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There are a variety of types of forms for Americans to fill out their taxes. The 1040 form is one of the most familiar documents, but it's not the only one. At the end of the day the way you file your taxes depends on how you make your income, your assets, and a variety of other financial factors. Independent contractors have to do a great deal more leg work and organization that a traditionally employed individual. Learn more about filing your taxes as an independent contractor, the form that must be used and how your employment status will impact a Denver tax return.  

Who are Independent Contractors

Independent contractors are self-employed individuals that provide a service. They may work with others, one-on-one, or for another business or organization. There are a few things that separate independent contractors from a regular employee of a company. To start, the independent contractor works on their own and is responsible for their own supplies to get the job done, from computers to notebooks. Additionally, they are hired through a contract agreement which can be terminated at any time by either party in more flexible manner than at a traditional workplace. At the beginning of the work, the hiring party will supply a W-9 for the independent contractor to fill out. Another difference is that the independent contractor is responsible for their own taxes. When tax season begins, the person or business that hired an independent contractor will supply them with a 1099 for them to complete their taxes.

The W-9 and 1099 Forms

At the beginning of the working relationship, the person or business will provide the independent contractor with a W9. This form is the Request for Taxpayer Identification Number and Certification. It makes it clear that the individual is an independent contractor. According to the IRS’ Forms and Associated Taxes for Independent Contractors, the taxpayer identification number is typically a person’s social security number. Remember, it is best to keep a W-9 in your records for up to four years in case you are audited. During tax time, the person or business paying for services must distribute a 1099 form to the independent contractor by January 31 to give independent contractors plenty of time to do their taxes.

Impacts to Tax Return

When a person or business pays an independent contractor $600 or more, the independent contractor is required by law to report the income it on their taxes. It is the responsibility of the independent contractor to pay the taxes for the services they were paid to do. As an independent contractor it is wise to save money out of each paycheck to cover the money that will be owed to the IRS. Independent contractors are responsible for paying what is owed by the April 15 deadline. There are opportunities to file an extension if needed. Independent contractors are encouraged to pay taxes on a quarterly basis with payments in April, June, September and January.

With tax season upon is, be sure to read up on preparing to file your 2017 Denver tax return.  For help with the independent contractor status, Bloch, Rothman and Associates is your premier go-to tax specialist. As your local resident expert, we will provide quality service to help you make it through tax time. Contact Bloch, Rothman and Associates today to set up your free initial consultation.

Paying taxes is a process that has been a part of American lives since the 1800s. Have you ever wondered how the process all began? You would be surprised to understand how everything came to be. Learn when taxes were introduced, how the income tax began and how the process has evolved from your local Denver tax specialist.

When were taxes first introduced?

Taxes were first introduced to Americans in the late 1700s, but it was on a much smaller scale than what we know today. Some of the early areas that were taxed included stamps, newspapers, imports, sugar, clothing, coffee and tea. However, major taxes were not introduced until the 1800s, which was a very different layout than what we know today in terms of taxation. Many of these taxes stemmed from The Revenue Act of 1862. According to the IRS, The Estate Tax: Ninety Years and Counting provided much of the federal budget. What is surprising is this was just the beginning of what we come to know as the tax system today that at the time, supplied so much of the budget. The IRS adds that the Revenue Tax Act had many other elements included within it. It introduced legacy taxes on personal property, estates, charities and more.

How the income tax began

While there were taxes in place prior to the income tax, the system we know today took in the early 1900s. Income taxes were not put into place within the American tax system in 1913. The idea was first generated in the late 1800s and it was ratified in 1913 with the 16th Amendment. This tax helped provide funding for World War I. During these early years of the income tax, the rich was the top class of people that had to pay. It wasn’t until the early 1940s when the income tax changed from a tax on the rich to a tax that everyone in America had to pay.  

The need for accountants

Accountants played a huge part of the transition of the tax system. Once taxes were introduced in the late 1800s, the need for accountants grew and the certified public accountant position was created. According to Investopedia’s Accounting Basics: History of Accounting, the American Association of Public Accountants was created in 1887 with 31 members. They added that standardized testing for these individuals was rolled out in 1896. The name of this group evolved into the American Institute of Certified Public Accountants in 1957. Over the years, more and more committees around the country.  
Today, there is such a need for quality accountants thanks to the current tax laws. It can be a lot to manage on one’s own, whether it be your personal taxes or small business. Block, Rothman and Associates if your premier tax preparation and tax resolution specialist. For a help on your own, try some of these quality budgeting tips from your Denver accountant. For help with any of your tax questions, we can help! Call us at 303-321-7160 to get started.

Tax season is a big stressor in American homes. Once a year we must gather our finances and work with a local Denver accountant in hopes to get a great return. Depending on our withholdings and circumstances, some will owe. One of the best things you can do to make tax season easier is to file your tax return as soon as possible. From a larger return and preparing to pay to reducing stress, there are a variety of reasons to get it out of the way as soon as possible.

Larger Return

By filing your tax return as soon as you have been sent all your documents, you can actually get a larger return! How? Procrastinators typically go for the easiest route possible, meaning they take the standard deduction. However, according to The 5 Huge Benefits of Filing Your Taxes Early, those who give themselves plenty of time to file can review the different deductions and itemize them. The site also adds that taxpayers who file in February can see a higher return at an average of $450. Also, if you are a college student or have a child that is a student, filing early can help get more aid from the Free Application for Federal Student Aid (FAFSA).

Prepare to Pay if You Owe

Many Americans will have to owe on their taxes. When you file as soon as possible, you will know if you have to pay back on your taxes and how much. For some, they might owe over a thousand dollars. In these instances, filing early gives you plenty of time to save. Tax day this year is Tuesday, April 18, 2017 meaning you have to have your return filed by then. While there is an option to file for an extension, it does not change the fact that you owe and payments are still due on the April date. Not paying taxes on time can lead to penalties and fines.

Reduce Stress

Tax season is a stressful time for Americans. In Inc.’s article 5 Tips to Cope with Tax-Season Stress, 56 percent of Americans say they get stressed out with the entire tax process, and 18 percent define it as “very stressful.” It can lead to depression, poor sleep, health issues and engaging in unhealthy habits. By filing earlier, you can avoid some of the major stressors that affect so many in the country. Also, those who file their taxes early are at a lower risk of identity theft. While it sounds crazy, identify theft is on the rise towards the end of tax season. Filing early will help you get quality sleep at night!

To help you make this tax season the best one possible, trust the experts at Bloch, Rothman and Associates. As your premier go-to Denver tax specialist, we can help make this tax season seamless and stress-free! To get started, begin preparing to file your 2017 Denver tax return. When ready, contact Bloch, Rothman and Associates and file your taxes early!

As April 15th approaches, many questions about filing taxes arise especially if you are newly married. During tax season, one of the go-to ways married couples file their taxes is jointly. However, this is not always the case. Sometimes there are circumstances where filing separately may be the preferred option by the couple for reasons outlined below. Learn more about filing jointly or filing separately, the circumstances that surround filing taxes separately and the pros and cons from your local Denver tax specialist.

Can Married Couples File Separately?

Of course, married couples can file their taxes separately. They have the option to file jointly or separately when filing their taxes. Filing together allows couples the opportunity to get the biggest tax return. Couples may also qualify for multiple tax credits  But, in certain circumstances, filing a tax return separately is a preferred option by some couples. When doing this, you will still have to note on your taxes that you are married. However, you will note in your return that you are filing separately.

Circumstances When Filing Your Taxes

One of the main reasons a married couple decides to file separately is so they are not responsible for each other’s tax returns. If one individual in the couple has circumstances occur that the other does not want to be associated or affiliated with these circumstances, the option to file separately is an option. For others, if one part of the couple in the relationship will owe money to the government, they can file separately so the other person does not lose their tax return and owe money to the government. This could include situations such as government loans that have gone unpaid. Another reason a couple may want to file separately is due to divorce. According to Investopedia’s married filing separately article, if two taxpayers divorce within the year, according to law they have to file separately.

Pros and Cons

When a married couple files a tax return separately or jointly, there are a few items you will not be able to claim. First, only one spouse can itemize deductions, while the other will not be able to because you can’t count a deduction twice. However, if one of the two in the marriage makes a significantly larger amount of money than the other person, there is a pro of filing a tax return separately. In most cases, filing together provides the best tax benefits, especially if the couple is in two different income ranges.  

With tax season in full swing, be sure that you are preparing to file your 2017 Denver tax return. If you are in need of any help along the way, especially if you have questions about filing jointly or separately, Bloch, Rothman and Associates can help! As your top tax specialist, we provide quality service and will help you file your return the way that works out best for your family. Contact Bloch, Rothman and Associates to get started filing your tax return by filling out a free consultation form today!

Welcome to the world of filing your taxes! This annual event is something everyone that receives income must do. Don’t worry though, it is not as intimidating as you would think. The forms for a simple new-timer are easy and you can always utilize the help of a local tax specialist, too. Here are some of the ins and outs as you prepare to file your taxes for the first time this year.

Forms You Will Use

When it comes to figuring out which tax form you will fill out, it all depends on your taxable income. Most first-time tax filers will use the 1040EZ tax form. If you earned less than $100,000 in 2016, are under 65, aren’t claiming dependents or adjustments, file jointly if married and are only claiming Earned Income Credit, you can use the 1040EZ. If you would like to take advantage of tax credits, you will use the 1040A. So, for instance, if you have student loans or a health savings account, you will use this form. To claim deductions and credits, you will use a 1040. Those using the 1040 can make over $100,000, can claim any type of income and use a variety of deductions and tax breaks.

All About Deductions and Credits

When filling out your taxes, there are deductions and credits you may be eligible to take advantage of. Deductions are ways to lower the amount of your taxable income and there are two types: standard and itemized. A tax specialist can help you determine which is best for you when it comes to standard or itemized. Standard deductions are like a flat rate deduction the government sets that you can take advantage of. Depending on your circumstances, an itemized deduction may be a better choice. If you have a mortgage, investments or a health savings account (HSA), pay property taxes on your home or vehicle, or have other health care costs, you may want to consider itemizing.What is a Tax Credit explains that this is money a person can subtract from what you owe to the IRS. These are available for circumstances such as having children.

Return vs. Owe

Tax season can be an exciting time for some, and one others dread. Really, it comes down to two things: will you get a refund or owe the IRS? The average taxpayer can get up to $2,000 back on their refund. However, there are many instances you would owe. One of the top reasons you owe depends on how much you agreed to withhold on your W-4. If you want to be sure to get a refund, you can elect to withhold a lot out of your check. The less you withhold, the more likely you are to owe. Talk to your tax expert on ways to make sure you get a refund.

When it comes to filing your taxes, there are pros and cons to using tax software vs. a professional accountant. One of the best ways to ensure you fill out the right forms and get the biggest return you can is through a tax specialist. Bloch, Rothman and Associates is your go-to premier tax specialist. We will help you throughout the year during tax season with all your tax related needs. So, whether it’s your first-time filing or fifty-first, you will love the quality of service you receive with us. Call us today at 303-321-7160 to get started.