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3 Ways You Can Reduce Your Taxes This New Year

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While you need to start thinking about preparing your 2014 taxes, you also need to shift your thinking to the next year. Since you have a fresh start, you want to try and implement some of the following tips to try and reduce your taxes.

  1. Buy things you need last minute. Buying at the very end of the year is a good way to take advantage of deductions. However, don’t buy unless you really need it. Spending money is still spending money!
  2. 3 ways to reduce your taxes Brennan and CompanyGive, give, give. Not only do charitable donations represent one of the best ways to cut down your tax bill, but they also help other people and make you feel better about yourself. Just remember that your volunteering time doesn’t count.
  3. Maximize home office deductions. You can take a deduction of $5 per square foot on your home office. You are able to do this up to 300 square feet. Make sure though that your home office really is exactly that. You have to be able to prove it if you should ever be audited!

For more tips and tax help, Contact us today! Like us on FaceBook.

How to Make Sure You’re Paying Enough for Your Quarterlies

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Although taxes are no fun to begin with, they can become even worse if you are not handling them correctly. Not paying enough for your quarterlies, not keeping record of what you are paying, and even not paying enough taxes can all get you into trouble with the IRS. This can lead to a potential halt to your business and a shutdown of your company. Because of this, you’ll want to be sure that you are dealing with every aspect of your company’s taxes properly.

paying enough for your quarterlies taxWhile getting into trouble with the IRS is a more extreme consequence to improper tax handling, there are also many less extreme, but definitely still detrimental, consequences.
If you fail to deduct enough money out of your company’s quarterly revenue, you may be responsible for paying a large sum of money at the end of the taxable year. Rather than receiving money back on your tax return, you will be liable to pay however much you failed to tax yourself quarterly. This can definitely catch you off guard and get you into financial trouble, so don’t run into this problem.

As the year approaches its end, it’s crucial that you are paying enough for your quarterlies this year.

Brennan & Company CPA can help your business with all of its accounting needs and taxing qualms. Contact us today! Like us on FaceBook.

End of Year Tax Preparation

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With the year quickly coming to an end, you’ll definitely want to make sure that you have all of your tax information sorted, organized, and ready to be archived or handled appropriately. The transmission into a new year can sometimes be hectic, especially for businesses, and when you have the chance at being audited, you’ll definitely want to have confidence that you’re handling all of your tax prep and documentation correctly.

Not only that, but you’ll want to be sure that you’re dealing with your company’s tax and accounting data in a timely manner. If you don’t, paperwork can add up quickly and you can get behind before you even realize what is happening. Dealing with any company’s taxes and all of the consequent documents, information, and numerical data can be an extremely huge task. That’s why when it comes to your business’s tax dealings, you should employ the help of an experienced accounting firm, like Brennan & Company, CPA.end of year tax prep

Just a few of the services that Brennan Tax has to offer include:

  • Preparing financial statements for auditing
  • Taking over all of your company’s accounting needs
  • Providing tax representation services
  • Offering payroll services
  • A variety of consultation services

Get help preparing for the end of your year now!

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The Affordable Care Act and Tax Subsidies

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The Affordable Care Act, or Obamacare as it is sometimes called, aims to make it easier for people to buy health insurance by offering tax subsidies to bring down the cost of insurance. Under the ACA, people who do not purchase a qualifying health plan will be fined. The fines can vary each year and in 2014, you will pay a percentage of income or $95 if you did not purchase an insurance plan.

the affordable care act and tax subsidies
Because of the changes to the tax laws that occurred under the ACA, it is important to understand exactly what your tax obligations will be when you pay your taxes this year. You may wish to find out now what you can expect regarding your obligations under Obamacare, as you may need to adjust your withholding or adjust the amount you pay in quarterly estimated taxes.  An experienced tax professional can provide you with more information on the income that the Affordable Care Act is going to have on your tax filing this year. Get the information you need from the tax professionals at Brennan & Co CPA,

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Should You Have A Tax Professional Help Calculate Your Quarterly Taxes?

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If you are self-employed or you earn other income that does not come from wages at a job, you likely know that you are required to file estimated quarterly taxes four times per year. If you do not file the estimated taxes by the deadlines, then you could be assessed additional fines and fees for not paying as required.

quarterly taxes brennan and company cpaThe next estimated tax payment is coming up in September and if you have not yet sent in your payment, it is time to get started. You should consider contacting an experienced tax professional in order to calculate the amount that you will owe and to get help sending in the payment.

Hiring a tax professional to help you determine how much to send in is important because the amount you must pay can vary depending upon what your earnings are over the course of the year. For most people who earn income that necessitates filing quarterly taxes, their incomes are irregular. Even if yours is not irregular, tax rates and other tax situations can change. You don’t want to take a chance on paying an incorrect amount- act now to talk to a tax professional. Call the tax professionals at brennantax.com.

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Taxes and Summer Employment for Kids

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If you own a business and your children are off from school this summer, it may make sense to employ your kids at your business. Take advantage of summer employment tax benefits! Doing this can allow you to benefit from a tax deduction for paying your kids wages. This can be a far better way to give your kids money for their summer activities than simply giving them an allowance, since you can reduce your taxable income.

summer employment tax benefits brennan and companyWhen you are thinking about hiring your kids this summer at your business, you should talk to a tax professional at Brennan & Company CPA, PC.  The implications of this choice and questions about your obligations as an employer are both issues we can address.

Brennan & Company CPA, PC.can help you to make sure that hiring your kids over the summer is a smart choice based on your tax situation. and can help you to take care of everything you need so you act in accordance with the IRS rules.   Call us at 215.951.5585 or “like” us on FaceBook.

Summer Tax Tips

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Tax season may seem like a long ways away, but you need to be thinking about your tax obligations over the summer. Some of the things that you do over the course of the summer months can impact your taxes, and you should consider talking to a tax professional at Brennan & Company CPA, PC.about what you should be doing now so you are ready when April comes. We can offer summer tax tips so you are not caught off guard in tax season.summer tax tips brennan and company cpa pc

One thing to be aware of is that summer camp expenses may be deductible expenses.  It is possible to claim expenses for summer camp if you are working.   This is because the summer camp can be considered child care, and child care expenses may entitle you to a tax credit.

You should also be aware that if you have a garage sale or a yard sale, you may need to declare income that you make.  This depends upon what the cost of goods sold was and whether or not you make a profit.   If you are one of those lucky “trash pickers” and find a valuable or rare object among the junk at a garage sale, such rare finds are referred to as a “treasure trove” and are immediately taxable to the recipient.

Brennan & Company CPA, PC summer tax tips can help you to be prepared for tax season or any season.   Call us at 215.951.5585 or “like” us on FaceBook . 

Estimated Taxes Due September 15

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Individuals receiving 1099’s and businesses operating as independent contractors must pay in estimated taxes four times per year.  The next upcoming payment of estimated taxes must be made by September 15, 2014.  The estimated taxes must be paid at this time for anyone who has earned income that is not paying taxes on this income through payroll withholding.

September 15th is the third of four 2014 estimated tax installment dates.estimated taxes corporations partnerships due date Brennan

Individuals can use Form 1040-ES when paying their September estimated quarterly tax payment.

If you are a corporation or a partnership and you filed an extension in March or April for 2013, you will need to submit your 2013 tax returns and payments by September 15 (the last day to file with extension). Corporations will need to complete Form 1120 or Form 1120S, depending upon whether they are an S-corporation or a C-corporation. Partnerships must file Form 1065.

If you need assistance determining whether you must pay estimated taxes or if you need help calculating the amount due, contact Brennan & Company CPA, PC. 

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Tax Tips for This Summer

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Summer is not prime tax season and April 15 may seem a long ways away. The reality is that you have ongoing obligations to the Internal Revenue Service (IRS) throughout the year in our pay-as-you-go system. Brennan and Co is here to offer tax tips.

If you are a W2 employee and your employer withholds your taxes, you may not think about the fact that you are paying money into the system throughout the year. While business owners have more direct ongoing interactions with the IRS as they send in quarterly payments, everyone who earns income has a responsibility to get their tax money “in” over the course of the year.

This means that there are some things you may want to consider during the summer season to ensure you are complying with IRS regulations.  These summer tax tips can help you to follow the tax laws and can help  ensure that you are ready when tax season comes.

Tax Tips for Summer 

Some of the different things that you can do this summer to be ready for tax season include the following:

  • Check how much is being withheld from your paycheck by verifying your W4 information.  Many people have more money withheld from their paychecks than they actually need.  When taxpayers finally do their taxes, they end up getting a refund.  This may not be the best idea for you, especially if you are financially strapped and could use the extra cash now rather than in a lump sum refund during tax season.  Consider your tax refund the same as giving the IRS an interest-free loan.  The IRS does not lend you money interest free.
  • You can adjust your withholdings so you end up with less taken out of each paycheck.   Your employer can give you a new W-4 form to make this adjustment at any time, and now is a good a time as any to ask for it.
  • Increase contributions to your 401(K) or other retirement accounts. If your employer offers a 401(K), you can contribute to this important retirement account with pre-tax money.   Employers often match contributions so you should at least contribute up to the “match” amount to maximize the “free” money you receive.  If your employer does not offer a 401(K), you can still make contributions to an IRA that you start yourself with a bank or brokerage firm.  You don’t want to wait until the last minute to have your contribution made.  There is a maximum you are allowed to contribute each year, so if you don’t put money in, you will lose the opportunity to make this tax free investment.
  • Keep track of your charitable donations. If you give money to any charitable organizations, you are going to need to keep track of this giving so you can take a full tax deduction for it. Keep your receipts and track the cash so you will have the data on your donations available during tax season.
  • Additional disclosures are coming to your W2 regarding the “ACA” the Affordable Care Act.   Pay attention to the information you receive from your employer so you can better understand and verify, the components of your benefits.

By taking these steps, you can ensure that you are ready for April 15 and not scrambling to get your taxes together at the very last minute. Call Brennan and Company CPA, PC @ 215.951.5585 with questions.

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Get Help With Payroll

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If you have employees in your company or if you are an s-corp or c-corp owner who pays yourself a salary, you know that you have certain obligations when it comes to payroll. You need to ensure that employees are paid on time, that checks are written in a timely manner and that the appropriate amount of money is being withheld from each paycheck and paid out to the government in payroll taxes.

payroll services brennan and company help

Knowing exactly how to handle employee payment can be very confusing, especially when it comes to tax compliance. You don’t want to make mistakes and end up not paying the government enough money or not paying on time, as this could end up costing you a lot later on.

An experienced accountant can answer your questions and help with all of your payroll needs. Call Brennan Tax today to learn more about how we can assist with payroll matters.