Best accounting services New York firm offers some tax tricks: For most garnishments including child support, creditor garnishments, and student loans, Title III of the federal Consumer Credit Protection Act (CCPA) requires that the amount of pay garnished should be based on an employee’s “disposable earnings,” meaning the amount remaining after legally mandated deductions. Broadly speaking, disposable income is the employee’s total compensation, less mandatory deductions including federal, state, and local taxes; state unemployment insurance contributions; and Social Security taxes. This includes salaries, bonuses, and sales commissions, as well as earnings derived from retirement plans and pensions. Tips aren’t usually regarded as earnings for garnishment, but service charges are considered earnings.
File electronically! Electronic filing works best if you expect a tax refund. Because the IRS processes electronic returns faster than paper ones, you can expect to get your refund three to six weeks earlier. If you have your refund deposited directly into your bank account or IRA, the waiting time is even less. There are other advantages to e-filing besides a fast refund: The IRS checks your return to make sure that it is complete, which increases your chances of filing an accurate return. Less than 1% of electronic returns have errors, compared with 20% of paper returns. The IRS also acknowledges that it received your return, a courtesy you don’t get even if you send your paper return by certified mail. That helps you protect yourself from the interest and penalties that accrue if your paper return gets lost. If you owe money, you can file electronically and then wait until the federal tax filing deadline to send in a check along with Form 1040-V. You may be able to pay with a credit card or through a direct debit. With a credit card, expect to pay a service charge of as much as 2.5%. With direct debit, you may delay the debiting of your bank account until the actual filing deadline. Plus, federal e-filing is now included at no additional charge with all TurboTax federal products.
Pick Up Capital Gains if You’re in a Low Tax Bracket: The end of the year is also a good time for some people to sell stocks that have appreciated significantly in value. This can be a particularly good strategy for those who are in the 10% and 12% tax brackets since their capital gains tax may be zero. The stocks can then be repurchased, which resets the basis and minimizes the amount of tax to be paid on future gains. Even if you’re not in the lowest tax brackets, you may want to sell winning stocks to reset the basis if you’re also harvesting losses. “What you want to do is balance (gains) with stocks that have losses,” Barlin says.
There is a subtext here that we haven’t yet discussed and it’s important that we do. Because while every task the bookkeeping service completes is vital to the financial health of your business, it’s the underlying structure they apply that really makes a difference. You see, bookkeeping services implement—and maintain—a consistent financial process that strengthens the health of your company and helps to create and encourage uniformity in tracking, paying and reporting. The value of this is immeasurable as it insulates your business from many costly and dangerous risks. See extra details at Bookkeeping services New Jersey.
If either part-time or in-house bookkeeping is not the ideal solution, switching to outsourced bookkeeping or accounting could be your best option. Many businesses are concerned about switching over to outsourcing, not understanding how the pieces fit together with this model. But with today’s advancements in technology, outsourcing has never been easier. Outsourcing can provide advanced and less costly bookkeeping service than a typical in-house bookkeeper. Outsourcing also offers many benefits that you can’t get with an in-house bookkeeper. Today there are many different kinds of back office outsourcing companies, ranging from project only outsourcing, hourly rates, flat recurring monthly service fees, and a la carte packages to fit each business’s unique needs. If you’re growing, the outsourced bookkeeping service should be able to help you scale by adding full service accounting when you are ready for it.
Merge Bookkeeping is not just a company. It is a team of professionals willing to put the best of their services to use. How we started off? Established By professional with the 15 years for Accounting and Bookkeeping experiences. Since its inception, the company has continuously worked harder to share the preparation burdens of its clients. Study and evaluate your software and accounting needs. Find additional info on https://www.mergebookkeeping.com/.