Latest News on Denver Accounting & Taxes

Denver Tax Return Tips for Fourth-Quarter


October 23, 2020

As the calendar year winds down and individual’s schedules typically get busier with work deadlines, social engagements, and the holidays, keeping up with your to-do list can take a little more focus. One thing which shouldn’t be overlooked is the importance of continuing to manage your finances and the impact some decisions could have on your tax footprint for the upcoming filing. Just after the new year, tax season begins and while some of your potential impactful decisions likely took place during the first half of last year, it’s important to remember some of the things which could wind up playing a role on your upcoming return.

Even from a general standpoint, there’s a lot to know about filing taxes in terms of deadlines, payments, and other necessary factors. However, most of the basic knowledge citizens possess on filing returns surrounds the end result and not what can be done prior in order to help legally reduce taxable income or avoid having to pay such a high bill in the spring. Instead, there are a few factors to consider at the end of a preceding year which could help. 

Estimated Tax

Estimated taxes are paid throughout the year in order to help spread the amount of tax owed and avoid a lump sum due payment upon filing. Especially important for those who are self-employed, fourth-quarter estimated tax payments are typically due by January 15 of the following year being credited.

Bonus

If due an end of year bonus, holiday pay, or some other surplus of funds typically not received at other times in the year, making adjustments to your current withholdings could impact your tax. By adjusting the amount taken out of your check, individuals may be able to either pay in money while receiving a near normal check or secure extra money for the holidays without any major impact. 

Gift Tax

The gift tax exemption goes away if not used and for those to which it may apply, ensuring that it is used during the fourth quarter helps to avoid potential future tax payments - provided the set amount is not exceeded.

Wedding

If you’re legally married on December 31 or before, then the Internal Revenue Service (IRS) requires couples to file a married return for that year. If changing from a single return to a joint is going to have a large impact, then considering postponing those nuptials until first-quarter could give you time to prepare for the upcoming tax impact.

Once you’re ready to take a look at how fourth-quarter actions could benefit you or complete an analysis of your complete tax situation, let the accounting and tax professionals at Bloch Rothman and Associates assist you today. In addition to providing answers for your questions and handling all accounting services, they can also take care of multiple other issues dealing with paying or owing back taxes, required audits signaled by either the IRS or an outside agency, or any other personal or corporate wealth management issues. Along with providing a top quality tax service, our group can also complete all types of returns and get answers to any other factors associated with financial issues or concerns you may have. Serving Denver and all of the surrounding areas for 35 years, our firm has an extensive history in helping clients with any and all of their tax issues or dealings with the Internal Revenue Service. If you have questions about your personal, business, estate, or any other filings, don’t hesitate to contact us today. Available for all of your tax needs, there are also a number of bookkeeping and payroll services offered to assist you and your business. We look forward to meeting you and providing the type of service you can rely on whatever your needs may be very soon!
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Denver Accountant: Budget Fundamentals


October 16, 2020

Creating a budget may initially feel like a daunting task but whether you are running a business or a household, it can be one of the most useful tools to assist in tracking and helping plan your finances. Once established, monitoring your money becomes relatively easy, in addition to setting aside funds for emergencies, wish list items, and necessary expenditures. Not only can a budget give individuals a sense of control but it also provides a first-hand look at exactly where potential savings can be made in order to ensure that you are getting the most out of your revenue or paycheck.

A majority of Americans with credit cards have debt and although there may be legitimate reasons behind having to purchase items in this manner, a budget can also help to begin the process of lowering your bills and earning back some spending power. There are a variety of plans for paying down debt, but none can be executed properly without establishing a baseline via some type of financial monitoring tool. Following are a few key factors which can help to build a helpful budget and assist with getting a grip on your spending and financial situation today.  

Income

Spending over the amount that you routinely bring in is where debt begins. By starting with your income, be it monthly, weekly, or bi-weekly, individuals can create a starting figure to begin. Typically, no matter the manner in which you are paid, working with monthly numbers is best as most bills have to be paid on this schedule.

Goal

Once a starting figure for the money which will be earned during a month is revealed, then a goal should be set. Every situation is going to be different so what would you like the end result to be in your scenario? This is the goal - from having extra spending money, paying credit card bills, putting more toward the principal on a home, preparing an emergency fund, and everything in between - it is here where the bottom line should be established in monitoring the spending and in what manner it is to be executed.

Method

There are plenty of paid and free budgeting tools available for consumers. Study the ins and outs of each and select one which best fits your current goals and financial situation. These can help track your spending and ensure that you are staying on the right path to success.

Review/Adjust


After an extended length of time which has yielded some form of results, taking a look back and making adjustments where necessary is warranted. Perhaps money can be taken from one area and be better spent elsewhere or not enough was initially slated for some expense. Nothing should be too rigid, except for not exceeding the amount of money which will be brought in over the set time period.

If you’re ready to set up a budget for your household or company, then let the accounting and tax professionals at Bloch Rothman and Associates assist you today. In addition to providing answers to your spending and tax questions, they can also take care of multiple other issues dealing with paying or owing back taxes, required audits signaled by either the IRS or an outside agency, or any other personal or corporate wealth management issues. Along with providing a quality tax service, our group can also complete all types of returns or answer any other factors associated with financial issues or concerns you may have. Serving Denver and all of the surrounding areas for 35 years, our firm has an extensive history in helping clients with any and all of their tax issues or dealings with the Internal Revenue Service. If you have questions about your personal, business, estate, or any other filings, don’t hesitate to contact us today. Available for all of your tax needs, there are also a number of bookkeeping and payroll services offered to assist you and your business. We look forward to meeting you and providing the type of service you can rely on whatever your needs may be very soon!
 
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Denver Tax Return: A Few Overlooked Deductions


October 13, 2020

Not only has 2020 been a wild and crazy year outside of the tax world, but within it a similar amount of crazy twists and turns keep occurring. First, due to the coronavirus pandemic - April 15 - the traditional filing deadline was extended back into July. While those who elected to file an extension enjoy the more consistent deadlines of September 15 and October 15, depending on the type of filing, the entire season has ranged for almost an entire year for the first time in history.

Add an election year on top and the craziness only magnifies a tax focus. Undoubtedly, no citizen wants to pay any more tax than they owe, but determining precisely what amount should be paid in each and every year can be tricky. With tax laws changing, adjusting income levels, and any number of eligible deductions being reported, the final figures can be difficult to derive. In fact, there are even some potential items which individuals may not even realize they could be benefiting from when filing their own return, including each of the following.

Gambling

Yes, you can deduct losses from gambling but there are few key things to keep in mind when reporting these numbers. First, all winnings must also be reported as income and the difference isn’t a simple net figure. In addition, individuals cannot take any deductions over their reported winning figure. 

Home Office

Recently changed, only individuals who report self-employment income qualify for an office-in-home deduction. In the event that you are eligible, there are a few different figures which could impact your taxable income, including a percentage of certain bills (i.e. utility, water, etc.). For the home office deduction in 2020, when many were forced to work from home, returns could experience an uptick in this deduction but there has been no change to the current qualifications, so not everyone who worked from home is automatically eligible.

Clothing

While not all clothes you purchase for employment may be eligible, there are some factors which make work attire tax deductible. Essentially, if the outfit is required for your job duty and cannot double for traditional wear outside of the workplace then it is likely you could have a deduction on hand. For example, teachers may not deduct outfits which may be worn elsewhere, but nurses who wear scrubs are likely able to claim this deduction.

If you are looking to receive additional tax assistance, a second opinion prior to completing a return, or just have other tax related questions, then let the tax professionals at Bloch Rothman and Associates assist you today. In addition to providing quality services and answering your questions, they can also take care of multiple other issues dealing with paying or owing back taxes, required audits signaled by either the IRS or an outside agency, or any other personal or corporate wealth management issues. Along with providing a top quality tax service, our group can also complete all types of returns and get answers to any other factors associated with financial issues or concerns you may have. Serving Denver and all of the surrounding areas for 35 years, our firm has an extensive history in helping clients with any and all of their tax issues or dealings with the Internal Revenue Service. If you have questions about your personal, business, estate, or any other filings, don’t hesitate to contact us today. Available for all of your tax needs, there are also a number of bookkeeping and payroll services offered to assist you and your business. We look forward to meeting you and providing the type of service you can rely on whatever your needs may be very soon!
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Amended Denver Tax Returns: Cause and Effect


September 23, 2020

Filling out tax returns can be a stressful time period for individuals across the United States. Depending on the financial outcome of your past year, and a handful of other events which could impact your taxable income, completing a return and finding out if you owe money or may be getting a refund can be a little frightening. However, understanding your current financial situation and working to plan for where the results may fall allows for individuals to not approach the filing period blindly, but with a plan in place to either maximize their refund or make any necessary payment without hesitation. 

With nearly 100 million individuals filing a tax return there are bound to be a few mistakes. These errors could be the result of simply entering a figure incorrectly or a variety of other mishaps but the ability to make a change on your filing exists and should be utilized once you realize that a mistake may have been made on the return. For those who need to make a correction, filing an amended tax return is the appropriate method and these can be utilized for a variety of different reasons, including some which may actually benefit the taxpayer. 

Corrected Paperwork

Most of the figures used in order to report your income on a tax return are reported to you via some type of form. Whether it be a W-2, 1099, or other paperwork, the same possibility which exists in making an incorrect filing, also is present for those who are responsible for gathering and producing this information. In the event there was a mistake, corrected paperwork will be issued. If you have already filed a tax return, using the previously received information, then an amended return is necessary in order to correct the misrepresented figures originally reported.

Late Notification

Deadlines for receiving the information necessary to file your tax returns is typically within the first calendar month of a new year. However, there are always tax documents coming in throughout the entire filing window and should you have submitted a return without receiving all of the appropriate information and then receive something later - an amended return is necessary. For individuals who have various types of investments, ensuring you are in receipt of the most recent paperwork and figures prior to an initial filing is important to avoid having to revisit your return.

Rule Changes / Missed Deductions


At various times, the regulations revolving around certain parts of your return may change. If this pertains to your tax return and filing provisions, then amending a return may result in a credit or additional refund. Taxpayers can go back up to three years in order to assess such a change. In addition, if a possible deduction has been missed, then amending a return to include this measure may also benefit the filer.

If you are in need of an amended tax return, plan for individual finances, or those of your business, then let the tax experts at Bloch Rothman and Associates assist you today. In addition, they can also take care of multiple other issues dealing with paying or owing back taxes, required audits from other entities besides the IRS, or any other personal or corporate wealth management issues. Along with providing a quality tax service, our group can also complete tax returns or answer any other factors associated with financial issues or concerns you may have. Serving in Denver and all of the surrounding areas for 35 years, our firm has an extensive history in helping clients with any and all of their tax issues or dealings with the Internal Revenue Service. If you have questions about your personal, business, estate or any other filings, don’t hesitate to contact us today. Available for all of your tax needs and filings, there are also a number of bookkeeping and payroll services offered to assist you and your business. We look forward to meeting you and serving whatever your needs may be soon!
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Denver Accounting Firm Payroll Periods Defined


August 19, 2020

Pay day. One of the best days of the week or month, depending on when exactly you receive compensation for any work completed. However, whether you are a business owner in charge of executing a payroll and cutting checks or simply an employee, did you know that the frequency with which you receive payment can have an impact on your finances? Typically there are two different types of employees, detailed below, and when these individuals receive payment for their services is something a majority of people don’t give its proper consideration.

Many factors contribute to the amount brought home but figuring out taxes, pay, and more on leap days can be tricky. Fortunately, this issue only rolls around once every four years but it is something that should be granted attention regardless of if you are the employee or employer. Understanding the pay periods, frequency, and rate of pay for individuals can be important for both - if given an option, consider the pros and cons of each before moving forward with any decisions.

First, there are traditionally two various types of compensation rates - hourly and salary.

Hourly
Hourly employees earn various amounts based on the amount of time they are ‘on the clock’. These workers usually have a set pay period and any time accumulated over that span is then paid for at once.

Salary
Those who receive a salary make a certain amount regardless of the amount of time spent either on or at work. This amount is usually broken down over the course of an entire year and then distributed at certain intervals.

Weekly
Weekly paychecks are most commonly reserved for those hourly employees. Since their time at work may change from one week to the next, these amounts can be easily deciphered and paid correctly over each and every week. Referred to as ‘paid in arrears’ - this means payment for the work is usually one week behind actual completion.

Bi-Weekly
Those who receive paychecks once every two weeks are subject to the bi-weekly system. This allows individuals to receive income usually twice a month which can be good for employees who have certain bills due at various times over the course of any calendar month. 

Monthly
Most salaried employees receive monthly payments. Figured by taking their annual salary and dividing by 12, the total is then disbursed once each and every month. While the check may be larger than other payment segments, this can take a bit more budget management in order to ensure all funds last until the following pay period.

Semi-Monthly
Another convenient option for salaried employees, semi-monthly pay doesn’t require the same sort of stretch between checks and individuals have a little more sense of income - receiving 24 payments in lieu of the usual one per month. 

If you are in need of a particular level of support for the finances of your business or wish to take a closer look into your own personal finances, then let the tax experts at Bloch Rothman and Associates assist you or your business today. In addition, they can also take care of multiple other issues dealing with paying or owing back taxes, required audits from other entities besides the IRS, or any other personal or corporate wealth management issues. Along with providing a quality tax service, our group can also complete tax returns or answer any other factors associated with financial issues or concerns you may have. Serving in Denver and all of the surrounding areas for 35 years, our firm has an extensive history in helping clients with any and all of their tax issues or dealings with the Internal Revenue Service. If you have questions about your personal, business, estate or any other filings, don’t hesitate to contact us today. Available for all of your tax needs and filings, there are also a number of bookkeeping and payroll services offered to assist you and your business. We look forward to meeting you and serving whatever your needs may be soon!
 
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