Skip to main content Skip to search

Archives for Tax

Tax breaks for vets Rozier CPA Thank you Vets

Tax breaks for vets

There are some tax breaks for vets which you might not be aware of. For example, if you are a disabled vet and you receive disability benefits from the VA, those payments do not count as taxable income. You don’t need to include those payments in your gross income. There are some vets who may not need to file taxes at all. If you are in doubt or if you have any questions, please call Rozier today for clarification. We are here to help!

 

If you are currently enlisted in the military, you pay no taxes on your combat pay. This applies to all military members as well as warrant officers and commissioned warrant officers. If you are a commissioned officer, however, your tax exclusion is restricted to the highest rate of enlisted pay.

 

If you have had to move due to relocation, unreimbursed moving costs can be deducted partially on Form 3903 (Moving Expenses). Beginning in 2018, the moving expense deduction is strictly limited to military members. In order to qualify for it, you must have moved within one year from the time when your active duty ended. The moving expense deduction is what is known as an “above the line” deduction, not an itemized one.

 

Once more, if you have any questions about your taxes, please call us today. If you have ever served in the military, we thank you for your service! On behalf of all of us here at Rozier, we wish you a happy and prosperous 2019!

Read more
tax scams Rozier CPA

Tax scams and identity theft- protect yourself

TAX SCAMS AND IDENTITY THEFT- Ways to protect yourself:

Tax scams and identity theft are on the rise. It is quite unfortunate that identity theft and other financial scams are such a concern for everyone these days. However, there are ways to protect yourself. Don’t be duped by criminals who want to steal your funds or steal your identity. Let’s talk about some ways to remain safe and protect yourself. Every year, the IRS lists a compilation of the twelve most prevalent tax scams (called the “Dirty Dozen”). There are programs like Entegra Bank’s CardValet service that help protect consumers from fraud and theft. Keep your hard earned money out of the pockets of scam artists and black hat hackers. Beware of online phishing. Phishing can be done through phony E-mails or fake websites. Be careful to never reveal any personal information to someone you don’t know. It is sometimes challenging to identify which websites are legit and which aren’t. But remember this- the IRS never contacts taxpayers via E-mail. If you ever receive an E-mail which says that it is from the IRS, don’t click on it. Just delete it. In addition, the IRS never makes first contact over the phone. They send taxpayers an official correspondence through the mail. If you think that the call may actually be legitimate, hang up and call the IRS back at (800)829-1040. If there really is a tax related matter that needs to be addressed, the IRS employees will be able to help you. ID theft is on the rise. Always be alert and protect your family’s PII (personally identifiable info), like your Social Security number, where you are employed, tax ID numbers, etc. If you are concerned, there is software available on the market specifically for identity protection. Whether you prepare your taxes yourself or if you hire someone, do your research first and make certain that you are giving your personal information to a reputable, responsible person or organization (like Rozier). These are but a few examples of ways that you can protect yourself and your loved ones. If you employ a professional CPA like Rozier, you can avoid tax scams and other tax related problems. Call Rozier today for all your tax needs!

IRS website: https://www.irs.gov/

Read more
tax bracket 2017 taxes

Tax Brackets

Some people are intimidated by certain tax terms. One example would be “tax bracket.” What is a tax bracket, anyway? A tax bracket simply states what you will owe in taxes according to your income. Every bracket covers a specific range of income amounts and applies a base percentage for taxes. Let’s say, for instance, that you are in the 10% tax bracket. If you earned $4000 that year, you owe $400. If you earned $7600, you are liable for $760. What about the expression “moving into a higher tax bracket?” This means that if you earn more money and exceed your bracket’s cutoff point, you will automatically move into the next bracket. Hence, you will owe a higher percentage in taxes. Would this sort of defeat the purpose of increasing your income? Not at all. If you move into a higher tax bracket, this means that you are now in two or more tax brackets. In 2016, if you earned $9275 or less, you were in the 10% bracket. Let’s give an example. Say you earned $9000. Your income taxes would be $900. You got a promotion and a raise at work (which is wonderful news). You received a whopping $3000 annual raise. Thus, your income would be $12K. This means that you would owe 10% of the $9275 (which is $927.50), and you would also owe 15% of the raised income (which calculates to $408.75. This figure comes from 15% of the pay difference between $9275 and $12000. The total owed would be $927.50 + $408.75 = $1336.25). Although taxes can be complicated, you will have zero worries when you call Rozier. We’re here to assist you with your tax challenges. Call today!

Read more
back taxes

Filing for back taxes

Not filing for one’s income taxes is a serious matter. Ignorance of the law is not an excuse, and it is up to everyone to file back taxes. The IRS looks with suspicion upon anyone who fails to file back taxes, because some people don’t want to report their income. Rozier can assist you with back taxes. Let’s take a proactive approach to this issue.

 

Even if late, taxes should be filed. There are a few vital reasons why. By filing, it halts the clock on any further penalties for filing late. You also benefit from getting your tax reporting on record. If you are unable to pay at the time, you may have the option of requesting a payment plan. The IRS desires these payment plans over being constrained to take collective actions. One piece of good news: there is no statute of limitations for unfiled returns. Thus, the IRS has an unlimited amount of time in which to assess taxes and penalties for unfiled returns.

 

The first order of business when filing back taxes is to collect all pertinent documents. In the event that you don’t have your W2 form, Rozier can request your wage/income transcript directly from the IRS. Let Rozier be your representative and let us do all the heavy lifting for you.

 

If you are not able to pay the due taxes after filing late, you will want to get approved for an installment agreement. This measure will halt any further penalties and forego any lien notices, provided that your payments are on time. If you do not make the payments as agreed, then the IRS can commence with collections again.

 

Tax laws are complicated. Rely on Rozier to guide you out of the maze of confusion. Rozier exists to furnish our clients with professional, reliable services. Taxes are our field of expertise. Rozier has a commitment to all the people who entrust us. Every client has a unique set of needs and unique situations. If you have any questions or would like to contact Rozier, give us a call today!

Read more
tax deductions

Tax deductions you may not be aware of

Perhaps you are one of the many folks who have already filed your taxes for 2017. If so, excellent job! Alas, many of us procrastinate and put things off. If you have not yet filed this year, double or even triple check to make sure that you have counted all your deductions. Many taxpayers either forget about certain tax deductions or are simply unaware of them. Here are a few of them.

 

Donations to charity: you will very likely remember the large contributions that you made last year. Don’t forget the smaller ones, because they count, too. Always hang on to receipts. If you used your car for charity work, you may deduct 14 cents per mile. Remember expenses related to searching for employment. Hopefully, you were successful in attaining a respectable job. Some expenses that you accumulated while searching for a new job can be deducted, but only if the total expenses were more than 2% of your adjusted gross income. So which things would be applicable? Transportation costs, food and lodging, cab fares, printing of resumes and other job-related documents, and employment agency fees. Next, we have state sales taxes. If you don’t reside in a state which has income taxes, this write-off is important. Folks who itemize can deduct state income or sales taxes which have been paid. For the bulk of taxpayers that live in states that charge income taxes, the income tax deduction is usually the better choice. The IRS has resources which show how much residents of different states can deduct. If you bought a plane, boat, or automobile, you may add the sales taxes paid to the figure shown in the IRS tables for your home state. There are also child and dependent care tax credits. Until quite recently, the child care credit applied to qualifying expenses up to $4800. Now, the limit is $5000. This would apply to any work-related tax-favored reimbursement account. If you reach the $5000 maximum through a plan at your place of employment but you still spend more on work related child care, you will be eligible to claim the credit up to an extra $1000. In addition, there are earned income tax credits. With tax credits, your total tax bill is reduced dollar for dollar. This contrasts with a deduction. Missing any number of credits can be disastrous. A vast number of lower income taxpayers miss out on the earned income credit each year. The IRS says that some people don’t take advantage of this tax credit due to it being difficult and complex. This credit exists to supplement wages for low to moderate income workers. However, it doesn’t just help lower income people. The exact income which you qualify for will depend on your income itself, the size of your family, and your marital status. You’re also eligible to claim an EITC refund for up to three previous years if you haven’t already done so. Tax deductions needn’t be a headache for you. Contact Rozier today for any questions which you might have regarding tax deductions!

Read more
taxes

Should you do your own taxes?

There are some individuals who are adroit at handling their own finances. Some of us could use assistance, especially when dealing with the complex matter of income taxes. There is a feeling of confidence and ease which accompanies trusting a good accountant with your taxes. We are more than eager to do your “heavy lifting” when it concerns filing for your refund. Tax laws are not only multifaceted, but they are constantly changing. Rozier CPA is here to provide aid to you. We are professionals in this arena, and we want to make sure that you receive every penny you deserve. As for the matter of tax software, it can be useful for some. There is relevant information programmed into the software, but it is a poor substitute for knowledge and expertise. Tax software asks the individual a sequence of questions, the ultimate goal being to prepare a tax return with correct information. Some questions can be skipped, and it is better to have guidance from a professional. This year, there are quite a number of new laws. If you aren’t aware of these changes, if you decide to do your own taxes, you could either overpay or underpay. Also keep in mind that software will not ask about all possible deductions. When dealing with education expenses, taxpayers can be confused with this software. Scholarships, for instance, may not be calculated correctly. Education credits can also be problematic. In any event, your best bet is to have a professional do your taxes for you. Call our office today to set an appointment!

Read more
tax tips

Eight tax tips for the end of the year

  • Roth conversion: There are a few benefits to having a Roth as opposed to an IRA. So long as you are at least 59 ½ and the converted account has been open for a minimum of five years, any withdrawals are tax and penalty free with a Roth. However, keep in mind that you must pay taxes on any pretax contributions/earnings in the regular IRA for the year of conversion. Another good thing about the Roth is that you have some time to change back to an IRA if you so desire.
  • Portfolio review: Don’t allow your taxes to determine your investment strategy. However, if you are thinking about selling appreciated securities or other investments, selling before the end of the year could save you some money. You’ll pay 0% on long-term capital gains if you are in the 15% bracket. As of 2014, you would qualify for the 0% capital gains rate if your taxable income is $36,900 or less if you’re single, or $73,800 or under if you are filing jointly and are married.
  • Add to your 401(K): Any funds which you add to your 401(K) or a comparable retirement fund (but not a Roth) isn’t included in your income, which lowers your tax bill. If you receive a Christmas or some other kind of annual bonus, put it in your 401(K).
  • Give a cash gift to a loved one or friend: You can donate up to $14,000 to as many people as you want before Dec. 31 without filing a gift-tax return. If you are married, you and your wife/husband can give up to $28,000 per recipient.
  • Plan out itemized deductions: If you are anticipating a reduction in income for next year (perhaps due to retirement), deductions will most likely be of greater value this year. It would behoove you to pay deductible expenses before the end of the year. Examples are the mortgage due in January, real estate taxes, and fourth quarter estimated state income taxes. Use caution- if you are eligible for the Alternative min. tax, some of those deductions might be not allowed. If you are unsure, please contact us at Rozier with any pertinent questions which you might have.
  • Make a charitable donation: this time of year is a great time to clean out your closets, garage, etc. If you choose to donate to the Salvation Army or any other charity, you can write the donations off as a tax deduction provided that you itemize deductions. If you donate a vehicle which is worth greater than $500 to charity, the actual deduction amount depends on what that charity receives when selling that vehicle. Keep good records of your donations, because The IRS has experienced abuse in the past with people taking advantage of tax deductions. Retain canceled checks and receipts to prove your donations.
  • Avoid purchasing mutual funds towards the end of the year: There are some funds which pay out dividends and accumulated capital gains in the month of December. It may be tempting to purchase right before that day so that you may obtain a year’s worth of income. This is not the way it works. If you were to do that (buy funds in this manner), you would only get back a refund of the same amount of your investment. If you intend to buy shares in a non-retirement account at the end of the year, make sure to check the fund company’s site to find out when dividends will be paid.
  • Tax refund reduction (thus ensuring it): Most Americans depend on their tax refund money. More than ¾ of Americans give the government an interest free loan every year, with a mean refund of $3000. Divide that into 12 months, and it equals $250 per month. Why not get your money now right after having earned it? Unfortunately, identity theft is increasing in our society, and some people have their refunds stolen. All you need to do is file a revised W-4 with your employer. If you want to reduce your withheld taxes, the more allowances you claim, the better.
Read more
estate planning

Estate Planning

Regardless of whether one is independently wealthy or not, all of us want to protect the ones we love. We are already busy in everyday life, planning such simple things as meals, events, appointments, etc. Although it is not necessarily a pleasant subject, it is critical that we think about the legacy we will leave to our family when we pass. Why is it important to make plans for our loved ones if something happens to us?

Read more
tax bracket 2017 taxes

2017 Taxes

You may be well acquainted with the process of filing taxes for your business or yourself. But have you considered the positives of hiring a professional CPA? Having a trustworthy accountant allows you to become familiar with complicated tax laws. This, in turn, will help you to become a better businessperson. How would you like to make some sound investments that are tax exempt?

Read more
income tax

SAVE ON TAXES

Value Added Tax (VAT) is a tax on consumption levied in the United Kingdom by the National Government. It was introduced in 1973 and is the third largest source of government revenue after Income Tax and National Insurance. It is administered and collected by HM revenue and customs, primarily through the Value Added Tax Act 1994. VAT is levied on most goods and services provided by registered businesses in the UK and some goods and services imported from outside the European Union.

Read more