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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.

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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.

We Can Assist with Audits

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Tax season is over for the year for most individuals, unless you get the dreaded news that you are the target of an IRS audit. The risk of an audit is one of the main reasons why it is very important for you to have an accountant do your taxes before you submit them. Your accountant can help to ensure you follow the rules and have your paperwork together so if the IRS comes to question you, you will be ready and prepared to answer. If the IRS does decide that it is going to audit you, the accountant who prepared your income tax return can also assist you in preparing for the audit and in answering the IRS questions.

Irs audit assistance and preparation Brennan and Company

If you didn’t have your taxes done by a professional accountant, it may be time to call one once you find out you are being audited so you can get the help you need to be ready to answer any queries from the Internal Revenue Service about the taxes that you paid and the return you submitted. Call Brennan Tax for information on how an accountant may be able to assist you.

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Don’t Let Your Guard Down Now That Tax Season is Over

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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. This means that those groups should always consider their finances, even outside of tax season.

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. Or view our page and history on Facebook.

Tax season is not over yet Brennan and Company

Itemized Deductions vs. Standard Deduction

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When you file your taxes, you are going to have to decide if you want to itemize your deductions or not. So you are probably wondering why Itemized deductions vs. standard deductions. Every person gets a standard deduction, and itemizing is an alternative to taking the standard deduction. If you itemize, then you can take advantage of tax benefits like mortgage interest deductions and student loan deductions. However, your taxes become more complicated. Not only that, but it may not be worth it for you to itemize your deductions if the amount of money you would get back on your taxes is less than you would get back if you simply took the standard deduction.

itemized deductions vs. standard deductions BrennanDeciding whether to itemize your income tax deductions or not is just one of many complicated issues that you face when it comes to completing your tax return.  An experienced tax professional at Brennan Tax can help you to make this choice. We will review all of your financial information and potential deductions and help you to take the most strategic approach so you get the maximum back and reduce your taxes as much as possible.

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Avoid Penalties and Interest with Professional Tax Prep

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There are many different things that you need to do in the United States in order to comply with the tax laws and avoid tax penalties imposed by the Internal Revenue Service (IRS).  Failure to fulfill any of your obligations could end up costing you a lot of money as you end up paying back taxes with interest and, in some cases, you also end up paying penalties and fees.

Avoid Tax Penalties and Interest Payments BrennanA professional tax preparation service can help you to understand the things that will trigger a penalty and can help you to ensure that you don’t get hit with unexpected expenses. For example, some of the different things that could end up resulting in you getting hit with a penalty include:

  • Not purchasing insurance as required by the Patient Protection and Affordable Care Act (PPACA)
  • Underestimating your income and qualifying for subsidies under the PPACA that are too large
  • Failing to file and pay your taxes by the deadline
  • Failing to submit quarterly estimated taxes for self-employment income

These are just a few of many examples where you can learn of your obligations from a professional tax preparer so you don’t end up with surprise fees and costs.

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Newsletter

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On our newsletter page, find interesting articles on personal finance, taxation and businesses.