Blog Posts

Common Tax Problems

You are not alone! There are several tax problems that our clients have in common, and it is possible to solve them. Here are the main problems we most often deal with. You haven't filed your taxes in several years.  Just because you neglected to file your tax returns, doesn’t mean that they were forgotten by the IRS. We understand that life gets in the way of filing tax returns. People get married and get divorced. People lose jobs and businesses. [...]

Withholdings-How Much is Enough?

What Are Withholdings? Withholdings are a portion of your wages that is not included in your paycheck but instead is sent directly to the federal, state, or local tax authorities. Withholdings greatly reduce the amount of taxes you will have to pay at the end of the tax year when you file your tax return.  How Do I Start my Withholdings at my Current Job? When you first start at a new position, you should fill out Form W-4. Form W-4. A [...]

Earned Income Tax Credit

What is the Earned Income Tax Credit? The Earned Income Tax Credit (EITC) is a tax credit for taxpayers with low to moderate income, especially those with children. Read on to find out if you qualify for the EITC. How do I qualify? You (and your spouse if filing jointly) must be a U.S. Citizen or resident alien · If married, you and your spouse cannot file separately (MFS) · You must have earned income from an employer or from a self-employed business or [...]

What Not to Do With Your Tax Return

Tax returns are confusing, there's no doubt about that. So, we have to compiled a list of things that you should avoid when it comes to filing your tax return. Waiting Until the Last Minute This is an obvious one. Although life can be stressful, putting off your taxes will only make it worse. You will save more time and energy in the long run by filing before the deadline. Your accountant will thank you too! Not Filing an Extension If you know [...]

5 Ways to Maximize Your 2019 Tax Refund

Maybe your refund this year was less than expected, or maybe you want to lower your tax bill to $0. If so, here are 5 ways to maximize next year's refund. 5. Start a Savings Account If you don't already have an IRA, create one! You can deduct a certain amount that you contribute to the account each year and prepare for retirement at the same time. If you're wondering exactly how this will affect your return, contact us and we [...]

Health Savings Accounts-Are they really that beneficial?

What are Health Savings Accounts (HSA) and how can they benefit you and your tax situation in the future? You may have heard of a 401(k) plan and other individual savings and retirement accounts. HSAs are similar in tax benefits but not as well-known. An HSA is a tax-advantaged medical savings account. You Qualify For An HAS If… You are enrolled in a high deductible health plan. You do not qualify for any health coverage exemptions. You are not enrolled in Medicare. [...]

Top 7 Reasons Start-Ups Fail

We help lots of new companies get their start in the business world. However, start-ups tend to struggle greatly in the first five years. In fact, 51% of businesses fail in the first 5 years. We've compiled a list of the top 7 reasons that we believe cause start-up companies to fail. 7. Failure to Pivot Often entrepreneurs get caught up in their ideas and they refuse to change or pivot when things go awry. Being able to change and adapt [...]

The Lifetime Learning Credit

What is the Lifetime Learning Credit? The Lifetime Learning Credit (not to be confused with the American Opportunity Tax Credit) is a credit that qualified students (or parents of students if they claim the student as a dependent) can take while the student is enrolled in classes for an undergraduate, graduate, professional degree courses, and courses taken to gain or improve job skills. You can claim up to $2,000 in credits per student (20% of the first $10,000 of education [...]

The American Opportunity Tax Credit

What is the AOTC? The American Opportunity Tax Credit is a tax credit that can be taken by college students or parents of college students if they claim the student as a dependent. You can claim up to $2500 in credits per student (100% of the first $2,000 of education expenses, 25% of the second $2,000). Some of the expenses that qualify include tuition, fees, and course materials.  The credit is first applied to any taxes owed and may reduce [...]

Vacations-Can You Write Them Off?

Here's a little snippet of what you can and can't do. As a small business owner, you may find it hard to break away. There always seems to be so much to do! However, small business owners have an advantage when it comes to deducting business trip expenses. It Has to be About Business While you may get some much needed rest when you're on your trip, the primary purpose needs to be about business. Set up your appointments in advance and [...]