If you or a family member requires long-term care, talk to us in advance for guidance. First, it’s important to understand that while senior living, assisted living and long-term care facilities all operate to care for older adults, they do not all operate the same way or cost the same amount.
Some facilities require a “Buy-In” amount to be paid up front, in addition to monthly expenses. This buy-in amount may be tax deductible, if you plan for the costs and plan the payments correctly. This is where we can help you. Call us anytime to discuss at (913) 888-9100. If you don’t plan correctly, it can be very costly and non-deductible.
These deductions should be planned in advance, and by someone who understands that each payment may be a taxable event (meaning it causes tax to be owed) and can be offset with the deduction for medical expenses on Schedule A to reduce or eliminate any tax due.
If this sounds complicated, that’s because it is somewhat complex. Rely on our experience and knowledge to guide you through the process. In addition to potentially helping you realize a significant savings, we can also walk you through everything to ensure you have a good understanding and comfort level with the payments and deductions.
Giving back is a great way to help people in need in our community. And if you keep track of the charitable contributions you make throughout the year, you can deduct them on your income tax as well!
The most common question we get related to this topic is, “How much can we claim (or deduct)?” To answer this simply, all cash donations are deductible, as long as you itemize your deductions. If you don’t itemize, you can still donate, but it will not count on your tax return. You will want to have receipts available or records of each donation made, as well as contact information for each non-profit you made a contribution to.
If you make non-cash donations, or in-kind gifts, the maximum deduction is $500 per year, unless you get an appraisal for the items donated. These are donations you make of gently used clothing or household items to charities in our community. Be sure to request at receipt for these donations and report the fair market value of your donation.
One point often overlooked is the Charitable Mileage deduction. If you volunteer on a regular basis, you may incur significant mileage related to your charity work. For 2014, the standard mileage rate per mile driven in service of charitable organizations is 14 cents. For mileage records, you should track the dates of service, location, brief description of service and the miles traveled roundtrip.
If you have gotten behind on your taxes, correcting this problem can seem daunting. But, waiting to file your past taxes won’t make the tax due any less. And if you wait long enough, you will forfeit any refunds that might be due to you. If you cannot afford to pay what you owe, don’t let that keep you from filing. Again, penalties will continue to stack until you take steps to file your taxes and arrange payment. The IRS has programs in place through which you can request a payment extension or maybe even a payment installment agreement.
We are available to help you through this process. The best approach to resolution is to file every year as soon as possible. Doing this stops the penalties for non-filing and will still allow for amendments.
Keep in mind, there are firm deadlines related to income tax. If you file and show a refund more than 3 years after the original tax due date, you will forfeit any refund. On top of that, you will still owe the tax, interest and penalty charges. This is one of the reasons that filing on time is always beneficial to you.
If you have questions or need help, call as at (913) 888-9100. We will work with you to resolve back tax filing and can recommend methods to put you on track for timely filing in the future!
Medical expenses and insurance can be complicated. Determining medical deductions can be complicated as well. Don’t miss out on deductions you may be entitled to. Schedule a meeting with us to review your medical expenses and tax information to make the most of your refund. Call us anytime at (913) 888-9100. In the meantime, here are some of the medical deductions we frequently see as missed opportunities:
There are only 12 more days until the 2014 tax filing deadline. Let us know how we can help you!
Working from home is becoming more common, especially for people who are self-employed. If you own a home and are self-employed, do you have a home office? Should you?
If you use part of your home for business, you may be able to deduct expenses for the business use of your home. We are available to help you determine what deductions are available to you, as well as help you evaluate if a dedicated office space in the home makes sense for you.
When you own the home where you conduct business, there are several expenses that may be at least partially deductible, like home insurance, property insurance and utilities. And don’t forget about home repairs! Experience has shown us people who prepare their own taxes often overlook home repairs as part of their home office deductions. With the home office, you may be entitled to take a portion of the entire home repairs as part of your deduction.
According to the IRS, “the home office deduction is available for homeowners and renters, and applies to all types of homes.” If you rent and work from home, we can also help you identify which home-related expenses you can deduct for your business. Call us at (913) 888-9100 to schedule an appointment today!
Taxes can be complicated. To ensure your income taxes are filed correctly and that you are receiving all of the deductions you may be entitled to, it’s smart to work with a professional.
We know the tax law and are familiar with related updates. Without proper experience, you probably wouldn’t consider doing significant plumbing work on your home or making automotive repairs to your car for fear of making a mistake. When you partner with us to file your income taxes, you can rest assured that we will get the job done right.
At Adams Accounting Solutions, we focus on personalized service. We don’t just plug in the numbers – we ask the right questions to help you take all the deductions you are eligible for and to help you get the largest refund (or smallest taxes due) that the tax law allows. This is where people often miss out doing taxes on their own. When you’re not familiar with all the deductions available, it’s easy to leave money on the table.
We have many years of tax and accounting experience – both with individuals and with businesses. If you’re considering starting a business, schedule a meeting with us first. It’s easier to set things up for you properly from the start, than it is to correct later. It’s also usually less expensive this way as well!
Count on our knowledge and experience to benefit you. Call us anytime at (913) 888-9100 for guidance or to schedule a meeting. If you’re feeling a time crunch with the tax deadline approaching, we can still help you before April 15 or even help you file an extension request, if needed.
Mileage is a potential tax deduction often overlooked. If you have unreimbursed business mileage, mileage related to medical or moving purposes, or for charitable work, you may be eligible for this deduction.
You have determined you are eligible for this deduction. Now what?
The IRS requires documentation of mileage traveled. Ideally, this means documenting every trip. For business expenses, if you schedule appointments on a calendar, you can document your mileage with the help of a site like Google Maps. There are also apps, like TripLog, that can simplify the process. Or, there’s always paper tracking! If you go this route, just keep a notepad in your car and log each trip.
The same is true for medical/moving and charitable mileage. Compile a list of dates, miles traveled and the reason for each trip.
EX: April 15, 2014; Harvesters (volunteered – food sorting); home to 3801 Topping Avenue, KCMO; 38 miles RT
Starting a record for mileage at the beginning of each calendar year makes managing this deduction easier when tax time comes. However, if you keep good date records you can go back and still provide an accurate record. Need help? Contact us for guidance at (913) 888-9100.
Today is the first day of spring! Use the start of a new season as an excuse to organize your financial files. Hopefully you’re in the process of filing your 2014 tax return (or already finished!). But do you know what to do with this sensitive information or how long the IRS expects you to save income tax documentation?
Seven years. That’s how far back the IRS recommends you keep tax-related information. For organization purposes, you could get a file box and store your tax information for the past seven years together. That makes it easy to access and to reference for questions you may encounter preparing future taxes.
But really, when it comes to organizing, the best system is the one that works for you! Even if you don’t want a formal system of organization, commit yourself to labeling a folder or large envelope for “2015 taxes” and store documents there throughout the year. Even this small step will make a huge difference when tax time rolls around next year!
For information you are certain you can dispose of, shredding is the safest option. Tax documents contain a lot of personal information that could be used for identity theft. This is another good reason to store your tax forms separately. That way when it’s time to clean them out, you know you’re dealing with sensitive information and you can be sure to dispose of it safely.
You can either purchase a shredder to use at home (look for a cross-cut model), or several office supply stores like Office Depot, FedEx and UPS offer pay-by-the-pound shredding services.
If you have questions about what you need to keep and what can go, call us anytime at (913) 888-9100.
Let’s face it. Income taxes hardly top the list of things you want to do, but putting them off doesn’t do you any good. In fact, the longer you wait to complete your taxes, the more likely you are to forget things that may save you money.
A good place to start is your return from last year and this tax organizer. Grab a folder and use these materials as a guide to gather your documentation.
The 2014 filing deadline is one month away. If you haven’t started yet, it’s time. Call us at (913) 888-9100 for an appointment. Having a deadline to meet is a great first step to get things moving. In a quick meeting we can help you start to get things in order. Let us make the process easier for you!
Filing an Extension
If you need more time to prepare your federal tax return, file an extension with the IRS. There are no conditions to qualify for an extension, and in most cases the six-month extension will be granted when the required paperwork is submitted on time.
But remember, an extension only provides you with more time to file – it does not grant you more time to pay your tax liability. You will still need to pay your taxes on time, or be prepared to pay a penalty.
We know people are sometimes nervous to file an extension thinking it increases the chances of an audit, however, that’s not the case. And filing an extension is better than turning taxes in late and facing additional penalties!
We are here to help, no matter where you’re at in the process. If needed, we’ll work with you to file your extension and prepare a timeline to ensure you meet the extended deadlines and timely tax payment.
The changes to Obamacare and how it will affect your business is a concern to every small business owner.
If you need help navigating the pitfalls, penalties and decision process, we can assist you!
We have partnered with Health Markets, the largest insurance broker in the Kansas City area, to show you how the small business owner will be affected by the law changes, and how you can prepare in advance of the enrollment deadlines to offer insurance to your employees.
If you think Health Care changes won’t affect your business, you need to attend our FREE seminar!
What you don’t know CAN and WILL affect your business……..with 1 employee or 200 employees, whether you offer health insurance options to your employees OR NOT!
Call us at 913-915-0463 to check on the date of our next scheduled seminar.
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.