by Karla Dennis | Nov 18, 2013 | Blog
Getting audited can be a long, nerve-wracking, and difficult process for anyone. A tax resolution specialist is always on your side to help you get through the process, but did you know that there are ways that you can keep yourself from being flagged by the IRS? Here are some simple tips a tax resolution specialist will offer to keep you out of the sights of the IRS audit list. First, make sure that you don’t leave any blanks in your tax forms. Missing signatures, social security numbers, and important documents will all put up red flags. Some people think that if they leave out information on their taxes it will delay the amount of time that they will have to pay the taxes owed. It is way better to deal with a tax resolution specialist to get extensions and tax breaks rather than succumb to an audit. Second, your tax resolution specialist will tell you that income discrepancies can flag your taxes. If the income your report on your taxes is different than the income that your employers report for you, the chances will greatly increase that you will be audited. Your tax resolution specialist will always counsel everyone to check and recheck their information so that a small error won’t land a long, painful IRS audit. Finally, when you claim the Earned Income Tax Credit (EITC) you may potentially be flagged. Any tax resolution specialist will tell you that the EITC can save you all kinds of money on your taxes, but it has to be figured correctly. For example, if you decide to file separately from...
by Karla Dennis | Nov 14, 2013 | Blog
With all of the tax preparation computer software out there it can be hard to know if you should try to do your taxes on your own or if you would be smarter to hire a specialist. There are benefits to both forms of tax preparation, but here are some ways that you can know what way would work best for you. You can begin by asking yourself how many sources of income you have. If you have one job, the chances are your taxes would be pretty easy to fill out on your own, especially with tax preparation software. On the other hand, if you have other forms of income such as stocks, bonds, employment investments, or other forms of income, it would profit you to have a tax preparation specialist because each form of income will have to be accounted for separately. Also, consider how many people will be included on your taxes. If you are including a spouse on your taxes, it may mean that you have to offer more comprehensive information. If, as a couple, you still have only one form of income, you can still use tax preparation software, but if you get stuck, don’t be afraid to call for help. Finally, ask yourself if you have deductions that can be taken from your taxes. Deductions can include a tax credit for each child, energy-saving appliance deductions, health care deductions, charitable contributions, and other forms of tax-deductible income. If you have a lot of different deductions that you can claim, it may be easier to hire a tax preparation specialist. The best way you...
by Karla Dennis | Nov 13, 2013 | Blog
Many believe that you need bookkeeping just to prepare your tax return. However, that isn’t the most important reason for hiring bookkeeping services. There are many decisions that are easier to make when you have excellent books and records. Helps determine which profit center is making you the most money Helps determine where you are spending the most money and how you can decrease expenditures Allows a review of when your business typically sees surges of income read...
by Karla Dennis | Nov 10, 2013 | Blog
Tax preparation can be a stressful time of the year for everyone. If you are working with a tax preparation expert, you should know that it is still your responsibility to bring in all of the necessary paperwork. To help you know what information you need to gather for tax preparation, here is a simple checklist of necessary paper work. First, bring the social security cards for you and any other person that will appear on your tax return. If you have a spouse or children listed on your tax returns, you have to provide their social security information. Second, it may seem obvious, but your tax preparation cannot happen without all of your income information. That may come in the form of a W-2 or W-9. Your income can also come in the form of investments. Investment companies will send out a 1099 form that should also be included in your tax preparation documents. Third, bring in your bank statements. This will help your tax preparation specialist to be able to tell exactly what kind of income you have in your account. For example, did you know that if you receive money as a gift, it would be taxed differently than your other income? You can save money when you include all of your bank statements. Fourth, don’t forget to bring in any receipts of charitable donations. The IRS encourages businesses and individuals to make charitable contributions, and they offer tax deductions when you donate. You can donate either goods or services, but you have to make sure that you have a receipt for the donation so that...
by Karla Dennis | Nov 6, 2013 | Blog
If you work as a freelancer, you probably have experienced the benefits of getting your paychecks without having taxes withheld. Sure, it’s wonderful to have all of that money in hand, but you should never forget that there is one day looming on the horizon-tax day. Yes, everyone, including freelancers, has to pay taxes. If you haven’t done any tax preparation, you may be surprised when you owe a large sum of money to the IRS on tax day. If you are a freelancer, here are a few tips on tax preparation to make tax day a little less stressful. First, you should always withhold taxes. When you get your paycheck, you probably look at all of the money you made and can pinpoint a place where that money will go without considering tax preparation. If you aren’t withholding taxes, you are going to be forced to go for months without a paycheck because you have to save up for taxes. A better idea is to begin your tax preparation the minute you get that first paycheck. As a rule of thumb, you should put aside 40 percent of your income toward taxes. That way, you’ll be able to foot the entire tax bill and maybe even come out with a little money to save. Second, keep tax preparation in mind when you charge your clients. It can be easy to agree to a lower sum of money simply because that amount will be before taxes. The problem with that mindset is that if you don’t keep tax preparation in mind, you are making less that you should for...
