Individual Tax Preparations
Accounting & Bookkeeping
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 NEVER SPEND MONEY JUST TO SAVE ON TAXES - Be careful when you take advice from anyone trying to sell you something. Before you open an IRA, buy that insurance policy, or sign a contract to build a silo or lease a tractor, get an objective opinion. Don't do it just to save on taxes.PAY YOUR FAMILY MEMBERS - Wages paid to dependent children for work they do on the farm or business provide excellent savings. Wages paid to your children who are under the age of eighteen are not subject to social security tax. A single person such as a child, can have more than $4,000 of earned income without having to pay any federal income tax. *See Payroll Tips MEDICAL EXPENSES - Many self-employed taxpayers can realize a huge savings by initiating a medical reimbursement plan. This will allow you to write off your hospital insurance and medical expenses as business expenses rather than itemized deductions. DON'T PAY EXTRA TAX - This past year the IRS sent thousands of bills by mistake. If you receive a bill from the IRS, make sure you owe the additional tax before you pay it. FORM 1099'S AND 1096 - File all the required 1099 and 1096 forms before January 31 to avoid large penalties. We can help you prepare these forms. PAYROLL FORMS - File all of the required payroll forms (941, 943, W-2, W-3, etc.) by the required due dates. DON'T LOSE DEDUCTIONS IN A LOW INCOME YEAR - If your income is too low, you will lose the tax benefits of your standard deduction and exemption allowance. You should definitely tax plan when you have a low income year. ITEMIZED DEDUCTIONS - If your itemized deductions don't exceed your standard deduction, perhaps you can shift expenses so you can itemize every other year. DONATIONS - If itemizing personal expenses simply doesn't work for you, or provides only minimal benefits, consider an alternative plan for gifts to your church or other charities. ALTERNATIVE MINIMUM TAX - The Alternative Minimum Tax affects a small but growing percentage of taxpayers. When it applies, the tax can be substantial. What's worse, this tax is so complicated it's difficult to predict when it will apply. KEEP ALL RECEIPTS - In an audit, a deduction may be disallowed by the Internal Revenue Service, not because you cannot legally take it, but because you do not have the receipt to show adequate proof that the expense actually occurred. They may also match your canceled checks with your receipts. COMPARE BANK DEPOSITS WITH REPORTED REVENUE - At the end of the year, add up all of the deposits you have made in your checking and savings accounts and compare this amount with the income you have reported on your tax return. Make sure you can verify or explain all deposits in your checking accounts and savings accounts. If you cannot explain these deposits the IRS will assume they are unreported income and will tax you on this money. AVOID PENALTIES - The last thing you want are tax penalties. Make sure all of your taxes are filed and paid by the due date. NEVER ANSWER A QUESTION FROM THE IRS OR STATE THAT YOU DO NOT UNDERSTAND - It is best to send the question to your tax preparer and they will answer the letter for you. *This is general tax information. Each business situation may be different. This information should not be relied upon as your source of authority. Please seek professional advice for all tax and payroll situations. |
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Stetzer Accounting Service W23082 State Road 35 Trempealeau, WI 54661 Tel: 608 534 6558 Fax: 608 534 6316 , Stetzer Accounting Service, All Rights Reserved Web page design and web hosting by Onalaska Web |
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