Top Income Tax Preparation Errors

During income tax season people all around are scurrying to their tax office to have their taxes prepared in hopes of receiving some money back as this time of year is so busy mistakes tend to happen frequently. Some mistakes go unnoticed and do not make a big difference in the outcome while other mistakes can cost you thousands of dollars. To prevent mistakes you need to find a New York Certified Public Accountant that can prepare taxes with a guarantee to have your tax papers rechecked for mistakes at no extra cost to you.

You also need to be sure of your tax information by going through your records and finding your information to verify everything. You can also log online to some sites and calculate your earnings so you will know how much you can expect. This amount is not always 100% accurate it can give you a close estimate. The most common errors made during tax preparation are:

Simply typo errors: This can be as simple as one number off on your social security number or birthday. But this typo is enough to stop the return. In some cases you can actually owe money or be in worse trouble if the social security number they entered actually belongs to someone who has been running from the IRS for years. To avoid this mistake you need to ask to see the NY income tax forms before they are submitted to the IRS. Once the preparation is complete you can look over the paperwork and check your social security number, birthday, and name for any errors.

Using Standard Deduction: using a standard deduction instead of itemizing is a safe deduction for a lot of people but it is not for everyone. You may be overpaying when you don’t itemize. Do some research to find out what is better for your NYS tax preparation. If itemizing is better for you then you need to bring all the prepared paperwork with you to get your taxes prepared.

Math errors: Simple math errors can cause a lot of problems. In fact, according to the IRS, these simple math errors are the main reason for mistakes. When software is used by a NY tax preparer there are less chances of a mistake occurring. Math errors are usually caused by human error.

Attached documents are left out: When you have your taxes prepared it is mandatory that a W-2 is attached. All paperwork is needed in order to complete the New York tax preparation. If not the IRS may deem your paperwork ‘Incomplete’ and not release your refund until the paperwork is completed.

Miss the deadline: It is easy to let time get away as you are busy, but you should always circle April on your calendar. When you don’t pay your taxes, even if you just forget, the IRS considers it a non-payment and you will need to pay but with interest.

It is best to hire a experienced Certified Public Accountant New York and leave the hassles of tax preparation on them and avoid the common income tax filing mistakes.

About MEDOWS CPA, PLLC: We are a boutique CPA firm located in New York City  (Manhattan), dedicated to helping small business owners, freelancers and individuals.  In addition, we also provide CPA services to people outside of the state and country.

Jonathan Medows, CPA

MEDOWS CPA, PLLC

http://www.medowscpa.com

http://taxblog.medowscpa.com

info@medowscpa.com

A Unique, Boutique New York CPA Firm Serving the Needs of Individuals & Small Businesses

When it is time to do your taxes in New York you may do your own taxes or you may get the help of a New York CPA or an accountant in NY to do your tax preparation. Even the most qualified people can make a mistake so the more you know about tax time the better you can be prepared for your appointment. There are 3 ways to save on income tax. Do you know what they are?

The first way to save money is through an EITC, or Earned Income Tax Credit. This may sound like something that you don’t qualify for but if you have a job you qualify. This is a tax credit given to certain people who fit the following criteria: you must work for a living and fall within a certain guideline. You must also be of age, and meet dependency requirements and be a U.S. citizen. Not everyone qualifies for this type of credit so not everyone is familiar with how it works. If you are not sure if you qualify then you can log online to IRS website (www.irs.gov) and read the description of qualification or ask a NY CPA. If you think that you qualify don’t forget to mention it to your tax preparer when you go to them.

When you have your income tax prepared for the year you need to also pay attention to the child tax credit. This has been given to certain people before but this year it is going to be even more because so many people are without a job.

Donations are a great way to save on income taxes in new york and other states and help others during the year. When you give it is important that you keep a copy of the check that you are sending or you can obtain a written paper stating that a certain amount was paid to them over the year. This is very important because without this paper or copy of the check you have no proof to the IRS that you paid a certain amount in donations and you cannot use it.

If you run your own business it’s important to keep track of everything you purchase to keep your business running. This is all considered a loss and if you can show more loss at the end of the year then gain then you won’t have to pay too much in New York taxes. You will always need to pay in state taxes where your business is being conducted but you won’t need to pay federal unless you make a certain amount.

If your child is in college and you are paying college tuition then you need to keep track of all these expenses. When you add college tuition to your expenses you can itemize everything; room and board, books, supplies, vehicle payment and expenses, insurance, gas expenses and more. You can also itemize health care expenses and any other expenses that are associated with that child.

Anytime you can itemize you can save more money on income taxes so speak to your NYS CPA or tax consultant in New York to find out how you can itemize.

About MEDOWS CPA, PLLC: We are a boutique CPA firm located in New York City  (Manhattan), dedicated to helping small business owners, freelancers and individuals.  In addition, we also provide CPA services to people outside of the state and country.

Jonathan Medows, CPA

MEDOWS CPA, PLLC

http://www.medowscpa.com

http://taxblog.medowscpa.com

info@medowscpa.com

A Unique, Boutique New York CPA Firm Serving the Needs of Individuals & Small Businesses

From our friends at Rawtoast design

http://rawtoastdesign.blogspot.com/

Tax Resource for Freelancers

I often get asked by other artists/freelancers about tax resources and if I have any recommendations for them. As RTD is compiling year end #’s and preparing to pay out good ol’ Uncle Sam his final installment, it felt fitting to do a little link dropping too. RTD’s go to resource for everything tax, and NYC tax related. MEDOWS CPA has been great during RTD’s transition from St. Louis to New York City and is highly recommended to anyone currently searching for their own CPA. One thing that RTD has learned (the hard way) over the past couple years is that you really need to be preparing for this all year long…don’t stress if you haven’t though, give MEDOWS CPA a call and they’ll help you get organized before it’s too late.

MEDOWS CPA, PLLC – http://www.medowscpa.com is a New York City based boutique accounting firm whose core clientele are freelancers. They assist freelancers with tax prep services, accounting services, tax audit, entity formation, tax planning and other ad hoc services that they may need as the need arises. They work with both freelancers who are self-employed along with freelancers who have formed S-Corporations, C-Corporations, Single-Member LLCs and Multi Member LLCs. They are a full-year firm and can meet clients during working hours, nights and weekends.

MEDOWS CPA, PLLC is managed by Jonathan Medows, CPA. Jonathan is a licensed New York CPA and is also licensed in Maryland (and application pending in New Jersey). Jonathan received his BS and MBA from the Stern School of Business of New York University. He has been featured in the New York Post, BusinessWeek and Web CPA along with other publications.

Also be sure to check out MEDOWS CPA, PLLC Business & Tax Blog too for regular posts about tax advice – http://blog.medowscpa.com

About MEDOWS CPA, PLLC: We are a boutique CPA firm located in New York City  (Manhattan), dedicated to helping small business owners, freelancers and individuals.  In addition, we also provide CPA services to people outside of the state and country.

Jonathan Medows, CPA

MEDOWS CPA, PLLC

http://www.medowscpa.com

http://taxblog.medowscpa.com

info@medowscpa.com

A Unique, Boutique New York CPA Firm Serving the Needs of Individuals & Small Businesses

Learn Tips to Increase Your Tax Refund

When you get ready to prepare your taxes or if you hire a NY certified public accountant to do it for you then you may sit there thinking about all the ways you could have saved your money this past year and how you should have done some things different but now it is too late and you only hope that it works out in your favor. When you get the results back you take a deep breath because you don’t owe anything. You can avoid this anxiety by learning tips that will increase your tax refund and decrease your chances of owing. There are so many things you can do with your money if you received more on your tax return New York.

So the question is to itemize or not to itemize?

Everyone asks this question during tax time. Why do you itemize? Well people itemize in order to show that they did pay out a lot the previous year. When you itemize it shows the IRS that you paid a certain amount and you can prove it. You must keep your receipts if you plan to itemize. If you run your own business you should itemize anyway because you can show how much you paid out versus how much you brought in. You can get a full list of deductions available from your New York income tax consultant.

Going back to school? There are more people making this decision today. Going back to school has advantages and one of those is tax deductions. You will most likely qualify to get more money back on your refund if you go back to school. Keep track of your receipts for everything- tuition, books, gas to travel, daycare expenses if you have children and more. If you are going to college online you can deduct an office area in your home, internet connection, computer expenses, and any material you need to take your courses online; anything that deals with your education online.

If you run your own business then it is important that you file the proper paperwork during tax time. You will need to pay for every form submitted but this is also a deduction for the next year. Your taxes that you pay as well as workers compensation on other employees is also something that you can write off as an expense for your business. Before starting your business makes sure that you speak to your tax consultant or CPA in New York to find out what you need to keep track of and what you are responsible for. A NY CPA can even keep track of your business books during the year so you can be all caught up during tax time. Most businesses do not get any money back and owe money when they do not have a book keeping system throughout the year. A business must pay state taxes during a certain time of the year; quarterly, bi-annually, or annually.

There are several ways to increase your refund for next tax year. It’s never too late to start preparing and saving.

About MEDOWS CPA, PLLC: We are a boutique CPA firm located in New York City  (Manhattan), dedicated to helping small business owners, freelancers and individuals.  In addition, we also provide CPA services to people outside of the state and country.

Jonathan Medows, CPA

MEDOWS CPA, PLLC

http://www.medowscpa.com

http://taxblog.medowscpa.com

info@medowscpa.com

A Unique, Boutique New York CPA Firm Serving the Needs of Individuals & Small Businesses

Are you entitled to an expiring tax refund in NYC or elsewhere? Generally, taxpayers have three years from the due date of a tax return to claim a refund owed to them by the IRS, NYS, NYC or any other tax authority. If you do not file either an original or amended return within this three year window you lose the ability to claim your refund.

Our NYC CPA firm specializes in helping people such as yourself file their expiring tax refunds.  We handle many such expiring tax refunds every year at our manhattan office, and we have the experience needed to file your claim as quick as possible.

Don’t let your refund slip out of your hands. If you are owed a tax refund that is expiring soon, don’t hesitate to contact us. We will make sure you receive your refund in a prompt and timely manner. Contact us now for a free initial consultation.

About MEDOWS CPA, PLLC: We are a boutique CPA firm located in New York City  (Manhattan), dedicated to helping small business owners, freelancers and individuals.  In addition, we also provide CPA services to people outside of the state and country.

Jonathan Medows, CPA

MEDOWS CPA, PLLC

http://www.medowscpa.com

http://taxblog.medowscpa.com

info@medowscpa.com

A Unique, Boutique New York CPA Firm Serving the Needs of Individuals & Small Businesses

If you work then you pay taxes. That is the way it has been and always will be. Not everyone is happy with the fact that the government does collect his share before you get yours but there is no other way. The advantage of the government dipping into your check first is during income tax time you have the opportunity to get it back in a lump sum. The government system functions on taxes during the year so it is necessary.

If you are residing in Manhattan or New York, when you receive a paycheck you will see an area somewhere on that check that states how much tax was taken out of that check. You will also see how much taxes have been taken out of your check for the entire year to date, or YTD. If you feel that you are paying too many taxes out of your check you can go to a New York CPA and discuss the possibilities of ways to decrease the amount of taxes you have taken out. There are different ways to adjust the amount of taxes coming out of your paycheck. When you were first hired you filled out a ton of paperwork and one of those papers helped determine the amount of money that would be taken out of your check every payday. This is how the amount is determined.

Basically, how much taxes you pay depends on your income and where you live. Some people do not pay taxes at all while others pay a lot more than they think that they should. Usually you can consult a good NY Certified Public Accountant on state and federal taxes.

A flat tax is a certain amount that everyone pays regardless of how much they make. A progressive tax is a tax that takes only a percentage of the total amount of your earnings. Just like in other states, New York CPA can advice you on the best way to file taxes in New York.

During the beginning of the year you will receive a form called a W-2 from your employer which will list the amount of New York income tax you paid in both federal and state the past year. This paper will be required when you have your taxes prepared as it tells the person preparing your income tax in NY exactly how much you paid and will help determine what you owe or what you will get back.

Understanding incomes taxes is confusing and that is why you need a Certified Public Accountant or an accountant in New York that can help you. There are so many different things you can do to learn more about your income taxes NY. You can write down your questions and then contact your CPA or an accountant. If you don’t have someone doing your taxes then you may want to find someone that you can trust to handle your taxes year after year. You can also do some research online to find out more about taxes and ways to save money.

Paying taxes in New York is something that you have to do and you can control how much you pay by understanding it a little more.

About MEDOWS CPA, PLLC: We are a boutique CPA firm located in New York City  (Manhattan), dedicated to helping small business owners, freelancers and individuals.  In addition, we also provide CPA services to people outside of the state and country.

Jonathan Medows, CPA

MEDOWS CPA, PLLC

http://www.medowscpa.com

http://taxblog.medowscpa.com

info@medowscpa.com

A Unique, Boutique New York CPA Firm Serving the Needs of Individuals & Small Businesses

If you are one of the many individuals who has failed to file prior year tax returns in NYC, don’t worry. You are not the only person in New York to ever have delinquent taxes. As a matter of fact, our Manhattan CPA office routinely handles prior year tax returns both in New York and abroad.

We have years of experience assisting our clients with delinquent NYC tax returns, so you can rest assured that you are in good hands when you entrust your old NYC taxes to us. Our Manhattan CPAs are more than qualified to help you resolve your prior year New York tax returns, or any delinquent New York tax return you may have going back to the mid 1990’s.

Filing delinquent New York City tax returns is a complicated matter, and one that you certainly do not want to handle on your own. Instead, contact one of our experienced Manhattan CPAs. We will make sure that your prior year tax return is handled correctly. Whether you are in New York or abroad, do not hesitate to contact us if you have delinquent  tax returns that need to be handled. Our initial consultation is free, so you have nothing to lose.

About MEDOWS CPA, PLLC: We are a boutique CPA firm located in New York City  (Manhattan), dedicated to helping small business owners, freelancers and individuals.  In addition, we also provide CPA services to people outside of the state and country.

Jonathan Medows, CPA

MEDOWS CPA, PLLC

http://www.medowscpa.com

http://taxblog.medowscpa.com

info@medowscpa.com

A Unique, Boutique New York CPA Firm Serving the Needs of Individuals & Small Businesses

If you are liable for the Alternative Minimum Tax (AMT) bracket this year you may not understand how you got there to begin with. Taxes can be confusing so the more you understand it the better the outcome.

If you are living in the New York and looking for ways to decrease your chances of landing in the Alternative Minimum Tax class then you need to decrease your income. You can also pay more into any retirement plan you have. Paying more into a 401K plan will automatically reduce your income and solve the problem.

The Alternative Minimum Tax is a calculation that is always figured with the regular income tax figures. The original purpose of the alternative minimum tax was to prevent tax payers from finding ways to take advantage of tax deductions that includes buying and selling stocks to keep from paying too much in taxes. But today taxpayers do not need a lot of personal deduction in order to be classified in the alternative minimum tax bracket.

The ATM reduces your itemized taxes. Some NYC CPAs would say simply not to claim as many itemized taxes and this would reduce your AMT. However, blindly reducing itemized taxes may increase your overall tax liability. There is a careful balance to determining what to include in itemized deductions and what not to include insuring that your overall tax liability is as low as possible.

Speak to your Certified Public Accountant in New York or NY tax consultant to decide which ways are better for you to reduce your chances of being considered in the Alternative Minimum Tax bracket. Your accountant can give you suggestions on how to get out of it or reduce your chances of getting back in it.

If you have substantial state and local taxes, property taxes, mortgage interest, real estate taxes and non reimbursed business expenses and earn a decent salary you are at a risk for AMT. You may benefit from filing separately on your income tax NY. Not everyone does, but if your New York accountant thinks that it may save you money then you should do it as this will be used in your savings on your federal liability. The AMT does not factor in when determining New York tax liability.

About MEDOWS CPA, PLLC: We are a boutique CPA firm located in New York City  (Manhattan), dedicated to helping small business owners, freelancers and individuals.  In addition, we also provide CPA services to people outside of the state and country.

Jonathan Medows, CPA

MEDOWS CPA, PLLC

http://www.medowscpa.com

http://taxblog.medowscpa.com

info@medowscpa.com

A Unique, Boutique New York CPA Firm Serving the Needs of Individuals & Small Businesses

Here at Medows CPA we are making concerted efforts to leverage technology to better assist our NYC tax and other tax clients. We will be implementing the following in the beginning of January:

1) Proprietary tax software to better track each stage of a client’s tax return.

2) Electronic data storage for keeping client’s records and final return in electronic format.

3) A concerted effort to go green by reducing our carbon footstep by transitioning, whenever possible from paper documents for clients to electronic format. Inclusive of this is electronic filing of most business and personal tax returns and electronic copy of tax returns for clients.

4) A client portal to allow clients to download drafts and final returns.

5) Substantially reducing paper version of client copies by the use of client portal or cd version of the final tax return.

6) The ability to book appointments on-line.

7) The hosting of our website on our own servers for enhanced security.

8 ) The acceptance of payment via ACH Debit along with check and credit cards via Google checkout.

9) The offering of Rapid Anticipation Loans via Chase for those clients that need tax refunds on an accelerated basis (additional fees by Chase and our office will apply).

By making these changes we will be able to assist our clients with their New York tax preparation in an even more efficient and effective manner than before.

About MEDOWS CPA, PLLC: We are a boutique CPA firm located in New York City  (Manhattan), dedicated to helping small business owners, freelancers and individuals.  In addition, we also provide CPA services to people outside of the state and country.

Jonathan Medows, CPA

MEDOWS CPA, PLLC

http://www.medowscpa.com

http://taxblog.medowscpa.com

info@medowscpa.com

A Unique, Boutique New York CPA Firm Serving the Needs of Individuals & Small Businesses

About MEDOWS CPA, PLLC: We are a boutique CPA firm located in New York City  (Manhattan), dedicated to helping small business owners, freelancers and individuals.  In addition, we also provide CPA services to people outside of the state and country.

Jonathan Medows, CPA

MEDOWS CPA, PLLC

http://www.medowscpa.com

http://taxblog.medowscpa.com

info@medowscpa.com

A Unique, Boutique New York CPA Firm Serving the Needs of Individuals & Small Businesses