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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.

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.

The deadline to file your 2016 taxes is rapidly approaching. Are you prepared? It is important that you do your best to file on time to avoid issues and fees with the IRS. Learn the basics on the upcoming standard deadlines, what local self-employed business owners should do and overall reasons why it is best to work with a service to help you file.

Standard Deadlines

The deadline to meet the 2017 deadline of filing 2016 taxes is April 18. Normally, taxes would be due on April 15 but it is different this year. According to When Are Taxes Due in 2017? This Year, It’s Not April 15, tax deadlines are to always be on a weekday or a non-holiday. In the event a deadline does fall on a weekend or holiday, it will be moved to the following Monday. They add that 2017 is a special case. Why? They note that April 16 is Easter Sunday, which since falls on a Sunday, will be observed on Monday, April 17. This is the reason why the tax deadline was pushed to Tuesday, April 18. If you are unable to meet the April 18 deadline, you can file for an extension. However, that doesn’t come for free. Those who apply for an extension are subject to pay a penalty and interest. You must apply for an extension by April 18, which will give you until October 16.

Self Employed

If you are self-employed, you are most likely on a quarterly schedule to pay your taxes. For the rest of the year, quarterly payment deadlines are April 18, June 15 and September 15. However, on top of these, you will need to file an annual return. For businesses that expense $5,000 or less in a year, they can use a Schedule C-EZ. However, anything higher will require a Schedule C to be filed. You can discuss the difference in these forms from your go-to tax specialist for help.

Top Reasons to Utilize Help of Service

Whether you are filing a return on your own, as a married couple or because you are a business owner, the best way to maximize your return is through a tax specialist. They are aware of all the ins and outs to help you the best way for your individual situation. It is especially beneficial if you hire a tax expert when you make over $150,000 per year, are self-employed or are an independent contractor or have made large donations. There are many other instances a tax specialist can help. If you are unsure, it is definitely a conversation worth having.

With the upcoming tax deadline looming, you need a premier tax preparation specialist you can trust. This is where Bloch, Rothman & Associates has you covered for all of your needs. Our quality services will help make this tax season an easy one. Read more on Paying Back the IRS: Ins and Outs from Your Denver Accountant, and let us help. Contact Bloch, Rothman & Associates today to get started with your free initial consultation.

When tax time rolls around, for some, it is exciting to see how much they will be getting back. For others? The thought of having to pay back taxes can be intimidating. There are reasons as to why one would pay back, which can be done via check or electronically. From individuals and small businesses, to trying to figure out what to do if you can’t pay, use these tips from your local Denver accountant.

Individuals

One of the top reasons individuals owe on their taxes is by not having enough money withheld out of each paycheck for taxes. This amount stems from whatever you elected in your W-4 form that you filled out when you started your job. For others, you might have a high amount deducted from your employer but if you are a freelancer or contractor that filled out a W-9 form, it is on you to pay. This happens because the employer you are doing contract work for is not responsible to take out the taxes. You may also owe more if you once had dependents that have since moved off your tax information. When you owe on your taxes, you must have the money paid to the Internal Revenue Service (IRS) by the deadline. The deadline for 2017 is Tuesday, April 18. If you are unable to pay your taxes by this date, it is best to review the options noted below.

Small Businesses or Self-Employed

When you have your own small business or are self-employed, you are responsible for paying the taxes. As a small business owner, you can make quarterly payments to the IRS to help. According to the IRS’ “Self-Employed Individuals Tax Center,” anyone who carries on a trade or business as the sole proprietor or independent contractor, member of a partnership that carries trade or business or are in business with yourself must pay taxes on a quarterly basis. This process is known as “estimated tax.” This covers your Social Security and Medicare taxes. You will file your return annual as usual but will work with the IRS on the quarterly payment schedule.

What to Do if You Can’t Pay

Life happens and some people are unable to pay back their taxes by the IRS’ annual deadline. The IRS explains there are four options if you are unable to pay. They explain that your top priority is to make sure you file your return on time and pay as much as you possibly can. If there is a part or all you cannot pay, you can get a payment plan through them. The longer you stretch out your payments though, keep in mind that you will owe more in interest. They advise to consider getting a loan if it is possible as fees may be less than a loan through the IRS. On all circumstances, they advise to never ignore a tax bill.

With the tax deadline approaching, be sure you are preparing to file your 2017 Denver tax return. If you need assistance or feel you might owe, Bloch, Rothman and Associates can help. We are your premier go-to tax specialists that can walk you through all your options. You’ll be happy with our quality service to make the process a breeze. To get started, call us at 303-321-7160.

It is more common than you would think for people to rack up credit card debt. While this can negatively impact your credit, there are options to get out of a situation. If you have thousands of dollars in credit card debt, it is best to make it a priority to create a plan to pay it down. By doing this, you will help your credit and increase your score. Learn the negative effects of having a large amount of credit card debt, a brief intro into credit and tips for paying down you large debts from your local accountant in Denver.

Cons to Racking up Credit Card Debt

Credit card debt can sneak up on you. Plus, if you have cards that have interest on them, it can expedite the process to increase the amount that is on them. Believe it or not, having a small balance on your cards it actually a good thing. It shows that you use credit and pay it off. It is when the amounts charged on them begin to creep up is when it can have a negative effect on your credit. One of the biggest cons is a high debt-to-income ratio. This occurs when you begin to exceed around 30 percent of your total credit card allowance. The more debt you accrue, the higher that debt-to-income ratio will be. The higher amount you have charged on cards, the less likely you will be to get credit in the future. Plus, when interest rates on your cards are high, it can make it difficult or time consuming to pay off. It can be done though! Don’t lose hope.

Credit 101

You credit is something you should closely monitor, whether it is your own personal credit score or your business’. Having good credit it key for loans and other financials that deal with credit. One of the biggest things to keep in mind with credit is to keep your overall utilization at or under 30 percent. Anything higher will start to impact your score. Scores ranges from the low 300s to the upper 800s. Scores above 750 are in a good range. The normal or fair range typically is between 700 and 750. Once you get in the lower 600s, you are in a poor range. This can affect how you are given credit or loans and the types of interest rates on them. Make it a goal to have a low debt-to-income ratio and a high credit score. Learn more about scores from Credit Sesame’s “Guide: Credit Score Range for Experiean, TransUnion and Equifax.”

Tips for Paying Down

When it comes to paying off your debt, it can seem overwhelming. However, with a plan, you can accomplish it. If you have multiple credit cards, focus on one. Some sources say to tackle the one with the largest interest rate, while others advise to start with the ones with the lower amounts. Weigh the pros and cons and work out ways to tackle them card by card. This will really gain momentum as once you pay down one card; you will have more money freed up in monthly payments that you can save towards other cards. Keep in mind, the more you pay off, the better your quality of life will be without the stress of dealing with credit!

Learn more on how to manage credit cards with these tips from Denver accountants on how to manage your credit card debt. For help with your accounting needs, Bloch, Rothman and Associates is your top, go-to accountant. Contact Bloch, Rothman and Associates today to take advantage of our premier services.