If April was a stressful month for you due to last-minute tax filing, then you’re likely glad it’s all over and done with. Did you learn anything from it? For some, 2015’s tax preparation was difficult due to new laws and new business and career ventures. If you were one of the many who had a tough time filing taxes, then it’s time to learn from past experiences. Learn how to prepare throughout the year to avoid the time and hassle that generally comes during tax season. Check out these three simple tips to get your finances in order for 2016’s tax season.
Get Your Real Withholding
Withholdings can be a tricky business. It’s almost impossible to have just the right amount of money taken from your check that will leave you with no balance on your tax return. Typically, people will owe small amounts or receive a refund from the IRS. It’s when too little money is taken out of your pay that problems can arise.
To avoid this complication, file a new Form W-4 with your employer. This form can adjust your withholdings so that you have more take-home pay throughout the year or have more money withheld if you have to pay penalties for previous years.
Be Aware of Valuable Tax Break Opportunities
We all know there are tax deductions and credits that you can claim to reduce your tax bill every year. Still, most of us wait until tax day to get our documentation together. If you wait an entire year to organize these documents, chances are you’ll have lost one or two along the way.
Digging through a year’s worth of receipts and other financial statements is too much of a hassle. Be aware of valuable tax break opportunities throughout the year so you can gather all of your documents and are ready to meet those requirements when tax season comes around.
Avoid Waiting
Start planning for next year’s taxes now. Our McAllen CPAs are ready to put together your financial records to determine what your tax outlook will be come April of 2016. Don’t wait for the rush to start, contact us today to get a better idea of what you should be doing to prepare.
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So the new year is approaching fast and tax day will follow after. Tax season is still months away, so no need to worry yourself with going through your financials and filing early, right? Sure, you’re free to do your taxes at your own pace, but starting the new year while keeping your finances in mind does have its benefits when it comes to your taxes. Aside from forgoing the hassle and stress of getting in under the wire, early filing can help you financially as well.
Early birds get the return. Let’s get started on making sure you get what you deserve.
Money in Your Pocket
First and foremost, an early file means faster money. Income tax returns are not time gated and, if you qualify, you are entitled to your return shortly after you officially file. You can speed up the process by e-filing and opting for a direct deposit into your bank account, as paper correspondence takes a little longer. That said, getting in early means you could get your money faster when you might need it more.
Helpful Extensions
If you owe a balance to the IRS, filing early gives you more time to arrange your proper payment. If you file in January and still owe a balance, then you will have until the mid-April deadline to arrange payment. It also gives you a head start on finding out exactly how much you owe and how you can go about paying it. Like the saying goes, “time is money”.
Complete Information
Lastly, filing early gives you a head start in preparing for large life changes like moving or going to college. Parents who are enrolling their kids in school and are looking for financial aid will need a completed tax return as a part of the application process.
Couples looking to buy a new home or their first one also need a completed tax return when buying and applying for loans as proof of their household income. Bottom line, if you know a big change is coming, quickly getting your taxes in order is always beneficial.
Don’t Wait Any Longer
At Gonzalez & Arrambide, we’re here to help you every step of the way. Whether you want to file early or get in under the wire, we’re here to make sure you get the most out of your return. If you would like to learn more about how we help with your taxes, let us know online or give us a call at 956.447.9009.
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Christmas shopping is done and the parties are planned and paid for. Now is the time to consider how your financials will pan out in 2016. It may be a scary thought considering how your bank account might be affected once tax season comes around, but there are several tips you can follow to help increase your refund.
If You’re Relocating
Did you happen to move to a new residency at some point in the past year? If so, it’s quite possible that your moving costs can be deducted. It’s also possible that you may be able to deduct the expense of moving your individual possessions on top of moving costs so long as your new home is at least 50 miles away from your former residence and you find employment within a certain timeframe.
Student Loans
A majority of college graduates have to deal with student loan debt. The good news is that if you are paying student loan interest, the fee could be deductible after an income check. It’s possible to deduct up to $2,500 in interest from a student loan.
The Benefits of Working from Home
If you happen to own a home office, you can deduct costs if:
- The office is used exclusively for work-related purposes
- The office is the main location of your home business
- You are an employee with a home office, said office is used only for the benefit of your employer
- You do not pay rent for any portion of your home to your employer
Get in touch with our CPAs for more information concerning home offices.
Charity
Charitable deductions fall under the following:
- Charitable payroll deductions
- Donations to religious establishments
- Monetary funds given to door-to-door charities
- Charitable mileage
Always make sure that if you plan on deducting charitable donations, keep a strict and organized file of the amount(s) you’ve given out.
Don’t Wait Any Longer
Get started now to ensure your tax experience is as smooth as possible in 2016. Our CPAs in McAllen are available to answer your questions concerning deductions or other tax-related matters. Call us or stop by our office today.
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January 19th marks the first official day that that IRS begins to accept paper and electronically submitted tax forms. This means that it’s time to start collecting your forms for submission, whether you decide to file yourself or via a CPA firm.
If you haven’t received your W-2 forms from your employer and various other parties, don’t worry. There’s still plenty of time until the April 18th deadline. Nevertheless, we’ll be discussing the five important dates to remember for 2016’s tax season.
February 1st
Companies in the United States have until February 1, 2016 to mail out all W-2 forms to employees. Along with this, companies must also mail out 1099 forms that detail non-employee compensation, dividends, bank statements and retirement distribution. Since the 1st is the official deadline for these forms to be mailed out, you may likely receive them after.
February 16th
Three forms must be mailed by this date: 1099-B, 1099-S and 1099-MISC. These forms detail the sales of stocks, mutual funds, real estate transactions and bonds.
February 29th
This date applies to farmers and fishermen who have balances due on their taxes. They must file individual returns and pay said balances by this date.
April 18th
Tax day has always been April 15th, but for 2016, it’s been extended three days due to Emancipation Day in Washington, D.C. This day marks the deadline to submit all individual tax returns for 2015 or to request a six-month extension. Even if an extension is requested, you’ll still be required to pay your taxes on the 18th as long as it’s done with an extension request.
October 17th
As mentioned before, if you filed an extension request that was approved, October 17th is the deadline to file for 2015.
Don’t Procrastinate
It’s easy to procrastinate on your taxes when several weeks are left before the deadline. Avoid doing this and get your taxes out of the way by contacting the McAllen CPAs of Gonzalez & Arrambide. Get in touch with us as soon as your W-2’s are available.
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Are you moving to an exotic city outside the United States for a new job? Did you enlist and are now being stationed in Japan or Germany? Regardless of where you live, your income is subject to American income tax laws. Whether you live here in Texas or are serving our great country overseas, the experts at Gonzalez & Arrambide, Inc. can get your taxes filed no matter where you call home.
Military Families
According to the Department of Veterans Affairs, Texas has one of the highest military veteran populations. Cameron and Hidalgo Counties contain some of the highest densities of military personnel in the state. With so many military families living in the Rio Grande Valley, questions regarding tax laws and codes for earned income while residing outside the country are expected.
Extra Time
Whether you are serving in the military on duty or reside outside of the country, and your place of business is outside of the country as well, you are allowed an automatic two-month extension to file your tax return to pay any federal income taxes that are owed. With an extension comes interest due on any taxes not paid by the regular due date.
A Few Options
If a spouse is serving overseas, there are two options when filing a joint return:
- One spouse can prepare, sign and send the return to the other spouse early enough to be filed by the due date
- The spouse who expects to be overseas on the return’s due date can file a Form 2848, which specifically designates the stateside spouse to sign for the absent spouse
If your spouse is in a combat zone or performing qualifying service outside of a combat zone, you can sign on their behalf. Just attach a signed statement to your return explaining that your spouse is serving in combat.
Foreign Earned Income Exclusion
To qualify for the foreign earned income exclusion, there are three conditions:
- Your place of residence, “or tax home”, must be in a foreign country. A tax home is the place where you are permanently or indefinitely engaged to work as an employee or self-employed individual
- Your income is from sources outside of the United States
- You pass the “bona fide residence” test or “physical presence test”
Being “Bona Fide”
The bona fide residence test is living and working outside the United States for an entire tax year plus filling out IRS Form 2555 stating your residency and income to the IRS. The physical presence test means physically being in a different country or countries for at least 330 days of 12 consecutive months. This test does not rely on you establishing residency or the nature and purpose of your stay abroad.
Lets Get Started
Whether it’s you or your spouse serving overseas, or a loved one living abroad, our certified public accountants in Weslaco know tax returns are the last thing you want to worry about. Let us make this tax season stress-free for you and your family. Schedule an appointment with us before this year’s deadline by calling 956.447.9009.
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