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April Is Tax Month!

On April 18th, the 2016 tax season will come to a close—it’s not necessarily over by any means, but marks the IRS’s filing deadline (yes, there are extensions and other programs that extend out the season). And for many people this time of year is crazy and hectic, and they anxiously crowd into the offices of their favorite accountant to prepare their taxes before the season closes.

But don’t worry, take breath, there’s still a few weeks. However, while you are remaining calm, it’s important to take stock in whatever it is you plan to report on your 2016 taxes. When people rush they often forget things. It’s not good one way or the other to forget to report something on your taxes. Funny that the IRS will notice an omission benefiting them, but will never contact you on an omission benefiting you.

So, look out for yourself, and make sure everything gets reported. You don’t want to miss any deduction on your taxes. While we make a big deal over what taxes mean, for most of us, taxes mean a refund, and getting as much money as you are entitled; conversely, for those of you that owe on your taxes, you will want to account for every deduction that could potentially get you to owe less.

Remember all those charitable contribution, those mileage logs, all the childcare paperwork you have paid out in the last year, etc. Also, for those of you who wait, your accountant may notice your missing something from your file, and, in that event, you will request an extension until the proper paperwork can be supplied, and, for those of you relying on your 2016 tax return, forgetting important paperwork will greatly slow up the process. The IRS claims that, for most people, it takes three weeks and under to receive money via direct deposit.

Call and make an Appointment!

If you have yet to schedule a tax preparation appointment, call today, or as soon as possible, to have your taxes prepared by the professionals at Practical Taxes.

Practical Taxes

Practical Taxes is a full service accounting firm in Billings, Montana. We can help you get the most from your taxes, and make sure that you will get the maximum refund every year. But we don’t just do taxes! We can help with your bookkeeping, payroll, bank reconciliation, budgeting, and more. Give us a call at 406-894-2090 to learn more.

 

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Tax Season Is Upon Us

2016 is officially over, and that means it’s time to prepare for another tax season! Like it or not there’s only a few months left until the April the 18th deadline, and for most of you there’s so much to prepare.

Prepare

For those of you who have a lot of write-offs, those of you with small businesses, etc., January is the time to start getting all of your receipts in order. Make sure that everything is accounted for. If you are missing something, and need to have the filed-proof of something (say an invoice for something work related, etc.) ensure now that you either have appropriately filed away a copy, or, if you have unfortunately lost your copy, you have the time now to find it. This is the time of year to have your vehicle mileage documented orderly if you have yet to do so.

Forms

January the 31st marks the last day at which you should mail your employees W-2 forms. Obviously you will want to mail out any forms on time, because your employees are counting on you for this, but there could also be a penalty charged to your company by the IRS if you do fail to mail out your forms on the 31st of January. Remember, the W-2 form only needs to be postmarked by this date, your employees may not receive it in the mail until a few days after, so, if you are planning to mail the forms at the last minute, it may be wise to explain this to your employees who may be expecting to receive it sooner.

Make a date with you tax preparer

Regardless of how difficult your taxes, your accountant is ready to help you through the process. Try and plan an hour or two for one day in the future (or on several days in some cases) to visit your accountant’s office to prepare your taxes. To ensure that you receive the undivided attention of the accountant you want to see, make a reservation. If you are seeing an accountant for the first time, Practical Taxes is here and ready to help you through the process of your 2016 tax returns.

Practical Taxes

Practical Taxes is a full service accounting firm in Billings, Montana. We can help you get the most from your taxes, and make sure that you will get the maximum refund every year. But we don’t just do taxes! We can help with your bookkeeping, payroll, bank reconciliation, budgeting, and more. Give us a call at 406-894-2090 to learn more.

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Time To Start Thinking About Tax Season

Happy Holidays! And, it’s only a few weeks’ time until the New Year begins, and tax season comes into full-swing. Some of you may have undergone some changes this last year, changes that will affect how you file your 2016 taxes. For instance, did you know that if you are married on or before December 31st, 2016, you will file jointly? You will file jointly regardless if you have been single for three-hundred sixty-four days of the year. How then will filing jointly affect your taxes? What if you purchased a home, or had a child? These major events will have impacts on your taxes. Here’s what to expect from these changes during this upcoming tax season.

Filing jointly may affect the tax bracket to which your taxable income is determined. Both you and your spouse may be bumped into a higher tax bracket with the combined income. While this can be seen as a negative, there are a few positives as well. Because you are now married, both of you will be able to now claim the other as an exemption. The deduction is double that of someone filing as single. Children are a major deduction on your taxes. Remember that if you are married, you should have these changes reflected on your W-4.

Also, if you have bought your first home this year that will greatly affect your taxes. Conversely, if you have sold a home in the last year, this will also affect your taxes. The interest you pay on your home can be deducted at tax time.

If you are married, it’s important to determine which deduction—standard vs. itemized—will best suit you at tax time. The standard deduction may be better for those who don’t own their own home, and have very few deductions. However, when you own your own home, deductions such as mortgage interest are valued as higher deductions than what is standard.

We hope you had an excellent 2016, and when you are preparing your 2016 taxes, Practical Taxes will be ready to help you through them.

Practical Taxes

Practical Taxes is a full service accounting firm in Billings, Montana. We can help you get the most from your taxes, and make sure that you will get the maximum refund every year. But we don’t just do taxes! We can help with your bookkeeping, payroll, bank reconciliation, budgeting, and more. Give us a call at 406-894-2090 to learn more.

 

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What if We Told You that You Can Save $1,000 Easily?

Saving money doesn’t have to be painful. In fact, by making some very slight lifestyle tweaks you can save a significant amount of money. The key is to make the adjustments small enough so that you don’t even notice them; cut expenses on the things you hate paying for (like car insurance and cell phone bills). Then live more comfortably knowing that you’re money isn’t going to things that don’t bring you enjoyment. Here are 12 ideas from your Aurora accountant to get you started. If you then think of 3 more you will be well on your way to financial freedom.

Skip Eating Out for Lunch

Instead of dining out every day of the week when the noon meal rolls around, do it just once a week, then brown bag home-prepared food for the rest of your work days.

Just Drink Water

Aside from the fact that water is the healthy, staying away from flavored drinks and pop will help you save quite a bit of money. Drinking a pop per day can add up to over $350 per year.

Goodbye Car Wash

Rather than bringing your car to the car wash, why not make washing the car an additional chore? If you have kids, sign them up and make car washing a weekly family chore. If you have to, you can bring your car to the car wash just once a month, instead of once a week.

Groom your dog.

You love your pet, right? So show him/her by personally washing your pet instead of taking him/her to the groomer every time. If nothing else you can increase the time between grooming.

Brew Coffee at Home

We all know how easy and convenient it is to buy ready-made coffee from those coffee shops that are just everywhere. You can choose to continue with this coffee-buying attitude or you can try brewing your own coffee for a change, and for the better. Sure, you can treat yourself occasionally but if you’re determined to save up, you’ll be surprised at how much you can save by making your own coffee.

Get Your News Online

Are you still subscribed to the local newspaper? If yes, consider discontinuing your subscription and catch up on local, international and all kinds of news online instead.

Do Your Own Nails

Rather than paying someone else to do your nails for you every time, learn to do it yourself and save some bucks in the process.

Exercise for Free

Still paying for gym membership? Time to drop it and exercise on your own. There are so many articles and videos about exercise. Take some time to go over those that relate to the type of exercise you have in mind, then get work out your body based on the information you got.

Go Generic

When you experience some minor but common discomforts like headaches or migraines, you don’t always need to buy name brand medicine. If it’s just a simple headache, a generic aspirin can likely make the pain go away just as well as a branded aspirin. Some generic products are just as good as their brand name counterparts, but others (usually foods) aren’t quite up to snuff.

Negotiate your Car Insurance

Car insurance is one of those things that you have to pay for. If you want the luxury of driving a vehicle, you have to maintain insurance in case something bad happens. But how many of us have taken the time to actually go over our insurance lately? There is a good chance that you are overpaying your premiums. A 30 minute phone call with your agent could save you hundreds, maybe even thousands of dollars per year.

Downgrade your Cell Service

Do you really need that $90 monthly cellphone service? Are you able to use it up or is part of it always getting wasted because your phone usage doesn’t really go that high? Maybe it’s time you reviewed your phone consumption and get a lower plan — one that actually fits your cellphone habits. Most major carriers have switched to plans based on data usage. It’s as simple as a 15 minute call to save $30 per month.

Find other ways to relax.

Getting a massage is always a treat. But do you really have to do it every week? There are many other ways to relax. Find a relaxation technique that you can do for free. From healthy eating, to exercising at home, there are ways to relax without expense.

Bonus: Cut the Cable

With so many online streaming options for television, do you need to be paying $60 per month for TV that is turned off most of the day? Cut back to Netflix and Hulu and you could save $40/month. That’s an instant savings of $480 per year by getting rid of something you’re not using anyway.

Practical Taxes is Here to Help

We want to make sure that you are financially healthy. By offering our online tax preparation services to the Aurora, Colorado area, we are helping thousands of people to be able to afford the services of an accountant, and ultimately get a bigger refund than they would have on their own. That refund can help jump start your emergency fund, bolster your retirement savings, or let you splurge on one of the things above that we just told you to cut out.

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Property Taxes

Property Tax

Property taxes are beneficial because they support many of our community’s public services. Property taxes can support schools, police and fire, parks services, and street maintenance.  But, because most people pay different, varying sums in property tax, it can be confusing to know if you are paying your fair share, or too much.  The following is the how/why of property taxes.

Tax Assessments

Tax assessments are the basis for all property tax. These assessments are based on how much a home is worth. Usually, the higher a home’s value, the higher it’s property taxes. This is something to consider if you are planning to trade-up for a new home, know your property taxes will likely be assessed at a higher rate, because the new home possesses a greater value. This could also be true of the neighborhood, if the other houses in the neighborhood are considered to have considerable value. That value will likely be figured into the assessment of your new home (even in the case of buying a less expensive home in a neighborhood). The reasons for this is that a tax assessment is conducted by an assessor who groups together comparable homes, comparing all the home’s in the value range, and comes up with a tax figure that they determine to best assesses the home’s value. It’s a process akin to a home appraisal, however everything, including neighborhood, etc. is put into consideration.

Appeal your Property Tax Rate

It’s not unheard of to appeal your property tax rate. There’s formal processes for those folks thinking that the assessor may have missed something in determining a home’s value. Reasons for appeal are varied, but the most common could include: incorrect assessments of the home’s square footage, missing something like an addition, or possibly even incorrectly determining the number of bedrooms within the home. It’s times like these your accountant is ready to help you get through the appeal process. You can hire also a home appraiser, who may come in, and do a private assessment as to a home’s value.

If you find yourself struggling with property taxes, or just have tax questions in general, give us a call today.

Practical Taxes

Practical Taxes is a full service accounting firm in Billings, Montana. We can help you get the most from your taxes, and make sure that you will get the maximum refund every year. But we don’t just do taxes! We can help with your bookkeeping, payroll, bank reconciliation, budgeting, and more. Give us a call at 406-894-2090 to learn more.

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How Saving Energy can save you on your Taxes

In the current wake of drought, the dire predictions of global warming, and the ever-expanding population, the talk of energy efficiency is becoming more prevalent.  There are no immediate answers yet, however what we do know is that many of our appliances, our vehicles, etc. directly contribute to green house gas emissions.  Newer appliances, however, are being built to perform to higher standards of energy efficiency.

How Saving Energy can save you on your Taxes

Everything from washers and dryers, water heaters, kitchen appliances, etc. each year seem to supersede the appliances that came before.  To install new appliances throughout the home, however, is expensive, although it will help to lower the cost of a homeowner’s energy bills.  The government offers the Residential Energy Efficient Property Tax Credit, and the Nonbusiness Energy Property Tax Credit.

How Saving Energy can save you on your Taxes

Residential Energy Efficient Tax Credit

The Residential Energy Efficient Property Tax Credit involves modifications to one’s home that are considered energy efficient.  These updates include the use of solar, wind, geothermal, and, in some cases, fuel-cell technology.  To qualify for the upgrades, upgrades need to be in direct use with the home. The electricity generated from solar power should be responsible for powering the home.  The credit to be issued at tax time is the equivalent of 30% of the cost of the improvement—this includes the cost of installation, which for items like solar panels can be quite costly.

Nonbusiness Energy Property Tax Credit

This is where some of your appliance purchases, etc. can qualify for tax credits.  This could include everything from new home insulation to a new electric water heater.  However, there are qualification requirements for the appliances. While these are not often advertised by companies, you may call the companies themselves and ask if they are participating, and, if so, with which models.  The recouped costs of the tax credit is 10%, or, if you have already participated in this tax credit, $500 for all the years combined.

Practical Taxes

Practical Taxes is a full service accounting firm in Billings, Montana. We can help you get the most from your taxes, and make sure that you will get the maximum refund every year. But we don’t just do taxes! We can help with your bookkeeping, payroll, bank reconciliation, budgeting, and more. Give us a call at 406-894-2090 to learn more.

 

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Reasons Why Small Business Owners Need to Keep Meticulous Records

Being a small business owner, I get it, there is so much to do and keeping track of records just isn’t at the top of the list. But it should be. Keeping things organized and tracing records can help you in the long run.

Tax Season Billings MT
If you keep track of your records and receipts, when it comes to tax season, it will be much easier for you to locate your receipts. It will also help you to get all of the deductions that you are entitled to. The IRS does not accept bank statements. They want the actual receipts to validate your expenses.

Payroll Management Billings MT
Keeping your payroll records organized can assist you with tracking your employees. It makes it much easier when it comes to paying your employees. If you aren’t comfortable doing payroll or just don’t have time, Practical Taxes can manage your payroll for you.

Invoicing Billings MT
When it comes to invoicing your clients, keeping track of your records will help you to know who has paid and who has not. It can also help you to keep track of projects and to know what money is coming in.

Trust me when I tell you that spending a few minutes each day on your records will pay off in the long run.  Keeping track of your records will make tax season much easier as well.

Practical Taxes

Practical Taxes is a full service accounting firm in Billings, Montana. We can help you get the most from your taxes, and make sure that you will get the maximum refund every year. But we don’t just do taxes! We can help with your bookkeeping, payroll, bank reconciliation, budgeting, and more. Give us a call at 406-894-2090 to learn more.

 

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Increase Your Income by Earning More on the Side

Side-Job-300x225There are thousands of people who would like to make more money or save more money. It would allow them to afford the lifestyle that they truly want. But they run into problems, such as they are at the top of where they can get to at work, or they have scrimped and saved and really cannot cut costs anywhere else. They wonder where they should turn. In today’s society, packed with internet bills, cell phone bills, high utility fees, and many other things that cost a lot of money, many people need to pick up some sort of side income. Depending on how you earn the money, there could be tax consequences that you want to address (also where an accountant in Billings, Montana could help you out).

 

Getting a Second Job

To bring in extra cash, most people will get a second job. This could be serving at a bar or a restaurant in the evenings, or working part-time as a cashier at a retail store. There are the goods and the bads that come with this choice.

The benefits of a second job are that you will have regular hours. That means a steady second paycheck. Also, you will get another paycheck where taxes have been taken out; there will be less to worry about come tax season (on top of that, the employer will pay half of your FICA taxes).

The downsides, however, are that you are stuck working for someone else. You have to follow their hours, their guidelines, and you are likely to be stuck making close to minimum wage (being a server, however, you could make substantially more because of tips).

Working on the Side

Because of the lack of flexibility and the low pay of working a side job, many people choose to follow their passions, and monetize their hobbies or interests. This method takes a little more planning, but the benefits in the long run are a lot better.

The best part about starting your own side business is that you get to set your hours. You work when you want to, and as much as you want to. So if you only have a few hours per week, you don’t have to rearrange your entire schedule just to bring in some extra money. Another positive aspect is that you get to set your own rates. With proper marketing, and if you have the skills, you can make substantially more than minimum wage.

The biggest drawback of earning income on the side like this is that you will have to pay all of the taxes. Next tax season you will have a bigger tax bill that may drop your tax refund into the negatives. This is especially true because you will be paying ALL of the 15.3% into your FICA taxes (working for someone else, half of this is covered). Combine that with the fact that you have to find all of your own clients, and many people are deterred from this option (even though you can make a lot more, it is quite a bit harder).

Using an Accountant in Billings, Montana

If you hire an accountant in Billings, Montana, you will be able to take a lot of the worry away from your side business. Here at Practical Taxes, we know the tax laws, and if you are starting your own side business we can work with you to get the most deductions possible (and help to offset those taxes that you have to pay).

If you are interested in making more money on the side, consider starting a little side business (often called a side hustle). You will be happy that you did, and the extra income can go a long ways.

Practical Taxes knows all the current tax laws and can help you with your business needs including business planning, accounting, tax preparation, and more.

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Tax Day 2016

As most of you already now, tax day is just a week away. For those of you who have yet to file, we understand the stress and the pressure of getting it done soon. However, for those of you under a serious time crunch, there are ways in which you can extend your tax deadlines—however this does not get you out of paying your taxes in a timely manner, it only gives you a little breathing room to get everything in order. Your accountant can help you to file an extension if you are going to need one. You can also find this information on the IRS website. The extension is merely a six-month time leniency in which a person may get together their returns.

tax-filing-deadline

If a person cannot afford to pay their taxes immediately, the IRS does have payment plans. Taxes wont be forgiven when someone participates in this plan, but like most things involving debt, the IRS will accept payment for a predetermined period of time during which the amount owed in tax is entirely paid. These payment plans can extend up to seventy-two months, although if you find yourself having to use these payment plans, you may want to consult with your accountant to prepare a plan for the next year. There is also a plan which the IRS labels the offer-in-compromise, which states that qualified, struggling tax payers may settle their tax debt for less money then they actually owe. This plan is beneficial to some, although it’s only for qualified persons, and your accountant can determine—if this is something in which you’ll need to participate—if you qualify.

Tax day is stressful, and your accountant understands that. If your one of the many who are struggling under either a time constraint or you’re struggling with financial concerns, make sure to call your accountant so that you may benefit from these IRS programs. If you are ready to get your taxes done and you have the time between now and tax day, call your accountant and get your 2015 taxes behind you.

Practical Taxes

Practical Taxes is a full service accounting firm in Billings, Montana. We can help you get the most from your taxes, and make sure that you will get the maximum refund every year. But we don’t just do taxes! We can help with your bookkeeping, payroll, bank reconciliation, budgeting, and more. Give us a call at 406-894-2090 to learn more.

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Why You Should Not Do Taxes Yourself

Tax season is here, and the April 15th deadline is quickly approaching. And, with all of the services out there for tax help, and the few Do-it-yourselfers, tax time can be confusing. For some, taxes are easy: there’s one source of income; there are no significant gains from other businesses; it’s not a small business—the person is under the umbrella of someone else’s business, and they just have one W-2 to record for the year. For others, taxes cause stress and anxiety, and for those that suffer from the tax-season-blues it may be time to find yourself a qualified, experienced accountant, if you don’t already have one.

Taxes3-300x224

The reasons to have an accountant are numerous. Let’s consider first the small business, and we’ll be looking at one of the major reasons hiring an accountant is helpful: exemptions and deductions. As you negotiate your business throughout the year, you’ll have plenty of expenses that you will decrease your taxable income. And, for new clients, an experienced accountant could also help the business owner to effectively plan future expenses, resulting in a beneficial relationship between the business owner and their accountant.

Also, those of you that have undergone a major life-change in the last year, it may be time to visit an accountant. Consider a marriage, or the addition of a child, or, you bought your first home sometime in the previous year and you’re unsure how all of these things will reflect on your taxes. An experienced accountant is ready for any questions you may have.

No one wants to pay more then they should on tax day. While it’s important to pay our taxes, for the average American, every single dime saved from hours of hard work is important. So, understanding that an accountant does cost money, an accountant will also help you to save money by reflecting your possible reductions that decrease the amount you pay in taxes. And, an accountant’s fees are also tax deductible, so it’s a win, win, regardless of how you look at it. This tax season consider hiring an experienced accountant to help you through this chaotic time, it may help you to save more money then you thought possible.

Practical Taxes

Practical Taxes is a full service accounting firm in Billings, Montana. We can help you get the most from your taxes, and make sure that you will get the maximum refund every year. But we don’t just do taxes! We can help with your bookkeeping, payroll, bank reconciliation, budgeting, and more. Give us a call at 406-894-2090 to learn more.

 

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Practical Taxes Heights Location

895 Main St. Unit #5
Billings, MT 59105
Telephone: 406-969-2760

(Tax Season Hours)
Monday – Friday: 9 AM – 5 PM
Saturday: 9 AM – 5 PM
Sunday: Closed

(Non-Tax Season Hours)
Monday – Thursday: 9 AM – 4 PM
Friday: 9 AM – Noon
Saturday & Sunday: Closed

Practical Taxes Westend Location

2201 Grand Avenue
Billings, MT 59102
Telephone: 406-894-2050

(Tax Season Hours)
Monday – Thursday: 9 AM – 6 PM
Friday: 9 AM – 5 PM
Saturday: Noon – 5 PM
Sunday: Closed

(Non-Tax Season Hours)
Monday – Thursday: 9 AM – 4 PM
Friday: 9 AM – Noon
Saturday & Sunday: Closed

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