OCT 15, 2015 is the deadline to file your 2014 Individual Tax Returns. Time flies before you know so act now if you need to file your 2014 taxes. And we are of course here to help you. Please call me at 201-723-3853. Thank you and look forward to speaking to you soon.
There are many year-end tax saving strategies and one of them is shifting income and deductions. Please see if you can shift income and deductions at year end. In order to decide which year-end moves will actually save tax dollars, you need to make following basic tax estimates and determinations.
- Estimate your income and deductions for tax year 2013 and 2014
- Based on 1 above, determine your tax brackets for both 2013 and 2014
- Determine the amount by which the income must change to move from one tax bracket to another
Let us take an example to understand this. Say you are married filing jointly and your 2013 taxable income is $200,000 falling in the 28% bracket. Your estimated taxable income for 2014 is $225,000 falling in 33% tax bracket. Shifting a few thousand dollars of income from 2014 to 2013 will cut on the tax on that income by 5 cents on the dollar. But here you need to be careful to make sure that moving income from 2014 to 2013 does not push you to higher tax bracket of 33% for 2013.
You may accelerate spending at year-end to increase your tax deductions – for example, by making year-end charitable contributions and pre-paying other deductible expenses, such as state or local taxes and mortgage interest. However if your income is on the rise, these deductions may be more valuable in 2014.
Sometimes smart year-end spending can generate deductions that would not be available if the expenses were spread out over two years. Following two examples will help you understand this.
(1) Miscellaneous Deductions: This includes unreimbursed employee expenses, investment consulting fees, custodial fees on property held to produce income, safe deposit rentals, job hunting expenses, and tax return preparation fees. These miscellaneous itemized deductions are deductible only to the extent they exceed 2% of your Adjusted Gross Income (AGI). If your 2013 Miscellaneous Expenses are already at or surpass 2% of your AGI, then you should see if you can accelerate other miscellaneous expenses from early 2014 into 2013. If with shifting miscellaneous expenses from 2014 to 2013, you do not surpass the 2% of AGI limit then it is of no help.
(2) Medical Expenses: For taxpayers who are not age 65 or older for tax year 2013, the unreimbursed/uncovered medical expenses are deductible to the extent they exceed 10% of AGI. You should total up all unreimbursed medical and dental expenses you have incurred so far in 2013 and compare that number with your 2013 estimated AGI. If the expenses are at, over, or near the 10% mark, it makes sense to accelerate what would otherwise be 2014 medical and dental expenses into 2013. For example you can move up an scheduled doctor’s visit or eye exam from January to December. You may also want to pay the full cost of an ongoing procedure, even if treatment would not be completed until next year. Please also consider overlooked deductions like: the extra cost of orthopedic shoes or special mattress for an arthritic condition, Medicare B premiums, room and board for a live-in-nurse, the cost of medical travel, the portion of a child’s tuition bill that covers medical care, medically necessary home improvements – installation of an access ramp, a walk-in shower, or even an elevator.
Hope this was helpful. With any question, please contact Bipin Bhatt at 201-723-3853 or email to firstname.lastname@example.org. We are here to help you. Thank you for your interest.
See our newly updated tax tips page for information on:
- 2012 Tax Brackets, Standard & Itemized Deductions, Personal Exemptions
- 2012 & 2013 Social Security Key Facts
- 2012 Tax Credits for Education
- Child Tax Credit, Child & Dependent Care Credit, Credit for Elderly or Disabled
- Earned Income Credit (EIC)
- Retirement & Pension Plans Key Points
- Alternative Minimum Tax (AMT)
- Transportation & Mileage Rates
- Capital Gains & Qualified Dividends
- Estate and Gift Taxes
- Health Savings Accounts
- Foreign Income, FBAR & Form 8938
You are one of our most valued clients and we sincerely appreciate your continued patronage. We are extremely grateful for the trust and confidence that you have shown us. Your success and satisfaction are very important to us and we will continue to work hard to honor our relationship by providing you qualitative and unprecedented service at very competitive price. This is our promise and pleasure.
This is also a time when you need to organize your books and tax related documents. We encourage you to please visit our NJ Tax Return page. Please read carefully WHAT TO BRING section on this page. This will help you to make sure that no important tax aspect is overlooked or missing and you get the benefit of all legitimate tax deductions and credits. Please make a list of points applicable to your case and start putting things together for your 2009 Tax Return and when you are ready, please call me at 201-723-3853 to schedule our meeting. We want to give you the time and attention you deserve and therefore we encourage you to avoid deadline rush.
We are sure that you will be glad to recommend our NJ Accountant services to your friends and relatives. We would certainly appreciate your recommendations and we look forward to getting some new clients with your recommendations. We once again sincerely thank you for your continued patronage and support. With any question, please do not hesitate to call me at 201-723-3853. Talk to you soon. Thank you.
We are specialized in:
Accounting & Bookkeeping, Bank Reconciliations, Financial Statements, QuickBooks Support & Training, Payroll, Sales Tax, Business Tax Returns, Personal Tax Returns, Help with IRS & State Tax Issues, Issue of Form 1099, Forming New Company, and much more.
Form 1099 Reporting to IRS
We wish to bring to your notice that during tax year 2009, if you paid $600 or more to your vendors or subcontractors, you need to issue them Form 1099 by 01/31/2010 and report this to IRS on Form 1096. Non compliance may result into penalties. We would like to offer our services for INCOME REPORTING at very affordable price. We have the best knowledge, skills, and experience to offer you accurate, timely, and dependable services with total peace of mind. Here is how we can help you:
- Process Form 1099 (or any other income reporting form)
- Mail these forms directly to the recipients (stamps on us)
- Process the Summary Form 1096 and report to IRS with Form 1099
- Copy of Form 1096 + all 1099 will be sent to you for your record
Price: $5.50 for each Form 1099 + $7 for Summary Form (That’s it! No hidden fees). For example, if you need 5 Forms 1099 then your cost will be $34.50 (5 X $5.50 = $27.50 + $7 for Summary Form = $34.50).
Sounds interesting? Then please send us the below mentioned information.
- Your company name, address, and company TAX ID NUMBER
- Recipient’s first name, last name, address and zip code
- Recipient’s Federal Identification or Social Security number
- Amount paid in 2009
- Nature of payment: Is this non-employee compensation, or rents, or royalties, or other type
- Federal income tax withheld, if any
- State tax withheld, if any
We accept all major credit cards. For other payment options, or with any other question, please feel free to speak to us at 201-723-3853. Leave this tax compliance to us and focus on your business. We will make sure that things are done right and you get total satisfaction and complete peace of mind. We look forward to speaking to you soon. Thank you.
Just in case, if you have forgotten the value of a hard-earned penny, please remember that every penny saved is nothing less than additional earnings. With this tough economy and rough time, every business is desperately trying to cut down its expenses. Here are some great money saving ideas that you would love to learn. This will offer you more inexpensive ways to draw customers in. Though some tips will save you more money than others, the end result of your overall spendthrift strategy could add up to a bundle.
Jacquelyn Lynn, Ivan R. Misner, Chris Penttila, Guen Sublette and Laura Tiffany have done some great research work and have come up with great 50 money saving ideas. These ideas have been distributed in below listed 11 groups.
- Penny-Pinching Promotions
- Internet Ideas
- Location Logic
- Office Overhead
- Insurance Intelligence
- Employee Economics
- Shipping Savings
- Tax Tactics
- Financial Focus
- Professional Policies
- Buying Brainpower
The articles is very informative and believe me, you will get some great workable ideas. I would like to encourage you to please visit the below given link to fully enjoy the great article.
Read the whole article here: 50 Ways To Save Money
We sincerely and gratefully acknowledge the resources. Thank you.
I make all payments through bank or credit card and as such all my expenses are automatically recorded, so why should I spend for Accounting & Bookkeeping?
As an Accountant, I have to often face this question. In the beginning years of the business, in a quest to control the operational cost, this might sound like a valid point but it is not right thing to do. Why?
As of today, you may have just a few business transactions but where you want to be after a year? Please remember that when you started a business, someone told you that here is a nice cake (wealth) in front of you and it is up to you to decide how big piece of that cake you want and how fast you want. Obviously you want to think big and positive.
A bank statement or credit card statement does not classify the income and expenses of a business as required by GAAP concept. In business, it is always necessary to identify your business revenue, capital revenue, deductible business expense, capital expense, assets, short term & long term liabilities, equity and retained earnings. Bank statement and credit card statement would not be able to give you profits or losses of the business for a given period of time. They cannot explain financial health of your business on a given date. They simply cannot offer you proper records to facilitate tax compliance. It is nothing but accounting and accounting only that can help you in these areas. Keeping in line with your business growth prospects, you will please appreciate the following great benefits of good Accounting and Bookkeeping.
- This enables you to efficiently manage multiple products and services that your business offers
- This enables you to operate with different price levels for the same product or service
- You can identify the client group that can promote your business and profits
- Based on payment habits, you can offer experience based credit terms to your clients
- This helps you keep track of cost of each of your products and services for each of your locations
- This helps you efficiently manage your inventory and decide the timing and pace of your manufacturing or purchasing or storage needs
- You can efficiently manage multiple vendors and subcontractors with more suitable terms
- Better cash flow management
- Helps you record all your deductible business expenses like depreciations, accrued expenses
- Keep track of all types of expenses
- Helps you to identify non-productive activities
- Helps you efficiently manage your payroll expenses and payroll taxes
- Helps you efficiently manage your budgeting, planning, and projections
- Provides a perfect basis for financial reports and tax compliance
- It promotes great internal controls and fraud prevention system
- This enables you build up great records that have great values
- Great help to take proactive, prudent, and well-informed business decisions
- Peace of mind and great satisfaction
There are many books written on why many businesses fail and close in the beginning years. There are many reasons of their failure and one of those reasons was they did not know how they were doing and when they knew, it was too late to fix. In this competitive time, you really cannot wait and you must have proper Accounting system that offers you timely, complete, and effective control and helps you take prudent business decisions. Taking right decision at right time does matter a lot. Please also remember that proper and timely tax compliance is mandatory.
We have given you the best, most convincing, and pressing reasons that strongly advocate proper Accounting system for your business from day one. Now it is for you to decide if you want to keep going without knowing where you are going to or have well-planned and properly accounted business activities that ensure a secured and better future. Good luck! We are sure you will take a right decision and please remember that we are always here to help you. We are just a phone call away. Please call us at 201-723-3853. Thank you for your time and we look forward to speaking to you soon. Remember, we will serve all your NJ Accountant needs with most affordable rates and highest quality.
Limited Liability Company (LLC) is becoming more and more popular form of business as it offers two major benefits. One is – Corporation’s protection from personal liability for business debts and another is – the pass through tax structure of partnership or sole proprietorship.
Are you sure LLC is the right structure for your new Company? Great! If not, we can certainly help you to take a right decision. If you are thinking of opening a new LLC Company in New Jersey, here are five easy steps to do so.
- Decide your business name for your LLC Company and check the name availability
- Register your business name and DBA name with local, state, and federal business registration unit
- Prepare and sign your LLC Operating Agreement. This governs operation of your LLC.
- Prepare and file Articles of Organization. This contains some basic information about your LLC such as name, address, nature of business, name and address of registered agent, name of Manager and Members etc. You need to pay filing fees to State.
- You need to obtain business license and permits from Federal, State, & Local Government.
Does not sound simple? No problem! We are here to help you. Please call us at 201-723-3853 to schedule a meeting where in we can walk you through the entire process of New Jersey LLC formation. Please do not forget to ask about our other start-up services.
Hi I am Bipin Bhatt, owner of KB Accounting & Tax Services, Inc. I am planning on making this a regular place to blog about my experience in Accounting, QuickBooks, Business & Personal Taxes, Tax Tips, and other cool stuff. Stay tuned.