Accounting, Tax Preparation Billings MT, Tax Tips Billings MT

Tax Strategies for College Students: Education Credits and Deducting Expenses

For many college students, navigating the complex world of higher education can be challenging, not only academically but also financially. Paying for tuition, fees, textbooks, housing, and other educational expenses can put a strain on students and their families. However, understanding the available tax credits, deductions, and tax-saving strategies specifically designed for college students can help ease the financial stress associated with pursuing a higher education.

In this article, we will discuss some of the key education-related tax credits and deductions available for college students, as well as strategies for maximizing tax savings to help alleviate the burden of educational expenses. By taking advantage of these tax benefits and working with a professional tax service such as Practical Taxes, college students can save money, remain compliant with tax laws, and make the most of the financial opportunities available to them.

Understanding Education-Related Tax Credits

There are two primary tax credits available to college students, which can directly decrease the amount of income tax you owe and, in some cases, result in a refund. It’s important to understand the eligibility requirements and benefits of these credits to maximize your tax savings:

1. American Opportunity Tax Credit (AOTC): The AOTC is geared toward undergraduate students enrolled in an eligible education institution at least half-time. This credit covers the first $2,000 in qualified education expenses, such as tuition, fees, and course materials, with an additional 25% credited for the next $2,000 in expenses, resulting in a maximum annual credit of $2,500 per eligible student. The AOTC can be claimed for up to four years per student and can even result in a refund of up to $1,000 if the credit exceeds your tax liability.

2. Lifetime Learning Credit (LLC): Unlike the AOTC, the LLC is not limited to undergraduate students or a specific number of years. The LLC covers 20% of the first $10,000 in qualified education expenses, resulting in a maximum annual credit of $2,000 per tax return. This credit can be particularly beneficial for graduate students, part-time students, or those taking courses to improve job skills.

To determine which credit is best suited for your situation, consult with a tax professional, as you cannot claim both credits within the same tax year.

Deducting Student Loan Interest

In addition to education tax credits, students who have taken out loans to help pay for their education expenses may be eligible to deduct the interest paid on those loans. The student loan interest deduction allows you to subtract up to $2,500 of the interest paid on qualifying student loans from your taxable income.

To be eligible for this deduction, you must be legally obligated to repay the loan, and your modified adjusted gross income (MAGI) must not exceed certain thresholds, which vary according to your filing status. Working with a tax professional can help ensure you’re taking full advantage of this deduction and reporting your MAGI accurately.

Optimizing College Savings with 529 Plans

A 529 plan is a tax-advantaged investment account designed to encourage saving for future educational expenses, such as college tuition, fees, and other qualified expenses. 529 plans are sponsored by states, state agencies, or educational institutions and offer several key tax advantages:

1. Tax-Free Growth: Earnings from investments in a 529 plan grow tax-free at both the federal and state level, provided the funds are used for qualified education expenses.

2. Tax-Free Withdrawals: Withdrawals from a 529 plan are not subject to federal income tax when used for qualified education expenses, and many states offer additional tax benefits for residents who contribute to their state’s plan.

3. Gift Tax Benefits: Contributions to a 529 plan are considered gifts for tax purposes, meaning that they can qualify for the annual federal gift tax exclusion, which is $15,000 per individual or $30,000 for a married couple filing jointly in 2021.

To maximize the tax-saving benefits of a 529 plan, it’s essential to start saving early, invest wisely, and be aware of the qualified education expenses that can be paid using the plan’s funds.

Seeking Professional Tax Guidance for College Students

The various tax credits, deductions, and savings strategies available to college students can significantly impact your overall tax liability and financial well-being. However, navigating the complexities of tax laws and regulations can be daunting, especially for students who are already juggling the demands of their education. Engaging a professional tax service such as Practical Taxes can provide valuable guidance and ensure that you’re maximizing your tax savings while staying compliant with tax laws.

Leveraging

By understanding and leveraging the education-related tax credits, deductions, and savings strategies available to them, college students can make the most of the financial opportunities that come with pursuing higher education. Utilizing professional tax services such as Practical Taxes ensures that you’re taking full advantage of these benefits while staying compliant with tax laws.

At Practical Taxes, our team of accountants in Billings, MT provides tax services and financial guidance to individuals, including college students, in Billings, MT. We stay up-to-date on the latest tax laws and regulations, ensuring that our clients can take full advantage of the tax benefits associated with pursuing higher education. Let us help college students maximize their tax savings and lessen the financial burden of higher education. Contact us today to learn how we can support you in maximizing your tax savings and making the most of your educational investments!

November 9, 2023/0 Comments/by Practical Taxes

Tax Preparation Billings MT

Key Aspects of Tax Planning Every Small Business Owner Should Know

Small businesses, with their limited resources and multifaceted challenges, are particularly vulnerable to the complexities of tax regulations. The importance of tax planning for these enterprises cannot be overstated. It’s not merely about compliance, it’s about survival, growth, and long-term success.

Strategic tax planning ensures that small businesses can maximize their profitability by minimizing their tax liabilities within the legal framework. It entails understanding the labyrinth of tax laws, leveraging tax credits, deductions, and allowances, and making informed decisions that align with the firm’s financial goals. But more than that, it involves a proactive approach, a forward-thinking mindset that continually anticipates and adapts to the ever-changing tax landscape.

Tax planning, however, is not a one-size-fits-all solution. Each business, depending on its nature, size, and operational scope, requires a customized tax plan that caters to its unique needs and circumstances. From selecting the appropriate business structure to deciding on the optimal accounting method, from managing payroll taxes to handling sales taxes, every decision plays a crucial role in shaping the business’s tax strategy.

Strategic Use of Tax Deductions and Credits

One of the most effective ways to reduce your tax liability and save money is by strategically leveraging available tax deductions and credits. Small business owners can benefit from a number of deductions, such as those for office supplies, travel expenses, advertising costs, and even employee salaries and benefits. There are also federal tax credits specific to small businesses, such as the Small Business Health Care Tax Credit, Work Opportunity Tax Credit, and the Research & Development Tax Credit.

To maximize your tax savings, it’s important to stay informed about tax deductions and credits available to your business and to keep detailed records of all qualifying expenses. Working with a tax professional can ensure that you’re taking advantage of all eligible deductions and credits and staying compliant with tax laws and regulations.

Improved Cash Flow Management through Tax Planning

A strong cash flow is crucial to the success and growth of any small business. By proactively planning for taxes, small business owners can effectively manage their cash flow by anticipating tax liabilities and setting aside funds accordingly. This can help to prevent cash flow problems caused by unexpected tax bills or penalties, and it allows business owners to make informed decisions about reinvesting profits or financing new opportunities.

Proper tax planning can also help you identify potential tax savings and make the necessary adjustments in your business operations to benefit from them. With more effective cash flow management, small businesses can face economic challenges with confidence and improve their odds of long-term success.

Reducing Tax Liabilities through Entity Selection and Restructuring

The type of business entity you choose can have a significant impact on your tax liabilities. For example, sole proprietorships and partnerships are subject to personal income taxes, while corporations are taxed at the corporate level and shareholders are taxed on their dividends. Each type of business entity has different tax rates, deductions, and credits available, so it’s important to choose the right entity based on your specific business circumstances.

In some cases, restructuring your business entity can lead to tax savings. For example, a potential strategy is for a sole proprietor to incorporate their business or form an LLC to benefit from pass-through taxation and protect their personal assets. Before making any changes to your business structure, it’s crucial to consult with a tax professional to ensure that the decision is tax-efficient and legally sound.

Managing your Payroll Taxes Effectively

As a small business owner, it’s your responsibility to manage payroll taxes and submit them to the appropriate agencies. Ensuring that your payroll tax calculations are accurate and submitted on time can prevent costly penalties and fines. Additionally, keeping up-to-date with the changing tax rates and requirements can help you identify potential savings and avoid compliance issues.

An effective payroll tax management strategy includes accurate record-keeping, timely tax filings, and a clear understanding of the requirements for your specific business. Partnering with a tax professional or utilizing payroll software can alleviate the stress of managing payroll taxes and allow you to focus on growing your business.

The Value of Proactive Tax Planning for Small Businesses

In the realm of taxation, knowledge is not just power—it’s dollars saved and potentially reinvested into growing one’s business. In essence, effective tax planning can be a powerful tool in the arsenal of small businesses, helping them navigate the financial landscape with confidence and foresight.

As a small business owner, you can trust Practical Taxes to provide comprehensive and up-to-date tax services tailored to your unique needs. Our team of affordable tax accountants dedicated to helping you navigate the complex world of taxes to ensure that you enjoy a profitable and successful business.

With our support, you can focus on growing your business, confident in the knowledge that your tax planning is on track. Don’t wait until tax season to start planning; be proactive and invest in your business’s long-term success today!

October 26, 2023/0 Comments/by Practical Taxes

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Tax Planning for Retirement: Efficient Strategies for a Secure Financial Future

Planning for retirement involves several financial considerations, including aligning your long-term tax strategy with your retirement goals. Efficient tax planning for retirement can minimize your tax burden and maximize your savings, ensuring a stable and comfortable future.

Let’s explore crucial retirement tax planning strategies. We’ll cover using tax-advantaged accounts, managing income sources, and understanding tax implications, especially related to Social Security benefits. We’ll also highlight the advantages of working with Practical Taxes, a professional tax service in Billings, MT, offering personalized guidance for your retirement planning journey.

Practical Taxes is dedicated to helping Billings residents create comprehensive retirement tax plans. We incorporate strategic tax-saving techniques and provide personalized support to achieve your financial objectives. Keep reading to discover valuable retirement tax planning strategies and how Practical Taxes can secure your financial stability.

Utilizing Tax-Advantaged Accounts for Retirement Savings

One of the most effective tax planning strategies for retirement involves utilizing tax-advantaged accounts to grow your retirement savings. Investing in accounts such as 401(k)s, IRAs, and Roth IRAs allows you to take advantage of various tax benefits that can significantly impact your long-term financial success. Consider the following options:

Traditional 401(k) and IRA: Contributions to these accounts are tax-deductible in the year they are made, and earnings within the account grow tax-deferred until withdrawn during retirement. Distributions during retirement are then taxed as ordinary income.

Roth 401(k) and Roth IRA: Contributions to these accounts are made with after-tax dollars, but earnings grow tax-free, and qualified withdrawals during retirement are not subject to taxation. Roth accounts can be particularly beneficial for individuals anticipating higher retirement tax rates.

Proactively contributing to these accounts and understanding the tax implications of each can help you maximize your retirement savings and minimize your long-term tax liabilities.

Managing Income Sources to Optimize Tax Efficiency

Another essential strategy to minimize your tax burden during retirement is to manage your income sources efficiently. Different types of income may be taxed at different rates, so managing withdrawals and the timing of income strategically can lead to significant tax savings.

Taxable Accounts: Withdrawals from taxable accounts, such as brokerage accounts, may be subject to capital gains taxes. However, long-term capital gains rates are lower than ordinary income tax rates, offering potential tax savings.

Required Minimum Distributions (RMDs): Traditional 401(k)s and IRAs have required minimum distributions starting at age 7These withdrawals are taxed as ordinary income, and careful RMD management is essential to avoid unintentionally pushing you into a higher tax bracket.

Social Security Benefits: Depending on your income level, a portion of your Social Security benefits may be taxable. Efficiently managing the timing of these benefits and coordinating them with other income sources can help minimize taxation.

Consulting with a tax professional can help you create a strategic plan for managing your income sources during retirement, optimizing your tax efficiency, and preserving your wealth.

Understanding the Tax Implications of Social Security Benefits

Social Security benefits play a crucial role in many retirees’ income plans, so it’s critical to understand the tax implications associated with these benefits. Depending on your taxable income, a portion of your Social Security benefits may be subject to federal income tax.

Thresholds for Taxation: Social Security benefits are tax-free for those earning below certain income thresholds ($25,000 for individuals and $32,000 for couples filing jointly). Once those thresholds are exceeded, benefits become partially taxable up to 50% or 85% based on different income levels.

Manage Taxable Income: To minimize the taxation of Social Security benefits, manage your taxable income by strategically timing withdrawals from retirement accounts, taking capital gains, and adjusting your income sources.

State Taxes on Social Security: Some states also tax Social Security benefits, while others do not. Research your state’s rules or consult a tax professional to understand state tax implications.

Working with a tax professional can help you navigate the complex tax rules associated with Social Security benefits, ensuring you minimize your tax burden and maximize your retirement income.

The Benefits of Partnering with a Professional Tax Service for Retirement Planning

Working with a professional tax service like Practical Taxes can provide valuable benefits for individuals planning for retirement, including:

Personalized Tax Planning: Obtain expert guidance on creating a tailored tax plan that aligns with your specific retirement goals, ensuring tax efficiency and long-term financial success.

Ongoing Support: Receive ongoing support and advice as your retirement plan changes, helping you adapt your tax strategies as needed.

Tax Return Preparation: Ensure your tax returns are accurate and compliant throughout your retirement by partnering with skilled tax professionals specializing in retirement tax planning.

Building a Secure Financial Future with Strategic Tax Planning for Retirement

Effective tax planning is critical to creating a secure and comfortable retirement. By utilizing tax-advantaged accounts, managing income sources, understanding the tax implications of Social Security benefits, and partnering with a professional tax service like Practical Taxes, you can build a solid financial foundation for your future.

Contact our team of experienced tax professionals in Billings, MT, today to learn more about our comprehensive tax services for retirement and discover how we can help you achieve your financial goals by strategically managing your retirement tax obligations.

October 12, 2023/0 Comments/by Practical Taxes

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Questions You Must Ask to Find a Reliable Tax Preparer

If you’re looking for a good tax preparer, how can you be sure you’re making the proper decision? Referrals are an excellent place to start, but you should still do your homework. You want to not only ask the proper questions, but you also want to look for the correct answers.

Here are some questions to ask a tax professional before hiring one:

What Does Your Tax Preparation Look Like?

This is where you and your tax professional agree on how you will communicate during the tax-filing process. Do you want to set up a meeting or two and do everything in person, or do you prefer to share over email? Making phone calls may work for the two of you.

Whatever you want the tax preparation process to look like, it’s critical to establish those expectations early on and select an advisor who will work with your schedule and preferences.

What Are the Common Challenges You’ve Encountered?

Their level of expertise, as well as their ability to overcome obstacles, are all critical considerations.

Preparing taxes for an individual differs from preparing taxes for a corporation or a foreign client, so it’s essential to know if they’ve dealt with the specific issues they’ll face on the job — and if they’re adaptive.

Is Your Experience Good for My Situation?

If you know your tax situation is unusual, ensure that the professional you employ has completed returns like yours.

Working with a tax preparer experienced in your industry can mean the difference between claiming all your allowable deductions and losing money.

Suppose your taxes are more complicated than usual such as being self-employed, owning a rental or business property, living in one state but working in another, receiving an inheritance, or working abroad. In that case, your tax preparer should be familiar with these situations.

Do You Know the Requirements of the Localities and States?

Federal income taxes have no borders; the laws do not differ from one state to the next. However, this is different when it comes to states and municipalities. Your state or city may have unusual filing requirements, particularly for business owners.

It could be more apparent if you’ve moved from one state to another during the year or live in one state but work in another. You may require additional assistance if you own real estate or business in a state other than yours or are the trust beneficiary or estate in another state.

Ascertain that your preparer is aware of – and capable of meeting – all of the filing requirements.

What Drew You To Tax Preparation?

Suppose you’re looking for someone who has the potential to improve your team or advance to a leadership position within your organization. In that case, it’s essential to understand their hobbies and passions.

Tax preparation might offer a consistent salary and a flexible schedule, but does your candidate find true joy in their work? Do they go beyond duty to further their knowledge and skill set?

A genuine interest in finance, accounting, or issues connected to these fields is advantageous. Attendance at industry conferences, for example, demonstrates that the candidate is committed to furthering their career.

Conclusion

Finding a reliable tax preparer requires asking the right questions and thoroughly evaluating their qualifications. By asking these critical questions, you can make an informed decision and find a trustworthy tax preparer who will effectively meet your tax needs and help you navigate the tax system.

Take control of your tax needs with Practical Taxes! We specialize in providing practical tax solutions for businesses and individuals in Billings, MT. Whether you require payroll services, bookkeeping assistance, tax preparation, or comprehensive tax services, our team has covered you. Contact us now!

September 28, 2023/0 Comments/by Practical Taxes

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The Ultimate Guide to Working With a Tax Preparer

Tax season is often one of the most stressful times for small business owners. With the many complexities of the tax code, it can take time to navigate the process of preparing and filing taxes. However, working with a tax preparer can help alleviate some of that stress and ensure your business properly files its taxes. This article will provide tips for small business owners when working with a tax preparer to make the process smoother and more efficient.

Tip #1: Choose the Right Tax Preparer

The first step in working with a tax preparer is to choose the right one. It is important to find a tax preparer who has experience working with small businesses and who is familiar with the tax laws and regulations that specifically apply to them. Additionally, it is important to find a tax preparer who is trustworthy and reliable. This can be accomplished by researching potential tax preparers online, asking for referrals from other small business owners, and conducting interviews to ensure that the tax preparer is a good fit for your business.

Tip #2: Organize Your Financial Records

One of the biggest challenges of tax season for small business owners is organizing their financial records. Keeping accurate and organized financial records throughout the year is important to make the process easier for your tax preparer. This can include keeping track of all income and expenses, maintaining receipts and invoices, and reconciling bank and credit card statements. By organizing your financial records, you can help your tax preparer save time and reduce the risk of errors on your tax return.

Tip #3: Communicate with Your Tax Preparer

Communication is key when working with a tax preparer. It is important to establish clear lines of communication from the beginning of the process and to keep your tax preparer informed of any changes or updates to your financial situation throughout the year. Additionally, it is important to ask questions and seek clarification on any issues or concerns that may arise during the tax preparation process. By maintaining open and effective communication with your tax preparer, you can ensure that your tax return is accurate and timely filed.

Tip #4: Maximize Your Deductions

As a small business owner, maximizing your deductions to reduce tax liability is important. This can include deductions for office supplies, equipment, and travel expenses. However, ensuring that your deductions are legitimate and supported by proper documentation is important. Your tax preparer can help you identify potential deductions and ensure they are properly supported on your tax return.

Tip #5: Plan for Next Year

While tax season may be stressful, it is important to plan for next year. This can include implementing new systems for organizing your financial records, reviewing your business structure to ensure that it is optimized for tax purposes, and working with your tax preparer to develop a tax strategy that maximizes your deductions and minimizes your tax liability.

Tax season can be stressful for small business owners, but working with a tax preparer can alleviate some of that stress and ensure that your business properly files its taxes. By choosing the right tax preparer, organizing your financial records, communicating effectively, maximizing your deductions, and planning for next year, you can make the process smoother and more efficient. With these tips in mind, small business owners can confidently navigate tax season.

Are you a small business owner looking for reliable tax preparation in Billings, MT? Look no further than Practical Taxes! Contact us today to schedule a consultation, and let us help you easily navigate the complexities of tax season. Trust the experts for all your tax preparation needs.

July 6, 2023/0 Comments/by Practical Taxes

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Free Tax: 5 Reasons to Hire a Professional

Tax season can be one of the most dreaded times of the year for many individuals and business owners. The process of filing taxes can be complicated, time-consuming, and stressful. If you’re considering whether to do your own taxes or hire a professional, it’s essential to weigh the pros and cons.

Today, we’ll discuss a couple of benefits of having a professional file your taxes for you:

Saves Time and Reduces Stress

One of the most significant benefits of hiring a professional to file your taxes is that it saves you time. The process of gathering the necessary documentation, understanding the tax laws, and filling out the forms can be time-consuming and overwhelming. A professional tax preparer has the expertise and knowledge to quickly and accurately complete your tax return, freeing up your time to focus on other important tasks or simply enjoy life.

Additionally, hiring a tax professional can significantly reduce your stress level during tax season. You won’t have to worry about making mistakes, missing deadlines, or dealing with the IRS. Instead, you can have peace of mind knowing that your taxes are in the hands of an expert.

Maximizes Deductions and Credits

Tax professionals have extensive knowledge of the tax code and are skilled at identifying all the deductions and credits that you qualify for. While tax software may catch some deductions, it might not find all the available credits, especially if your situation is complicated or unique. A tax professional will be able to ensure that you take advantage of all the deductions and credits you’re entitled to, potentially saving you thousands of dollars on your tax bill.

Reduces the Risk of Errors

Filing your taxes can be complicated, and it’s easy to make mistakes that can cost you money or lead to an audit. A professional tax preparer will be well-versed in the tax code and have experience handling a wide range of tax situations, reducing the likelihood of errors on your return. If an error does occur, most tax professionals offer guarantees that they will correct the mistake and pay any resulting penalties or interest.

Provides Year-Round Support

When you hire a professional to file your taxes, you’re not just getting help during tax season. Rather, you’re gaining a financial expert who can provide guidance and support all year long. Tax professionals can help you with tax planning throughout the year, ensuring that you make the best decisions to minimize your tax liability. Additionally, if you receive any notices or have questions about your taxes after they’ve been filed, your tax professional will be there to assist you.

Helps with Audits and Tax Disputes

Lastly, in the event of an audit or tax dispute, having a professional on your side can be invaluable. Tax professionals are knowledgeable about the audit process and can help you gather the necessary documentation, communicate with the IRS, and navigate the situation. Having a tax professional represent you during an audit can significantly reduce the stress and anxiety that often accompanies these situations.

Conclusion

While it may be tempting to save money by filing your taxes yourself, the benefits of hiring a professional far outweigh the costs. As you can see, a professional tax preparer can save you time, reduce stress, and so much more. So, this tax season, consider investing in the expertise of a tax professional to ensure that your taxes are filed accurately and efficiently!

Practical Taxes offers tax assistance for both businesses and individuals, including payroll, bookkeeping, tax preparation, and other tax-related services in Billings, MT. If you are looking for an affordable tax accountant, reach out to us today!

June 22, 2023/0 Comments/by Practical Taxes

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Audits: Get Through One with the Help of Practical Taxes

An audit is scary. It’s an intimidating ordeal to experience, especially when you have never experienced one before. Imagine this: you receive the notice that you’ve been audited, and the information comes in a letter, cold and dry, black and white. But it’s not an uncommon experience, and the statistics are that about 1% of all tax payers will undergo an audit each year. That doesn’t sound like a huge number of people, but if you are someone for whom the IRS has deemed necessary to target for an audit, you should remember that your first and most immediate option is to call your experienced accountant at Practical Taxes.

The main reason that an IRS audit is incredibly difficult and scary is that, when a person discovers they are being audited, it sounds as if they’ve done something wrong. But it’s very possible that they didn’t do anything wrong at all. The IRS even states that all tax documents are complex, and that the data they contain must be evaluated and sometimes evaluated with close precision to ensure accuracy.

If you do discover that you are being audited the first step is to respond to the IRS’s letter. The next step is to contact your tax professional at Practical Taxes. You will need to compile all the necessary documents—everything (that’s why it’s so very important to keep all tax documentation for five years!). Interesting enough is that most audits are completed through the mail. Documents are sent back and forth, etc. Some problems are so small that they can resolved quickly and easily. But make sure before you send anything to the IRS that your accountant at Practical Taxes goes over the documents; you have rights in an audit, and you want to be sure that you have someone who has your interests in mind determine if there are any discrepancies.

Don’t go through an audit alone. Practical Taxes is ready to answer your questions, help you review all your tax documents, and hopefully the entire audit process will be made a little bit less scary.

May 10, 2019/5 Comments/by admin

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Tax Season

Tax season is almost over, and if you have yet to file your income taxes, then there’s no better time than right now. And if it’s slipped your mind, then you might want to notify your tax professional at Practical Taxes to get some assistance and file an extension. If you’ve already completed your taxes under the new tax laws-guidelines, you know that there were a few changes this year. Not everyone noticed the changes, however, or for some the changes were negligible; but for many tax payers the changes were either surprisingly positive or surprisingly negative. And if you were surprised by the outcome of your 2019 tax returns, then it may be time to speak with your accountant at practical Taxes—especially if you found yourself having to unexpectedly owe a substantial amount—as to the most appropriate way to handle your income/savings/withholdings for next tax season. It’s easy to pay it this year and forget it, but a little know-how and effort this year makes sure that you don’t have another big surprise coming the next.

And that’s one of the things that a professional, experienced tax professional can do for you: show you the best, most practical way to manage your monthly income. The IRS’s tax tables are super simple to read and understand, but how those tables relate to your own personal income is much less a straightforward and simple matter. Especially if you have a fluctuating income, and it changes month-to-month. Or if you own or operate a small business, or LLC, and you have questions as to whether you should write-off each expense, or if you should take the standard deduction. An experienced accountant will be able to show you the difference.

Whatever the end result of the 2019 income tax season happened to be, choose Practical Taxes for all of your personal, business, accounting needs. It pays at the end of the year to have the knowledge and expertise of a professional accountant. Call Practical Taxes today.

April 9, 2019/3 Comments/by admin

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In the Midst of Tax Season

We’re a month or so away from the end of the tax season—yes, there are options for those who need an extension to file their 2018 income tax, and if you have any questions about how to file an extension, then call your tax professional at Practical Taxes—and this last month or so is incredibly hectic for many. Everywhere people are scrambling to gather the necessary materials: tax forms, receipts, mileage records, etc. And while it is a hectic time, try not to worry too much, just call your accountant at Practical Taxes and make an appointment to get those 2018 income tax returns filed.

Make sure to gather together everything. If the IRS notices an omission on your 2018 tax returns that benefits them, they’ll likely contact you; if the IRS finds an omission that benefits you, it’s more than likely you’ll never hear about it from them. Look out for yourself; don’t omit anything; an audit is an especially difficult and trying thing to have to go through. Equally so don’t forget that stack of receipts, don’t forget the paperwork sent to you by student loan companies, mortgage companies, etc.

Also, due to the recent tax changes, this tax year has been confusing for many. And if you are someone who has always filed his or her own income taxes, and you find yourself struggling to accurately file those 2018 taxes, then call the professionals at Practical Taxes. A qualified, experienced accountant could make all the difference for the 2018 tax season.

Remember also that your accountant can go through your taxes and determine the best course of action for the 2019 tax season. If you don’t like what you see after this tax season, then your accountant will be able to advise you on the best course of action going forward.

If you do still need to make an appointment with your tax professional at Practical Taxes to file those 2018 taxes, then make sure to call today.

March 9, 2019/6 Comments/by admin

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Options When You Can’t Pay Taxes

There are two steadfast rules to know when you are experiencing a financial hardship and are unable to pay your taxes by the deadline. The first rule is that you should get in touch with the IRS immediately; the second is that you should speak with your accountant at Practical Taxes to determine the best course of action going forward. Remember the most pressing business is to notify the IRS, because they have deadlines, and when you cannot meet those deadlines they have policies in place to charge you a penalty or, in the most serious cases, use legal power to enforce the collection of the payment. A financial hardship is nothing to be overly ashamed about; an unexpected financial difficulty can happen to anyone. Here’s a few things you should know if you do have a financial hardship this tax season…

The IRS offers ways to pay the tax debt, and the options for payment range from receiving an extension on the payment to entering into a structured payment plan. For the most serious cases, the IRS can offer a deferred payment or even a settlement of the debt, however these are special programs. Your accountant at Practical Taxes can help guide you through the repayment process; you don’t have to face the IRS alone, and your accountant may be able to determine if you qualify for a repayment program that could save you money. Before you enter into a repayment program, determine the amount you can afford to pay each month.

Of course, before you determine whether or not you’re able to afford to pay the tax owed, you need to first file your income taxes. Tax Day is quickly approaching; the deadline is only a few short months away. Remember, February and March are busy months at your accountant’s office, and it’s best to make your appointment early: if there are going to be any difficulties in the completion of your income taxes or if you are going to need to enter a repayment or similar IRS special program, then you will have the time to plan.

January 8, 2019/4 Comments/by admin