Well-organized records make it easier to prepare a tax return and help provide answers if your return is selected for examination or if you receive an IRS notice. You must keep records, such as receipts, canceled checks, and other documents supporting an item of income, a deduction, a credit appearing on a return, etc. Here are the list of a handful of tips. 1. Go paperless with online bank account statements - perhaps even copies of cancelled checks and deposit records 2.

Tax refunds can feel like Christmas in springtime. With a sudden boost to your bank account, you can look forward to going on a shopping spree, catching up on debt or squirreling the refund away in savings. These days, you can even anticipate when your windfall will arrive by tracking the status of your refund with the Refund Status tool available from the IRS online. For those receiving minimal refunds, the celebration can be less like real bubbly and more like club soda. B

Bonuses are considered excellent way to motivate employees and reward top performers; however, they can also quickly change one’s tax return and the amount of taxes initially withheld depending on the payout. IRS regards bonuses as supplemental wages, which are not regular wages. For more details, see Publication 15 (2017), (Circular E), Employer’s Tax Guide for the tax year in question. There are two ways of withholding taxes from bonus: The aggregate method: is used when

The tax season is here again! This year, the IRS announced 4 recent changes in tax laws that can save you a lot. 1. Individual Income Tax The IRS has increased the standard deduction, which can increase your taxable income. New tax brackets in 2020: The current standard deduction is $12,400 for singles , up from $12,200 in the prior year, and $24,800 for married joint filers , up from $24,400 in 2019. 2. Retirement savings contribution limits The IRS has raised the emplo

The Electoral College has confirmed new president-elect making great changes next year. For now, we still need to keep track of the routine things involved in bookkeeping and tax. Here are some quick steps: 1. Make charitable contributions before year-end This is an exceptional way to reduce your tax burden for the year as well. Remember to look up the charity to see what they do with your donations. Also, the IRS imposes several rules for claiming a deduction for donation:

What is CTC? In 1998, the Child Tax Credit (CTC) was available for the public by legislation. This policy started from $400 for each qualifying child. It is used to relief the heavy tax that certain taxpayers with qualified dependents are facing. How much can you earn from it? As of today, this policy lifts the amount of credit to a considerable degree: Up to $2,000 per qualifying child; Up to $500 per ualifying dependent; Within the amount of CTC, up to $1,400 of it

If people haven’t filed their tax returns for a number of years, they are likely anxious and find themselves glancing over shoulder periodically to see if Uncle Sam has caught up with them. Once a refund is older than three years, they can no longer be claimed and can’t be applied to other year income tax liabilities. Thus, non-filers may have the IRS jumping on them about filing or they might be missing records. They may also end of owing quite a bit to the IRS by complement

Business filing deadlines depend on a number of variables including the business structure the company uses. A non-calendar year fiscal year also impacts the due date. Therefore, business tax filings due dates can vary widely. However, the initial due date for most business tax returns is March 15 or April 15. Sole Proprietors and Single Member LLCs Sole proprietors and single member LLCs that use the default disregarded entity status must complete Schedule C or Schedule E

With the extended 2017 tax filing season drawing to a close, now is the time to act promptly if you still need to claim a tax refund. Your preparer may take information directly from you or ask you to complete a questionnaire. Either way, you’ll need time to collect and organize the information. Here are 10 steps to take before meeting for your tax prep. 1. Choose a preparer Hiring a professional – trustworthy tax preparer is actually important. Be sure that the person you

It is essential that business owners correctly determine whether the individuals providing services are employees or independent contractors. Basically, you must withhold income taxes, withhold and pay Social Security and Medicare taxes, and pay unemployment tax on wages paid to an employee. You do not generally have to withhold or pay any taxes on payments to independent contractors. Before you can determine how to treat payments you make for services, you must first know