by Karla Dennis | Apr 15, 2014 | Blog
There’s nothing better than realizing that you can save money on your paycheck by applying for tax deductions. The problem is that there are so many tax deductions out there that it can feel overwhelming to try to wade through all of that information to find the deductions you actually qualify for. The good news is that a tax preparation expert can often help you figure out the deductions you can claim so you can see that money go where it will help you the most-your paycheck. One tax credit that many people overlook is the saver’s credit. The Retirement Savings Contribution Credit is designed for lower income families. It is an incentive provided by the government to encourage retirement saving, and it comes with significant tax deductions that will lower the total amount of money that you pay in taxes every year. Your tax preparation expert can help you figure out whether you are eligible for the exemption or not, but the good news is that the government has increased the eligibility requirements so more people will be able to take advantage of the program. To be eligible for the program, your tax preparation expert will see if you meet the standards set. For example, married couples cannot make more than $36,000 every year. In fact, the deduction is set up so the head of household should not make more than $27,000 annually with other household members making less than $18,000 every year. Also, as part of the plan your tax preparation expert has to show that you are paying at least 10 percent of your annual income...
by Karla Dennis | Apr 11, 2014 | Blog
Unless you have been living under a rock, you are aware that under the new Affordable Healthcare Act (AHA) you are now required to sign up for some form of health insurance or suffer a tax penalty. That means that millions of Americans who have been without healthcare now need to either sign up for the healthcare provided by their work, or they can sign up for Obamacare. Because there are so many tax implications for this new law, tax preparation experts everywhere are finding ways to educate taxpayers about how the Affordable Healthcare Act can affect their taxes. Some companies have actually included signing up for Obamacare as part of the tax preparation process. It is not federally mandated that a tax preparation firm offer this service, but many companies has begun to include it in their tax preparation service. The ability to sign up for health insurance as you file your taxes comes because these tax preparation companies have partnered with the companies that are offering the government funded healthcare program, or Obamacare. Not only can they sign you up for healthcare, a tax preparation expert can also help you understand the penalties that you could face if you forego signing up for health insurance. Signing up for healthcare while you file your taxes actually makes sense because much of the information that you need to provide while filling out taxes is required when you sign up for healthcare. A tax preparation expert has also been trained to know exactly how to fill out the healthcare information so you don’t have to worry about maneuvering through the...
by Karla Dennis | Apr 7, 2014 | Blog
It would be great if you could just show up for your tax preparation appointment and leave with a rebate check on the same day, but there is actually quite a bit of preparation required. The good news is that if you know what paperwork to bring, your tax preparation can be a snap. First, you have to bring proof of your income and the taxes that you paid. This comes in the form of a 1099 or a W-2 form. It is issued by your employer, and it comes with a copy to send for state taxes, federal taxes, and one to keep for your records. Your tax preparation cannot occur without this information. Copies of your bank statements are also helpful for tax preparation because they can contain an explanation for all of the deposits for your bank account. There are many times that clients will receive a gift from a parent that looks like a deposit into your bank account. If you don’t have a bank statement available, that money could look like income, but if you can show that it is a gift, it won’t be taxed. IRA accounts also have special rules when it comes to tax preparation so you should always bring proof of any IRA contribution to your tax preparation appointment. You will also need to have social security information for all of the members of your family so that you can claim the tax credits that come with each family member. There is lot of information to bring to your tax preparation meeting, and other receipts to bring are proof of...
by Karla Dennis | Apr 3, 2014 | Blog
Your bookkeeper wants to make sure that you get the best bookkeeping advice to get the most out of your money as a business. They can help you understand where you money is going so you will be able to make better use of your cash flow. If you want your business to succeed, there are three big picture items your bookkeeping service can help you analyze. While your bookkeeping service will not be responsible for filling out your taxes, they can provide your CPA with the necessary information that you need to establish a concrete tax plan. If you don’t take care of the receipts, payments, and expenditures, you are going to have a hard time establishing a truly effective tax strategy. Your bookkeeping service is also not a marketing specialist. They are not the people that put together a marketing plan, but they can help you understand how much money you can put into advertising. There really is no way to establish a marketing budget unless you understand exactly what kinds of funds are available. Forecasting your budgets can be a lot easier if you have a good bookkeeping service on your side. They can let you know the bills that you will be responsible for during the next fiscal year. They can tell you how much the employees are getting paid and where the other money is going. With this information at hand, your accountant will have a better idea of where your money can be moved around. For instance, if you find that you are putting more than 20 percent of your budget into marketing, you may...
by Karla Dennis | Mar 30, 2014 | Blog
Running a small business seems to take a lot of time, energy, and money, but these are issues that almost every small business can have. Have you ever wondered how a bookkeeping service can help you to overcome these issues? First, most small businesses have a similar complaint-cash flow. It seems like it is impossible to try to come up with the money that you need to expand the business or even run your small business the way that you dreamed of. The good news is that bookkeeping can help you overcome some of this problem. A bookkeeping service can help to manage your cash flow. Understanding where all of your money goes is one of the first keys to knowing how you can save money. A bookkeeping service can also help you to see where your money will go in the future so you can get a real grasp of the income that you have available to expand your business. A bookkeeping service can also help you to establish a payment schedule. They can help you work out when and how you will accept payment from clients. If you do good work, you may find that many clients are happy to pay some money up front so you can have the funding you need to bring in more clientele. Finally, a bookkeeping service will help you see how much money you get from specific customers. As a general rule, if you are getting more than 10 percent of your total income from only one client, you may be too reliant on one company to make your ends meet....
