For some workers, taking taxes into your own hands is important and necessary. Those who work within the independent or freelance category of employment should consider paying their taxes in quarterly installments instead of waiting until the traditional April deadline.
As we have stated before in our content, staying organized is crucial to keeping up with your taxes and payments. When choosing to pay quarterly, there will be four payment periods throughout the year. Maintaining documentation of receipts, payments, profits, and losses are important to keeping an organized tax file.
When going to pay, you will need to estimate the taxes you will owe the government. Once you have an estimated amount, paying is easy and can be done online through the IRS website!
If you need help with bookkeeping, estimating, or paying your quarterly taxes, our professionals are here to assist you! Call and schedule an appointment today!
As the years pass and the laws change, so do the frequently asked questions regarding taxes. Most individuals want to ensure they are filing competently and efficiently, our team at Hoods Tax & Accounting wants to ensure you do so too!
How do I notify the IRS of my change of address?
You can do so in multiple ways including;
Choose the method that best fits your daily life and worry no more!
Is there an age limit for claiming my child as a dependent?
Yes, there is an age limit to claiming your child as a dependent. However, there are other aspects to consider as well. If a child is disabled, they may be qualified to continue as a dependent under you. There are qualifying tests to determine other forms of disability, which can be found on the IRS website. Apart from a child who is disabled, in order to claim a child as a dependent, they must be younger than 19 or a student 24 or younger.
What is a split refund?
This is the ability to divide your refund in any desired proportion and direct deposit it into any three accounts within the United States. Fill out Form 8888 (Allocation of Refund) if you want to split your tax refund.
We hope that these answer the questions you have been asking! If you want more information on tax-related content, read more of our blogs, or contact us today!
Taxes tend to be stressful for most people, and worry about getting them paid on time starts to arise. But what happens if you don't pay your taxes on time? Continue reading to find out.
Almost immediately, interest and penalties on your unpaid taxes begin. This can be anywhere between 0.5% and 25% interest on your unpaid taxes. As time goes on and you still haven't paid your taxes, you will receive notices in the mail informing you of the balance you have due.
If these two forms of contact have been unsuccessful, legal claims on properties and assets will begin to arrive. These are statements that the government has the rights to land and assets you own. These liens can also prevent you from receiving loans and get a job. The IRS could also send your account to a collection agency.
If it has been longer than three months, and you still haven't paid your taxes, your belongings can be rightfully sold at auction, and your passport could be restricted or revoked.
In order to keep these events from happening, it is important to pay your taxes and pay them on time. Our wonderful and knowledgeable team members at Hoods Tax & Accounting can assist you in understanding your taxes and ensuring they are paid on time.
We are out of tax season! That is unless you have filed for an extension or have corrections to make. If you have completed your taxes completely, what is left to do? Organize.
So you have gotten through another year of taxes, but it was difficult because you did not keep your documents as organized as you should have. Today, we are going to give you some ideas on how to organize your tax documents to fight against worry come tax season next year!
First, grab up all your documents and lay them all on the floor. A table sometimes isn't enough room for the number of papers one has.
Second, have folders that are easy to write on. When you are making your organized system, be concise and thorough. The categories we suggest labeling are listed below.
This includes all of your pay stubs, 1099s, W-2s, interest and dividend statements. As well as any other documentation of pay you have received over the year.
This is where receipts come in handy for business owners, and non business owners. Be sure to hold on to documentation and proof of purchase for items you needed to buy for your team and to keep your business running.
Student Loan Payments:
If you attended college and have student loan payments, organize those well and make a section for them.
Keep all the receipts you receive from doctors, hospitals, and labs.
While these are just a few on the list, make sure these are well organized within the folders you make as well. Don't forget to keep all these separate folders together within a filing system.
While it is up to you to keep your files organized, our professionals at Hoods Tax and Accounting are here for you in and outside of tax season.
Hooray! Now is the time to take the all deserved sigh of relief. You have completed your taxes, they have been filed, and tax season is over! So, what do you do now? Well, while you can take a breather, there are still a couple of tax tips you should keep in mind even in the offseason.
Keep Up The Organization
Just because tax season is over, it does not mean you get to toss papers around and abandon your filing system! Keep up with the organization plans you have made in order to keep documents together. Being organized right from the beginning will help your future self come next year's tax season.
If you use a database or online organization, be sure to keep track of all your data and information even if you have it stored digitally. Having a hard copy and a digital copy will benefit you if something were to happen to your electronics.
Adjust If You Must
Be sure to keep up with your tax payments if you opted to pay throughout the year. If you did not, make sure you are paying the IRS the appropriate amount by using the tax calculator on the IRS website or going to a professional.
Have An Eye On The Tax Laws
Tax laws are known to change, so be sure you are keeping up to date with how the laws alter from year to year. By doing so, you will be helping yourself stay up to date with deductibles, returns, and much more.
Here at Hoods Tax & Accounting, we understand taxes are frustrating and take a lot of energy in the peak months. In order to make those times easier for you and your money, start organizing today for next year! Our professionals are here to help you with your tax needs and questions as well!
We understand that taxes are tricky and confusing, causing a lot of people frustration and anxiety during spring time. Many people take tax season lightly, and decide they can perform this important filing on their own, but realize later they made a mistake. So, what is there to do?
According to the IRS, it depends on what kind of mistake you made. If you made a mathematical error, don’t worry, the IRS often catches these and corrects them without a problem.
If you accidentally claimed the wrong filing status or need to make changes to your information (i.e income, credits, deductions) there are amendment forms that can be filled out with the updated information!
Even though the IRS gives you these methods of fixing your taxes, as tax professionals here at Hoods Tax & Accounting, we also want to say that taking your information to a professional is a great decision if you are worried about making mistakes when filing your taxes.
Preparing for the future can be a scary and time-extensive task. There is more to money preparation than tax season, like preparation for retirement and, perhaps, affording life in a quality nursing home or assisted living home.
On Tuesday, March 19th, there will be an educational event where all your questions can be asked when it comes to retirement and having enough money in savings for the future.
Preparation and planning early are the most important things to do when considering your life and the future.
To learn more about this local event, click the link below to be taken to the event page on the journal scene website. https://www.journalscene.com/events/#!/details/Nursing-Homes-and-Your-Life-Savings/6102825/2019-03-19T14
In today's age there are people who will try to scam you by falsely claiming to be the IRS contacting you to collect funds. In order to help you protect you and your sensitive information, here is a list of things to keep in mind if contacted by someone claiming to be the IRS:
The IRS communicates with us through very specific channels, and since the information being discussed is sensitive, they will make sure the channel is secure.
Hoods Tax and Accounting wants to keep you and your confidential information safe in the world of scammers. Keep the above information in mind the next time you receive something that claims to be from the IRS!
Having only been in the works for a little over a year, the Tax Cuts and Jobs Act is bringing what most consider to be the most significant changes to the way we do taxes in THREE decades! That’s an entire 30 years this bill needs to make up for. So what does this change mean for you?
You know those tax brackets we all fit into based on our income? Those are now expanded in order to create more income to lower tax rates (yay!).
Deductions are our favorite part to taxes, and with this bill the standard nearly DOUBLES to $12,000 if you file as single, and $24,000 for those married and filing jointly.
While things are changing, what is staying the same? Plenty, such as charitable deductions, medical expenses, and tax on children.
Are you interested in how the laws are changing, but not quite a master of taxes? We love educating our followers and helping our customers here at Hoods Tax and Accounting! Make an appointment today, and get your taxes out of the way!
Tax season is quickly approaching as the new year begins, and many are watching the clock to fill out their taxes by the April deadline. Some are new to the tax paying scene, and are wondering what all these new terms mean, especially a personal income tax.
In order to fund programs such as Medicare, Social Security, national security, roads, schools, and welfare, the government taxes our personal income. This income includes wages, unemployment benefits, tips, salaries, business income, and more.
When filing your tax return, make sure you pay attention to deadlines set by the IRS. Not having your taxes completed by the deadline can result in penalties and charges.
To combat tax confusion, make an appointment with our tax experts at Hoods Tax & Accounting. We take taxes seriously, so you don’t have to worry!
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