outs of proper small business accounting. The following five factors illustrate how accurate small business accounting plays a crucial role in the overall success and sustainability of any enterprise.

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Independent Contractor Tax Reporting with Form 1099

As independent contractors and the businesses that hire them, adhering to guidelines and best practices when reporting taxes is crucial. Staying compliant and properly reporting with the right Form 1099 is an absolute must to remain in good standing with the IRS. Watkins & Co. is here to share some important information on 1099 tax reporting do’s and don’ts.

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Everything You Need to Know About 1099s in 2024

For those operating businesses where independent contractors or other non-traditional income payments are being made, 1099s are how you will report income paid to individuals or entities during the tax year. The main purpose of a 1099 is for the IRS to track income that falls outside of the scope of traditional taxes. Businesses, organizations, or individuals are responsible for issuing 1099s if they make such income payments. Similarly, individuals are required to file taxes with a 1099 if they made any income that is not reported under a W-2 or other tax reporting form.

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