tax

Aug 6 2017

Tax tips and advices from Sallie Mae for 2017 financial year

We are pretty aware of the fact that the tax season is already in full swing and the nation’s planning, saving and paying-for-college company, Sallie Mae now advises students and their families to investigate the often-overlooked tax credits of higher education. There are several educational deductions and tax credits which are available to recuperate the costs of college expenses like fees, tuition costs and interest which are accrued through student loans. The ultimate goal is to comprehend what is available, what determines eligibility and to take the right steps to make sure no money is left on the table.

The easy-to-follow flowchart of Sallie Mae can assist students and their families to determine the eligibility criteria for different tax credits and tax deductions. Check out what you may get.

? Student loan interest deduction: The students who borrow education loans can be eligible to up to $2,500 in student loan interest deductions to avoid paying tax on their income. This feature is available for both federal and private student loans which are in repayment. Single filers can get a modified adjusted gross income of less than $80,000 and those who have a gross income less than $160,000 can also qualify for deduction.

? The American Opportunity Credit: The eligible tax payers can qualify for maximum annual credit of $2500 for every student for the initial 4 years of high education. However, for you to be eligible, you have to be enrolled for around half the time in any degree course or other educational course. You can apply for the credit to course-related books and other supplies besides fees and tuition costs. The married filers with adjusted gross income of $160,000 will be eligible for full-credit.

? Fees and tuition deduction: Families and students can claim up to $4,000 in costs for higher education to avoid income subject to tax. This is a deduction which has been taken as an adjustment to income and after this the person doesn’t need to itemize other deductions. Families can claim a single credit for the same student in a single year and they can’t take both deduction and credit in the similar year.

? Lifetime learning credit: The eligible taxpayers can qualify till $2,000 per tax return to be able to pay for graduate, undergraduate and professional degree courses including those that have been designed to boost job seeking skills. There isn’t any limit on the total number of years a person can claim this credit. It is available to taxpayers with modified adjusted gross of less than $65,000 or jointly $1,31,000. The amount of credit is reduced for single filers.

There is more information available on education tax credits and that is available through Internal Revenue Service Publication 970, tax benefits for education or through personal tax advisor. As long as paying for college is concerned, Sallie Mae advises families to first maximise money which doesn’t need to be repaid like grants and scholarships, then explore federal loans and then consider private educational loan.

Image: https://cdn.pixabay.com/photo/2014/10/01/14/07/tax-468440_960_720.jpg

By Jonny • Tax Saving • 0 • Tags:

Sep 22 2015

6 Tips for Preparing Your Business for Tax Season

You have until April 15th to file a personal tax return, but the due date for businesses is March 15th. That date quickly creeps up if you aren’t preparing yourself ahead of time. If you want to get organized and make this year’s tax season a breeze, take a look at these six tips for preparing your business to file taxes.

Research the Tax Forms Applicable to Your Business

5856616883_2e08acfeb6

Image via Flickr by Images_of_Money

There are all sorts of paperwork involved in starting a business and paying taxes, especially the first year that your business is open. Be ready for taxes this year by researching all the tax documents you’ll need to use. For instance, if you are hiring contractors, you’ll need the 1099-MISC form, and if you are operating as a sole proprietorship you’ll need to file the Schedule C. Try to figure all this out before tax season to eliminate the headache. A tax professional can help.

Keep All of Your Tax Documents in One Place

At the beginning of every year, add a folder to your file system that is dedicated to tax documents. It is the place where you will put 1099 and W-2 forms, along with profit and loss statements, and any other documents that are applicable to your taxes. This tip might seem obvious, but it’s something that a lot of businesses overlook, especially when they are in the start-up stages. Even if you go out of business, you still have to file a tax return to show whether you made any money or not.

If you’ve never been a fan of the paper trail, you can store most of your tax information on a computer instead of in a file drawer. Just make it a habit to scan any document that might be needed for taxes as soon as you get it, so that you have a digital copy to send to your accountant, and you’ll be better prepared for tax season.

Never Throw Away a Receipt Again

Just like you want to hold on to tax documents, you also want to hold on to any receipts that affect your business. The IRS does not typically ask to see receipts, but they will come in handy if your business ever gets audited. Plus, it’s great to have receipts on hand to check the accuracy of your accounting software. It’s easy to make mistakes, so your receipts become your safeguard.

Have Contractors Fill Out W-9 Forms

As a business, you are required to send a 1099 tax form to all contractors to whom you paid $600 or more. However, this becomes difficult if you do not have their contact information and social security numbers handy. Instead of scrambling to collect this information at the end of the year, have all your contractors fill out a W-9 form before they do any work for you. That way you will have their information on hand if they earn more than $600.

Meet With a Tax Professional

Some businesses are tempted to file taxes without the help of a tax professional, but this is a mistake. Business taxes are particularly complicated, and you’ll save yourself a headache if you consult with a tax professional. If you were to file your taxes without help, you could be missing out on savings that accountants are good at spotting. Besides, not all tax professionals are expensive, and you can use Sage’s free accounting software to collaborate with your accountant instead of meeting in person. That makes doing taxes much easier.

Look Into Your Payment Options

Most businesses end up owing money to the IRS. This is not a problem if you’ve been saving money to cover the bill or have been paying quarterly. However, if your business does not have the resources to pay in full what you owe the IRS, it’s important to look into payment plan options. The IRS is willing to work with businesses that owe more than they expected, but it’s good to know your options ahead of time.

Follow these tips and tax season won’t be the headache you’re used to. It is possible to be prepared and have everything run smoothly.

By Jonny • Budgeting • 0 • Tags: , ,

Jan 28 2015

5 Tips for Filing Your Own Taxes

Tax season is here again and everyone is being faced with the grueling task of getting their taxes done on time. This is a task that many people dread every single year, but of course, everyone also looks forward to their return. This time of year, the question often comes up whether or not to do your own taxes. More often than ever before, people are choosing to do their own taxes this year.

There are a lot of reasons a person might to choose to file their own taxes. There are a lot of benefits to doing one’s own taxes in addition to saving money. So many simple tools like e-filing with TurboTax have allowed people to get bigger returns and avoid waiting in line for someone to help them with their tax prep. However, filing taxes alone for the first time can be a scary experience for anyone. Here are five tips to help first-timers file their own taxes.

5 Tips for Filing Your Own TaxesCollect all the right forms first

Finding all the necessary forms for taxes is half the battle. People who have a lot of different forms of income or have made a lot of purchases that will count as deductions may need to take some extra time to make sure they have all the right documentation. These documents will give them all the information that they need for their taxes, making the rest of the process a breeze.

Do not leave out any deductions

Deductions are what get people the biggest returns and make doing taxes that much more rewarding. Everyone should search high and low to make sure they do not leave out any deductions. The best part about using software like TurboTax is that it will help anyone find all the deductions that they may not have thought of on their own. This can range from equipment purchased for a business to charity donations.

Assets can change a lot

In addition to normal deductions, a person’s assets can change a lot about how big their return is. Everyone should make sure that not only all of their assets are listed in their tax reports, but also that those assets have been listed correctly. Making a mistake here could mean a much smaller return or even more taxes to pay.

Have another set of eyes check it over

For people who are filing their taxes alone for the first time, it might be a good idea to have someone else look over them before submitting it. TurboTax software often will do double checks for people, but having another look by someone is beneficial to make sure everything was entered in correctly, so that a person does not make the same mistakes the next year.

Get an extension when needed

Because doing taxes alone can be a big task for the first time, it might be necessary for some people to get an extension on their due date for the first year. Extensions can be applied for to help people make sure they have done everything correctly to get the best end result.

Image: http://pixabay.com/en/calculator-the-hand-calculate-count-428294/

By Jonny • Finance, Tax Saving • 0 • Tags:

Jun 26 2014

When Is It Time To Call a Tax Attorney?

Dealing with taxes can be a daunting task. After all, that’s how they got Al Capone, right? The IRS is one federal agency that really means business. They have their act together. They will seriously toss you into a federal prison and throw away the key. Unlike the Department of Education, the Internal Revenue Service has teeth. And they are not afraid to use them.

slide2I am not trying to frighten you. Being the sensible person you are, you are already frightened of them. There is almost a palpable sense of dread around tax time, even from those who are expecting a return. For some, handling taxes feels a little like handling dynamite. It is nerve racking. But with a little care, we can get through it most of the time. For the other times, there are tax attorneys.

While I am sure some will be glad to do so, tax attorneys did not go to an extra one to three years of law school to help individuals fill out their yearly tax forms. The average person should be able to do it themselves, or with the help of the friendly neighborhood tax preparer. It is not always obvious when the time has come to call in a specialist such as Authority Tax Service.

Here are a few suggestions that may help:

Anytime you have to deal with the IRS

When you are facing someone with a sword and armor, you should have a champion equipped with a sword and armor fighting on your side. Regardless of childhood stories with which you might be familiar, do not show up alone, armed only with a slingshot. The IRS is not just an adversary; it is an army of adversaries.

You may be clever and well-prepared. But you are not clever enough or prepared enough. At that point, you need to fight fire with fire. They are armed with attorneys. You need to be armed with legal counsel. At that point, it is a little like a court preceding. You can represent yourself. But you may have a fool for a client. You can’t handle the IRS. Let someone fight for you who can.

When you are starting a business

The best time to call a tax attorney is before you get into trouble. Most of the time, trouble catches by surprise. In the case of starting a business, we know that it is a path overrun with potential trouble. There is no part of starting a business that should be taken lightly, especially for someone doing it for the first time. Those doing it for the second time already know that they should use a tax attorney. Look for a service like, again, the Authority Tax Service, which employs a veritable dream team of industry professionals, including Tax Attorneys, Ex-IRS Agents, and CPA’s to round out their overall expertise.

Simply figuring which type of entity label is right for your business is enough to keep you up at night. Every type has major tax implications. You can read about those implications, but only a tax attorney truly understands them and can explain them to you. Should you be an Inc. or an LLC? Neither is a bad choice. But one or both might be a bad choice for you. A tax attorney can help you sort it out.

When the job is too big for your CPA

Now that you have achieved some success, you have a Certified Public Accountant handling the numbers. That is a good step and you are doing the right thing. But that does not mean that you are out of danger. As a cautionary tale, you should take a look at a few situations where the CPA was not enough. Sometimes, the situation changes from a numbers issue to a legal issue. It is not necessarily your fault, or the fault of your CPA.

It is a matter of knowing when to call in the tax attorney before matters get out of hand. It is a little like knowing when your nurse practitioner has reached the end of her expertise, and a specialist is needed. CPAs are good at what they do. But they are not tax attorneys. Knowing the difference can save a lot of grief down the road.

As an individual just filing your family’s taxes every year, you will probably never need a tax attorney. But the moment you get the first letter indicating that something is not right with your taxes, make sure you call in an expert while the problem is small.

By Jonny • Law • 0 • Tags: , ,

Sep 2 2013

What Happens To Taxes And Insurance In 2014?

What Happens To Taxes And Insurance In 2014?

As President Barack Obama enters his last two years of presidency, many Americans are wondering what kinds of new taxation and insurance changes to expect for the future. Throughout the next year, there will be a number of new changes that all taxpaying citizens of the United States will face – including increased taxes and new policies that mandate documentation of insurance. Whether or not you agree with the initiative, you will be facing changes that may be affecting how you get medical care – and how you file your taxes.

Employer Health-Care Mandate: The Delay Will Finally End

TaxesOne of President Obama’s biggest plans has been the Affordable Care Act, which has been a critical part of the democratic party’s platform and has promised employed Americans a better chance of getting quality health care at a reasonable price. One of the biggest benefits to expect is that preventative health care measures will be covered as well, instead of only covering or reimbursing the costs of treatment for major injuries and sickness. This summer, the White House issued a statement that it has delayed the process of demanding documentation of compliance from businesses, allowing companies more time to deal with this drastic shift in benefits throughout the upcoming year. An unexpected delay such as this should impact taxpayers relatively little, but it will have a big impact on how insurance will be procured through employers. Companies are struggling to decide when to provide the insurance demanded by ACA, as the timeline remains unclear.

However, in that many of them have already invested a great deal of corporate energy and time – not to mention the great financial investments that have already taken place – to comply with the new reporting guidelines that now will be delayed for the upcoming year. The Department of Health and Human Services has already started rolling out the benefits to individuals and families who need coverage, including special coverage for women and those who have diseases or ailments such as high blood pressure, addictions, weight issues, and cancer-preventative treatment – and these costs have to draw from somewhere. Expect many companies to struggle to implement these new requirements for employer health-care benefits through 2014 and perhaps into the beginning of 2015, and for struggling families to begin using Obamacare at higher rates – nevertheless, mandatory employer-provided quality health insurance will become a reality by the end of President Obama’s term in office.

The Effects Of Insurance On Taxes In 2014: How The System Will Operate

Like never before, the American public will have to consider the impact of tax credits and penalties on insurance at the federal level – which will lead to fee spikes over the upcoming five years. Obama has pledged to not cut any Medicaid funding, and he will do so by changing the methods through which inflation is calculated on Social Security benefits. Totaling 21 new charges, tax hikes and other initiatives that help to fund the Obamacare program, these changes will surely have an effect on everyone, though the severity of the effect will differ based on insurance status and current income levels. In 2014, expect to have to pay a $95 fee if you choose not to buy insurance or have no coverage from your employer. This fee is expected to rise to an annual charge of approximately $700 by 2016 – intended to pressure employers and employees alike to seek out affordable insurance costs that provide quality care. High-income earners will be paying a higher percentage towards Medicare costs in order to make ACA a reality.

If you and your family are wondering what types of coverage and care might be provided to you through the Affordable Care Act, it is best to consult with a representative of the US Department of Health and Human Services, who can refer you to a social worker who can handle your family’s case to make sure that you and your loved ones are fairly protected with the minimum essential coverage to keep you healthy and strong as members that contribute to society.

The article was written by Audrey, who is working for Wallace & Associates CPA, a Pasadena CPA serving the Los Angeles area.

By Jonny • Insurance, Tax Saving • 0 • Tags: , , ,

Nine Ways To Be Prepared Against Always Changing Tax Laws

Jul 2 2013

Nine Ways To Be Prepared Against Always Changing Tax Laws

Tax lawsClients ask about how they can be prepared against always changing tax laws. One of the certainties of modern taxation is constant, unending change. Perusing the Congressional Budget Office’s (CBO) “Reducing the Deficit: Spending and Revenue Options”, convinces any thoughtful person that changing tax laws are inevitable. Preparing for new tax laws while considering how to incorporate recent changes into a tax practice, is part of preparing for the next tax season. Consider these changes and trends:

1. High income earners, rising brackets and capital gains.

Single taxpayers earning $400,000 or married couples earning at least $450,000 rise to a higher tax bracket this year. Previously taxed at 35 percent, 2013 tax rates climb to 39.6 percent (+4.6 percent). Note that CBO Option 1 is “Increase Individual Income Tax Rates” from 2012-2021. If enacted, raising all tax rates by one percent would raise U.S. tax revenues by $480.4 bn through 2021. CBO recommends continuing, concurrent rises in capital gains rates. A client discussion about booking capital gains is timely.

2. VAT possibility.

CBO Option 27 explores the possibility of adding a five percent value added tax. A ‘narrow base’ would raise 1.390 bn in U.S. tax revenues through 2021. A ‘broad base’ VAT accessed would raise about 2.5 bn through 2021. About 140 countries around the world assess VAT for goods and services purchased.

3. Institutional fees.

Option 33, “Impose a Fee on Large Financial Institutions,” studies the financial impact of supporting institutions “too large to fail” and the Troubled Asset Relief Program. Assessing institutional fees would raise 70.9 bn in tax revenues through 2021 and would theoretically create reserve funds for the largest institutions in the event of a future financial meltdown.

4. Tax greenhouse gas emissions.

Option 35 proposes taxing the U.S. carbon footprint. Taxing emissions would increase the costs of some goods and services. If voted into law, the proposal estimates $1,178.9 bn in tax revenues would be raised through 2021.

5. Tax income of U.S. Corporations as earned.

Option 25 explores the double taxation imposed on multinational operations of some U.S. corporations. Corporate earnings outside of the U.S. would be taxed according to the laws of the country in which the income is generated. Changing the complex tax laws relating to repatriation of some corporate income would also generate a projected $114.2 bn in tax revenues through 2021.

6. Eliminate tax preferences for some education expenses.

Option 15 recommends adjustment of existing tax-deferred education payment accounts, grants and loans, and certain tax preferences related to education. The proposal would generate $47.7 bn in tax revenues through 2021.

7. Child care credit.

Modifying or eliminating the child care credit would raise significant revenues if enacted. Full elimination of the child care credit would raise $116.7 in tax revenues through 2021. (In 2013, child care credit was reduced to $500 per child.)

8. Tax exclusion on interest income for state/local bonds.

Municipal bonds issued by state and local governments appeal to civic-minded investors because interest paid is currently excluded from the bondholder’s AGI. Option 17 projects $142.7 bn in tax revenues raised by 2021 if the proposal is enacted.

9. Foresight and education.

Everyone wants to know how to prepare for future tax changes and no one has a crystal ball to precisely predict which proposed tax law changes will occur in the future. The ClientWhys Tax Update Seminar puts the information needed for next tax season in hand today! Attendees spend two days interacting with “A-team” speakers (29 hours of CPE!) and receive the completely searchable “Big Book of Taxes” for daily use.

Author Bio:

Lee Reams II is the founder and CEO of ClientWhys, Inc. ClientWhys is a SAAS developer that delivers online marketing solutions to businesses built by word-of-mouth. Applications include websites for accountants, email newsletters, secure client portals and tax and financial web content.

Author’s Google+: https://plus.google.com/109145937409705134783/posts

By Jonny • Savings, Tax Saving • 0 • Tags: , ,

May 18 2013

7 U.S. States With No Income Taxes

Texas Governor Rick Perry

When it comes to income tax, it is no mystery that there are large variances state by state. In fact, there are some states that have no income tax liability. Many of these states pick up the difference with changes in sales tax, property tax, and corporate taxes. There are seven states total that have various ways of avoiding income tax entirely.
Nevada
On the west coast, Nevada is most known for its gambling and entertainment industry. It is no surprise that much is made up in revenue through gambling. In a given fiscal year, Nevada is funded mostly through sales tax at the rate of 6.85%. They also lack a corporate tax. As a result, Nevada has attracted attention from various corporations moving out of other state s in the midwest, including Apple. Property tax for Nevada is rated at approximately $1,297 for the 2010 year.
Alaska
Alaska is a land of production and natural resources. It’s location is strategic to both Canada and the United States. Funding for the state comes from natural resource extraction with a 9.4% corporate tax rate. In fact, royalties from oil and gas make up the largest percentage of revenue. The average property tax per year is $1,338. There is no state sales tax levied either.
Texas
This vast state is situated in industry with a large cocktail of tax revenue that makes up for the loss of income tax. A 6.25% sales tax as well as an approximately 1% franchise tax bring in almost half the income for the state. Texas also levies motor vehicle tax as well as tax on natural resources. The average property tax annually is $1,292.
Washington
The vast state of Washington, complete with proximity to Canada and natural resources, levies a tax on sales and businesses. The state’s corporate tax, known as Business and Occupation Tax, is levied at 7%. Over half the revenue in the state is made up from sales tax. The average property tax rate for Washington is $1,257.
Wyoming
Abundant natural resources and property also help boost Wyoming’s tax revenue. A 4% sales tax and a tax on natural resources make up a large percentage of Wyoming’s revenue. Natural resource production is abundant and makes up a good amount of income through environmental levies. The recent per capita property tax was rated at $2,663.
Florida
The sunshine state of Florida is also a hub for entertainment and tourism. A 6% sales tax rate makes up over 70% of the income for the state due to the tourism industry. A 5.5% corporate income tax is included as well. Despite the introduction of a corporate tax, advantages exist for specific corporations that are limited to partnerships or S-corporations. The average property tax is $1,507 per year.
South Dakota
Unlike its northern twin, South Dakota does not collect income tax and retains funding through the use of a 5% sales and use tax as well as gas tax. There is no corporate income tax in the area. Known for its national parks and environmental tourism, the state recoups over 60% of its revenue from sales tax. An 8% fuel tax and car title tax is levied. The average property tax is rated at $1,142.

Featured images:

Dan Grogan is a corporate accountant who has also written reviews of top-rated online accounting schools at Top Accounting Degrees.

By Jonny • Finance, Tax Saving • 2 • Tags: , ,

Apr 2 2013

End of Tax Year

Tax FreeThe end of the tax year is fast approaching and as everyone rushes to maximise their tax free savings first direct has compiled some tips to help negotiate the tricky waters.

  1. Get a grip on your finances – work out how much you have in savings, what rate of interest you’re receiving and whether you’re taking advantage of you tax free subscription.  If you don’t have any savings look at your budget to see if you could free up a monthly amount to start saving.
  2. Remember ‘Tax free’ means free from UK Income Tax and Capital Gains Tax
  3. Start small, don’t just open online current accounts, open a Cash ISA – in a recent first direct survey* nearly 50% said they didn’t have any tax free savings.  You don’t have to use your limit, but you might as well avoid paying tax on any savings you do have up to the Cash ISA limit.
  4. Use your limit if you can – In 2012/2013 the total ISA limit is £11,280 of which £5,640 can be put in a Cash ISA and anything you don’t put in your Cash ISA can go towards your Stocks and Shares ISA instead. Make sure you use your 2012/2013 tax year limit before the start of the new tax year on 6 April 2013 because after this date, this tax year’s subscription allowance will be gone for good.
  5. Don’t forget a Stocks and Shares ISA – recent research* by first direct found that only 14% of the population have a Stocks and Shares ISA, essentially missing out on between £5,640 and £11,280 of tax efficient allowance (2012/2013).  The benefit of a Stocks and Shares ISA is that all investors, including higher rate tax payers, won’t pay Income Tax. By investing in an ISA you are also protected from paying any Capital Gains Tax on any increases in the value of your investment.
  6. Budget for a higher allowance in 2013/2014 – the tax free allowance is going up to £11,520 (£5,760 for Cash ISAs in 2013/2014, so if you put a little aside every month consider increasing the amount so you can use your higher subscription allowance.
  7. Transfer your ISA to get a better rate – the survey* also highlighted that 62% have never transferred their ISA.  It’s important to get the most from your tax efficient savings and whilst you can only have one Cash ISA and one Stocks and Shares ISA per tax year you can transfer your ISA balances to another provider at any time.
  8. Keep all your eggs in one basket – every tax year you have a maximum Cash ISA subscription and you are allowed to transfer the previous tax year balance into your new Cash ISA.  If you can manage to fill your subscription each year the balance will soon add up allowing you access to the better Cash ISA rates e.g. first direct’s market leading 3% cash ISA rate (available for balances over £40,000 – just 7 years of cash free savings).
  9. Consider a UK Offset Mortgage – if you have a mortgage and savings then an offset mortgage might be a good option.  Any savings you have are offset against the balance of the mortgage and because they don’t receive credit interest they’re not subject to tax. For instance, if you have a mortgage of £100,000, savings of £20,000 and a 1st Account with a credit balance of £1,000, you only pay interest on £79,000. And as you don’t actually earn interest on your savings, there’s no tax to pay on them.

* Research carried out on behalf of first direct by Opinion Matters in February 2013 amongst 2,034 people aged 16+

By Jonny • Finance, Savings, Tax Saving • 0 • Tags: , ,

Jan 3 2013

How the Super Rich Avoid Paying Taxes

Avoid Paying Taxes

We’ve all heard tell of billionaires who can’t be bothered to pay taxes. Yet, how are they able to accomplish such a thing?

The top earners in America simply hire the best tax lawyers, who understand which tax loopholes are best able to keep money from going toward building roads and maintaining social security benefits. It’s not surprising, then, to learn that earners with an annual income of $10 million typically pay a 19% tax rate, or that estimated tax revenue losses are estimated to be around $70 to 100 billion each year.

Some of the most frequently used methods of skimping on taxes including sending money overseas and freezing assets. The wealthy are able to save money for a rainy day by transferring assets to their children, effectively freezing their worth and eliminating the need to pay taxes on them for many years. For the wealthy, the Cayman Islands are a popular place to do some banking. It’s estimated that about $21 trillion has been funneled into offshore accounts, effectively lowering tax bills for the wealthy.

Source: TopAccountingDegrees.org

By Jonny • Budgeting, Tax Saving, Wealth • 1 • Tags: , , , ,

Dec 23 2012

Advantages of Using Tax Software

Using Tax SoftwareThe growing number of tax software users is a testimony to the fact that such software are very useful. For a better understanding of why so many people are using tax software, highlighted below are some of the main advantages of such software.

Maximizes Your Tax Deductions

It is not possible for a layman to keep a tab on the ever changing tax laws. Quite often the changes can be beneficial for you as every year new deductions are made available to tax payers that can be availed to save tax money. It is very important to be aware of such deductions to make good use of them.

You can eliminate this problem by using the latest tax software, as they come with the latest laws so that you can easily avail the deductions you are eligible for. This way you will get a bigger refund and owe less. Additionally, you will also save yourself from the pain of owing taxes caused by changes in tax laws.

E-Filing

Most tax software include the option to file taxes from your computer (e-filing). It is a quicker and more convenient way of filing taxes. This way you will also save a lot of time that is wasted in going to the post office to file your return.

Reduces the Risk of Audits

As per law, the Internal Revenue Services (IRC) has the authority to audit any business at any time. However, you can minimize this risk by using tax software, as there are minimum chances of errors when one uses tax software. Some tax software even provide a guarantee of error-free calculations. This means you will not have to face any audit or penalty.

Get all Your Queries Answered

Getting an answer to a tax related query is a tough task. Searching the IRS’ website is a time consuming job. Using tax software greatly helps as certain software, such as TurboTax, come with specially designed Q&A pages that have all the answers to tax related queries. You can easily get an answer by using the right keyword. Additionally, some software also have a live-help option, using which you can send your query to the experts who will reply within a short span of time.

 Stores Taxes on Your Computer

It is important to keep records as you may need them at any moment. Manually filing reports is cumbersome and requires special care. But when you use tax software for this purpose, the need to manually keep records is eliminated as all the information is saved on your computer, which you can easily access whenever you want.

Saves Time

One of the biggest advantages of using tax software is the fact that it helps you save time. Time wasted in going through tax laws, calculating payments or filing returns is minimized as the computer does all the tasks for you. Additionally, the software removes the risk of errors, which means you do not have to waste hours double checking everything.

There is no reason why one would not use tax software. It not only helps you save time, but also helps you save money.

IstosGlobal is one of the most trusted Tax firms in Cyprus, that can provide you with consulting and auditing services your company

By Jonny • Business, Finance • 0 • Tags: , , ,

1 2
%d bloggers like this: