Coral Springs, Florida bookkeeping firm for small businesses: The team also works to reduce your overall expenses. Not only do they ensure that books are maintained properly to avoid costly mistakes, fees, and penalties, but they can also help alert you to waste and mismanagement of supplies and inventory. All while saving you time since you will no longer need to try and perform these tasks yourself.
Whether you file your own taxes or use a professional preparer, the key to a satisfactory, tension-free result is organization. Trying to make sense of a rat’s nest of paper receipts, canceled checks, brokerage statements, and other miscellaneous bits of information is frustrating and time-consuming. The confusion adds time for you and unnecessary expense if you’re using a professional tax preparer. It also increases the probability of incorrectly calculating your tax liability. If you pay too little, you may be subject to a tax audit and additional penalties. If you pay too much, you’re effectively giving the government a donation. Avoid such troubles by following these tips.
Hold Off on Mutual Fund Purchases: People should be wary of buying mutual funds at this time of year if they will be held in a taxable account. You could get hit with a tax bill for year-end dividends even if you just purchased shares. “That’s how mutual funds work, but people don’t realize it,” says Joanna Powell, managing director in the Boston office of accounting firm CBIZ MHM. To avoid paying additional taxes, consult with a broker before making a purchase to find out when distributions are made.
Decide how much tax you want withheld: If you received a big refund on your tax return last year, it may mean your employer is withholding too much tax from your paychecks. Decreasing those withholdings might “[give] you access to more of your money throughout the year to invest or pay down debt,” says Fraim, “assuming you have the discipline to actually save the funds.” If you’d rather have a bigger paycheck to work toward your financial goals, instead of that potentially big refund next year, meet with your payroll manager to review your withholding allowances on your W-4 form. Just be careful not to reduce your withholding by too much. Overly reducing your withholding may result in having too little tax withheld throughout the year, and could mean a big tax bill in April and potentially a penalty for failing to properly estimate your taxes as well. Discover more information at Fort Lauderdale Bookkeepers.
A wage garnishment is any legal or equitable procedure where some portion of a person’s earnings is withheld by an employer for the payment of a debt. This is typically initiated through a court order or government agency action (such as an IRS levy) that requires an employer to withhold a percentage of an employee’s compensation. When notified of an order to garnish wages, an employer is legally obligated to make the appropriate deductions from an employee’s salary and direct payments to a designated agency or creditor.
Student loan interest paid by you or someone else: In the past, if parents or someone else paid back a student loan incurred by a student, no one got a tax break. To get a deduction, the law said that you had to be both liable for the debt and actually pay it yourself. But now there’s an exception. You may know that you might be eligible to take a deduction but even if someone else pays back the loan, the IRS treats it as though they gave you the money, and you then paid the debt. So, a student who’s not claimed as a dependent can qualify to deduct up to $2,500 of student loan interest paid by you or by someone else.
Super accountant and tax expert. Kenneth can find all the legal tax deductions and save you thousands of dollars! Call Him NOW if you want the best accountant and/or tax preparation services. Although we are located in Florida, a bunch of our client base is located outside the state. Thru efficient work, excellent communication, and clear expectations, we are more reliable and easier to get ahold of than even an accountant located down the street from you. Read even more details on Affordable Bookkeeping.