3 Big Changes to Know about for Your 2021 Tax Return

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.

Jan 15, 2022
Reduce Your Tax Liability with These Last-Minute Financial Moves

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.

Jan 01, 2022
Start Your New Year with a Clean Slate: Get Relief from Tax Debt

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.

Dec 15, 2021
Important Things to Remember before Making Charitable Donations

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.

Dec 01, 2021
5 Things to Do Now to Prepare for the 2022 Tax 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.

Nov 15, 2021
How Outsourcing Your Accounting Needs Could Benefit Your Business

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.

Nov 01, 2021
Did You Miss These Major Tax Breaks on Your Last Return?

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.

Oct 15, 2021
Reminder: Personal Tax Extension Deadline Is October 15

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.

Oct 01, 2021
Types of IRS Payment Plans and How to Qualify

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.

Sep 15, 2021
5 Ways to Make Filing Your Business Tax Return Easier

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.

Sep 01, 2021
Why You Might Consider Opting Out of Child Tax Credit Payments

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.

Aug 15, 2021
What You Should Know about the IRS's Impending Tax Enforcement Push

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.

Aug 01, 2021
Tips for Minimizing Estate Taxes on What You Leave Behind

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.

Jul 15, 2021
What Is the Alternative Minimum Tax and Should It Be Eliminated?

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.

Jul 01, 2021
Why Professional Tax Planning Should Be Part of Your Retirement Plan

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.

Jun 15, 2021
How the Advanced Child Tax Credit Payments Impact Your 2021 Return

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.

Jun 01, 2021
Will Your Student Loan Forgiveness Lead to a Big Tax Bill?

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.

May 15, 2021
The New Tax Deadline Is Approaching: How to Avoid Late Fees

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.

May 01, 2021
6 Key Aspects of Our Accounting and Bookkeeping Services in East Brunswick, NJ

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.

Apr 26, 2021
Reliable, Accurate Bookkeeping Services in East Brunswick, NJ

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.

Apr 19, 2021
Our Accounting Services in Cranford, NJ, Can Prepare You for May 17th

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.

Apr 09, 2021