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Looking Forward to Your Next Tax Refund? Tips for an Easy Tax Return

Tax Return Refund

Photo courtesy of 401(K) 2013(CC ShareALike)
Most Americans can expect a tax refund this year. By-and-large, most working people will fill out form 1040 and wait patiently for a reply from the IRS. But if you’d like a little extra incentive to get your taxes done this year, and perhaps add a few deductions along the way, then we can help. In this post, we’ll give you some often overlooked tax tips and provide you with some direction for an easy and lucrative year.
  • Consider an increased or decreased withholding on your W4. Whether you selected 0, 1, or more on your W4, changes how taxes are removed from your paychecks. Reducing the number of exemptions will increase your refund.
  • Make sure that your filing status is accurate. If you are unsure, talk to a tax specialist about what the correct status is for you. Single, head of household, married filing separately or jointly, for example, changes how your taxes and deductions are figured.
  • Deduct familial obligations, like dependent care or associated costs. Also, consider talking to a tax preparer about how to deduct particular family and personal healthcare costs. Even the smallest change can dramatically increase your refund.
  • If you are unsure where to start, speak to a tax professional about using current tax law as a means to increase your refund. By talking to a tax accountant now, instead of waiting until next year, you can set up a system to monitor current tax laws and keep a close eye on how they affect you.
  • If you missed the boat this year, set up some tax planning measures next year by talking to a tax professional or by using an applicable tax software program. Every little bit helps when it comes time to file your taxes.
For more information on how we can help you with all of your tax related needs, contact us today. A&B Accounting and Business Solutions, LLC offers a full accounting service that meets all your needs. We offer small business accounting services nationwide as well as medium business accounting services.  Outsourced accounting services is becoming very popular nationwide since many business owners do not have the time and patience to keep up with the daily transactions their businesses generate.  We have over 15 years experience doing accounting and can help you focus on your business while we take care of your books and financials.
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Tax Preparation Service in Palm Beach County Outlines Two Important Small Business Changes

Tax preparation service
  • By now, you have all of the information you need to file your Palm Beach County small business taxes. Tax preparation this year shouldn’t be too much different from previous years. In fact, if you are pro are doing your small business taxes, this tax year doesn’t bring with it much difference overall. For many people in Palm Beach County though, confusion and consternation pervades into their psyche when they think of tax time. Sometimes the complexity is too much. We get that.  You need to work with professionals that are experienced in tax preparation for small businesses. So to help you out, here is some information on two important changes to help you get those taxes ready, and to keep Uncle Sam happy. Tax Extenders Small businesses rejoice! Two separate tax breaks have been extended for small businesses: Section 179 and bonus depreciation, which can be used together. Here’s the information from an associated website that outlines all of the details: Jan 1, 2015 – As of midnight, the Section 179 limit has been reduced to $25,000 and no bonus depreciation is available for the 2015 tax year. Stay tuned, if prior years are any indication, the expanded Section 179 limits could be restored by Congress during 2015. For additional information on Section 179, visit the aforementioned website to find your specific situation and see what tax situation applies to you. The Affordable Care Act The ACA brought with it a hardy 2,400 pages of light reading in terms of updated tax code. It also brought potential tax penalties for those who don’t provide benefits to employees. As SBA.gov reports: Employers with 100 or more full-time (or full-time equivalent) employees that do not offer health insurance to their full-time employees (and dependents)… may be required to pay an assessment if at least one of their full-time employees receives a premium tax credit to purchase coverage in the new individual Marketplace. That is, businesses with 100 or more employees are required to offer health insurance to 70-percent or more of them, or face a tax penalty of $2000 per each employee not covered. For some additional reading on the Affordable Care Act, check out the website we mentioned earlier to find out where you fit in and what you’ll need to do as a small business owner. For additional information on how we can help you complete your small business taxes, please don’t hesitate to contact us any time.  We have many years experience in tax preparation
 
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Small Business Tax Preparation Tips that Help Take the Stress Out of the Season

Tax Preparation

During the first quarter of the year, small business owners have much to contend with. As the stress level increases, many Florida small business owners are looking high and low for receipts they have accumulated throughout the year, while hoping all the while to not get audited.

So with March 15 and April 15 on the horizon, here are some tax preparation tips to help make tax season easier.

– IRS Forms make the tax world go ’round. Each type of deduction, income, loss, expense, etc., needs a different form. The same goes for employees. Each classification requires a different form. Knowing what form you need will greatly improve your tax experience.

– Got a home office? Deduct the associated expenses. Home office deductions yield small business owner’s tons of savings each year. Anyone who forgets, or simply neglects this deduction, are missing out.

– Properly classified office equipment expenditures means business savings you can use. The biggest aspect in regards to capital expenditures is to not deduct them as supplies. Supplies, which are pens, paper, and printer ink, are in a different category. 

– Insurance premiums that are directly connected to liability, malpractice, and worker’s compensation can usually be deducted as business expenses. The same is true for commercial vehicle insurance and life insurance premiums.

– Time is of the essence, but if crunch time came up too fast, you can file for an extension. However, simply filing for an extension won’t save you the cost of interest and penalties if you owe money. To curb this, calculate what you owe, and include that payment with your extension. 

Overwhelmed by tax season? Don’t hesitate to contact us for more information on how we can take the stress out of your taxes.

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Payroll Tax Service Discusses What Constitutes Taxable Compensation

Payroll Tax Service

All employers, large and small, are required to pay federal payroll tax. Similarly, any time an employer withholds compensation benefits or pays Social Security and Medicare, there are taxes involved. 

It may seem like an easy task to determine what is taxable, but there is often much more than meets the eye with the IRS and the determination they use. What is taxable, is often based on contingencies that are hidden in the small print.

The definition of what is taxable, in accordance with how payroll tax is calculated, is typically defined as payment made in the form of wages compensating an employee for work. But how wage is defined is not incredibly narrow. Thus making if difficult to characterize definitively what is taxable compensation.

Further, what constitutes a wage doesn’t hinge on labels. So no matter what moniker you give it (wage, fee, etc.), what makes it a taxable depends on several factors (just have a look at the terms and definitions the IRS has on just Medicare).

However, a good rule of thumb in deciding whether a payment made to an employee is taxable or not is simple, and can be applied in most situations: whenever something of value is given, transferred, whatever to an employee as “compensation” for a service provided, you have most likely made a taxable wage payment, and need to log it as such. Once logged, it is then much easier for payroll tax services to quantify and qualify.

Here are some common types of compensation that may fall under the exception to the rule:

– Loans

– Gifts

– Fringe benefits

– Business expenses

– Vacation and time-off pay

– Tips

In most, if not all of these cases, there is no concrete definition of whether these types of payment are taxable forms of payment — as we defined above. And again, it’s important to note that dollar amount doesn’t mean it can be called a taxable wage. It will instead fall under a different tax law (meaning it will still be taxable, just not as a payroll tax).

We offer payroll services for small business. For more information on how we can help you, contact us 954-596-9966 any time.

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Tax Services explain What to Do When You Disagree with the IRS









Tax Services 

If the Internal Revenue Service finds something wrong with your taxes, it’ll send you a notice. You can either comply with the instructions in the notice, which can range from a simple submission of documents to paying extra taxes. If you disagree, you can check a box indicating your position and send a note explaining why you disagree.


The IRS may subsequently reject your challenge with another notice. You have the right to discuss your position in person with the employee mentioned in the letter your received. If you disagree with the employee, you can discuss the situation further with his or her supervisor. It’s important to remain calm and professional. Think of it as a disagreement rather than an “us vs. them” situation.

If the personal interaction gets you nowhere, you still have two more options:

  • Try the Office of Appeals, which is an independent office for judging your case with a fresh perspective. Your notices contain explicit instructions on how to contact this office.

  • Approach the US Tax Court. You do not need a lawyer if you’re challenging an amount under $50,000 in a “small tax case” procedure. This is similar to small-claims court and all you have to do is file a small fee. You’re then given ample opportunity to explain your case, present your evidence, and answer the judge’s questions. Rulings from the Court are final and cannot be appealed.

If all this seems a little intimidating, contact us at any stage of this process. Our expertise in both accounting and tax services can help you navigate the often tricky and complex shoals of IRS waters.

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