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How to Wrap up Your Tax Season

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This post was sponsored by #BlockAdvisors. All opinions are our own. As the close of the 2015 tax season rapidly approaches, it is not the time to sit back and do nothing until next year. There are plenty of tasks you can start on to make next year’s tax season flow even smoother. Here are some ideas of how to wrap up your tax season and get a jump on next year. 1 Work with Your Tax Preparer Maintain a good relationship all year long with the person who prepares your taxes, like the tax professionals at BlockAdvisors. Your tax preparer should know your history well enough to contact you early in the year if there are going to be changes that could affect how you conduct your business the rest of the year, or after completing your tax return from the prior year. Don’t wait until next year to find out new tax laws mean you will owe money to the IRS when you counted on a refund, for example. By knowing in advance, you could set aside money in preparation to pay in. If your accountant or tax professional hasn’t let you know of the current changes, be ...

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5 Tips to Prevent Tax Identity Theft

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It’s March, the days are flying by, and already we are over one sixth of the way through the year. For those who don’t already know, the income tax return deadline for this year is the eighteenth of April, and estimates show it is expected that over 240 million tax returns will be filed. Of those, approximately 20% could be fraudulently filed using someone else’s information. Sound a little scary? It should. But there are ways to prevent you from becoming one of the victims. Here are five tips to help you prevent tax identity theft from happening to you. 1 Shred Your documents Before you throw away any personal or household documents, including invoices and tax returns, stop. Instead of trashing it, shred it. If you don’t own a shredder, you can invest in one for a reasonable price, usually around $35.00, at any discount store. It’s worth the investment and a small price to pay compared to the high cost of cleaning up your credit after you’ve been targeted by a thief. However, if you can’t afford to buy a shredder, maybe you could simply use scissors to cut up those identifying documents, if you don’t have too ...

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Tips For Calling The IRS

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One of the fun things about being self employed is the taxes. I say that in the most sarcastic way because anyone who has ever had the opportunity to be their own boss understands how confusing and difficult IRS rules truly are. When you add multiple streams of income or money from things like rental property or dividends, it gets even more exciting. I wasn’t really surprised when we got several notices after filing our taxes. It seems no matter how careful we are with keeping track of our business income and expenses, and even with hiring a CPA, the IRS always finds something wrong with our tax return. This year, one of our three notices was for a late corporate filing with a fine of $195! I knew I had the proper documentation to prove otherwise, so it was time to make the call. Speaking to the federal government is not for the faint of heart, so here are my tips for calling the IRS. Have All The Proper Documentation The reason I was so confident about calling the IRS was because I had a copy of the from we sent in to request an extension to file our ...

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How To Avoid Paying Taxes

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This is a post from Gary Dek at Gajizmo.com. Enjoy! Benjamin Franklin said “The only two certainties in life are death and taxes” but with loopholes in the tax code, a little research and planning with your CPA or tax attorney may significantly reduce or altogether eliminate your tax liability. The mega rich know all the ways to avoid income and capital gains taxes, but those with lower incomes can find ways to cut their tax bills, too. Here are a few strategies to teach you how to avoid paying taxes. Not all our tips may apply to you so pick the ones that are feasible and discuss them with your accountant for the coming tax year. Tax Credits Would you like the government to pay part or all of your tax liability? It can happen if you accumulate enough tax credits. You may qualify for an Earned Income Tax Credit if you have a low to moderate income – $37,870 to $51,567 (depending on the number of dependent children in your household­­). At these income levels, your refundable tax credit may be larger than the amount of federal taxes you owe, resulting in a sizeable refund. Other tax credits ...

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Friday Rant: Taxes Suck

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I confess that I was really nervous about our taxes this year. I think I’m pretty smart. I went to school for a long time and have lots of diplomas and certificates hanging on my wall, but I honestly never have a clue about our taxes. Added to that is another of my irrational fears (along with birds and foods that turn from liquids to solids at room temperature) of being the subject of an IRS audit. I’m not being lazy about learning to use do it yourself software like Turbo Tax. Our taxes are really hard! We have income and expenses from all sorts of things, especially this year. Normal W2 income 1099 income Stocks and dividends Business income and expenses for an 8 employee business that also gets extra credits for certain health care and ADA laws Commercial and residential rentals Selling a satellite office as an asset sale and then my main practice as a stock sale Non 1099 or W2 income from online ventures Selling our flip house Taxes suck. I’d rather eat gravy in a bird cage than read IRS regulations. It would take me 5,000 hours to try and understand it all, so that’s ...

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