As the year comes to an end, it’s easy to find yourself overwhelmed as you try and wrap things up and close out the books for the year. Depending on your business, you could be frantically trying to send out 1099s, receiving final payments, etc. And once all that is wrapped up, you likely are looking to get started on your tax return for the year. However, it’s important that you not jump the gun and overlook important details. One such detail is that last estimated tax payment for the year. When is it due? January 15. This is probably the most overlooked payment for the year, as some people get mixed up as to which year that goes toward. Yes, you pay it in 2017, but the payment will go towards the previous year. Failing to make the payment can leave you short for the year, which could cause penalties—not to mention you could end up owing rather than getting a refund. So whatever you do, make sure you make that final payment on January 15. For more info on important tax dates, Contact us today! Like us on FaceBook.
Although taxes are no fun to begin with, they can become even worse if you are not handling them correctly. Not paying your taxes, 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. While 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 take a look at how much you have put in for 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.
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 information 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. 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
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. 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. can help you to be prepared for tax season or any season. Call us at 215.951.5585 or “like” us on FaceBook .
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. 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. Follow us on FaceBook.
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. 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 SummerSome 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.
Tax season is over for most tax-filers however, tax filing and paying obligations remain through-out the year. We cannot allow for tax-filing complacency. The self-employed, payroll tax filers and those earning non-wage or passive income need to prepare for quarterly tax and estimated tax payments. All tax-filers need to ensure they are keeping receipts and properly tracking spending. Those items purchased that are tax deductible require the most detail documentation. Did you know that if your expense documentation, of a legitimate business meal, is only the actual restaurant receipt then IRS can disallow the deduction? Many tax-filers are unaware of the documentation requirements of this common expense item. Brennan and Company CPA PC can help. The tax professionals at Brennan and Company CPA PC can provide you with assistance by creating a tax plan that fully encompasses your personal tax circumstance. This plan includes how to document and protect legitimate tax deductions you can follow throughout the year. Whether you want help maximizing deductions, or you want advice on reducing your tax burden next year or you want to ensure you comply with you IRS tax obligations; Brennan and Company CPA PC is here for you throughout the year. Protect your family’s finances, maximize your deductions and credits, and avoid costly fees and penalties due to misunderstanding tax filing requirements—Call Brennan and Company CPA PC today at 215.951.5585 and get started on a strategic approach to your income taxes.