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Many Americans are married and faced yearly with the determination to either file a tax return jointly or separately. Often couples will determine to file in a preceding fashion without taking into consideration the implications or benefits of filing in a particular method. While a majority of people elect to file jointly for the extended tax benefits, there do exists opportunities and reasons for filing separately that can have a positive impact on the return.

Before determining which method will work best in your particular situation, first we must analyze the benefits of filing both a joint return and separately. These two methods have distinct differences between them as one combines the two individuals income and tax burden into one return and married, filing separately (MFS) individualizes the tax impact into each partner’s return specifically.

MARRIED FILING JOINTLY

The most common type of return and typically a more beneficial route, filing a joint return is often selected as the method of submission for couples. These married filing jointly returns become eligible when a couple has been married for at least one day in the preceding tax year.

Internal Revenue Service (IRS) requirements observe married couples by the date of their wedding or legalization of a marriage. Even if the pair becomes official on December 31, then they are legally viewed as a married couple for that tax year and thus must file either a joint or separate return.

Filing jointly allows taxpayers to recoup the benefits associated with a variety of credits and Social Security benefits. These factors often influence the decision and allow people to reap a better outcome on their taxes.

MARRIED FILING SEPARATELY

If choosing to complete a married filing separately return then individuals must be aware of these credits for which they will automatically be disqualified. “Filing separately can disqualify or limit your use of potentially valuable tax breaks, including (but not limited to):

• The child and dependent care tax credit
• The adoption credit
• The Earned Income Credit
• Tax-free exclusion of U.S. bond interest
• Tax-free exclusion of Social Security benefits
• The credit for the elderly and disabled
• The deduction for college tuition expenses
• The student loan interest deduction
• The American Opportunity Credit and Lifetime Learning Credit for higher education expenses
• The deduction of net capital losses
• Traditional IRA deductions
• Roth IRA contributions

MFS taxpayers must both claim the standard deduction or must both itemize their deductions.” The two cannot be split even if filing separate returns, the qualified application for one will automatically apply on both returns.

While there are a few benefits to filing separately, such as the separation of tax liability from a spouse, the main option could be administered to tax debt accumulated from a spouse. If one partner has a significant amount of tax burden or liability for which the spouse does not want to become also liable for then a separate return is necessary. Should the couple elect to file a joint return then the spouse assumes all liability previously responsible to the one.

In most scenarios, filing a joint return will be more beneficial but both options should be viewed as viable since each can be administered on a yearly basis. If you need help deciding what method will work best for you, the tax preparation and accounting experts at Bloch, Rothman, and Associates will be pleased to assist you in filing a return. Our associates can help ensure you receive the best refund possible and file in a method most specific to your individual tax situation. Known for providing expert tax advice and assistance, they can also help with a variety of accounting, bookkeeping and payroll options on an individual or business level. Whether you need an explanation for a random tax form, are potentially in need of appropriate representation in tax court, or could use help in potentially a variety of other various services our tax experts are ready and willing to assist. Call 303-321-7160 or contact us for your initial free no obligation consultation.

Taxes themselves are enough to make even the average lawful American citizen a little bit nervous. While a majority of the people who are submitting their income tax forms annually do so with good intention and no known falsification, there are a number who attempt to cheat the system for their benefit.

For this reason, the Internal Revenue Service (IRS) is always looking for any criminal action or even unintentional mistakes on every single tax return. For over the almost 300 million people submitting tax returns every year, this can be a daunting task but should those reviewers find a discrepancy how will they contact you?

Unless you have previously made an attempt to communicate with a division of the IRS via phone call, leaving your name and number - the employees associated with the IRS will not initially contact you by phone and never demand an immediate payment. Instead, expect to receive a form letter in the mail addressed to how you would fill out a tax form and to the address associated with your respective account.

These letters are likely to address a variety of different circumstances but understand that without a proper attempt by yourself to reach someone via a phone call, the IRS will not phone with any inquiry regarding a past or present tax issue, avoid the tax phone scam.

Another relevant issue with this same incentive revolves around specific identification protection and privacy credentials. Do not fall victim to a fraudulent scam via someone attempting to extort funds from you via a phone call by someone impersonating the United States government or IRS.

Often these type of attempts prey on the elderly or those who have had some type of tax issue in the past. Always notify a professional or the IRS themselves should you receive such a phone call so that attempts can be made at correcting any potential issue and notification can be sent to a targeted area in order to clear the air amid a potentially defunct situation.

If you have received an official IRS notification via mail, then the accounting experts at Bloch, Rothman, and Associates will be pleased to assist you in determining your best possible course of action. In addition, their office can aid in filing a return or planning for future needs, including providing estimated payments. Our associates can help ensure that you not only receive the best refund possible but also are aware of the implications your type of earnings may have on a return. Further, they are willing and ready to assist in filing via the method most specific to your individual tax situation. Known for providing expert tax advice and assistance, the professional staff at Bloch, Rothman, and Associates can also help with a variety of accounting, bookkeeping and payroll options on an individual or business level. Whether you need an explanation for a random tax form, are potentially in need of appropriate representation in tax court, or could use help in potentially a variety of other various services our tax experts are ready and willing to assist. Call 303-321-7160 or contact us for your initial free no obligation consultation.

You’ve just finished your taxes for the 2018 season, and now you can rest easy knowing you’ve completed your duty as a tax-paying citizen. Tax season can be a very stressful time for many individuals and companies, as the obligations and the overall bill can add up to be a difficult and harrowing experience. It’s usually not a pleasant experience, especially for those who are self-employed or have many source of untaxed income. It is a situation that will make a person thankful they’ve opted to go with a reliable, trustworthy accountant. After you’ve filled, here are a few things to do afterwards from your local Denver accountant.

Track Your Return

If you’re a person that needs to know the exact whereabouts of an incoming package or needs to know the exact dates for when something will be completed, tracking your tax return is just the tool for you. The IRS provides accurate tracking information for individuals who file both electronically and through paper returns.

However, if you file electronically, you will be able to track the status of your return within 24 hours of submitting it. This differs greatly from those who decide to file their taxes the old-fashioned way on paper, as a paper return can take up to four weeks before being able to check the status of it. This further stresses the benefit of filing a return electronically.

Use Your Return to Pay Down Debt

Many people utilize tax season as a time to celebrate, to splurge on expenses that are normally not in their budget. Assuming they’ve received a nice return, it can be very alluring to use this time to buy a luxury that normally would not be within reach. While this can be an exciting and exilarating experience, it is not always the wisest decision.

If you are lucky to have received a substantial amount of money from the IRS, a smart decision would be to utilize this chunk of money to pay down debts. Utilizing a return to buy something out of your budget is an especially bad decision if you have outstanding debts to take care of. Think of the amount of interest you will be paying over the course of a loan and recognize that it is a much smarter decision to eliminate the need to pay for this.

If you find that you are in need of expert tax preparation, there is no better option than going with Bloch, Rothman, and Associates. Whether you are dealing with various nuanced tax situations or you are just looking to get the biggest tax return for you and your family, we are your preferred choice for tax accountants.

We are a full service Denver and Aurora accounting firm that offers personal and affordable accounting and tax services for both individuals and businesses. We pride ourselves on providing the best possible customer service and advice to our clients in the industry. Contact us today and we will be happy to help you receive the highest return possible.

When it comes to filing your taxes, you want to be able to take advantage of as many tax exemptions and credits as you possibly can in order to ensure you get maximum amount for your refund. Anything that will reduce your tax liability is something worth looking into as a way to lower your tax bill. There are a few different ways you can make sure that you are taking advantage of all possible credits. One such method is to look into the gift and estate tax exemptions from a Denver accountant.

Gift Tax

The tax you pay on a gift is due to the fact that you have transferred money or some property of value to another individual without receiving any type of financial compensation in return. There are limits in terms of the amount you can gift to another individual tax-free without having to be concerned with paying a tax on it. As always, it is a great idea to consult with your local Denver tax accountant in order to ensure you have made the transaction properly.

For 2018, the annual exclusion for gifts has risen from $14,000 to $15,000 for the year. If you are thinking about giving a gift to a loved one, you now have the ability to increase this amount by a extra thousand dollars. This can apply to anything you are looking to gift, and can be used by both individuals and businesses alike, if it applies to you.

Estate Tax

The estate tax is a tax that you pay on the transfer of your property upon death. This can be to close family or friends, but it still applies. Your estate will be calculated for its total value, which will include all of your assets. This includes things such as your cash on hand, your securities, insurance, your stock portfolio, etc.

If you decide to give all of your inheritance to an heir, you will want to ensure that you have accounted for all the factors that can increase their estate tax. The recent passage of the tax bill in congress has changed the amount a person can gift in their inheritance without having to deal with a tax bill. This amount changed from $5 million to $10 million, and will run from the years 2018 through 2025.

If you are need of having your taxes done in the Denver area, there is no better option than going with Bloch, Rothman, and Associates. Whether you are dealing with a large estate tax bill or are just looking to get the biggest possible tax return for you and your family, we are your preferred choice for tax accountants.

We are a full service Denver and Aurora accounting firm that offers personal and affordable accounting and tax services for both individuals and businesses. We pride ourselves on providing the best possible customer service and advice to our clients in the industry. Contact us today and we will be happy to help you receive the highest return possible.

Winter, Spring, Summer, and Fall - the four seasons that regardless of where you live, most enjoy throughout the year but the fact is many other seasons exist as the calendar continues to turn and time passes. For example, some enjoy football season, hunting seasons, or you may be involved in a particular type of show season but for every American, tax season has become a common time of the year for which everyone has developed an opinion.

Depending on your most current and particular tax status or the monetary implications of an individual year, tax season can be a welcome sign of a potential windfall refund or a dreaded period for which you will pay the government monies owed from business or personal dealings occuring during the prior calendar year.

Filing should, and often warrants the assistance of a professional and it is best to entrust the services of someone trained in tax preparation for completion of your individual or business income taxes. These experts can often help to alleviate any fears associated with filing and ensure an immediately accepted return, all while making certain your return is completed accurately. This also helps to decrease the potential for any ramifications from mistakenly filing an inappropriate or unaccepted return.

When deciding to use a professional service and choosing to electronically file the return, Form 8879 is required to be signed by the individual or couple responsible for the filing. This one-page form allows the Electronic Return Originator (ERO) to file the completed return on behalf of the taxpayer electronically to the Internal Revenue Service (IRS) and more often than not, the states associated within a given return.

This electronic filing method is the quickest way to ensure the IRS receives the information they need to process the return and get any potential refunds started. By choosing to electronically file, both the preparer and client receive notification of a return being accepted and can then track the process through completion without being unaware of the current status, which can occur if a return is paper filed.

Depending on the settings chosen by the provider elected to file the return a client’s bank account information may be printed on the 8879 for verification and identity purposes. These forms are not submitted to the IRS, unless requested, but instead are kept by the preparer for a minimum of three years.

The tax preparation and accounting experts at Bloch, Rothman, and Associates will be pleased to assist you in filing a return with in depth explanations for any of the questions you may have in addition to tracking all expected refunds at both the state and federal levels. While known for providing expert tax advice and assistance, they can also help with a variety of accounting, bookkeeping and payroll options on an individual or business level. Whether you need an explanation for a random tax form - such as the 8879, are potentially in need of appropriate representation in tax court, or could use help in potentially a variety of other various services our tax experts are ready and willing to assist. Call 303-321-7160 or contact us for your initial free no obligation consultation.