Know More about Amended Tax Returns NYC

First of all, what is an amended tax return? This is filed when you need to make any type of revisions on a return that you have already filed. The most common amendment that people make is their filing status. Most will change the status so they can claim more deductions that may have been missed when they originally filed.

When you need to make an amendment, you need Form 1040x. This will allow you to correct any information you need to when you filed your Form 1040 EZ, Form 1040A, or Form 1040.

If the amending tax returns request is due to some errors made on the calculations then you may not need to file an amendment because the electronic system used may correct these errors for you. The IRS uses a fool proof system to verify all the information on all returns before any checks are issued. If you notice a mistake in calculations you may want to contact your CPA to ask him or her, what you should do next.

If you need to file amended tax returns, you will have room to put your reason for filing this form. If it is due to a status change then you clearly want to state this. There are three different columns on Form 1040x. The first column or column A will allow you to place the information that was on your original form. The second column, or column B gives you room to explain why the change is needed. The third column, or column C gives you room to put the change needed to be made. When you fill out this form make sure that you place the year that you need amended at the top.

Make sure that you have the right documents that will verify your request to change your information before you send in the form. Because this can take weeks to get approved you don’t want to waste any time by not being prepared.

Before you send in the 1040x form you want to have a NYC CPA in Manhattan look over the information to verify the correction. The CPA in NYC can also help you mail it to the right IRS department. You cannot electronically submit this form, fax it, or call it in. You must mail this correction to the IRS.

You want to make sure that the information you provide is correct and then mail it out. If your change is significant the IRS may order an audit to look over your records further. If this is the case you will need the help of the CPA in New York you hired. Sometimes during an audit, the person being audited may feel intimidated by the IRS. A CPA knows the rules and the laws and can represent you during this audit. They can help you answer all the questions by the IRS and if necessary arrange to go over all your information to verify your tax returns.

About us: MEDOWS CPA, PLLC is a boutique New York CPA NYC firm in downtown Manhattan serving the needs of Individuals & Small Businesses in New York City and throughout the nation.  We work with the self-employed, freelancers, LLC, C-Corporations and S-Corporations to help them with their accounting and tax needs.

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

We Fix Tax Returns

You filed your tax returns by the April 15 deadline. Now you can sit back and relax. Oh no! You just remembered that you put the wrong status on your tax return. Maybe you just got married at the end of the year or divorced and it just dawned on you that you put the wrong status on your form. Something as simple as your status can make a big difference in your return. So how do you change your information now? You can repair tax returns New York City or anywhere else by filing a 1040x form.

There are other reasons why you need to fix tax returns. It could be the total that you failed to report part of your income, credits that are due to you, deductions that you forgot to mention, or you miscounted the number of dependants that you can claim. If you think that you miscalculated something on your form you can actually relax because the IRS uses an electronic system that catches even the simplest mistakes and corrects them automatically. To be sure, you need to check with an accountant in New York City to make sure that you do not need to file. Don’t assume that the IRS will not notice the mistake. If it is noted, you could be audited and you may end up paying more in penalties as well as interest, depending on the mistake and how long it has been.

It doesn’t matter how you filed your tax papers the first time, you can still make changes to the form if it is incorrect. The IRS knows that sometimes mistakes can happen and it can affect the results of the return. Even though it is extra work for everyone, in the end, the change will be better then not saying anything at all. When you file your amendment, you will need to do it on paper and allow up to 12 weeks goes into effect. These changes need to be carefully corrected by an IRS agent personally.

You have up to three years to fix tax returns New York from the original date that you filed. Even if it is June when you realize the mistake, you need to report it immediately. Don’t wait until the next tax season to file the change. You may forget about it by then.

Filing an amendment is not free. You will need to pay extra for filing the form and any help you need from a CPA to file it correctly. However, it is worth the extra money to not have it to worry about anymore.

Filing the form is very simple and easy to do. You may feel better to have a CPA walk you through it or to verify everything that you put on the form to make sure that you filed it correctly. When you are in doubt as to whether you need to make any changes it is important to consult with a CPA.

About us: MEDOWS CPA, PLLC is a boutique New York City Certified Public Accountant firm (CPA NYC) working with serving the needs of Individuals & Small Businesses in New York City and throughout the nation.  We work with the self-employed, freelancers, LLC, C-Corporations and S-Corporations to help them with their accounting and tax needs.

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

Top Mistake on Tax Returns in NYC

Mistakes happen in almost everything and taxes are no exception. People make mistakes when filing their tax returns. Tax time can be overwhelming to some and that allows room for mistakes. Even one mistake can alter the amount that you get back or you owe. Every line needs to be carefully filled out on a tax form and for some, it can be very confusing.

Because these forms can be confusing the say the least, you may want to hire a Manhattan CPA to file them for you. They know exactly what information goes where and you don’t have to try to figure out the meaning of the words. When finding a mistake on tax returns New York CPA is specially trained to fill out these forms correctly and they can help you out.

There are ways to prevent mistakes from happening. You need to allow yourself time to fill out these forms. If you fill out your own forms you will need to do the following:

Always double check and check your math again. The most common mistakes happen with math. You may put the wrong number in one line and that will change everything. You may also put a comma or a period in the wrong place.

Your status is also the place where people make the most mistakes. The status may be single, married filing separate, or married filing joint. Along with your status comes the line to put your social security numbers. If you don’t the right number you may another social security number belonging to someone else. Get your social security cards out and visually look at your number and then verify the number that you have on your form to make sure that they match. If you have a spouse on your tax return make sure that you verify their social security number as well.

You need to make sure that you file the right forms. Some of the most common mistakes happen when someone uses the wrong form to file their tax return. There is a reason for all of those specific forms and you need to make sure that you have the right one for you. When you need someone to look over your papers to check for a mistake on tax returns New York City CPAs know which forms you should be using..

If you file electronically on your own, you need to verify all your numbers before you click the “next” button. Even though you can go back and re-edit everything you want to avoid overlooking anything. Again, it is better if you can avoid a mistake on tax returns Manhattan CPA’s can help you file taxes correctly

Mistakes are going to happen occasionally and you can avoid your chances of making them if you find a quiet place to file your tax return. Make sure that you are not disturbed by others in your home. You want to read the question thoroughly before typing in your answer. Make sure that you have a good connection and you won’t be disconnected while you are working. Make sure that when you don’t understand something you email for help.

About us: MEDOWS CPA, PLLC is a boutique New York City Certified Public Accountant firm (CPA NYC) working with serving the needs of Individuals & Small Businesses in New York City and throughout the nation.  We work with the self-employed, freelancers, LLC, C-Corporations and S-Corporations to help them with their accounting and tax needs.

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

WHY MEDOWS CPA IS A GOOD ALTERNATIVE TO THE BIG TAX CHAINS

Many taxpayers are familiar with large tax preparation chains including H&R Block, Jackson Hewitt, and Liberty Tax. Medows CPA, a boutique accounting firm in New York, is often perceived as a better alternative to the large chains for both individual and small business clients.

Medows CPA is open year round and offers much more personalized service to individual taxpayers and small businesses. Medows CPA has long-term relationships with many clients and can support clients in meeting their financial and accounting goals. Medows CPA is competitively priced and has expertise in handling both simple and complex tax returns. The New York tax accounting firm often serves as a business advisor to clients and has flexibility in scheduling appointments, meeting deadlines, and exceeding client expectations. Jonathan Medows is a knowledgeable and highly competent CPA who can take into account the nuances of a small business or individual taxpayer. When an individual has a change in familial status due to marriage, death in the family, or the addition of children, Medows CPA can certainly help. Medows CPA can provide tax preparation assistance with converting W2 forms into 1040 tax returns and much more.

About us: MEDOWS CPA, PLLC is a boutique New York CPA Firm in Manhattan serving the needs of Individuals & Small Businesses in New York City and throughout the nation.  We work with the self-employed, freelancers, LLC, C-Corporations and S-Corporations to help them with their accounting and tax needs.

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

CONVERTING TO A ROTH IRA FROM A TRADITIONAL IRA IN 2010

Prior to 2010, if an individual taxpayer had a Modified Adjusted Gross Income (MAGI) of over $100,000, he or she could not convert to a ROTH IRA from a Traditional IRA.  In 2006, former U.S. president George W. Bush signed the Tax Increase Prevention and Reconciliation Act (TIPRA) removing this income restriction on converting to a ROTH IRA. Now any taxpayer, regardless of income, can make the conversion in 2010.  This is a great opportunity for high-income taxpayers to make a conversion from Traditional IRA’s to ROTH IRA’s.

Taxpayers have the option, for Traditional IRA to ROTH IRA conversions that occur in 2010 only, of having 50% of the current income taxes on the realized gains from the conversion taxed in 2011 and the other 50% in 2012. This applies only to 2010 conversions, and in the future the entire taxable amount will be taxed at once.  If a taxpayer anticipates being in the same or a lower tax bracket in 2011 and 2012, he or she may wish to defer and split applicable taxes. On the other hand, if he or she anticipates being in a higher tax bracket or are already in the 25% tax bracket, it might be best to pay all the applicable taxes in 2010.

When taxpayers convert from a Traditional IRA to a ROTH IRA, they pay federal income taxes on pre-tax contributions as well as gains in the value of the investment. After the investments are converted to a ROTH IRA, they can be withdrawn tax-free in retirement.

Some of the reasons to convert to a ROTH IRA include not needing to use your IRA assets due to sufficient other assets, using the IRA as an intended inheritance for your children, paying taxes immediately or in the years immediately following the conversion instead of in the future upon retirement when tax rates will likely have risen much, and diversifying all of your IRA’s and investments if the taxpayer does not already have a ROTH IRA.

Medows CPA can assist you with making the decision about whether to convert to a ROTH IRA from a Traditional IRA in 2010, and in preparing your taxes accordingly. We are a boutique CPA firm based in New York that also provides advice to clients on how to maximize tax advantages and assist you in your tax preparation.

About us: MEDOWS CPA, PLLC is a boutique New York CPA NY Firm serving the needs of Individuals & Small Businesses in New York City and throughout the nation.  We work with the self-employed, freelancers, LLC, C-Corporations and S-Corporations to help them with their accounting and tax needs.

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 a taxpayer pays his or her taxes, many times an overpayment occurs that often cannot be avoided. Because of the way taxes were withheld and computed on the prepared tax return, the taxes that an individual ends up paying can be more than his or her tax liability. Thus, in those cases, the taxpayer is entitled to a refund.  Refunds must be requested and are not automatically reimbursed to the individual taxpayer.

According to the IRS code, under normal circumstances, taxpayers have up to three years to request their refunds from the filing date of the income tax returns.  For example, an individual’s 2006 taxes were due on April 17, 2007, (two days after the traditional April 15^th deadline since the 15^th was on a Sunday and the 16^th was a federal holiday. If the individual had requested a six-month extension in that year, the deadline was October 15, 2007) who is entitled to a tax refund on 2006 must make this request by April 17, 2010 for the regular filing deadline, or if the individual filed on extension then by October 15, 2010. The same holds true for NYC taxes, NYS taxes and with other state tax authorities.

MEDOWS CPA, PLLC a NYC CPA firm can assist you with making tax refund requests and ensuring that you receive your tax refunds before they expire and can no longer be claimed at all.

As an individual taxpayer, it is best to be aware of the three year deadline from the tax return filing date for expired refunds, and to contact MEDOWS CPA, PLLC a Manhattan CPA firm in a timely manner so we can help you make tax refund requests for the taxes you have overpaid. If you think you may have made an overpayment on your taxes for 2006 (or a later year,) please contact MEDOWS CPA, PLLC as soon as possible and we can assist you in requesting any tax refunds that are due to you.

About us: MEDOWS CPA, PLLC is a boutique New York CPA Firm serving the needs of Individuals & Small Businesses in New York City and throughout the nation.  We work with the self-employed, freelancers, LLC, C-Corporations and S-Corporations to help them with their accounting and tax needs.