What you need to do NOW! Preparing to file your tax return is a great time to ensure you have proper documentation to substantiate your tax deductions. This is important as many banks start deleting online documentation that is over one year old.
Background Two things have happened over the past ten years that have greatly reduced the ability to have a canceled check as proof when the auditor comes calling. The first is the advent of online bill paying services. The second is a regulation commonly known as Check 21. With online bill paying, you pay a bill via an online banking service. Your only receipt is often just an entry in your checking account. With Check 21, the law allows banks to digitally capture the check and then destroy the paper copy without returning it to you. So what do you do if you need proof that you paid for a tax deductible item? Some Tips
"Tax Tips" are published to provide current tax information, tax-cutting suggestions, and tax reminders. If you would like more information on anything in "Tax Tips," or if you'd like to be on our mailing list to receive other tax information from time to time, please contact our office. The tax information contained in this site is of a general nature and should not be acted upon in your specific situation without further details and/or professional assistance. We are trusted CPA advisors servicing Burr Ridge, Hinsdale, Willowbrook, Darien, Naperville, and all Chicagoland area. Do you need assistance with your business and/or personal tax returns? Would you like to have a trusted source for your accounting, allowing you additional time to focus on increasing your business? Do you use QuickBooks, or plan to in the future, for your accounting? We include these in all our service packages, customized to fit your personal or business needs. We are currently accepting new clients. Your initial consultation is free, so you have nothing to lose and everything to gain. Our experienced staff is available to help you streamline your accounting, giving you more free time for yourself. Set up an appointment today by calling (630) 320-3720 or email us at [email protected]. For more free resources, such as Tax Organizers, and Record Retention Schedules, access our website www.monarchaccountinggroup.com. Mia Verc, CPA; Janice Papais, CPA
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Review these common causes of filing delays Double-check this list of items that often cause delays with both filing your tax return and getting your much anticipated refund.
Missing W-2 or 1099. Using last year's tax return, make a list of W-2s and 1099s. Then use the list to ensure they are received and applied to your tax return. Remember, missing items will be caught by the IRS's matching program. Missing or invalid Social Security number. E-filed tax returns will come to a screeching halt with a missing or invalid number. Dependent already claimed. Your return cannot be filed if there is a conflict in this area. Name mismatch. If recently married or divorced, make sure your last name on your tax return matches the one on file with the Social Security Administration. No information for a common deduction. If you claim a deduction, you will need to provide support to document the claim. Missing cost information for transactions. Brokers will send you a statement of sales transactions. If you do not also provide your cost and purchase information, the tax return cannot be filed. Not reviewing your return and signing your e-file approval. The sooner you review and approve your tax return, the sooner it can be filed. Forms with no explanation. If you receive a tax form, but have no explanation for the form, questions could arise. For instance, if you receive a retirement account distribution form it may be deemed income. If it is part of a qualified rollover, no tax is due. An explanation is required to file your information correctly. Hopefully by knowing these commonly missed pieces of information, you can prepare to have your tax filing experience be a smooth one. "Tax Tips" are published to provide current tax information, tax-cutting suggestions, and tax reminders. If you would like more information on anything in "Tax Tips," or if you'd like to be on our mailing list to receive other tax information from time to time, please contact our office. The tax information contained in this site is of a general nature and should not be acted upon in your specific situation without further details and/or professional assistance. We are trusted CPA advisors servicing Burr Ridge, Hinsdale, Willowbrook, Darien, Naperville, and all Chicagoland area. Do you need assistance with your business and/or personal tax returns? Would you like to have a trusted source for your accounting, allowing you additional time to focus on increasing your business? Do you use QuickBooks, or plan to in the future, for your accounting? We include these in all our service packages, customized to fit your personal or business needs. We are currently accepting new clients. Your initial consultation is free, so you have nothing to lose and everything to gain. Our experienced staff is available to help you streamline your accounting, giving you more free time for yourself. Set up an appointment today by calling (630) 320-3720 or email us at [email protected]. For more free resources, such as Tax Organizers, and Record Retention Schedules, access our website www.monarchaccountinggroup.com. Mia Verc, CPA; Janice Papais, CPA WASHINGTON — The Internal Revenue Service announced the launch of a new page on IRS.gov explaining the Employer-Provided Childcare Tax Credit, an incentive for businesses to provide child care services to their employees.
“This business tax credit helps employers provide their employees with child-care services and facilities,” said IRS Commissioner Danny Werfel. “We’ve heard that some employers may be overlooking this important credit, so the IRS has created a new one-stop shop for information on IRS.gov that provides an easy place to learn more.” The information is available at irs.gov/employerchildcare or by searching “employer child care.” This tax credit is designed to help employers cover some of the qualified child care facility and resource and referal expenditures associated with providing child care services to their employees. A qualified child care facility is one that meets the requirements of all applicable laws and regulations of the state or local government in which it is located. The credit is limited to $150,000 per year to offset 25% of qualified child care facility expenditures and 10% of qualified child care resource and referral expenditures. Employers should complete Form 8882, Credit for Employer-Provided Child Care Facilities and Services, to claim the credit for qualified child care facility and resource and referral expenditures. The credit is part of the general business credit subject to the carryback and carryforward rule. This means employers may carryback unused credit one year and then carryforward 20 years after the year of the credit. Taxpayers whose only source for the credit is from pass-through entities can report the credit directly on Form 3800, General Business Credit. The Employer-Provided Childcare Tax Credit homepage on irs.gov has more information about claiming the credit, including the requirements for qualified child care expenditures and qualified child care facilities. "Tax Tips" are published to provide current tax information, tax-cutting suggestions, and tax reminders. If you would like more information on anything in "Tax Tips," or if you'd like to be on our mailing list to receive other tax information from time to time, please contact our office. The tax information contained in this site is of a general nature and should not be acted upon in your specific situation without further details and/or professional assistance. We are trusted CPA advisors servicing Burr Ridge, Hinsdale, Willowbrook, Darien, Naperville, and all Chicagoland area. Do you need assistance with your business and/or personal tax returns? Would you like to have a trusted source for your accounting, allowing you additional time to focus on increasing your business? Do you use QuickBooks, or plan to in the future, for your accounting? We include these in all our service packages, customized to fit your personal or business needs. We are currently accepting new clients. Your initial consultation is free, so you have nothing to lose and everything to gain. Our experienced staff is available to help you streamline your accounting, giving you more free time for yourself. Set up an appointment today by calling (630) 320-3720 or email us at [email protected]. For more free resources, such as Tax Organizers, and Record Retention Schedules, access our website www.monarchaccountinggroup.com. Mia Verc, CPA; Janice Papais, CPA A great place to lower your taxes The tax code has plenty of ways to reduce your taxable income, and many take place on your paycheck. If you haven’t already done so, now is a great time to conduct a thorough review of your paystub. Here are some tips:
Review insurance withholdings. Many employers adjust the amount you contribute for your insurance at the start of each year. Check to ensure the proper amount is being withheld. This includes medical, dental, short-term disability and long-term disability. Every extra dollar hits your pocketbook! Action: Compare the withholding amount with your employer documentation. Double check whether the dollars withheld are pre-tax or after tax. Most of these benefits should be pre-tax. Check elective pre-tax benefits. These elective benefits typically include Health Savings Account (HSA) pre-tax contributions if you are in a qualified high deductible health plan or an FSA contribution if you are in this pre-tax health benefit. Remember that there are annual contribution limits, so double check you are taking full advantage of this tax benefit. Action: Correct any errors as soon as possible with your employer and maximize your contributions to get your full tax benefit, but be careful with FSA contributions as part of the balance in this account does not carry over into the next year like HSA contributions. Retirement Plans. Review to ensure contributions for employer-provided retirement plans are properly noted. If there is an employer contribution to your plan, make sure this is noted and properly calculated as well. Action: If your employer is making a contribution to your plan, ensure you are maximizing this tax-deferred benefit. Update your withholdings. Determine if enough is being withheld for Federal and State tax purposes. File a new W-4 with your employer if you need to adjust how much is being withheld for these taxes. Action: Cost of living adjustments made by the IRS are impacting the tax rate being applied to your income. This is because the tax brackets are expanding while tax rates are remaining unchanged. Either use the new IRS withholding estimator (not for the faint of heart) or look at last year’s tax return and make adjustments accordingly. Your paycheck is often one of the best sources of information to figure out how you can reduce your tax obligation. So keep it on your radar and come back to it for a quick review a few times during the year. "Tax Tips" are published to provide current tax information, tax-cutting suggestions, and tax reminders. If you would like more information on anything in "Tax Tips," or if you'd like to be on our mailing list to receive other tax information from time to time, please contact our office. The tax information contained in this site is of a general nature and should not be acted upon in your specific situation without further details and/or professional assistance. We are trusted CPA advisors servicing Burr Ridge, Hinsdale, Willowbrook, Darien, Naperville, and all Chicagoland area. Do you need assistance with your business and/or personal tax returns? Would you like to have a trusted source for your accounting, allowing you additional time to focus on increasing your business? Do you use QuickBooks, or plan to in the future, for your accounting? We include these in all our service packages, customized to fit your personal or business needs. We are currently accepting new clients. Your initial consultation is free, so you have nothing to lose and everything to gain. Our experienced staff is available to help you streamline your accounting, giving you more free time for yourself. Set up an appointment today by calling (630) 320-3720 or email us at [email protected]. For more free resources, such as Tax Organizers, and Record Retention Schedules, access our website www.monarchaccountinggroup.com. Mia Verc, CPA; Janice Papais, CPA |
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Phone: (630) 320-3720
Monarch Accounting Group Inc 145 Tower Drive, Suite 10 Burr Ridge, IL 60527-7836 Email: [email protected] |
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