Some of our clients often ask us to provide resources and additional information to help them become more knowledgeable about financial planning and accounting strategies. Below are some links to helpful online calculators, financial planning websites and a few other recommended resources.
If you are looking for an easy way to save more money on your taxes this year, you should consider the income tax exemption. Want to know how much this can help you, then try using an online tax calculator. Not only are these free to use, but they are quick and easy!
Watch this video, income tax exemption calculator, for more information.
The online free tax exemption calculator will help you whether you are an employer or an employee. This will help you figure out what number of exemptions you should be reporting. Here’s what you need to know:
1. How many people should you claim? Count you, your spouse and your children. If you are married with three kids, your exemption should be 5.
2. Remember the support rule. This means if you are claiming to support a child in college, or counting them as one of your exemptions, you must be able to prove you provide more than 50% of their living expenses.
3. You are required to use the form W-4 if you are an employee to determine your exemption amount. If you have an event throughout the year that may change your exemptions, let your employer know you need to update your W-4. For example, you may have had a child or adopted a child.
4. The more exemptions you claim the less tax that will be withheld from your check.
For more help with taxes, check out our website or search through our archives. We highly recommend using an online tax calculator to help you determine the amount of exemptions that will work best for you!
So you think you need to use some Section 179 Depreciations to save money on your taxes… but, do you really understand how to use this to your advantage? Watch this video to review form 4562 and learn about Section 179 Depreciation.
The Section 179 Depreciation is reported on for 4562. This must be used the year you purchased the item. It can not be used in future years. For example, if you are using Section 179 Depreciation on a vehicle you purchased, then you must use the depreciation in the same year you purchased the vehicle. This is a good deduction for items that are high priced. The maximum deduction allowed is $128,000.
Part 1 of form 4562 is where you will report your Section 179 Depreciation. Line 12 is your total 179 expense deduction after you complete the calculations in the form.
In order to avoid Form 4562, as well as other complex tax forms, we suggest you file your taxes online. We always recommend using Turbo Tax. It is the most reliable service available and has been proven to increase the speed in which you receive your tax refund!
One of the best ways to save money on taxes is to create or run a small business. We suggest this over and over again to clients. There are endless possibilities when it comes to small business tax advice, but today we’ll go over some important key points.
Check out this video or read through our summary below.
1. Finding the right tax form for your small business is difficult. You need to know what type of taxes you are filing for: sales, employment, income, etc. To avoid this, consider preparing your taxes online.
2. Here are some of the common forms you might need to know: Corporations will file an 1120. Limited Liability Corporations will file a form 8832. Partnerships will file a form 1065. Sole Proprietors will file a 1040 and attach a Schedule C. For help with each of these types of tax forms, search our site for posts covering these topics.
3. Most common deductions will be vehicle use and home office deductions. Both of these deductions can also be found on our site by completing a search.
For more help with small business taxes, please visit our website.
Are you looking for a deduction to help you save money on your taxes this year? Do you know about the Section 179 Deduction?
Watch this video or read our summary below for more information.
The Section 179 Deduction is used to deduct items that do not always qualify as regular business expenses. It allows you to fully depreciate items in that tax year. The property must be actively used in your business. You can not deduct the cost of a building. If you use the Section 179 it must be used in a year you purchase the item. It can not be used in the future. Your Section 179 Deductions can not exceed your income for the year.
You must use form 4562 to in order to take this deduction. If you want to avoid complicated tax forms, use an online tax preparation software.
We suggest you use a free, online tax calculator to determine how the Section 179 Deduction will effect your tax refund.
Are you a confused about MACRS Depreciation? Check out this video, MACRS Depreciation Table, for information that may help you. If you are looking for something else tax related, please visit our website for tax information.
What is the MACRS Depreciation Table?
MACRS = Modified Accelerated Cost Recovery System
This is used to determine your accelerated asset depreciation. This replaces ACRS. It helps you figure out how much something is worth after owning it for a period of time. This means you will be able to write off the depreciation on your taxes.
Can everything be depreciated?
No. You can depreciate qualifying items in a span of 3 to 50 years. The use of the property you are depreciating must be something that ties into your business. In addition, the property must have been purchased between the years of 2008 to now. You will need a receipt with the date included.
Anything else I should know?
You can view the tables through our website, which includes many other informative tax articles.
We recommend you complete your taxes online using a tax preparation software, like Turbo Tax. This will help prevent errors and increase the speed in which you will receive your tax refund!
Are you a student? Are you looking for ways to save money on your tax bill this year or increase your tax refund? Check out today’s video review, Lifetime Learning Tax Credit.
The lifetime learning credit can be claimed by anyone who pays tuition and related expenses to a post-secondary educational institution. This credit does not require you to be a half time or full time student. In fact, you can take just one class and qualify for the credit.
The Lifetime learning credit is based on per family reporting, rather than a per student basis.
Here are some key facts about the Lifetime Learning Tax Credit:
If you need more information about tax credits or ways to increase your tax refund, we suggest checking out our website, which is full of great tax tips. If you are looking for a quick, easy and reliable way to file your taxes, we always recommend our clients use Turbo Tax online tax preparation software.
Today we’re discussing the Hope Tax Credit. Many people are confused about what this credit is, who qualifies for the hope tax credit and how it can help you with your tax refund! Check out the video below and read our brief summary for more information.
The Hope Tax Credit is also known as the American Opportunity Tax Credit.
Because errors are often made when filing tax returns, we recommend using an online software, like Turbo Tax, to file your taxes online. These programs help assure few to no errors on your return and usually increase the rate at which you will receive your refund!
We often get questions related to specific tax forms. Today, we’ll review the Gift Tax Return Form 709 Instructions. Before we begin, we’d like to preface this review by stating that this form is an example of the reason we recommend people file their taxes online using an online tax preparation software, like Turbo Tax. Not only are they reliable, but they prevent common errors from occurring. Often times these errors are a result of the seemingly endless amount of forms that must be attached when filing a paper return.
The annual gift tax exclusion allows you to give money to people without have to pay tax on that money. If you qualify for the exclusion, you can give up to $13,000 and not pay taxes on the money. Anything over $13,000 will be taxed.
You must file Form 709 if you gave a gift of more than $13,000 to someone.
A husband and wife can not legally file a joint gift tax return. Each individual is responsible for their own form 709. You must file a gift tax return to split gifts with your spouse.
When a gift is over the limit of $13,000, the donor, or gift giver, is responsible for paying the taxes. If the donor doesn’t pay the taxes, the person receiving the gift is required to pay.
In the unusual circumstance of a donor passing away before filing a return, the donor’s executor must file the return.
Remember, you do not have to file a gift tax return if you gave less than $13,000 to any one donee. Furthermore, if all the gifts you made during the year were to qualified charities, such as churches or other non-profits, you also do not have to file a gift tax return.
If you need more tax help, please check out this great website.
Are you confused about how you should file your taxes? Do you know what your status should be? If not, then we suggest watching the video below, Filing Status for Taxes. Plus, you can read our summary below for additional help with tax filing status.
Why is this so important? Because before you can file your tax return you have to determine your filing status.
We recommend that everyone file their taxes online using an online tax preparation software, such as Turbo Tax. This assures that you will not make common errors when filing your taxes.
