Latest News on Denver Accounting & Taxes

Common Forms Utilized in Denver Tax Preparation


August 16, 2017

Every year individuals receive certain statements and paperwork vital to individual or business income tax preparation and unknowingly disregard the importance of such items. While the general public is familiar with the disbursement of W-2 forms for employee wages, their release typically coincides with the beginning of tax season.

However, for small businesses and corporations the tax season is year long in regards to 941 and other forms specific to the state of the business or federal implications. Correctly monitoring these forms and clean record keeping are essential in making sure both your personal and business tax returns can and will be filed correctly.

Following are some important forms coupled with a more detailed look into what each entails for filing purposes. Also of note are some supporting documents or records which can be easily monitored during the year in order for a smooth transition to the tax form when applicable.

1040 Series

First, the actual tax form filled out by an individual or couple filing jointly is registered on one of a series of 1040 forms for the Internal Revenue Service (IRS). The regular 1040 is a long form typically used for more detailed returns or those individuals showing capital gains/losses or self-employment income.

The 1040A is a shorter form requiring less detail and typically no capital gains/losses. A 1040EZ form can be completed if filing individually or jointly with no dependents with usually only a W-2 income verification.

A few other 1040 tax forms exist in the series for non-resident aliens of the United States.

W-2

Required by the IRS, employers must report all employees earnings and taxes withheld both for the applicable state and federal government. The W-2 form is used to complete this information and relay it to both the IRS and individual employees.

1099

Commonly referred to as informational returns the 1099 series is used to display income coming from various sources other than the primary employment. Whether an individual is an independent contractor, the beneficiary of dividends, or subject to interest income a 1099 form will be utilized.

941

Small businesses file the 941 form quarterly as essentially one of four smaller tax returns during the year. These forms show wages, adjustments, and the amount of taxes paid for employees during the quarter.

Some businesses file and submit these funds as payroll is completed or they can be settled when the 941 is due.

The experts at Bloch, Rothman, and Associates can answer any questions regarding individual or business income taxes and assist with a variety of bookkeeping options. A full detailed review of your tax situation can be completed in addition to resolution issues and estate compilations. All services will be completed in a timely manner, depending on your restrictions and possible tax deadlines. Whether you need a simple explanation on a random tax form or are in need of a variety of other services our tax experts are ready and willing to assist. Call 303-321-7160 or contact us for your initial free no obligation consultation.
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Tips for Avoiding Identity Theft from a Denver Tax Specialist


August 9, 2017

Suddenly your cell phone rings with an unidentifiable number or “No Caller ID” memo available. Curious you hesitantly answer, “Hello”. “Yes, this is John Doe with the Internal Revenue Service, badge number 123456789, trying to reach [enter your name here]. Immediately, your stomach feels queasy and all thoughts should be focused on a tax specialist who can assist you but instead you’re more worried about what comes next.

The individual on the other end of the line goes on to list your physical address, social security number, birth date and other vitally important personal information. Then he or she discloses the reasoning behind the phone call - your latest tax return has been audited and you owe “X” amount to rectify the mistakes that were made.

In order to avoid prosecution, jail time, a negative effect on your credit, and/or further legal action some monies must be paid immediately. These funds can be submitted by check or electronic funds transfer and the individual is more than willing to assist in processing the request.

Unfortunately, this situation occurs far too often and many times elderly individuals are targeted. Those who may be more susceptible in falling for the false scheme and willing to hand over funds without further questioning. Do not let you or your loved ones fall victim to a similar scam.

First, the Internal Revenue Service (IRS) will never contact you initially via telephone. If an actual audit or request for payment is going to occur it will first be instituted with a letter via the US Mail service. You may then contact the IRS leading to a subsequent conversations but the initial contact will never occur by phone.

Further, individuals can take the following steps in order to combat identity theft as recommended by the U.S. government.
  • “Secure your social security number (SSN). Don’t carry your social security card in your wallet or write your number on your checks. Only give out your SSN when absolutely necessary.
  • Don’t respond to unsolicited requests for personal information (your name, birthdate, social security number, or bank account number) by phone, mail, or online.
  • Watch out for “shoulder surfers.” Shield the keypad when typing your passwords on computers and at ATMs.
  • Collect mail promptly. Ask the post office to put your mail on hold when you are away from home for several days.
  • Pay attention to your billing cycles. If bills or financial statements are late, contact the sender.
  • Review your receipts. Promptly compare receipts with account statements. Watch for unauthorized transactions.
  • Shred receipts, credit offers, account statements, and expired cards, to prevent “dumpster divers” from getting your personal information.
  • Store personal information in a safe place at home and at work.
  • Install firewalls and virus-detection software on your home computer.
  • Create complex passwords that identity thieves cannot guess easily. Change your passwords if a company that you do business with has a breach of its databases
  • Order your credit report once a year and review to be certain that it doesn't include accounts that you have not opened. Check it more frequently if you suspect someone has gained access to your account information.”
The experts at Bloch, Rothman, and Associates can answer any questions regarding taxes, possible IRS scams, and assist with a variety of bookkeeping options. A full detailed review of your tax situation can be completed in addition to resolution issues and estate compilations. All services will be completed in a timely manner, depending on your restrictions and possible tax deadlines. Whether you fear to be the victim of an IRS replica scam or are in need of a variety of other services our tax experts are ready and willing to assist. Call 303-321-7160 or contact us for your initial free no obligation consultation.
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Major Life Changes that Affect Taxes for Your Accounting in Denver


August 2, 2017

Did you know that certain life changing events in your life may affect your taxes and how you will need to handle your accounting in Denver? By working with a local accountant to help you with your taxes, they will help walk you through the specifics on all life changes. However, it is always best to be aware of the various areas so you know to expect changes when tax season comes around. From getting married and purchasing a new home, to a new baby or retirement, these are a few of the top major changes that will impact your taxes.

Getting Married

Upon getting married, your filing status for your taxes will change. More specifically, you will change from filing as single to either married filing jointly or married filing separately. In the IRS’ explanation on how getting married affects your taxes, when filing together, you will combine your income and deductions. The two of you are both responsible for the items you report on the taxes. For filing separately, it is a good conversation to have with your premier tax specialist to see if you fall in a category where this would benefit you. It’s primarily used if one spouse has a negative history with taxes to keep everything separate. While there are some instances that could save you money, in most cases, you both will pay more.

Purchasing a Home

When you buy a new home, you will be excited to learn that there a few benefits that come with this new life change. How? You are able to make a few additional deductions. For starters, you are able to deduct the interest that is charged from your mortgage. Next, you are also able to deduct your area’s property taxes that you have paid. In addition, if you make energy efficient additions to the home, discuss with your accountant how you could potentially take advantage of the energy tax credit that can be up to $500.

A New Baby

After you welcome a new child to your family, you will be able to claim dependents on your taxes. As a parent, you will be able to take advantage of the Child Tax Credit. In most cases, this will lead to $1,000 in savings. In addition, depending on your income and filing status, you may qualify for the Earned Income Tax Credit. As your child or children grow, you can also claim their medical expenses if they are over 10 percent of your adjusted gross income. There are also childcare tax breaks if you send your child to a daycare that you can discuss with your accountant.

When it comes to handling your life changes for your taxes, you need a quality, go-to specialist that you can trust. You can rest assured that with Bloch, Rothman and Associates, we’ll help you every step of the way to maximize your return. In addition to these tips, be sure to read tax tips for retirees from an accountant in Denver. Whenever you have a life event that may change your taxes, be sure to call us at 303-321-7160.
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How a Vacation Home Can Be Written Off


July 19, 2017

When you think of a vacation home, you think of the many benefits it will bring such as quality time with friends and family to having a place to get away from it all. But did you know this investment could also be a tax write-off? These deductions and write-offs that you can take advantage of as a property owner on a second property. Interested in learning more? Learn the basics about go-to tax write-offs when it comes to real estate, a deeper look into the top benefits of owning a vacation home and some of the ins and outs of vacation homes and Denver taxes.

Basics of Tax Write-Offs

Did you know that you could be saving hundreds or even thousands on your taxes each year through write-offs? This is something your local accountant can assist with. They can help look into the purchases you made and help you take advantage of these write-offs when it comes to tax season. So what are tax write-offs, exactly? These are expenses that per the Internal Revenue System (IRS), can be deducted from your taxable income. This can apply to both your personal and business tax returns. There are a wide variety of areas one can take advantage of with tax write-offs. Some of the several types of tax deductions listed by the IRS include charitable contributions, student loan interest, expenses for your employer, job-related moving expenses and contributions to retirement accounts.

Inside Look of Vacation Home Benefits

For those who enjoy traveling, have a family or are looking for a “place to get away,” a vacation home is a great investment. Many families purchase a vacation home to create a place to spend quality time with children as they grow up. Others enjoy having a place that families can share or come together on vacations. For others, a vacation home is a great place to get away. Some use it as a place to work, while others use it as a place to disconnect. Certain parts of owning a vacation home can also be lucrative. Many will rent out their property during the times of year where they will not be staying in it, creating a great source of additional income.

Check out Airbnb to learn more about renting out your vacation home.

Ins and Outs of Vacation Homes and Taxes

If you do not plan on using your vacation home as a property rental, you will be able to deduct your mortgage on the home the same way you can for your primary residence. For some, the benefits of renting out the property when they do not plan on staying there is a better choice to bring in additional income. In fact, more than two weeks is the time period which you must report if you are renting out the property. You can also discuss with your accountant some of the best ways to be able to deduct any losses from the rental as well. If you choose to rent out the property, you will need to report that as income.

If you are considering a vacation home, learn more about reigning in your money and monthly budgeting tips from your Denver accountant. To discuss how you can financially benefit from a vacation home, Bloch, Rothman and Associates can help. Contact Bloch, Rothman and Associates today to see how we can help show you the premier advantages!
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Business Tips for Bookkeeping and Accounting in Denver


July 12, 2017

Having a structured bookkeeping and filing system should be one of your top priorities for your local business.

Why?

By keeping an organized system for records, you will easily be able to find information and prepare your taxes each year with ease.

Learn more tips below for getting your accounting in Denver started and managing taxes to reasons to get professional bookkeeping tip, you can use these tips to help your business grow.

1. Getting Started for New Businesses

Keeping an organized system for all money coming in and out of your business is crucial for its growth and success.

One of the most important things you or your team can do to stay on top of expenses is to review them each month.

Because, this will help you to see both charges large and small.


Also, it is important to... monitor your invoices if you send them to your customers. It is best to monitor them regularly and follow up with customers that are behind on their payments. While you are watching the cash flow in and out of your business, it is important to take this information and make financial business plans for your future.

Consider this - the growing needs of your business, whether for supplies and software to employees needs or travel and training. Keep all of this in an organized fashion easily accessible.

2. Managing Taxes

It is best to make taxes a priority for your business. You need to be putting your business’ tax funds aside to pay for your quarterly payroll tax deadlines.

As a business owner, you are responsible for local, state and federal taxes. If you are new to owning a new business or are not as familiar with the tax side of your business...that’s okay!

This is why you can use a premier tax and bookkeeping service to handle the tax side for you. Also, as a business owner, you can take advantage of tax breaks on your personal taxes when you have a small business. According to Investopedia’s Payroll Deductions Pay Off, you can take advantage of more for your 401K, increased savings in your flexible saving account and parking.

3. Reasons to Get Professional Bookkeeping Help

When it comes to managing your business' bookkeeping, accounting and taxes, there is much to know.

This is why it is important to utilize the help of a tax expert. They can work with you to provide the daily, weekly and monthly snapshots you need to know exactly what your business is bringing in and taking out.

As tax specialists, they will also be able to teach you more about tax laws and what you can do to set aside enough money to meet your quarterly payments.

For help finding an expert with your Denver accounting and tax services, Bloch, Rothman and Associates has you covered. We have a wide variety of expertise and you will love the quality of service you will receive. From full payroll processing and payroll taxes to filing your taxes and all other areas, we will help your business be successful. Contact Bloch, Rothman and Associates today to get started.
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