Latest News on Denver Accounting & Taxes

How Healthcare Plays a Role in Your Denver Taxes


May 24, 2017

Based on the Affordable Care Act (ACA), all Americans are required to have health insurance. If there is a period of time where an individual does not have health insurance, they will have to pay a penalty. All of this will occur during tax season. While things may change in the future under a different presidential administration, but unless something changes, you must abide by the laws under the ACA. Learn more about top basic ACA health insurance guidelines, a go-to look at paying a penalty and exemptions.

Basic ACA Health Insurance Guidelines

According to federal law, all Americans are required to have health insurance. By abiding by this law, you as a citizen can take advantage of free preventative care, insurance companies not denying you for pre-existing conditions and more. Insurance can be through your employer or separately, such as the Health Insurance Marketplace. If you have insurance, you will receive one of three forms: 1095-A, 1095-B or 1095C. The 1095-A will come from the Healthcare Insurance Marketplace, 1095-B is sent from those who have insurance not under their employer and the 1095-C is for those with insurance through their employer.

Premium Tax Credit

For some Americans, there is the Premium Tax Credit available to assist with paying premiums. In order to qualify, in the IRS’ The Premium Tax Credit, it says income must fall between 100 and 400 percent of the federal poverty line based on the size of your family. Next, unless there are certain extenuating circumstances, you cannot receive the credit if you file “Married Filing Separately.” They add that dependents cannot receive the tax credit, you must be covered through the Health Insurance Marketplace, are not eligible for other government programs and pay your premiums.

Paying a Penalty

Those who do not have health insurance have to pay a fine. You will be charged for the months that you and/or members of your family were not insured. You will have to pay your fine when you file your tax returns. According to HealthCare.gov’s The Fee for Not Having Health Insurance, you will pay the higher of the following two: 2.5 percent of household income (with a maximum  of total yearly premium for Bronze plan from the Marketplace) or $695 per adult and $347.50 for children under 18 (up to $2,085).

Exemptions

There are exemptions to paying the mandatory fine for not having health insurance. They include having insurance offered through an employer that is higher than you can afford, you are not a legal citizen or are in prison, or if you are in a healthcare sharing ministry. In addition, those who are impacted by a natural disaster, are homeless or other reasons are also exempt. You can speak with your local premier tax specialist to see if you are exempt from paying the fine.

Understanding healthcare and tax laws can be difficult—but Bloch, Rothman and Associates can help. Our quality one-on-one service will help you prepare for your next return and answer all questions you have about health insurance mandates and more. Learn about our personal tax preparation to see how we can best help you!
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Taxpayer Bill of Rights Explained by your Denver Tax Specialist


May 17, 2017

As an American citizen, you are aware of the Bill of Rights. But did you know there is also a Taxpayer Bill of Rights? These cover the go-to reasons citizens and the Internal Revenue Service (IRS), would be in contact with one another. Learn what the Taxpayer Bill of Rights are, a quick overview of them and top tips to help you when dealing with the IRS.

What Are the Taxpayer Bill of Rights?

When interacting with the IRS, American citizens have a set of 10 rights. These consist of a variety of rights taxpayers have when working with the IRS like, the right to be informed, the right to finality and the right to privacy. It is also important for you as a citizen to receive all correspondence on an issue. It is best for you to know the Taxpayer Bill of Rights so you know if the IRS are taking incorrect measures or making mistakes when it comes to your taxes, so it is crucial for you to know your rights in the event you need to challenge the agency.

Quick Overview

The IRS dives into each “Bill of Right” in their article Taxpayer Bill of Rights. For a quick overview, you have the right to:
  1. Be Informed (explanations of everything relating to your situation)
  2. Quality Service
  3. Pay No More than the Correct Amount of Tax
  4. Challenge the IRS’s Position and Be Heard
  5. Appeal an IRS Decision Using an Independent Firm
  6. Finality
  7. Privacy
  8. Confidentiality
  9. Representation
  10. A Fair and Just Tax System
In the event you are dealing with issues when corresponding and working with the IRS, in the Taxpayer Bill of Rights they explain that you can get help from the Taxpayer Advocate Service. This measure can be taken if you are having problems or the IRS. Given that there are so many ins and outs to tax law and the Taxpayer Bill of Rights, it can be helpful and beneficial to utilize the help of a representative that knows the details of your rights.

Help Speaking to the IRS

If you must work with the IRS for a tax audit post submitting your return, there are many things important to know. This is why it is important to work with a local tax specialist on your issue. After all, you may know what the Bill of Rights are, but may not know the details within each. Many citizens do not realize the IRS is handling matters incorrectly at all. Therefore, it is crucial for you to work with a quality specialist.

Are you currently dealing with the IRS? Bloch, Rothman and Associates can help. As a premier tax specialist, you can count on us to handle corresponding with the IRS for you, stop enforced collections, release bank and wage levels, settle back taxes and unfiled returns, negotiations, getting you back into tax filing compliance and much more. To learn more, be sure to read about our tax resolution services in Denver. Be sure to contact Bloch, Rothman and Associates today to get started.
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Reigning in Your Money: Monthly Budgeting Tips from Your Denver Accountant


May 10, 2017

Do you feel as though you could be better with your money? Maybe even though you feel like you have a grasp on things, but seem to fall short of your goals? It is best to make sure you have a monthly budget that you stick to. From goal setting and money management tips to the importance of a savings, learn more about budgeting tips from your local Denver accountant.

Setting Goals

Many people have a budget, but there is nothing they are working towards. Create a list of things you would like to accomplish with a budget. For instance, if you are building up your savings, are planning for a trip, preparing for schooling for children or more. Label how much you need to set aside to accomplish those goals. When goal setting, make sure you think about short term and long term goals in mind. This will help you stick to the budget that you have put together. As you prepare to better manage your money, take the time to see how much money you have coming in each month and then what you have going out.

Money Management and Budgeting

Knowing exactly how much is coming in and going out is a top priority when reigning in your money. You can estimate, but you will never be sure until you know for sure. One way to do this is to balance a checkbook. You can do this manually or download an app to your smartphone, tablet or computer. From here, you can deduct your expenses. To make it easier, have a list of all your bills that you must pay each month and add them to a list. Also, make note of some of the other top expenses that you have monthly or weekly and subtract that from your income too. For instance, set aside how much you spend on groceries, gas, add to savings etc. This way, all your essential expenses are covered. From here, you can save or use the remainder of the money for spending. This will help you see what is coming in and what’s going out so you can see where you need to cut back. There are plenty of tools available to help you start planning your budget, such as this monthly budget planner.

Savings

How much do you have in your savings? Do you have a plan if an emergency happens or if someone in your household loses a job? This is what an emergency savings is for. Ideally, you should be able to have enough built up in savings that could hold you over if you did not have income coming in. This would include mortgage, rent, utilities, etc. At minimum, though, you should have a few hundred dollars available for quick pinches such as a car breaking down. Once you use that money, make it a top priority to build it back up.

One of the important things to save for each year is for taxes. If you have owed money back on state or federal taxes, now is a great time to talk to a premier go-to tax specialist. At Bloch, Rothman and Associates, we can help guide you and create a quality strategy for your taxes. Contact Bloch, Rothman and Associates today to get started.
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Best Ways to Invest Your Tax Refund from Your Tax Specialist in Denver


April 26, 2017

For many, having a couple thousand dollars back from taxes is the perfect opportunity to travel, purchase a new piece of furniture, have a night out, or treat yourself. However, others choose to use their refunds for long-term gains. Going this route is a great way to help secure the quality of your financial future. From paying off debt to planning for retirement, learn some of the best ways to invest your tax return from your local tax specialist in Denver.

Paying Off Debt

One of the top ways to invest a refund is to pay off debts. If you have any credit cards, especially high interest credit cards, it is important to create a plan to pay those off. The longer you have high interest credit card debt, especially when it is at a maxed out or close to maxed out limit, the more severe damage you can do to your credit rating. When you carry these balances for long time, it can make it harder for you to get credit in the future. Whether you need to just get started on paying off debt or if your refund will handle the entire balance, it is crucial to consider this option if you are carrying harmful or potentially harmful debt. In addition, you may have other forms of debt that require being paid off, such as student loans. Consider your tax return as “out of sight, out of mind” and immediately plan what to do with 100 percent of the refund once you receive it, so you are not tempted to use it in less responsible or beneficial ways.

Create or Add to an Emergency Fund

Are you prepared if something happens to your home, car or even you or a family member? This is why it is best to always have an emergency fund built up just to handle life’s surprises. When trying to come up with how much your emergency savings should be, you can consider your monthly expenses. If you became out of work tomorrow, could you afford to pay your mortgage or rent, keep the lights turned on, buy groceries, and fill the gas tank in your car? It’s important to plan for those things. For some, instances aren’t as drastic but when something might break on your car or house, you may have to contribute a couple thousand dollars to fix the issue. This is why it is important to build up an emergency savings to help you cope with the issues.

Retirement, College Planning, HSA, Savings and More

Another great way to spend your tax refund is to invest it in your future. Do you have a retirement fund? Invest! Avoid common misconceptions about modern retirement planning by reading Consumer Reports’ new rules of retirement planning. If you are a parent, consider creating a 529 plan, which is a plan to save for college. Or, if you have a health savings account, contributing more is a great way to take advantage of tax-free healthcare. Last, you can place your refund in a savings account. Even if you spend some for leisure over time, having a majority in savings can be a great long-term investment.

For other ways to be smarter with your refund and finances, read these budgeting tips from your Denver accountant. For help with your finances, Bloch, Rothman and Associates is your go-to premier accounting and tax specialist that can help. We offer services for both individuals and businesses. Contact Bloch, Rothman and Associates today to get started.
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​Denver Business Tax Preparation: Ways Your Small Business Can Prepare for Next Year’s Tax Season


April 19, 2017

Hopefully you met the tax deadline this year on April 18. To prepare for next year, it is never too early to get started. One of the best things your small business can do is stay on top of things. This can potentially help you owe less, take advantage of tax opportunities and more. Use this year’s tax troubles as examples to use to make things better for this time 12 months from now. As you work towards this goal, being organized, learning about deductions and utilizing the help of a local Denver business tax preparation specialist will help.

Create an Organized System

Being organized is a go-to way to ensure an easier tax season. First, when it comes to receipts, invoices, etc., it is important to keep everything in an organized fashion. For paper files, place them in boxes that are clearly labeled with the month and year. Next, make sure all the contents within the boxes are organized by date. If you have to regularly refer to certain files, come up with a way to easily access those. For instances, categorizing your monthly box of expenses and arranging them in order of date. Another way to make this easier is to save everything electronically. Use file naming conventions that are consistent and easy to search. You can keep your hard copies in boxes in the event they are ever needed. Learn more ways to get organized for the tax year.

Learn About Deductions

As a small business owner, are you taking advantage of deductions as much as you could be? Deductions are certain expenses that you can take off your taxes. Now, while in the process of using deductions, you must make sure you hit all the parameters. As long as you do, there is no reason to skip out on them. If you run your small business out of your home, this is one of the areas you can see if you can qualify to deduct. This is applicable when your home, particularly an office or area, that is the primary place work is completed. You can also deduct expenses for mileage, rent, supplies, equipment, furniture, travel, ads, meals, certain utilities that go towards the small business and more. In order to use deductions, you will need the evidence to back it up. Keep that in mind and begin to store records that you can use for proof when taking advantage of deductions.

Utilize the Help of a Tax Specialist

When it comes to all of your small business tax needs, there is a lot to consider. Utilizing the help of a tax specialist can help you better prepare for the next year’s returns. They can pinpoint the deductions your small business qualifies for and the proper documentation you will need to provide. Plus, with tax laws changing often from year to year, you can relax knowing an expert will help guide you through tax seasons. This will allow you to spend more quality time on your business.

As you work through this year’s tax season, consider these Denver business tax preparation tips for your small business in 2017. To make next tax year great, you can use the premier tax services of Bloch, Rothman and Associates for all your small business needs. Contact Bloch, Rothman and Associates today for a free initial consultation.
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