Category Archives: Tax Tips

A Few Tips For Your State And Local Taxes

Most people have creative ways to save on their federal taxes, but miss out on tips to maximize their local, state tax refund. Your State collects a portion of taxes from your income, and you’re entitled to a portion of that back each year. It is drawn from a taxpayer’s taxable income by the state. Your state income taxes are an important part of your tax entitlement. You should always include your state, and local income tax obligations, and financial amount to avoid a penalty, or losing money you’re entitled to under state tax laws set by your current state.

Three Tips To Save On Your State And Local Taxes

Combine Your Taxes

Many tax preparers will offer incentives to customers who combine their other taxes with their state income taxes. This incentive is usually offered to customers who file online also. The best way to take part in this tip saving idea is by asking your tax specialist in advance about their state tax savings opportunities.  Not all states apply here.

Participate In State/Local Deductions

There are many state income tax deductions available to taxpayer’s. Deduct the state, and local taxes on throughout the year on all the state approved items, and services each year. For example, you can get a deduction for sales tax, property taxes, and real estate according to the state tax rules of your state. Some states will also allow taxpayers to write-off their annual general state taxes. It’s also important to make provision for these state deductions before they are reformed by Congress. The reform would eliminate the tax on the state/local level. Keep your eyes posted for 2018 tax reform.

Ask A Tax Professional

A tax professional is trained, and qualified with the tax knowledge to help you get your maximum state refund, and save. You should always be aware of their qualifications, past experience, and how they can help you get the best state, and local taxes.

Your state, and local taxes don’t have to be hard to file, or cost a significant amount, if you use reliable tax savings ideas, and tips. Get the most out of the taxes you pay each year on your state, and local taxes.

Check out jmstroudcpa.com for more information.

3 Reasons For Filing A Tax Extension

There are many reasons why people file for their income taxes to be extended. The good part about filing for an extension with the IRS is that your actually reason or circumstance is not required. The process with a federal tax extension is fairly easy as the internet is a great resource for all the required information needed for your extension. With income taxes extended you get 6 more months to actually file your personal tax return. In this blog we are going to discuss three reasons to file a federal tax extension. The first reason to file an extension is if you are a new business owner. New business owners are new to the game and sometimes just don’t know where to begin in terms of business taxes. Some may be used to filing the normal individual tax filing. Another reason to file a tax extension is marriage. It can bring up many new tax laws most may not be aware of. Getting married changes all financials especially on a tax return so some file an extension ensuring everything is squared away. Last but not least the third reason to file for a tax return extension an emergency and have to leave the country. Being out of the country can mean that you may miss the filing deadline so filing an extension just makes sense and saves you money.

First there are many online tools that you can use to prepare your business taxes as well as step by step tutorials in order to file an extension. One key component that a business owner must understand when filing a tax return is that you must be able to estimate how much you owe by the given date. This applies only if you owe anything at all. The correct form for business taxes to be extended is going to be Form 7004. However, keep in mind that each business is different. C-corporations, S-corporations and partnerships all have different dates that you may apply for an extension. There are a number of tax forms and tax help online to help your tax returns be turned in on time.

For marriages and taxes there are many laws that must be reviewed. The filing status for marriages will and same-sex marriage tax laws have been changing and is a great reason to file a tax extension. Reading up on the latest legal decisions for filing a tax extension if you just got married is worth researching and can be time consuming.

 Last but not least if you have a hard time finishing something in one shot filing an extension is best especially if you know that you will be out of the country. If you know that you will be out of the country and you will not be returning until after the tax deadline filing for an extension is extremely beneficial. You may be eligible for an automatic six month extension. There are many filing options, as well as timing deadlines that needs to be met. Also, when to file and pay is going to be information supplied to you when filing for an extension.

Saving Those Tax Receipts – Do I need To?

Many times people ask, “Do I need to save every single receipt?”

Taxes Sign Showing Tax Or Taxation

Generally speaking, if you make a good faith charitable donation, it is technically deductible. However, in the case of an IRS audit, you would not be able to support your position and your deduction would be disallowed.

So if you do make the donation, but just forget to get the receipt, you can track and claim it in most cases, just be prepared to lose the deduction if it gets questions.

Each situation is  unique though, so be sure to check with your tax advisor for more information.

Another thing to look into, is possibly buying a receipt scanner or maybe use a free app that can scan and save the receipts. Note, that unless you have a small business or have tons of receipts, this level of detail may not be needed.

When compiling all your tax information for the year, do not just throw it all in a folder and let the tax person try to find everything. It is often easier if both parties know exactly what is going on and what is expected. When the client fully grasps what they are doing and why, they often benefit even more with the use of a tax preparation expert.

Another tip when a person is close to itemizing each year is to structure your charitable deductions and other itemization, so that you load up on them in every other year to maximize the overall tax benefit. One example of this would be paying your January mortgage payment in December every other year.  Things of that nature.

Overall, if you keep generally good records and at least file everything in a somewhat organized fashion, tax time does not have to be a stressful time of year!