I Am Too Busy To Do Taxes
Small businessmen use this excuse all the time. I say excuse because it is not a reason, we all know we have to pay taxes so the time to prepare the paperwork has to be made.  It is easy to think that whatever you are doing right now is more important than anything else but the reality is that you have to file your taxes and the sooner you do them the less painful it will be.

Prepare for your meeting in advance and it really will go quickly, yes you will lose the money you would have made on an appointment but you will gain the peace of mind that your taxes are done. You also will reduce your stress levels by being finished with taxes for another year.

Tax Extensions
Should not be your first option, if you are filing tax extensions every year you really should  look into your organizational process.

If you need help with your business or personal taxes, to prepare them or file an extension just give us a call and we will help you through it all.

With 6 weeks to go until Tax day, April the 17th, more and more people are panicking about filing taxes.  When you start looking for tax return help there are a few rules that you should follow.

• Don’t panic – You can get an extension on your filing date, this is not an extension on Payment.
• Stop Procrastinating – No matter what you do those taxes have to be filed sooner you start the sooner they are filed
• Be Honest – Don’t think you can be clever and avoid paying taxes on parts of your income. Honesty is the best policy
• Avoid to good to be true offers – no one can get your taxes instantly for no cost

Panic does not help anyone and you will never make a good choice if you make it in a time of pressure. If the limited time you have left to file taxes is causing you to panic, get them filed so all your stress is gone.

Plan some time when you can sit down with no disturbances and get all your paperwork out and go through it. Even if you are going to use a tax prep company you should take the time to get all your papers in order before you go. Being prepared will save you time and if your accountant charges by the hour that could also mean it saves you money.

Honesty is the best policy, that is what my mum always told me and she was right. While it may hurt to pay the extra tax at the end of the year it will hurt more if the IRS find out about the income you are trying to hide and audit you. The audit process can be time consuming and time is money, the fine at the end of it is no fun either!

When you receive an email telling you about some company that can get you a tax rebate instantly for no charge delete it. No one can get you a rebate quicker than the IRS want to issue it. It is totally understandable that you want any refund as quickly as you can get it but be realistic about it and if a deal sounds too good to be true then avoid it.

Tax time comes around every year and the earlier you start your preparation the less tax return help you will need.

STOP

The IRS do not email people offering special deals, they also do not phone and offer to give you extra money if you let them deposit money right now.

Protect Your Private Information
Never send your passwords, social security numbers or bank account details by email. Most identity theft is actually perpetrated by a family member or a friend of the family, but tax time is the most dangerous time of year.

The danger is really because we are all greedy to some extent. We want more of a tax refund, or we want it as fast as possible so we can pay off a bill or spend it on something else. Do not let your desire for quick money end up with your Identity being stolen.

Beware Of Emails
This is the most common route in this scam, emails are cheap to send en mass so they can email millions of people and hope that one person believes it.

• No matter how real the email looks NEVER click on the links within it.
• Never Download or open ANY attachments

The reason they want you to fill in a form is so they have all the personal info they need to be able to steal your identity.  Sometimes the attachment will contain a virus, this is a standard way of infecting someones computer. This may not directly result in your identity being stolen but it is not good!

What To Look For

• Names Wrongly Spelled
• Offers Of Money – Extra refunds, payment for filing in surveys
• Incorrect grammar or strange wording (this is because the people who wrote them are often not native english speakers)
• Very long website address (irs.gov is the official site, anything else is wrong)

The reality is that if you have already submitted your tax forms through the official tax site or through a tax preparer you should not have to fill in any more forms

One WebSite To Rule Them All
http://www.irs.gov/ is the official IRS website and that is where you should go with any questions or queries. Even if the domain name looks very similar, it is not the same. Never click on a link to the site, go and type it in directly.

What To Do
Don’t open the emails, don’t click on anything, do not respond

For tax-year 2011, the alternative minimum tax exemption increases to the following levels:

• $74,450 for a married couple filing a joint return and qualifying widows and widowers, up from $72,450 in 2010.
• $37,225 for a married person filing separately, up from $36,225.
• $48,450 for singles and heads of household, up from $47,450.

Will the Alternative Minimum Tax apply to me?
The honest answer to that question is we do not know, until you sit down with a tax prep company who can look through your forms there is no way of knowing whether the AMT  will be your best way to file taxes or not.

Obviously if you are earning less than the figures mentioned here you will not need to worry about the AMT.

That is the perceived wisdom, well this year you get two extra days. It is not a good idea to wait until the last moment to file your taxes, but if you have to do that this is a good year for you as you actually have until the 17th April to get your forms in.

The reason for this is because the 15th falls on a Sunday this year and Monday the 16th April is a holiday in District Columbia so that automatically extends the filing date.

Just because you have the extra two days that does not mean that you should wait until two days later than normal to start preparing your tax documents. As soon as you finish this blog post go and start to collect all your tax papers together and call us to make an appointment so we can file taxes long before the deadline

• 10% of the amount you spent in 2011 on eligible energy saving improvements to your home
• Maximum of $500 credit on your taxes
• Increased energy standards

In previous years the percentage was 30 rather than 10  and the limit was $1500 rather than 500. When you put these together with the increased requirements it is going to be much harder for anyone to be able to claim this credit. This especially applies if you have already claimed the Energy Property Credit in previous years.

The bottom line is if you have replaced your windows for energy star efficient ones, or had a new high efficiency heating/air system installed in your home (not business) you may be able to claim something. Bring your receipts and information along to your tax prep company and they should be able to work the numbers out for you.

As always you can choose to itemize your deductions or take the standard deductions.

• Basic standard deduction 2011 for married couples filing jointly is $11,600
• Single people or married couples filing separately is $5800

It is impossible for me to tell you whether you are best to itemize or claim the standard tax deduction without looking through all your records. Whoever you use as a tax preparation company should look at both options and choose the one that saves you the most money (or gets you the best tax refund).

If you itemize you need to be able to prove any items that you are claiming. You should always make sure that you take all your documents with you when you go to your tax company so they can compile your figures correctly.

One tax deduction that will be changing is the teachers tax deduction, if you are a teacher, counsellor, school principle or even a school aide who worked for 900 hours or more in the school year you can currently claim $250 in expenses for all your school related items. This is a tax deduction for 2011 only so get it while you can. This applies even if you do not itemize but take the standard deduction.

With under three months to go you should take some time now to start getting prepared and avoid any possible issues. The more of a rush you are in the more likely you are to make a mistake. That rule applies to just about anything in life but no one wants to make a mistake with their business taxes.

Filing a Business Tax Extension
Yes you can file for a 6 month extension, many companies do it every year and there has never been any suggestion that it increases the likelihood of being audited. However is it not better for your business to be organized and just get the taxes done, rather than putting the effort off and fling for a tax extension?

What Records Do I Need For My Business Tax Return
No matter whether you come into our offices in Las Vegas and St George,  do your own taxes (not recommended for a business) or do something else altogether you need to have certain papers readily available.

• Invoices
• Receipts
• Checkbook
• Ledger

It also makes sense to have your business credit card statements readily available. Ideally you would have all the numbers entered into a tax prep program and just be able to share a print out.

If you keep everything in a shoebox (or in a plastic bag as one client did) it is a good idea to sort it out before taking it to anyone. Even the most rudimentary sorting and note taking will help get your tax forms filled in fast.  Remember if you are doing this all yourself you need to take enough time to be thorough and not leave anything out.

As a small business owner the best use of your time is probably not filling in tax forms so contact the experts and let us do it for you so that you can concentrate on building your business.

This deduction is only for 2011 and is only allowable up to $250.

• You can not use this deduction for any personal expenses, such as clothes or union fees.
• You also need to have documentation to be able to show what items you purchased for your classroom.

While it is not a massive amount that will make a huge difference to you it is nice to have any extra deductions you can!

There are lots of other deductions you are eligible for of course, but this is something additional.

Who Is Eligible For The Teacher Tax Deduction?
You must have worked 900 hours minimum during the school year at a elementary or secondary school
You can only claim for items you paid for and used in the school

While this may not seem like a huge amount of money, every little helps and you won’t