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Affordable Tax Prep & Bookkeeping Services LLC
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Don’t Be a Vampire of Your Own Business: When you are trying to keep up with your business, you want to make sure that you have all of your business expenses in order as well as income. http://ow.ly/yabo30fR8Qe
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Separating your Personal and Business Bank Accounts
When you are running your own business, you may be looking at a lot of different things that come into play with the money side of things. How much comes in and out of the business? Are there costs that you can decrease in order to make your business more profitable? http://ow.ly/mHR930fiQFF
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Don’t Wait ‘til it’s Too Late! Who must renew ITINs and how.
A Tax Identification Number, or TIN, is identified by the IRS as a number that is used for the administration of tax laws. A TIN is typically issued by the IRS or the SSA. Read More: http://ow.ly/ZwkM30e4Pxf
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During this time of the year there is a dramatic increase in the number of people who are scammed by individuals impersonating the IRS. In order to protect yourself from these criminals you will need to learn how to spot and report an IRS scam. http://ow.ly/7cdz30cAVtV
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Some people might think that avoiding the IRS is good advice when it comes time to file your taxes, which of course would be a most inaccurate assumption. Rather than risk a potential legal issue with the IRS you should send in your tax forms on time, even if you don’t have the funds to pay the amount due.

The most important thing you can do to avoid serious legal repercussions is file your tax forms regardless of whether you can pay. The penalty for not paying your tax bill is far less severe than the consequences of failing to file. It is going to make your life a lot easier if you file straight away even if you don’t have the funds available to immediately pay off what you owe.

If you are above a certain income level, hiring Affordable Tax Prep and Bookkeeping Service could pay off. A tax professional will comb through your finances and find every possible deductible item. You might find that with their help, you owe a lot less than what you had calculated.
Borrowing money from a trusted individual or taking out a bank loan are choices to consider, but the IRS also has payment options that you may not be aware of.

The good news is that if you can’t afford the full amount that is due there are alternatives to paying everything all at once. The IRS offers you 120 days to pay off what you owe, but keep in mind this will add interest charges to your bill.
You can also make monthly payments by asking for an installment agreement. This requires some extra paper work and a small fee, but may be the best option for many who simply don’t have the money. The IRS has made great strides in the affordability and ease of the process, and anyone making less than $50k a year can apply. An “offer in compromise” may also be possible if you meet the right criterion.
Find an Affordable Tax Prep and Bookkeeping office in your area and ensure your tax bill is as low as possible. Work out a payment plan with the IRS. But, whatever you choose to do, file your tax forms on time. http://ow.ly/G3Dm30ayOqz
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My Taxes - Can I claim my child as a dependent this year, if they had a job?

This can be a sticky question when you file your taxes, and it is often overlooked. If your child was mowing lawns or working at a drive-in this summer, can you still claim them as a dependent on your taxes?

When you are dealing with a dependent child, the tax rules are not the same as dealing with any other type of dependent. The first question you need to answer is if they provided more than half of their own support in items such as gifts, fun activities and entertainment, food, housing, their clothes and buying along with maintaining their own car. This can also include other forms of transportation and school expenses. Keep in mind, that if you claim your child as a dependent on your tax return, then they should not claim their own exemption, even if you chose not to claim them for other reasons.

It is important your child gets started off on the right foot with the IRS. To help them, you may want to include them in your meeting with your tax professional, when you go over your return filing. They will not only see the correct way to handle this question, but how they will probably be handing taxes in the future. It is also an important lesson in understanding the taxes being withheld from their paycheck; where that money is going, and the ramification of not checking the right box for dependent or tax exemption, when they do the paper work for their first employment experiences.

A lot of things change when your child starts working that first after school job. Another question to answer is, if you have to put their income on your statement, or if it might create an issue when applying for collegiate grants and loans. Laws are changing yearly on these questions, so they should be on your list for your tax professional. In the past, if a dependent earned income of more than $6,200, they had to file, and that could include dividends and interest from items such as grandparents purchasing whole life policies for your child.

Normally, it is best for your child to file a tax return if there is profit involved from an item such as dividends. They will have their own tax rate that will not be connected to your incomes rate. There is not a minimum age requirement for filing, so this is another good question to have ready for your tax professional.

A child dependent, under the age of 17, usually will still qualify for a child tax credit; but keep in mind the best option to help your child get started with their own tax situations, and keep your tax professional informed of any and all changes in employment and earned income. If you are looking for answers, we are always available at Affordable Tax Prep & Bookkeeping Services. #taxexemptions http://ow.ly/heg6309tKuH
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Divorce, who gets to claim tax credits
One of the common questions often asked by recently separated parents is, who can claim the child on their tax return and what credits they may claim. The other question is, if these tax credits can be shared. Several questions need to be answered by the parents.
The first question that must be answered is, which parent the child is spending the most number of nights with. Commonly, for tax purposes, the child is the qualifying child, of the custodial parent. The custodial parent is the one whom the child has lived the longest period-of-time with, during the calendar year. If you are not sure if you qualify as the custodial parent, the rules and definition are laid out clearly by the IRS on their web site, consult IRS publication 501.
Only one parent can claim the child as a deduction. However, there are exceptions, and a custodial parent can sign a release transferring the tax deduction to the other parent. These qualifications and exceptions are lined out in the IRS web site link https://www.eitc.irs.gov/Tax-Preparer-Toolkit/faqs/divorced. It is important to keep record of the time spent at each residence.
The divorce paper work should be very clear as to which party is going to claim the dependent, and that it is done under the IRS guidelines in the link above. A release will still be advisable because the divorce decree is not always accepted as proof for ability to claim the dependent.
There are also tax credits that must be considered: the custodial parent is always entitled to the EITC and dependent care credit, regardless of who claims the dependent. The child tax credit can only be claimed by whomever claims the dependent.
It is wise to consult your tax preparer to be sure the qualifications are met before claiming a dependent. And to consult your tax preparer early, so you have enough time to adjust or to get the proper forms completed.

http://ow.ly/7gU9308v03L #taxprep
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Will your tax refund be delayed this year?

The probable answer is yes, on certain refunds, and be careful not to fall for statements of early refund promises. The IRS is making a point of reminding taxpayers to note the new law now in place that requires the IRS to hold refunds until mid-February in 2017 for taxpayers claiming earned tax credit or additional child tax credit. The entire refund, including the portion not associated with the above claims will be held until mid-February. Part of this has come about due to new identity theft and refund fraud protection that has been put in place by the IRS.

The need to protect taxpayers from the tax fraud and identity issues has created the need for the better security. The IRS will also be implementing processing filters which may delay legitimate returns. This has been helping in that reported cases have dropped by more than fifty percent but we still are seeing as many as 275,000 victims, a couple weeks delay to help protect us all from this kind of theft is going to be necessary.

Promises of early refunds can-not circumvent these laws, so don’t be fooled by promotions or gimmicks. Affordable Tax can help by making sure your return is clear and concise which does help. However, an expectation of two-weeks on your normal refund time should be expected.

If you have questions or concerns, don’t hesitate to contact us, we’re always here to help. http://ow.ly/iUnq307jbLR #2016taxprep
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Get that Tax Deadline Calendar on the wall
A common issue in small business is missing important tax related deadlines. This creates fines and stress that are easily avoided with simple preparation, now, at the end of the year. Every business should have a “Dead Line Calendar”. A simple wall calendar dedicated to business related deadlines for government issues. Federal and State taxes often change, and as your business grows, new laws may apply to you.

We all know that the government does not give any credit if you miss a filing date that has been changed. It is your responsibility to check the new filing laws for 2017. Here are some of the important changes regarding tax deadlines:
• Partnership Returns (1045 returns) are due March 15th instead of April 15th, and the extension period is still September 15th.
• C-Corp Returns (1120 returns) with year end of June 30th or December 31st, are due April 15th instead of March 15th, and the extension period is still September 15th.
• C-Corp Returns (1120 returns) with any other end of year dates, are due the 15th day of the 4th month after year end with an extension date of the 15th of the 10th month after year end.
• Exempt Organizations (990 returns) no longer have to file a 90-day extension, it is only a 6-month extension due November 15th.
• Information returns, such as W2s and 1099-miscs are now due to the government the same day as they are due to employees. That means they must be sent out by January 31st, even if you file them electronically. That means they are due one to two months sooner than they were before.

If you found your business type or situation has been affected, contact your tax professional to make sure there are no other items you need to address before those deadlines.

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