Affordable bookkeeping provider Coral Springs, Florida: Part of the benefit of the process comes into play when the full-charge bookkeeper coordinates with members of management from other departments in order to approve purchases and gather expense reports. Not only does activity this require extreme organizational, management and math skills, but a bookkeeper must also have people skills in order to make this work.
Collect Pertinent Income and Expense Information: Around the end of January each year, employers, vendors, financial institutions, and others prepare and forward various tax forms and information pertinent to your filing. Create a set of files – whether that’s a large multi-pocketed accordion file, a group of large manila envelopes, or a digital filing system on your hard drive – to sort and separate the data into one of the following categories: Personal Information. This information should include your legal name, as well as the legal names of your spouse and all dependents. You also need their Social Security numbers and dates of birth. I also keep my primary bank information – account number and bank routing number – so I can request a direct deposit refund if circumstances warrant. Income. Common forms include W-2s from employers; 1099 forms for other types of income, such as self-employment, investments, and retirement distributions; and K-1s for any partnerships in which you participate. Keep a separate folder for security transactions so you can quickly determine holding periods from buy and sell dates to ensure you qualify for capital gains treatment wherever possible.
Use Your Flexible Spending Account Balance: Workers who have flexible spending accounts need to use up their balances soon. These accounts have “use it or lose it” provisions in which money reverts back to an employer if not spent. While some companies provide a grace period for purchases made in the new year, others end reimbursements at the close of the calendar year.
Plan for estimated taxes: As we mentioned before, seriously underpaying your taxes throughout the year can have very negative consequences. If you expect to owe at least $1,000 in taxes when you file, the IRS generally requires that you make estimated tax payments throughout the year. This is especially important for business owners or self-employed individuals who generally don’t pay income taxes on their earnings. Note that you may need to work with a tax accountant to determine how much to set aside and pay each quarter. Find extra details at Fort Lauderdale Bookkeepers.
After the employee’s debt has been paid, the procedure for stopping the garnishment will vary depending on the type of garnishment. For federal levies, employers will receive a 668-D form, for child support the employer will receive a notice or letter from the state, and creditors will send employers a “Notice of Termination/Release of Wage Garnishment Order” for creditor garnishments. Employers should have a basic understanding of garnishments and a plan in place to respond when they occur. Consider working with a professional to ensure your plan and procedures are compliant with applicable laws based on your specific situation. Using a garnishment payment service can help you remit funds to the correct agency and help protect against undue liability and lawsuits.
Student loan interest paid by you or someone else: In the past, if parents or someone else paid back a student loan incurred by a student, no one got a tax break. To get a deduction, the law said that you had to be both liable for the debt and actually pay it yourself. But now there’s an exception. You may know that you might be eligible to take a deduction but even if someone else pays back the loan, the IRS treats it as though they gave you the money, and you then paid the debt. So, a student who’s not claimed as a dependent can qualify to deduct up to $2,500 of student loan interest paid by you or by someone else.
Super accountant and tax expert. Kenneth can find all the legal tax deductions and save you thousands of dollars! Call Him NOW if you want the best accountant and/or tax preparation services. Although we are located in Florida, a bunch of our client base is located outside the state. Thru efficient work, excellent communication, and clear expectations, we are more reliable and easier to get ahold of than even an accountant located down the street from you. Find more info on Bookkeeping Help.