Tag: Tax

Preparing for 2018 Tax Filings

Posted on 04/12/2018

With the rush of the upcoming holidays and just weeks away from the New Year’s tax season officially getting underway, it is just about right time to consider your tax preparations. Tax season creeps upon millions of taxpayers every year as a recurring exercise. Instead of being caught off guard towards the end, one can actually follow few guidelines to start preparing for the upcoming 2018 filing season and gain an advantageous head start.

Preparing for 2018 Tax Filings

1. Review your filing status:

Filing status can impact as to how much one owes in taxes each year, and whether or not one would have to file at all. It is also important to forecast if ones filing status will change during the course of the year.

For someone who’s single and is planning to get married by Dec. 31, 2018, choosing to file a joint or separate return with the future spouse would be viable options.

Alternatively, one might be filing as a single taxpayer if he/she expects to get divorced during the year or as head of household if single and having a child or taking on another dependent.

2. Look back to leap forward:

It is expected that by now the 2017 tax filing would have be filed for or at least an extension applied. If the 2017 taxes have already been filed for, then a review considering the areas that were problematic or extra stressful would be helpful. This can come in handy in alleviating that stress for the upcoming season.

3. Set up your system:

Organizing tax records can be done in numerous ways. However, having an established filing system in place would feature as the core of the organizational structure. Waiting until 2019 is not a good idea to start sorting out important documents of 2018. While many important tax documents will arrive at the beginning of 2019, others like receipts for deductibles will sprout out along the year.

4. Save documentation for deductible items:

Receipts and other documents for eligible expenses are crucial components; though it might not be necessary to submit those receipts with the tax return, it may be required to substantiate the expenses if the IRS audits the returns. Hence, whether a business or a personal account, it would be wise to hold on to receipts meticulously.

5. Track your charitable contributions:

The old saying goes, “What goes around comes around.” When you do good for others, you deserve to get some tax benefits. Charitable contributions to qualified organizations in the itemized deductions may require a little extra documentation. For example, deductions for contribution worth more than $250 cannot be done without a written acknowledgment from the recipient organization.

It must also be noted that non-cash contributions may require different records, such as a description of the donation and its fair market value. In order to ensure full tax benefit of one’s generosity, keeping good records of all charitable contributions to qualified organizations throughout the year will be highly crucial.

6. Plan for your retirement:

Having 401(k) or traditional IRA, may help get a tax break by making a contribution to ones retirement account. The contributions made on these accounts are typically deductible on the pertaining tax return.

It would be useful to remember that though there are income restrictions and contribution limits that determine how much can be put in an IRA, and deferral limits on how much can be put into your 401(k). Understanding what those limits are, and how much can be contributed for the year will come in handy.

7. Forecast your estimated taxes:

It is common knowledge that underpaying taxes throughout the year can have very negative repercussions. If one is expected to owe at least $1,000 in taxes, the IRS generally requires one to make estimated tax payments throughout the year. This is especially highly critical for business owners or self-employed individuals who generally don’t pay income taxes on their earnings.

8. Stay abreast with the changing Tax rules:

The Tax Cuts and Jobs Act that took effect in December 2017 ha brought about drastic changes in the U.S. tax code.

In general, tax reforms can translate to two things:

  1. Some of the tax breaks you might have taken advantage of in the past will no longer exist.
  2. There may be some new tax breaks you can use when preparing for 2018 taxes.

Velan Bookkeeping:

We at Velan are equipped with skilled tax preparers possessing over a minimum of 7 years of experience in the domain of Taxation. Available round the clock at your disposal, we cater to services with utmost sensitivity and sensibility that the work demands. With encomiums and testimonials speaking for themselves, one needn’t think twice before calling us. Our pricings are highly competitive and guarantee international standards in terms of delivery. We cost less than an in-house tax preparer’s salary exclusive of his paid vacations, incentives and bonuses.

Not only do we regularly keep updated with the latest tax laws, but support high-end infrastructure which allows us to function as a virtual extension of our client’s team, while ably providing our cost-friendly services.

If you have any queries related to your tax returns feel free to contact us for detailed information, we will be glad to assist you.

Call us today!!! And give your business the head start that it deserves!

Topics: Tax Preparation , Taxation


Why Use a Professional for Your Tax Preparation Service

Posted on 27/09/2018

The line of horror movies stacked up for release this year a little ahead of the tax season is highly symbolic of what is to come. Once again, we stand on the brink of another tax season, quite aware of what awaits us. The thought of a myriad of paperwork built around umpteen hours of strenuous study and scrutiny is capable of sending shivers down one’s spine. Redundant obsequious squealing from the coffee machines would be fairly common hearing pre-tax season. Like most other things in life, taxes are hardly black and white but hidden in the greys and can be extremely complicated and challenging. With the tax season around the corner, it’s common knowledge that it is never too early to start preparing for the upcoming tax return. Doing this in advance will not only save you money but more importantly, time.

Why use a professional for your tax preparation service

With a list of options available to help tide over the complexities that unfold while doing the taxes, a highly recommended suggestion would be hiring a professional to take over the tax preparation service. However, you might be tempted to file your taxes by yourself so as to save a little bit of money. Spoiler Alert! Chances are you’ll be losing more money than you’d be saving. By the time you realize you are losing out more money than you saved by filing on your own it would be a little too late. Here are some of the benefits that come with a professional tax preparer:

1. Time Saving

It is a common understanding that time equals money. Likewise, your time is also valuable and should be used scrupulously. In an attempt to save some money, one might end up spending more than twice the optimal amount of time preparing for taxes. Many people end up stuck in front of their computer for hours when they are filing their own taxes. Self-filing programs can cause issues for people who are not tech-savvy, and you end up wasting more time than if you just hired a professional to file for you.

2. Avoidance of adverse consequences   

As you sign the end of your tax return, you declare that the information is true and accurate to the best of your knowledge. If the IRS audits your return and finds errors, you could face potentially serious legal consequences. Having a professional prepare your tax return adds a little safeguard to potential liability. You need to be cautious, however. As stated, a tax professional can make a mistake. Go over the return yourself to ensure that all the numbers are correct and accurate.

3. Saving Money

There is an endless list of circumstances and technicalities that can literally make the tax season excruciating for the majority of taxpayers. Infused with a significant number of clauses, conditions and preferences, it generally would take an educated professional capable of assessing the individual’s financial situation and tax status in order to save money by finding applicable deductions. The irony is that more often than not, people who hire tax preparers end up saving more money on deductions than they pay for the preparer’s services, not to mention the stress and strain they avoid by doing so.

4. Reduction in Errors

The IRS holds a list of the most common tax errors. On that list are computation errors when determining taxable income, entering payments on the wrong line and simple math errors. An error on your return can delay any refund due. If you err and the mistake results in tax liability, interest and fines accrue from the date you filed the taxes. While no tax professional is perfect, the chances of making a simple mistake on a return are reduced when you use a professional tax service.

5. Liberation from Stress of the highest order

The feeling of having an expert, whose professional life is dedicated to taxes, and that you’re not left alone with the pile of forms and numbers is quite relieving. Hiring a tax preparer makes the process easier, less stressful and time-consuming, which is something a lot of people are ready to pay for.

As for those who are looking for a middle ground between paying high rates for a professional tax preparer and going head on with the onerous paperwork themselves, there’s always the option of outsourcing.  Though outsourcing rates are relatively cheaper they come with the certified benchmark for quality and compliance.

Why Velan?

We at Velan Bookkeeping are a well acclaimed and renowned bookkeeping firm that fix accounting related issues with the required sensitivity and sensibility that the work demands. Our distinctive, trustworthy and effective methods have helped many companies overcome issues that would have certainly staggered their progress. Having been shaped and moulded with over a decade of experience in this arena, we cater to a web of services like:

  • Bank Reconciliation
  • Statement of Assets and Liabilities
  • Accounts Receivable and Payable
  • P&L Statements
  • Payroll Tax Preparation
  • Sales Tax Preparation

Our pricings are highly competitive and guarantee international standards in terms of delivery. We cost less than an in house accountant’s salary exclusive of his paid vacations, incentives and bonuses. With accolades and testimonials such as those bestowed upon us, one needn’t think twice before picking up the phone to outsource their bookkeeping and accounting services with us.

Phone:   +1-860-215-4997
E-mail: reachus@velan-bookeeping.com

Topics: Tax Preparation , Taxation