Don’t let this year become another of anxiety-filled tax prep! Use these next few weeks of winter and get a jump on your 2016 taxes. It’s easy to put off tax filing, but you’ll find yourself cramming at the last-minute. Not only is this stressful, but it can lead to errors, amendments and penalties. Beyond that, there’s the refund to think about!
If you’re expecting a refund for 2016, the sooner you file the sooner you will receive your money. (This also provides more time in 2017 to put that money to work for you!) We recommend our clients use the direct deposit option. In most cases, your refund will arrive 4 to 6 weeks earlier than a paper filing!
Get Organized
Now that things have calmed down from the holidays, use that additional time to get your tax documents in order. If you haven’t already, start a file for your 2016 taxes. As documents marked “Tax Return Information” start arriving in the mail, add them to the folder. Then think about potential deductions that may apply to you and start gathering the necessary documentation – for example: receipts from holiday donations for a charitable deduction or childcare invoices for a childcare deduction.
Not sure what deductions you’re eligible for? Call us at (913) 888-9100. We can sit down with you to review your options and establish a plan to file your taxes quickly. Here’s to a Happy 2017 and a swift and easy tax filing!
‘Tis the season for giving and giving back. Many people do the bulk of their charitable giving during the holiday season. And in Kansas City, we are fortunate to have a wealth of worthy causes to help people in need year-round. Whether you share your gifts with charities throughout the year or are preparing to do so now, remember all cash donations are deductible up to 50% of your adjusted gross income.
A couple of things you want to consider before you do your giving. Be sure you are contributing to a legitimate organization. If you’re thinking about making a donation to a non-profit you aren’t familiar with, it’s a good idea to take a few minutes to research the organization. A quick website search will provide the information you need. You should have a receipt from the non-profit to serve as your documentation. If you purchase food or other items to pass along, your store receipt will suffice, as long as you document the benefiting agency.
While you can’t deduct for your time spent volunteering, you can deduct the mileage related to your service. And if you are making “in-kind” donations, such as gently used coats, toys, etc., you need request a receipt from the organization to make a deduction. This receipt should also include a value estimate of the goods. It can be tricky to guess, so use a donation value guide to help. Any single donation amount over $500 MUST have more documentation. The IRS requires:
As always, if you have questions, we’re here to help. Reach out anytime at (913) 888-9100.
This time of year it’s easy to be preoccupied with budgeting your holiday spending, rather than thinking about long-term savings. And that’s OK! But there is one important point you should know. While retirement contributions for the “current” tax year (2016) can be taken up to April 15, 2007, you need to have an account open BEFORE the end of the 2016 calendar year if you intend to make the contributions. So, if the intent is there, but the account is not, you do need to take action soon.
Financial planning and tax regulations can be tricky and time consuming if you aren’t an expert. If you know you want to make a retirement plan contribution for 2016 but don’t know where to start, you can call us at (913) 888-9100 and we can walk you through the tax side of things. We would also be happy to introduce you to financial advisors we know and trust to get accounts open in time.
While we’re on the subject, we get lots of questions about retirement accounts and deductions. Often, we’re asked about Roth IRAs. It’s worth noting that Roth IRA contributions don’t give you a tax deduction, but there is no tax due on earnings and contributions on withdrawals. We know this can all be a bit confusing, so bring your questions to us. It’s important you understand how these investments and related tax items work.
According to the IRS, estimated tax is the method used to pay tax on income that is not subject to withholding (for example, earnings from self-employment, interest, dividends, rents, alimony, etc.). Generally speaking, you must pay estimated tax payments if both of the following apply:
You can pay all of your estimated tax by April 18, 2016, or in advance. We recommend our clients make estimated payments BEFORE taxes are due to make the payments smaller and easier on household budgets. This also reduces the amount of tax that may be due when filing if an unexpected item causes you to owe more tax.
Give us a call if you’re not sure if this applies to you. We are always available to help determine what is needed related to your income taxes based on your circumstances. Many people feel overwhelmed when it comes to tax rules and laws. Working with a tax professional can reduce this burden and also ensure tax payments are made correctly and on time. You can reach us at (913) 888-9100 to schedule an appointment.
It won’t be long before tax documents start arriving in the mail. If you haven’t already, designate a folder or place to keep these important items together. This simple step is one way to make the tax prep process easier for you!
We also recommend our clients start organizing tax documents now. Block a few hours on your calendar before the end of the year to collect documentation for your potential deductions. If you own a business, clean up your files and get your expenses in order. If you expect medical deductions, gather the receipts you have and request a year summary from your doctors and/or pharmacy. If you make charitable contributions, make a record for the year with receipts.
Like most anything else, tax preparation is easier when you are organized and prepared. That said, many people find it to be overwhelming and procrastinate. Don’t fall behind for this reason. We will help you! Schedule an appointment to bring in what you have so far, and we will get you organized. We can work together on a plan to identify the items you need to gather before April to avoid last-minute surprises. We will start a file for you and be ready to complete your 2016 tax file on time.
Getting your tax information started will save you extra time and stress this spring. It also won’t feel as stressful to work on these items now, while you aren’t under a tight timeline! Reach out for an appointment if you would like our help at (913) 888-9100.
Time’s up! Today is the deadline for those of you who filed an extension on your 2015 taxes. Sometimes circumstances demand filing a tax extension to avoid penalty. But it’s important to remember that an extension doesn’t delay money due at tax time. And on-time filing, when possible, is always best.
Let us help you plan ahead starting NOW so that you can meet all 2016 deadlines. We just started the fourth quarter of the year, and soon calendars will fill with holiday plans. One way to keep yourself on task and on time is to block time to start pulling materials together. Maybe it’s an hour or two a couple evenings a month, or a bit of time each weekend. Whatever will work for you is the ticket! Dedicate appointments on your calendar to the categories you will need to address in tax season, like: medical expenses, business expenses and charitable deductions.
Having this information organized will make tax filing MUCH easier when forms begin to arrive in 2017. One place to start is looking at your previous year file. (Remember to keep all files for at least 3 years!) If you want to get together to outline what materials your circumstances will require, call us anytime at (913) 888-9100. We can help get you on track to an on-time filing for 2016.
If you filed for an extension on your 2015 taxes, you certainly weren’t alone. In fact, each year millions of taxpayers request an extra six months to file their tax returns! Now, it’s time to make sure you get the materials together and prepared to meet your new deadline. You have until Monday, October 17 to file your taxes.
This link will take you to some reminder tips from the IRS. Hopefully you have been using the time between April and now to make progress on your 2015 taxes. There is still time to e-file your tax return, which is the recommended process. This is available online at IRS.gov through October 17.
It’s also important to know that you may need your prior-year adjusted gross income (AGI) to file electronically. In this case, this would be the AGI from your 2014 returnAccording to the IRS, taxpayers should keep a copy of their tax returns and supporting documents for a minimum of three years, although your tax preparer may recommend keeping returns for up to 7 years. Additionally, “keeping copies of tax returns is even more important as the IRS makes changes to protect taxpayers and authenticate their identity.”
We know preparing a tax return can be complicated and overwhelming. Let us manage that burden for you. We can get your paperwork in order, prepare and file your 2015 return before the October deadline, but we need to get started soon. Call us at (913) 888-9100 to schedule a meeting and bring in your materials this week!
September is National Preparedness Month. National disasters may be out of your control, but there are steps you can take to be prepared to protect you and your family in the event one should strike near you. The Department of Homeland Security provides a great resource at Ready.gov to help you prepare for the types of emergencies that could affect our region where we live and work, as well as other regions you may visit.
In light of the wildfires and flooding issues that have been prominent recently around the country, it’s a good time to think about how you can be prepared for and take action if an event would occur in Kansas City. In a general sense, Ready.gov does a good job of providing guidelines and toolkits to help with overall preparedness – like creating a family emergency communication plan. The site also provides event-specific resources, like how to prepare for flash flooding.
Please take a quick review of the site and see what materials you can implement at home or work. And think ahead a bit while you’re at it. Winter is not far off, and we all know Kansas City weather can change on a dime! Take steps now to ensure you would be prepared if we had a severe weather event related to a cold snap. The National Highway Traffic Safety Administration offers these tips to prepare your car for winter driving.
And while staying at home is often the safest (and maybe even a necessary) choice during a winter storm, it’s wise to be prepared for possible power outages during winter months. Here’s what you can do before, during and after an outage for safety. If you review this information now, you’ll be ready when cold winter strikes and can rest easy that you have prepared and know what to do.
Tailgating is a big part of many game experiences. With the first regular season Chiefs game coming up at Arrowhead, it’s a good time to brush up on your tailgating skills! Here are some amazing tailgating tips that might make your pre-game fun a little easier. And if that’s not enough, here are a few more!
If you’re hosting your tailgate potluck style, create an online sign-up so you can indicate what’s needed and your guests can sign up according to their interests. And there are so many themes that can help focus your pre-party to make planning easier for all – think BBQ, chili bar, taco bar or breakfast burritos. Here are 50 recipes to get you started!
For those of you who like to enjoy the food but want to pass on the cooking, check with local restaurants to see if they offer tailgating packages you can order ahead and pick up game day! Remember to see if they supply the paper goods and utensils or if you need to buy those separately.
When you’re the host, it’s also a good idea to cover the basics beyond food and drink. Think music, plenty of water, ice, extra blankets, a table, Solo cups, simple first aid supplies, hand sanitizer, hand wipes, paper towels, bottle openers and any games your crew would enjoy before the big game!
“You are never too old to set a new goal or to dream a new dream.” – C.S. Lewis
If you have a hobby or passion that you have been thinking about turning into more, we’re talking to you! Sure, starting out on your own to build a business can be both overwhelming and scary. In fact, these feelings hinder many from ever taking the risk or trying to make that transition! But, for those who plan well and work hard at it, business ownership can be very gratifying and rewarding. What is the business application for your hobby?
It’s no surprise that good planning is tied to success. Good business owners spend a lot of time in the dreaming and planning phase way before they take steps to materialize their business. There are many big picture items to consider – and not just for when you start out. You should also think about what your business might look like as it grows. You need to have the structure and support for both levels in place to manage success and potential expansion.
Will you need investors to get your business off the ground? Will you have employees in the beginning or do you expect to hire at some point in the future? What should your accounting structure and practice look like? These are all points you ought to evaluate and we are available as a resource to you.
Use our accounting background and years of small business experience to transition your hobby into a business that works for you! These are just a few points to get you thinking and the start of a much bigger conversation. We would welcome the opportunity to learn more about your hobby and brainstorm with you what the proper business application might look like. From there, we can partner with you to conceive a structure and framework that will support your passion and interests, as well as make good business sense!
Richard Adams is a graduate of Benedictine College in Atchison, Kansas, with dual majors in Accounting and Business Administration. He is also a graduate of Wentworth Military Academy in Lexington, Missouri.