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Why Hire a NY CPA for Self Employment Tax Deductions

admin — Sat, 06 Feb 2010 07:00:15 +0000

Why Hire a NY CPA for Self Employment Tax Deductions

Have you just recently started your own self employed business? You might have not thought to far in advance about tax season and how everything would work out. There is so much more to figure out when you are self employed rather than working for a company when filing out tax information. So why hire a NY CPA for self employment tax deductions?

Hiring a NY CPA is a great idea when filing for your taxes since they are aware of all the deductions for small businesses. Before you begin your business or shortly after starting it up, you want to look over all the different aspects in running a business so you can be successful and you will know what to expect. You won’t be caught off guard by a letter from the IRS auditing you. You also want to begin your search for a CPA that you feel the most comfortable with before you begin your business.

So why hire a Certified Public Accountant New York City, for self employment tax deductions and other tax files which need to be filled out? NY CPA’s are very knowledgeable when it comes to taxes. They are aware of different deductions, investment opportunities, and tax relief that you may not be aware of. When you hire a NY CPA it will make your life much easier and you will feel at ease knowing that it is being handled with care by someone who understands all the ins and outs of tax documents.

You also can save a large amount of money and time when hiring a CPA for freelancers New York. By having someone who knows what to look for you can prevent drawing attention to yourself when it comes to the IRS. You do not want to be hit by the IRS when it comes to tax information. If they notice a few errors or something else that looks suspicious, they will investigate all your information further. New York CPA’s are skilled professionals when it comes to taxes and will help save you a lot of money down the road.

An income tax Manhattan CPA would be able to assist you when it comes to information you may need at any time or even tips and tricks on how you can save at the end with tax season. There is nothing nicer than filing your taxes and realizing you may not owe anything or even just a little to the government since your taxes were handled by a professional. They are there to help you save money and not waste it. They are able to make the tax season much easier on you and your wallet.

Make sure when you are in the market for a NY CPA that you ask for referrals from other businesses around the area. See who they use. Finding someone that several others trust makes it easier to trust them. Once you find a taxes CPA New York that you like, continue to give them your business throughout the year. They know your situation and they know how to help you if you are ever audited by the IRS.

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

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

Best CPA NY Strategies for Self Employed Tax Planning

admin — Sun, 31 Jan 2010 12:00:36 +0000

Best CPA NY Strategies for Self Employed Tax Planning

If this is your first year being in business for yourself then tax season may be a bit difficult to understand. All tax payers are not equal when it comes to tax time. You need to look into the best CPA NY strategies for self employed tax planning tips when it comes time for tax season. The best method to use that will ensure that your taxes are the best they can be and nothing is missed is to consult your personal tax advisor to make sure that you are paying what you need to pay and keeping track of all your records.

There are a few different things that you may realize with self employed taxes. One is that you will need to pay your own FICA taxes and also take charge of your own retirement plan. Normally, your employer would be in charge of this but now that you are on your own you are in charge. There are a few different areas which you will need to understand when it comes to self employed tax information. Here are a few of the best CPA NY strategies for self employed tax planning methods to make it a bit easier to understand, especially if this is your first year having to do taxes for your company.

You want to make sure you understand how the federal taxes are calculated. The reason for this is because if you are self employed you will be funded for social security and Medicare benefits. You will need to pay a minimal amount to these funds but in the end it will be worth it. If you have to file a Schedule C or even a Schedule C-EZ, make sure you file it with your federal Form, 1040. When scheduling your SE you will need to calculate your self employment tax and also report to them the amount of tax you owe. You also want to make sure you are taking full advantage when it comes to business deductions to lower your taxable income. Things like rental office expenses, equipment, furniture, supplies, and utilities are all business deductions.

One of the best CPA NY strategies for self employed tax planning would be to estimate what you may rotationally owe to taxes to avoid any penalties when it comes time. If you were an employee you would most likely have income tax, social security tax, and Medicare tax already taken out of your pay check. Because you are self employed this would not be deducted so it is a great investment in the long run to deduct these amounts and save the extra money for when tax time is around and you will need to pay. You can also schedule regular payments to pay your business tax Manhattan through out the year so you don’t get stuck paying one lump sum once a year.

If your taxes in New York do not get paid in time you would be notified with penalties or even larger interests to compensate. If you are self employed in NY yet still have employees you will need to pay federal employment taxes in Manhattan and also report information which they request. One way that you can save on your taxes would be if you hired family or relatives for your business. Make sure everything is done correctly or you may be audited by the IRS about the payment to family members that does not look right.

Jonathan Medows, CPA

MEDOWS CPA, PLLC

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

Know More About Income Tax

admin — Fri, 25 Dec 2009 12:00:52 +0000

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

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

Know More About Alternative Minimum Tax

admin — Wed, 23 Dec 2009 12:00:43 +0000

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.

Jonathan Medows, CPA

MEDOWS CPA, PLLC