Tax season officially began last week. Have you already started getting your tax documents together? For most people, taxes don’t really become a concern until March or April, but getting your documents together sooner—and even filing early—can be extremely beneficial. So when should you actually start compiling your tax documents? Keep reading to find out more.
For the second year in a row, the IRS has issued sharply higher new depreciation limitations for passenger automobiles. These limits are updated annually for inflation according to the automobile component of the chained consumer price index for urban consumers.
Throughout the decades, millions of Americans had small amounts from their paychecks withdrawn—before taxes were deducted—and invested the money in retirement plans.
Some users of digital wallets and e-commerce platforms must start reporting small transactions, sowing fears among small-business owners.
The New Jersey minimum wage is rising to $14.13 an hour for most employees on Jan. 1, 2023. It is rising $1.13 an hour from the current rate of $13 an hour.
Stimulus cheques are a mainstay of the family economy for many households in the United States. Thanks to these types of payments, many families have very large financial relief to be able to pay bills, pay for housing and buy food. It is a huge help that makes life easier in general.
Waiting for a tax refund can be a hassle, but fortunately, there are a couple of things that a taxpayer can do to speed up the process.
For the second year in a row, the IRS has issued sharply higher new depreciation limitations for passenger automobiles. These limits are updated annually for inflation according to the automobile component of the chained consumer price index for urban consumers.
The Internal Revenue Service is issuing a warning for 2023: You likely won’t receive as large a tax refund as you have in the past
With the start of a new year, millions of taxpayers across America get ready to file their taxes in time to avoid penalties but also to enjoy some of the multiple tax credits available to them. The pandemic started a trend in which individuals have been receiving bigger tax refunds than before, given the emergency funds handed out to help residents go through the pandemic. This year there will be four major tax credits that most of the taxpayers will be able to apply for, according to The Sun: earned income tax credit, child tax credit, solar tax credit, and electric vehicle tax credit.
Form 5695 is used to apply for tax deductions of certain residential energy credits. There are a couple that are deductible in 2023.
According to NewsBreak.com, "millions of New Jersey residents will receive a stimulus payment of $3,000 to help families in this challenging time."
Setting up your online IRS account now could pay dividends when it comes time to file your 2022 tax return.
The Internal Revenue Service has released a preliminary list of electric vehicles that qualify for the U.S. federal government’s tax incentives for clean vehicles - and even the automakers find the IRS's new EV incentives complicated. Not to worry! Everything will be okay.
The Internal Revenue Service today announced the tax year 2023 annual inflation adjustments for more than 60 tax provisions, including the tax rate schedules and other tax changes.
The Internal Revenue Service announced a delay in reporting thresholds for third-party settlement organizations set to take effect for the upcoming tax filing season. As a result of this delay, third-party settlement organizations will not be required to report the tax year 2022 transactions on a Form 1099-K to the IRS or the payee for the lower $600 threshold amount enacted as part of the American Rescue Plan of 2021.
Placing money into a retirement account can have both immediate tax benefits and future financial benefits. It’s a smart move all around to be putting funds into your retirement accounts regularly. However, in some cases, you may need to withdraw money from those accounts before you retire. What happens if you withdraw from retirement accounts before you reach retirement age? Keep reading to learn more about how this situation can impact your taxes.
Business owners and partners often receive a Schedule K-1 as one of their many tax forms at the beginning of the year. If you’re new to business ownership and this is your first year receiving a K-1, you might be uncertain about what this form is and how to handle it. As tax professionals who work with business owners on a daily basis, Demian & Company CPAs can help you appropriately file your return, and even help your business with issuing K-1s to partners. Keep reading to learn more about what a Schedule K-1 is and how to handle it on your tax return.
Planned giving is a popular option that individuals use to better manage their estate and plan for their legacy after death. But what exactly is planned giving, and how does it benefit you and those that you choose to leave your estate to? While planned giving is more complex than can be covered in one article, we’ll touch on the basics of it below. If you have further questions about planned giving and how it can benefit you and your heirs, contact our accountants at Demian & Company CPAs today.
The holiday season is here, and that means the New Year is just around the corner. While you probably already have a long list of things to do before the ball drops on New Year’s Eve, there’s one other thing you should add to that last: meeting with a CPA. Why is it so important to meet with a CPA before the New Year rolls around? Keep reading to find out.
As we approach the holiday season, many people will be considering what charitable organizations they’d like to contribute to, and how much they’re going to give. Some people give to the same charities every year, while others may vary which causes they support. Still others may be considering making a significant donation for the very first time. Whichever situation you may be in, it’s important to consider whether or not your donation to any charity will be tax deductible. How can you tell if your donations are tax exempt? Keep reading to learn a few things to check before you donate.
The right time to start thinking about this year’s tax return is at the start of the year. Aside from that, however, the best time to start thinking about it is right now. Disregarding your taxes—and how every financial decision you make impacts those taxes along the way—typically results in you paying far more in taxes than you should. If tax planning hasn’t been a priority for you so far this year, don’t worry; there are still a few things you can do before the end of the year to save on taxes. Keep reading to learn what they are.
When it’s time to get your taxes done, it’s important to understand the different types of professionals that are qualified to help you, and the qualifications that they hold. Different types of tax professionals can provide you with a different level of service and expertise on your tax return. CPAs in particular are the most highly qualified individuals for handling tax planning and preparation. Keep reading to learn more about how working with a CPA differs from working with a tax preparer on your return.
If you were unprepared to file your tax return in April, you likely requested a tax extension. This pushed your new filing deadline out to October 17th (as October 15th falls on a Saturday this year). However, that deadline is now little more than two weeks away, and if you haven’t yet filed, you won’t have the option of extending your due date again. So, it’s extremely important that you not miss this deadline, and the best way to ensure that doesn’t happen is by starting to prepare now. Keep reading to get some tips on how to get yourself—and your tax return—ready before the deadline.
When you’re a business owner, you have to wear many hats. At times you’re a manager, and at other times you’re a customer service representative. Sometimes you handle the marketing, and sometimes you might find yourself troubleshooting your equipment and playing an IT tech. But the one hat a business owner should never try to wear is that of tax advisor. Even if you’ve always prepared your personal tax return in the past, a business tax return is a different matter altogether, and you should never try to file it on your own. Keep reading to find out why.
If you filed a business tax extension back in March, you received an additional six months to complete and submit your business tax return. While that might sound like plenty of time, your new tax deadline is now just 2 weeks away, on September 15th. If this deadline snuck up on you, you’re not alone. However, it’s incredibly important that you not allow the deadline to pass you by without filing your tax return. Missing the business tax deadline can have some consequences for your company and cost you thousands in additional fees and penalties. Keep reading to learn more about the types of penalties your company could face.
The majority of income-earners in the United States receive a paycheck on a regular basis that already has taxes taken out for them. However, those who have untaxed income often have to calculate and submit payments to the IRS on a quarterly basis in order to ensure that they’re not charged with underpayment penalties when filing their tax returns. Keep reading to learn what you should know about making quarterly tax payments for your business.
The Employee Retention Credit (ERC) was implemented in 2020 as part of the CARES Act, and benefited both employers and employees by rewarding businesses with a refundable tax credit for keeping workers on the payroll despite business downturns. Most businesses now have more or less returned to normal operations, and required business closures and restrictions for COVID-19 abatement have been lifted in most areas. This has led many business owners to wonder if they can still claim an ERC on their tax returns in 2022. Keep reading to learn more about the ERC, the time periods it applied to, and how to claim your business’s credit.
Understanding existing tax laws can be difficult enough. However, if you’re hoping to plan and prepare for your taxes in advance, it’s also important to be aware of potential changes to tax laws and how they might impact your tax situation. As tax advisors, we strive to keep proposed changes to tax laws on our radar so that we can appropriately advise clients. These potential changes are outlined in the US Department of the Treasury’s “Green Book,” which includes the current administration’s proposed budget for the coming year. Here’s what you need to know about the Green Book, the proposed tax legislation it includes, and how those changes might impact you.
When a family member passes away, their tax returns are probably the furthest thing from your mind. Unfortunately, amid the grieving process, there are many other processes that must get underway and details that must be attended to. We understand that filing your own taxes can be complicated enough; filing for a deceased loved one can be even more difficult, not only in terms of the process itself, but in the emotions that it can bring up as well. Here’s what you should know about filing taxes for a deceased loved one.
At Demian & Company CPAs, we’re far more than a tax preparation firm. As a full-service tax professional, the service we offer to our clients goes beyond April 15th, and includes many types of support that can help you to save money on your taxes and relieve some of the burden related to tax returns and tax debt. Keep reading to learn about some of the ways we can help you with your taxes, even after your tax return is filed.
Understanding who you pay your taxes to seems pretty simple: you pay both the federal and your local state government. While this may be true for many people, for those who earn income in multiple states, understanding who you’re supposed to report your income to can get complicated pretty quickly. If you earn income in another state, do you have to pay taxes to that state? Will your state of residence still tax the income? What about products sold online to customers in other states? Keep reading to learn more about how out-of-state income is taxed, and contact us to get expert guidance on handling this complex tax situation.
You might feel like tax season barely wrapped up—and you’d be right. However, now is the best time to start thinking about your 2022 taxes and taking steps to prepare for filing your next return. Planning ahead and preparing well in advance of the year’s end can have numerous benefits for you. But how can you start working towards a better tax situation for your 2022 return? Here are a few things you can do right now.
If you use any of the IRS’s online tools—including the Child Tax Credit Update Portal, receiving copies of your tax transcript, and viewing payment agreements with the IRS—the way you access those tools will be changing soon. As of summer 2022, you’ll have to create an account using a third-party identity verification company called ID.me, and that may require submitting a selfie. Here’s what you need to know.
Last year, more than 30 million taxpayers had their tax returns delayed after filing. Could the same thing happen to you this year? Whether you’ve already filed and are waiting for your return to be processed, or you’re still waiting to file, you might be wondering just how long it’s going to take for your return to be finalized. Due to long-time staff shortages, as well as the added work that came from distributing stimulus checks and advanced child tax credit payments, the IRS is running more behind than usual. Here’s what you need to know about the IRS backlog, and the likelihood of your return being delayed this year.
If you’re expecting a tax refund, you likely want to see that money as soon as possible. Unfortunately, as tax season is drawing to a close, some delays are probable. However, there are some things you can do to minimize the likelihood of delays—primarily, avoiding common mistakes that will require further review with the IRS. Here are a few mistakes that are likely to occur this year. Double check all calculations and reported amounts in these areas to help you avoid delays with your refund.
Many business owners and self-employed individuals expressed concern when a new tax law came into effect at the start of 2022. This new law impacts the way income from PayPal, Venmo, Zelle, and other digital payment platforms is reported to the IRS. This has led to worries about nontaxable income being reported, and other issues that would impact your tax liability. Keep reading to learn what you need to know about these changes.
Taxes are one of the few certainties in life, and yet, they can also be quite unpredictable. While you can certainly plan on paying taxes every year, there are usually tax law changes each year as well. Often, these are minor changes that won’t impact the majority of tax payers. But this year, there are some tax changes that you should be aware of. These changes to tax law will likely impact your 2022 tax return, so it’s important to plan for them accordingly.
You’re probably quite familiar with the tax documents you receive each year. Depending on your sources of income, you likely know to expect forms like 1099s, W-2s, and others that you receive every year. But this year, you’ll likely be receiving a new, additional document from the IRS for your tax return: Letter 6419. Here’s what you need to know about this form and why it’s important that you hang onto it.
Tax season has officially begun, and tax scammers are ramping up their efforts to steal personal identifying information from taxpayers. These individuals use your information to file a fake tax return in your name and claim a refund—and you won’t even know about it until you try to file a return yourself. While tax scams are about as old as taxes themselves, scammers are constantly evolving the ways in which they attempt to steal your data. Here’s what you should know about common tax scams for this year, and what you can do to protect yourself.
The holiday season is over, and tax season is here. By the end of this month, you’ll start receiving tax-related forms from the IRS, your employer, and other relevant entities. (We’ll talk a little bit about two new papers you’ll receive later in this article.) While it’s always a good idea to file your return early if you can, it’s important not to rush the process. It’s easy to get in a rhythm when your taxes are the same year after year, but there were a few changes in 2021 to be aware of for your taxes this year. Keep reading to learn more.
When it comes to your 2021 tax return, your ability to change most of those numbers ended when the ball dropped at midnight. The majority of the information on your return this tax season is now set in stone—but not all of it. There are actually a few moves you can still make to reduce your 2021 tax liability, despite the turning of the calendar to a new year. Here are 5 last-minute tax moves you can still consider making in order to reduce your tax burden.
The New Year is supposed to be about starting fresh, improving ourselves, and making the next year even better than the last. That can be difficult to do when you’re dragging around the same tax debt after the ball drops. If you’re looking to start the New Year off with a clean slate, you need to find a way to get rid of that tax debt, or at least get it under control. Here are some options for helping you do just that.
The holiday season is a time of giving, and many individuals choose to make large, frequent donations to various charities at this time of year. From making cash contributions to donating used and new toys alike, giving back is a common holiday tradition. However, it’s still important to do your research and check up on a few things before you make your donations. Here are a few things to remember when giving to charities this holiday season.
If you’re like most people, your mind is probably focused on the upcoming holidays—not on tax season. The majority of Americans don’t begin to worry about preparing to file their tax return until after the New Year. But beginning to prepare now can make filing much faster and easier for you when tax season does finally roll around; you may even be able to reduce your tax liability! Here are five things you should be doing right now to start preparing for the 2022 tax season.
New businesses often begin with the business owner doing all of the accounting work. While this might work when you’re your only employee and your sales are minimal, as soon as your business begins to grow, it’s time to consider more professional options. But should you outsource your accounting needs or hire an in-house accountant? Keep reading to learn why a third-party accounting firm is better for your business.
While taxes may be unavoidable, your tax liability can be significantly reduced by including all relevant deductions and credits on your tax return. But few taxpayers know enough about all of the available tax breaks to claim every one that they qualify for. Here are some of the most commonly overlooked deductions and credits on tax returns.
Many people don’t recognize the fall as a busy tax season. But if you extended your tax return, your new deadline to file is fast approaching; October 15th is exactly two weeks away. For those who haven’t yet filed their complete 2020 tax return, here are a few important reminders for the approaching deadline.
Taxes can put a strain on anyone, but if you find yourself facing an unexpectedly large tax bill when you’re filing your tax return, you can feel like you’re out of options. Tax debts are due on the filing deadline, regardless of how much you owe. So what can you do? The IRS actually offers several types of payment plans for taxpayers earnestly seeking to pay their bills. Here are the three plans available and how you can qualify for them.
For W2 employees without many additional sources of income, filing a personal tax return is relatively simple. But if you’re a business owner, your personal tax return can get quite complicated—and then there’s the business tax return to consider. Filing a business return is an entirely different ordeal when compared to filing a personal return, and it can be enough to give you more than a few gray hairs. If you filed to extend your business tax return, your new deadline is just two weeks away, so it’s time to get down to business. Here are 5 tips you can follow to make filing that return easier.
Advance child tax credit payments from the IRS began last month, with the second round scheduled to hit bank accounts soon. On the surface, taking the advance payments for the recently expanded child tax credit might seem like a no-brainer for most parents. After all, why would you say no to a monthly check that provides you with additional money for taking care of your children? But the advance payments aren’t exactly the free payday you might think them to be. Keep reading to learn more about what these advance payments are, and why some parents might want to consider opting out of them.
The IRS has begun hiring quite rapidly in recent months, especially in comparison to past years’ hiring rates. And while the creation of new jobs is generally a good thing, these thousands of new positions aren’t being filled due to natural growth—they’re being created to allow the IRS to make a big push for tougher tax enforcement. You can expect the IRS to start buckling down on audits, especially for certain individuals, but how do you know if it will impact you? Keep reading to learn more.
When completing your will and doing your estate planning, many people worry about just how much their estate will be taxed. This is a valid concern, but the good news is that very few estates are subject to a federal estate tax, as the exemption amount is very high. However, your estate could be subject to an estate tax or inheritance tax by your state. Here’s what you need to know about estate and inheritance taxes, and what you can do to minimize how much of your wealth is lost to taxes.
The alternative minimum tax (or AMT) is a mandatory alternative to standard income tax for higher income earners who use many common itemized deductions. This secondary tax system is confusing for many, and often requires taxpayers to calculate their income twice to determine exactly what they need to pay. However, it also produces about $60 billion in federal taxes each year from the top 1% of taxpayers, so despite its inconvenience to many, a great deal of individuals support it. What exactly is the AMT, and should it be eliminated in favor of something simpler? Keep reading to learn more.
When most people think of retirement planning, they think of setting a wealth goal and saving up until they reach it. Perhaps thoughts about supplementing that saved money with other income will come to mind as well. But far too few people realize how professional tax planning now can benefit them in their retirement, and therefore don’t make it a part of their retirement planning. Keep reading to learn why you should seek professional tax planning as part of your retirement planning efforts.
By now you’ve probably heard that the federal government will be sending out monthly checks to most parents in the country. But contrary to what many people might believe, these checks are not another round of COVID relief—at least, not exactly. These payments are an advance on an expanded child tax credit. While the credit was expanded as part of the American Rescue Plan Act to help with financial recovery from the pandemic, the child tax credit itself has been around a long time. Here’s what you need to know.
Advocates for student loan forgiveness have been pushing for widespread debt erasure for a long time, and since President Biden took office, it’s beginning to look like some level of forgiveness may be on the horizon. But there's one big issue with student loan forgiveness that many people might not be aware of—taxes. Here’s what you need to know about how having a student loan forgiven can impact your tax bill.
In case you weren’t aware, the tax deadline actually hasn’t passed yet. The IRS moved the 2021 tax deadline to May 15th to allow taxpayers more time to file, and to give themselves a bit more time to handle another round of COVID-19 relief checks. So, if you haven’t filed your 2020 tax return yet, it’s not too late to avoid late filing penalties! Here are your options.
If you’re looking for bookkeeping services in East Brunswick, NJ, it’s important to find someone that can do more than just input numbers into a spreadsheet. Your business needs more comprehensive accounting services—services that can offer ongoing support to help your company grow and thrive. That’s why Demian & Company, CPAs, provides many different types of accounting services to businesses in the East Brunswick area and beyond. Here are 6 of the key services we can provide.
Precision in your business’s bookkeeping is essential. Accurate numbers ensure proper cash flow, make filing taxes easier, and can be a lifesaver if your business is audited. At Demian & Company, CPAs, we offer reliable and accurate bookkeeping services in East Brunswick, NJ, to help keep your business on track. Keep reading to learn how our professional business accountants can help.
The tax deadline is just a little over a month away, and many people are still feeling unprepared. Whether you’re not sure how to handle your stimulus checks on your return, want to make some last-minute tax moves to reduce your tax liability, or just lost track of time and need to file right away, our tax pros in Cranford, NJ, are here to help. Here’s how our services can help you prepare for the impending deadline.
It’s now been over a year since businesses began to lock down and individuals began to isolate in response to the COVID-19 pandemic. And though things are slowly inching back towards normal, the effects of 2020 will likely be felt for a long time. Right now, as the tax deadline approaches, many people are uncertain about many aspects of handling their 2020 returns. Demian & Company, CPAs, is here to help our clients in East Brunswick, NJ, and surrounding areas to find reassurance and certainty in their taxes and accounting.
Have you already filed your tax returns? If so, you may see a larger tax refund than expected arriving in the mail as early as next month. Starting in May, the IRS plans to issue tax refunds to many of those who reported unemployment compensation on their tax filings prior to March 11th as part of the Amerian Rescue Plan.
Many homeowners have made the effort to “go green” in recent years, with residential solar power quickly growing in popularity and more energy-efficient home systems becoming available. While the upfront cost of these upgrades can be quite steep, most find that the energy cost savings and the tax deductions for them help to balance out the investment. Recent changes to tax law have decreased the amount that you can deduct for these upgrades, however, and the deduction will continue to decrease until it’s no longer available. But how much can you deduct right now, and what kinds of upgrades qualify? Keep reading to find out.
When you’re in the middle of negotiations for a legal settlement, you’re probably focused on consulting with your attorney. But have you taken the time to consult with a CPA about it yet? Many people are unaware that they should speak with an accountant before reaching a final agreement on their legal case, but doing so can drastically change your perception of what a fair settlement amount would be. At the very least, it will help you to get a better picture of how much you’ll actually receive in your account when all is said and done. Keep reading to learn why you need to speak to your CPA regarding your legal settlement.
The long-awaited second round of COVID relief was rolled out with the New Year, including an expansion and extension of the Paycheck Protection Program. Many businesses can be eligible for additional funding from the government, which may help your company make it through what are hopefully the final months of the COVID-19 crisis. According to a survey of business owners conducted by Alignable, 85% of businesses feel they need this additional financial relief to keep their companies running. If you’re one of them, here’s what you need to know about this second round of PPP loans.
When you move, it seems there are countless entities that need your new address—credit card companies, magazine subscriptions, fitness memberships, etc.—and odds are high that you’re going to forget to change your address with a couple of them. But what about updating your address with the IRS? Most people don’t have this at the forefront of their mind when making a list of entities to which they must submit a change of address. In some cases, however, failing to update your address with the IRS can have major consequences. Keep reading to learn more.
Tax scams strike every tax season, and they are constantly evolving and changing. While most people intuitively recognize most forms of tax scams, it’s still important to be aware of how these thieves are changing their tactics so that you can avoid becoming a victim. Here are some of the newest tax scams that we’re seeing for the 2021 tax season. Make sure you know how to recognize them if they come your way.
The COVID stimulus payment provided earlier this year brought financial relief to many who were struggling near the beginning of the pandemic. But it also brought some confusion to taxpayers about how this stimulus check would be handled when it was time to file taxes.
For business owners, contractors, and self-employed individuals, the possibility of a home office deduction can be quite appealing. However, taking that deduction can be quite a bit more complicated than you might imagine. This deduction is one of the most commonly abused deductions on tax returns, and therefore, is one of the most commonly audited.
When COVID-19 began to spread across the United States, many businesses were forced to close down or to greatly limit the way they provide goods and services. For business owners, the government’s Paycheck Protection Program may have been the only thing that stood between them and losing their business for good.
With 2020 nearing its end, now is the time to begin planning for the 2021 tax season. Everyone can benefit from proper tax planning, which enables you to look ahead and make last-minute financial decisions that can minimize your taxes. For those with stock portfolios, this tax planning is especially important. Here are some important things to consider in regards to your stocks and how they’ll impact your tax planning.
Your state of residence is quite easy to determine, isn’t it? It’s the state you live in, the state where your house is located. But what if you have more than one property, and they’re located in different states? In these cases, determining your legal state of residence (or legal domicile) is more complicated than you might think, and it’s not solely based on the amount of time you spend in each location. Keep reading to learn how you can determine your legal state of residence, and how that determination will impact your income taxes.
There are numerous designations for businesses. The right one for your company will depend on many factors, including your size, the number of owners, and more. However, if the option is available to you, you may want to consider filing to register your business as an S corporation. Doing so can provide you with numerous tax benefits. Keep reading to learn more about what an S corp is, what the benefits of becoming one are, and whether or not it may be right for you.
With unemployment claims on the rise, many Americans have found themselves receiving their very first unemployment checks. Having never received this kind of income before, you may find yourself uncertain about how taxes on this income are handled. Is this income taxed? And if so, how are you expected to pay those taxes? It’s important that you understand what your tax obligations are in regards to your unemployment benefits. Keep reading to learn more about this.
Tax season is still a few months away. But if you’re not thinking about and planning for it already, you could be missing out on some extremely important benefits. In fact, simply filing your return without proper tax planning and tax projections could result in you paying thousands more in taxes in some cases. That’s why we do far more for our clients than simply preparing their tax returns; we can provide you with tax projections and help you to plan for the upcoming tax season, so that you can make important financial decisions that could reduce your tax liability. Here are just a few ways that our tax projections and tax planning services can help you.
Contributing to retirement accounts is one of the smartest investments you can make with your money, as it helps to secure your financial future—and, as an added bonus, many of these contributions offer tax benefits. If you have more than one type of retirement account, and you don’t have the funds to max out all of them, you may be wondering which account you should focus on to get the greatest tax benefit. Keep reading to learn more about the different types of accounts, how taxation on contributions work, and how to determine the best account to put your money in first.
Charitable contributions can be an excellent way to reduce your tax liability, but it’s important that you ensure the contributions you’re making are actually tax deductible. Many people believe that contributions to any charitable cause can be deducted on their tax returns, but this is not the case. Even if you’re giving to a good cause, it doesn’t many it’s a tax-deductible contribution. Keep reading to learn more about what types of contributions usually do or don’t qualify. If you’re unsure if the contributions you’re making will be deductible on this year’s tax return, please reach out to one of our CPAs.
If you’ve begun collecting Social Security income, you might be uncertain about how that income will be taxed, if at all. Many people are under the impression that Social Security income is never taxed, but this isn’t true; tax rates on that income will vary depending on your total combined income. And, because Social Security distributions are not taxed upfront, many retirees find themselves surprised by the amount they owe when it comes time to file. Here’s what you need to know about Social Security income tax, so that you’re not blindsided when you file your return.
Though the deadline for filing taxes this year changed dramatically, one thing about the process hasn’t changed at all: Tax season is a prime opportunity for scammers and identity thieves to steal your information. A great deal of sensitive data is necessary to file your taxes, from your financial data to your personal identifying information, like your Social Security number. So, how can you protect your identity while filing your taxes? Keep reading for some tips.
At the peak of the COVID-19 pandemic, taxes were probably the very last thing on your mind. Many Americans were trying to adapt to working from home, or were losing their jobs altogether. Small-business owners were fighting to keep their business operational even as they had to close their doors, and citizens across the country were struggling more than ever to make ends meet. In addition to providing stimulus checks to ease financial burdens, the federal government also elected to extend their tax deadline to July 15th this year. That date is right around the corner, so here’s what you need to know about this new tax deadline.
The stimulus checks sent out as part of the CARES Act were the biggest headliner that came out of the $2 trillion piece of legislation. Giving $1,200 to each adult, plus $500 for each dependent child, was a relief to many citizens who are suffering financially in the wake of the COVID-19 pandemic. But, due to certain wording in the way these checks were distributed, there has been a great deal of confusion over whether these checks really were a free check from the government, or if you’re expected to pay them back down the line. We hope we can answer all your questions in this regard here.
The side effects of COVID-19 go far beyond the physical health of those exposed. The economic impact is widespread and far-reaching, and the government has been constantly struggling to find ways to relieve some of the economic downturn brought on by this pandemic. The most recent of these efforts is the Coronavirus Aid, Relief, and Economic Security, or CARES Act. It’s the largest economic stimulus legislation since the New Deal that was passed in the 1930s, and includes $2 trillion of federal funding. Here are some of the major highlights of this act that may be impacting you.
At the end of 2019, the federal government signed the Setting Every Community Up for Retirement Enhancement, or SECURE, Act into law. At the beginning of this year, the SECURE Act officially went into effect, and it changes many things about the way Americans plan and prepare for retirement. If you’re not yet familiar with the SECURE Act, it’s important to understand how the changes it implements will impact your retirement plans—particularly if you’re close to retirement age. If you have any questions regarding your retirement planning, please feel free to reach out to us. In the meantime, this article should give you an overview of the biggest changes the SECURE Act has introduced.
From selling handmade goods online to freelance consulting or running your own registered business, there are many ways in which a person can be self-employed. In fact, having a “side hustle,” as it’s often called, is quite common these days, which makes it that much more important for taxpayers to understand how their self-employed income is taxed. This article will give you a brief introduction to self-employment taxes, what they are, why you pay them, and how you pay them. If you need assistance filing your tax return, contact our accounting firm today.
Many people who have never utilized a professional tax preparer or CPA seem to think that you absolutely must find a local tax professional to work with them. And while there are many benefits to having your tax preparer be someone you can meet with face to face, Demian & Company provides the same personalized, expert tax and accounting services to businesses and individuals to customers across the country as we do to those who live in our own backyard. Keep reading to learn more about our service areas and how we can provide this level of service no matter where you are.
If you haven’t yet heard, the IRS is now performing in-person visits with certain individuals. This new tactic, announced by the IRS in an information release, has many people wondering if they should expect a revenue officer to come knocking at their door. The good news is that this new tactic is focused primarily on high-income individuals with unfiled returns prior to 2018, so the scope is rather narrow. If you fall into this window, however, here’s what you need to know.
On March 17, the IRS announced that it would be deferring tax debt payments for all Americans by 90 days due to the COVID-19 pandemic. This announcement comes in the wake of new government guidelines recommending the shutdown of many businesses, the closure of schools, and extreme social isolation for all citizens. The hope is that this deferral will not only offer some much-needed financial relief to impacted Americans, but that it will also assist in flattening the curve and slowing the spread of the virus. Here’s what you need to know about this deferral, its limitations, and its impact.
Starting a new business is a thrilling venture, especially if it’s your first business. You may be so excited about the prospect that you’re ready to dive in and start marketing your company. But there are so many other things that go into establishing a business than the products or services you provide and marketing them to potential customers. There are a lot of things that go on behind the scenes of a business, and those little details will take up a big portion of your time as a business owner. One of those behind-the-scenes details you’ll need to focus on is your company’s taxes. If you’re new to business ownership, here are some tax-related tips that you should keep in mind.
It happens to taxpayers every year: They file their taxes with a certain expectation about how much they will owe or how much they will get back in a refund. Instead, they get hit with an unexpectedly large tax bill. If this has happened to you this year, you may be wondering what your options are if you can’t afford to pay off your taxes before the tax deadline. Keep reading to learn about five different options that may be available to you.
If you tend to wait until the last minute to file your tax return despite having all the necessary documents well ahead of time, you may want to rethink your approach. Filing your taxes early has several benefits that you’re missing out on. So, ditch that habit of procrastination and get your taxes in early this year if you want to reap the benefits outlined below. And if you need a hand getting your taxes in ahead of schedule, reach out to us to work with an experienced CPA who can get your taxes filed quickly and professionally.
The holidays are over, and that means a new season is quickly approaching—tax season. As we approach the middle of January, most taxpayers are beginning to receive their first few necessary tax forms. Instead of stacking those forms on your desk or stashing them in an envelope for later, why not take a more organized approach this year? This blog will give you a few tips on getting organized for the coming tax season, so when it’s time to meet with your CPA, you’ll have every form, receipt, and bit of financial data ready
While fitness goals remain the most popular type of New Year’s resolution every year, financial resolutions are always a close second. If you’re hoping to improve your financial situation in 2020, you may want to consider setting some New Year’s resolutions to help you along the way. Here are 5 financially focused resolutions to get you started.
While your mind may be filled with thoughts of the holiday season right now, December is also the ideal time to start thinking about your taxes for this year. Why should you start thinking about them now instead of waiting until after New Year’s? Well, there are a few things you can still do to reduce your 2019 tax liability, which can help you to save significantly when you file—but you have to do them before the ball drops on December 31st! Here are a few last-minute things you should start working on if you hope to reduce your tax liability.
The holiday season is the most common time of year for individuals to give to charities. In fact, according to statistics from nonprofitssource.com, roughly 30% of all charitable giving during the year is done in the month of December. If you’re one of the many individuals who chooses to donate to charities this holiday season, here are a few things that you should know.
Whether you’re a new business owner or you’re just trying to get ahead of the curve this time around, now is a great time to start preparing to file your tax return. Why should you start before the tax year even ends? Well, there are a few things you can do before New Year’s that may improve your business’s tax situation. Here are a few things every business owner should do before the year ends.
Regardless of where your income comes from, you know that you have to pay taxes on it. If you’re an owner or partner in a business, you are expected to pay taxes on your portion of the business’s profits (whether it’s the entirety of a sole proprietorship’s profits, or a percentage of a partnership’s profits). But what happens when that business operates at a loss? Can you report that loss on your taxes? And if so, how does that impact your tax return? Keep reading to learn more about claiming a business loss on your taxes.
When President Trump unveiled his major tax reform bill, it included the goal of eliminating the estate tax completely by 2024. Until then, the estate tax actually only impacts a handful of Americans—fewer than 1% of the population—because only individuals with an estate valued at $5.5 million or higher will have their estates taxed when they die. If your estate is worth less than this, you don’t have to worry about your heirs losing any portion of their inheritance to the estate tax. However, if your estate is valuable enough to make it taxable, here are some tips to either reduce or entirely avoid the estate tax.
If you got an extension on your tax return, your new deadline of October 15th is approaching quickly. Though you should have made a payment when filing for an extension (the extension only extends your tax filing date, not your payment due date), you may have since realized you owe even more than you planned for. In these cases, you may be tempted to simply not file in order to avoid that tax bill. Don’t do this! Instead, here are some options that may allow you to get a settlement from the IRS before the extension deadline.
When you’re caught in a natural disaster, it can have long-lasting impacts on virtually every aspect of your life—and that includes your taxes. But since most natural disaster victims are focused on filing insurance claims, preserving or restoring damaged property, and otherwise coping with the impacts of the disaster, they don’t usually have much time to spare to think about their taxes. Thankfully, the IRS recognizes this, and so they offer a few different relief options to help victims of natural disasters. Here’s what you need to know about claiming this type of relief.
Alimony and other forms of support payments have been taxed in the exact same way for decades. But as of January 1, 2019, the old rules are being turned on their head. These changes are one of the last ones introduced by the Tax Cuts and Jobs Act to be implemented. (Most of the other changes to tax law were put into effect in 2018.) So, whether you’re already divorced, contemplating divorce, or are divorced and considering renegotiating your divorce agreement, there are a few things you ought to know. Here’s a quick look at how your alimony and support payments will be treated when you file your 2019 tax returns.
If you filed an extension for your business return back in March, your new deadline is now less than a month away. It’s important that you are prepared for this deadline, as you cannot receive any further extension on filing your business’s tax return. Here’s what you need to know about the extension deadline, and how you can prepare for it.
We get it—filing taxes is no picnic. However, our primary goal is to help make the tax-filing process simpler, easier, and less stressful for you, and perhaps get you a better outcome on your tax return while we’re at it. Obviously, working with our experienced and knowledgeable CPAs will naturally make this process less of a burden for you. But we also utilize every piece of technology we have at our disposal to simplify the process for you even further. Here are just 4 pieces of technology we use in our offices to make filing your taxes easier than ever.
This tax season, many taxpayers were shocked by the numbers they saw on their tax returns. A lot of people found themselves owing far more in taxes than they anticipated, and scrambled to pay the unexpected tax bill. This unpleasant surprise was largely due to the tax law changes implemented by the TCJA, which reduced the amount being withheld from many people’s paychecks. If you want to avoid a shockingly high tax bill again next year, it may be a good idea to adjust your withholdings now. Here’s what you need to know.
Tax scams are far more common than you might think, and hundreds—if not thousands—of taxpayers deal with this nightmare each year. Of course, tax season is when these scammers and thieves are going to be most active, but now is the perfect time to start thinking about your information security, and taking steps to protect yourself from any scams, and reduce your odds of being a tax fraud victim in the coming tax season. Here are 4 things you can do to avoid falling victim to a tax scam or tax fraud.
Your return has likely been filed for a couple of months now, and you haven’t seen any reason to give it a second thought. But a second look at a previously filed tax return can actually offer you many benefits that you might not know about. Here are just a few reasons that you should consider having your tax return reviewed by one of our experienced and knowledgeable CPAs—whether you completed your tax return yourself, or had it done by a different tax preparer.
Today’s business world is full of more entrepreneurs than ever before. And if you’re looking to start your own business, it can be easy to let your excitement run away with you, and dive straight in without considering all of the little details that come with setting up your own company. One of the details that many new business owners overlook is selecting the right business structure. Here’s what you need to know about selecting the corporate structure for your company.
You only recently got done filing your 2018 tax return a month or two ago. Odds are, your 2019 tax return is far from your mind. But it shouldn’t be. In fact, proper planning and preparation can give you a better outcome on your 2019 tax return, potentially reducing your tax liability if handled properly. Here are a few things you can start doing right now to prepare for filing this year’s tax return.
Many business owners believe that maintaining the books for their own business is the most cost-effective and logical option when it comes to business bookkeeping. After all, if you believe you can handle it reasonably well, why hire someone else to do it? However, though you may have the financial skills and basic knowhow to maintain your company’s books, there are several distinct advantages to hiring a professional, third-party bookkeeping service to take care of your business’s books for you. Here are just 4 of them that you should consider if you’re making the decision regarding how to maintain your company’s books.
When it comes to filing your taxes, it seems that you generally have two options: meet with a professional to have them done, or file electronically on your own. Each of these options has some obvious pros and cons. But here at Demian & Company CPA, we offer a third option that we feel offers the best of both worlds. Here’s a little bit more about our remote tax filing services, and how you can have your taxes completed by a professional without ever stepping foot in a CPA office.
The tax filing deadline is two weeks away, and if you haven’t filed your return yet, you’re probably feeling the pressure. Whether you just put it off for too long, or you only got all the documents you need recently, rushing to meet the tax deadline can be stressful. If you’re scrambling to file, there’s another option available to you—filing a request to extend. Here’s what you need to know about tax extensions and how they can help you.
In January, the IRS posted a notice on their website stating that they would be waiving the estimated tax penalty for many taxpayers. This penalty is typically applied to any person or business who paid less than 90% of their owed taxes throughout the tax year. However, the IRS will be reducing that threshold and only applying the tax penalty to those who paid less than 85% of what they owed in 2018. Here’s what you need to know about these penalties, the waiver, and how they impact your taxes.
The tax filing deadline for business owners is fast approaching, and if you haven’t filed yet, you might be starting to feel the stress. Luckily, business owners have the option of filing for an extension that will give you some extra time to get all of your tax-related documents in order. If you’ve never filed an extension for your business before, here’s what you need to know.
Tax season is in full swing, and most people are getting their returns ready to file. If you’re one of those people who likes to file early, you might be rushing to get that return out the door so that you can get it processed more quickly (and perhaps get your refund that much sooner). However, there are a few things that you should do before you send in your tax return.
As the partial government shutdown stretches further into tax season, many taxpayers are worried about how this incident will impact their tax returns—and their refunds. Of course, nobody is certain how long this shutdown will continue. However, here’s what you need to know, given the existing circumstances.
It is officially the New Year, which means it is also officially tax season. While it might still be early on in the year, it’s important that you start gathering your tax documents now, so that you can get your return filed as early as possible. Here is a quick overview of the kinds of documents you might want to bring to a meeting with your CPA. The specific documents you need will vary based on your unique situation; however, this list provides a good starting point. If you have any questions, or you need assistance with tax preparation in East Brunswick or Cranford, contact us.
As 2018 draws to a close, there are many things that you need to examine, gather, and consider to prepare for filing this year’s tax return. And if you’re a business owner, that list of things you need to consider gets a lot longer. One important tax consideration for business owners is claiming the purchase of a vehicle as a business expense. If you’re not aware of it, many aspects of this deduction changed for the 2018 tax year, so here are a few things you need to know about claiming this deduction on your next return.
Charitable contributions are a common tax deduction for many of our clients, and are an excellent way to reduce your tax liability every year. However, many tax payers are uncertain which contributions qualify as a deduction. The specifications regarding this facet of tax law can be confusing, so here are a few of the basic requirements you should be aware of when determining which of your contributions can be listed on your next tax return.
At Demian & Company, LLC, we’re happy to handle your accounting and tax preparation. While January through April is our busiest times of the year, we are available year-round in two convenient locations. In addition to tax preparation services, we also offer bookkeeping assistance for your business. With our help, tax time isn’t something you have to dread, because we will get all the work done for you.
If you’re looking to get your taxes prepared in East Brunswick or Cranford, NJ, Demian & Company, LLC have it covered. We have served many customers and provided them with reliable tax preparation services each and every time. But you don’t have to just take our word for it. Here we’ll highlight some of our customer reviews from this most recent tax season. Some of them are return customers, and all of them were happy with the work we’ve done for them.
The IRS strikes fear in most law-abiding citizens, partly because tax matters are complicated and partly because this agency wields a lot of power. If you’re behind on your tax payments or can’t afford to pay the taxes you legally owe, it’s best to seek professional help right away. Your accountant offers various tax resolution services that can help you get your financial life back on track without fear of wage garnishments or loss important assets.
You don’t have to be an expert in taxes and accounting – that’s what you have an accountant for. Even though most business owners have a financial expert they can call, not all of them think about asking the right questions. Your CPA can solve many of your financial headaches for you if you reach out to them. Here we’ll explore six questions to ask your accountant during your next meeting or email exchange.
Bookkeeping for your business may inspire the same feelings as keeping a budget for your personal spending. As bothersome as it is to have to record every transaction, accurate bookkeeping is not optional when you’re running a business. Fortunately, you don’t have to do it alone. Your accountant can help you keep the books, and they’ll also help you prepare your financial statements.
Most people seek the assistance of an experienced accountant during tax season. That’s a good thing, because taxes are complicated and there are repercussions for not doing them right. On the one hand, you do not want to give the IRS money they didn’t ask for, but on the other hand, you have to pay what you legally owe. And while you may not give the matter much thought after the April filing deadline has come and gone, it’s a good idea to have an accountant on your side for other reasons, too. For example, you may need help with tax planning, audits, and making payment arrangements with the IRS.
Small business owners often try to save money by doing as much as they can on their own. Generally, bootstrapping is a good idea, especially if you’re just starting out. However, to keep a viable business up and running, you’ll need the assistance of an experienced accountant. Your business finances must be in order for you to keep your company afloat, and you also have to follow several rather tedious reporting requirements.
Tax season is still in full swing. In fact, many people won’t file their tax returns until it gets closer to the deadline, which is April 17th this year. Before you send off your return, it may be a good idea to let your Certified Public Accountant – short CPA – take a look. A CPA is an accountant who has completed a program of study in accounting, gained experience working in the field of public accounting, and passed a vigorous examination. Below you’ll learn why a CPA is the best person to talk to about your taxes.
Hiring a CPA to do your taxes can save you countless hours of pulling your hair out. It also saves you money, because they can help you find deductions and credits you didn’t even know about. We know that tax preparation is complicated – and it’s likely to stay that way. Below are some instances where you should really turn over your taxes to the experts to make sure you’re not paying too much.
Some people dislike bookkeeping just as much as another dreaded B-word: budgeting. While it’s true that keeping up with the finances isn’t fun for everyone, there are a lot of good reasons why business owners must concern themselves with it. The good news is that you don’t have to do the work yourself to gain the benefits of it.
It happens every year; April rolls around and you realize that it’s about time you started on those taxes before you miss the deadline and have to pay a fine. You don’t like filing your taxes or having to slog through them because you think they’re such a chore. But really, preparing your taxes can be fun, or at least, they’re a blast from our point of view. Let us tell you why.
QuickBooks is one of the premiere accounting software packages that is designed for small and medium-sized businesses. The software handles basic bookkeeping functions as well as monitors payments, keeps track of bills, and even deals with payroll, depending on the version of software you have. QuickBooks is used by over 80 percent of small businesses in the United States with over 1 million subscribers to the online version, QuickBooks Online.
With licensing in 49 states, Demian & Company offers boutique CPA services throughout East Brunswick and the surrounding area. With over 14 years of experience under their belt, they are ready to become your CPA of choice in all of your financial needs, both professional and personal.
There’s nothing scarier than the thought of being audited by the IRS, except maybe for being chased through the woods by an angry black bear. But while you might be able to lie down and cover your head and convince the bear to go away, the same tactic won’t have much effect on the IRS. So what should you do in the event of an audit? Well that depends on a couple of things.
Everyone knows that when you need your taxes done or some sort of auditing performed on your finances, a Certified Public Accountant is the way to go. After all, CPAs don’t just have a college degree backing up their expertise; they’ve also passed a strenuous and rigorous exam and sworn to uphold a code of ethics. However, there are also a variety of other services besides tax preparation and auditing that a CPA can assist you with.
Managing business accounts and books often requires a level of expertise and time investment that small business owners simply cannot afford to develop and maintain. While the ideal solution is often to hire a bookkeeper, a full-time employee doesn't fit into the budgets of many micro businesses, and it shouldn't have to.
April 18th was tax day, 2017 and the deadline for filing your taxes. If you're owed a refund, missing this deadline isn't necessarily a bad thing, but if you owe the IRS, not filing on time could result in heavy penalties and fees.
Accounts payable is one of the most important elements of your business, but it can be stressful and difficult, especially for newer business owners. Sending and receiving invoices is a process that takes time to get used to, especially if you've transitioned from traditional employment.
Filing your taxes is never easy. Even if you're going to your CPA's office to have them handle most of the details, you still must make time, possibly take time off work, organize your paperwork and then go back to pick it up. While you could choose to e-file, and file your own taxes online, this isn't an ... read more.
Filing your taxes is a pain in your bank account. Unless you make very little, you owe money to the government, and if you make a lot, then you owe a great deal. Luckily, the IRS offers tax deductions for everyone from individuals and investors to small business owners to help you keep as much of your hard earned money as is possible.
Over the past 14 years, the tax and accounting experts at Demian and Company, LLC have proudly served our clients in Cranford New Jersey with personalized service and great accounting. Now, we have expanded our service area to become ...