Latest News on Denver Accounting & Taxes

The final annual quarter can be one of the most pivotal for both individuals and small business owners with tax season right around the corner. Taking a few steps to prepare for the upcoming filing can be pivotal when it comes to your return(s). By ensuring that you are fully prepared, the stress typically associated with taxes may be avoided. For small business owners, these steps can truly be beneficial as proactive planning pays off in more ways than one.

Year end tax planning moves for small business owners focuses on general options and many of the basic concepts both individuals and businesses should be watching. These steps not only help to reduce the potential tax burden but can also assist in retirement and other potential deductions which may really help boost any tax incentives highlighted by a consumer’s return. With proactive planning, the sky's the limit and tax time can be a far less stressful experience. 

Organization

Being prepared is half the battle when it comes time to file your taxes. By ensuring that all of the required paperwork has been received, taxpayers can enter the process with confidence about all of their reporting.

Bookkeeping

For both individuals and small business owners, the bookkeeping process is going to be critical to their return. Provided you have up to date information, the entire tax filing should be less of a hassle. 

Income Reduction

One of the most influential methods both small businesses and individuals can employ is the ability to reduce any taxable income. By utilizing different contribution aspects and other incentives around retirement age, the ability to manipulate the amount of taxes owed may be legally possible.

Deduction Benefits

Maximizing taxable deductions is another method by which taxpayers can help to reduce their amount owed. Doing so not only reduces the amount of income on which you pay taxes but also could benefit in other areas. Charitable donations, medical expenses, and certain types of other regulated taxes may all count towards reducing your accounted for income in terms of tax filing.

Tax Credits

Another option for lowering one’s tax burden and also helping to prepare for filing season is to account for all potential tax credits that may be applied. In addition to electing a potential credit, taxpayers should also be ready to provide proof of the potential listing. Not only will these applications reduce any amount owed but they could also provide money back to the filing party.

If you’re ready to start proactively planning for the next filing season during this year’s final quarter, then let the professionals at Bloch Rothman and Associates assist you today. In addition to providing answers for all of your filing 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 quality tax and payroll services, 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 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!

As the American economy continues its rebound from the coronavirus pandemic, demand and a variety of other factors are causing inflation to near record highs. This rise continually impacts individuals across the country at every turn, from the gas pump to the grocery store, and everywhere in between. The increasing costs of goods and services without similarly styled pay raises can be difficult to navigate and the federal government is making adjustments to assist.

Inflation is pushing income tax brackets higher for 2022, indicating that any relief may not be quick to arrive. Fortunately, these changes could have a beneficial outcome but it’ll be another year in the making as the tax filing season for 2021 nears its inception. While no one can predict what the future may hold, it does at least appear that these adjustments could help when the time comes to file everyone’s 2022 taxes.

Inflation

At its core, inflation is an increase in the overall prices of all goods and services. Most individuals are somewhat familiar with the impacts of supply and demand on pricing, which does play a part in inflation, but overall its impact is simply a reduction in the perceived current value of available currency. 

Filing Status

There are four common filing statuses for taxes across the country - individual, married filing jointly, married filing separately, and head of household. Each of these will see an impact with the upcoming changes for 2022 submissions.

Standard Deduction

Already recently increased, the standard deduction is an amount subtracted from earnings before any tax is applied. This number varies depending on filing status and helps to reduce the amount of tax owed when submitting a return. In the past, many chose to itemize their taxes (indicating they could receive a better rate by applying all of their qualified items in lieu of this practice) but with the recent increase a majority of people now elect to take the standard deduction and more changes are on the way.
Changes

Beginning with the 2022 filing (coming in the spring of 2023) tax brackets have been adjusted to hopefully reduce the amount owed on any income for certain filers. Both the individual and married rates have been adjusted. In addition, the standard deduction is raising again to $12,950 for individuals and $25,900 for those who file under either married status option. Up $400 and $800 respectively from the current rates. An increase in 401(k) plans for 2022 and other tax adjustments are also expected to help ease the burden of the current inflation once the time finally arrives to file in another year.

If you’re ready to file a return now or need help determining exactly how these changes could impact your taxes, then let the professionals at Bloch Rothman and Associates assist you today. In addition to providing answers to all of your 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!

No matter your personal financial situation, completing a tax return can be an extremely tall task. From those who are filing individual returns with only one income to people who have retirement, stocks, multiple properties, and more - the information necessary can be difficult to gather. However, there are a few key components that everyone will need in order to complete their taxes and file a return.

Over 240 million tax returns were filed last year and now is the best time to begin collecting information for submission. These final few months in a calendar year can help individuals get a majority of the information together, although some will not be available until after December. Earnings information, typically in the form of a W-2, does not technically have to be submitted to taxpayers until January concludes but still, putting together other aspects of your return may be available sooner rather than later.

Personal Information

Taxpayers need identification information for their tax return. Name, address, birthday, Social Security numbers, and filing status are all required as part of a return. This identifying information helps to distinguish returns from one another, in addition to ensuring that any appropriate refunds are correctly distributed.

Dependent Information

Along with personal information and filing status, any dependent information will also be required for submitting a return. For those who are claiming dependents, the same personal information required of the taxpayer is also due for any and all dependent listings.

Income Information

For tax filing purposes, all sources of income will need to be reported. Whether this is earnings from a job, rental income, or another method, each of these typically has some sort of reporting summary and should be filed accordingly. From those who work for big corporations to the self-employed, everyone will need to report their income from the prior year for tax purposes.

Deduction Information

Common deductions, including certain taxes, interest, and potential medical expenses should also be tallied in order to assist in reducing your taxable income and thus the amount which may be owed. These deduction totals should also include any relevant backup information which confirms the amounts being reported.

Other Information

In the event there is any question about either an income or deduction, it should be brought to the attention of a tax professional for guidance on how to report the figure. By seeking assistance, individuals can ensure that their returns are appropriately filled out and filed accordingly.

If you’re ready to file a return or need help determining which information is relevant to your given situation, then let the tax professionals at Bloch Rothman and Associates assist you today. In addition to providing answers to all of your tax related 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!

Everyone is aware of the importance associated with operating under a budget and many even understand its purpose. However, despite knowledge of the typical aspects of accounting, a majority of Americans do not associate a budgeted practice with their monthly or annual expenditures. By not keeping up with their finances, unfortunately, many end up spending more than they can afford to cause them to live in debt. 

People go into debt for a variety of different reasons but the most common cause is associated with terrible spending practices. The development of these habits can quickly compound, especially with the use of credit cards, and before people know it they are well over their heads with spending, debt, and owing back far more than they ever initially borrowed for any of their purchases. To avoid this cycle, creating a budget for monthly spending can help individuals either stay on track or get out of debt completely. The following main budget categories are essential for its creation.

Purpose

Understanding the purpose of your financial goals and the reasoning behind creating a budget can ensure that you stay on track once it’s completed. These financial goals can be arranged for many different reasons. From saving up to make a fun purchase, take a trip, or make payments to get yourself out of debt, the purpose of your budget is critical to its success.

Income

The baseline for setting up your budget will be income, either individual or household, depending on the scope of your plan. These set earnings will create the overall amount of money that will be contributed to the budget for all upcoming expenses. 

Set Expense

These types of expenses are guaranteed for every spending period. Rent, mortgage payments, insurance, and some other loans are all consistent every month. Known amounts which are required to be paid to manage the cost of living for you and/or your family.

Variable Expense

Variable expenses can change each period but are still required. These can include such items as utility bills, groceries, gas, and any other purchases that are necessary for living and working but fluctuate in price.

Optional Expense

The final category of budget components includes optional expenses. It is here where individuals can most often make changes to save some funds for other purposes. These expenses typically fall under the categories of restaurant meals, entertainment (concert tickets, movies, cable or satellite television), and any other spending types that aren't relegated to survival.

Once you’re ready to discuss budget components, create an expense plan for monitoring your finances, or have any tax-related questions then let the professionals at Bloch Rothman and Associates assist you today. In addition to providing answers for all of 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 of helping clients with any 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 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!

A majority of Americans possess a credit card, many once they first become eligible. While qualifying factors do exist, there are so many different types and varieties available that it isn’t very hard to find an agency willing to lend you a line of credit. However, while this may initially feel like a step in the right direction, far too often people end up owing much more than they can pay promptly. Credit card debt continues to grow for individuals across the country but what are the main causes for this inability to pay?

Colorado is one of the top US states with credit card debt. Healthcare, a general cost of living, the pandemic impact, and other issues are all contributing factors that influence debt in certain areas but these and a handful of other causes tend to lead the way in the accumulation of credit card debt. These events can often force individuals into the use of a particular card should they have enough of an available limit to cover one or more of these living expenses.

Medical Costs

Everyone is well aware of rising medical costs and the ongoing coronavirus pandemic has only highlighted these issues. Unfortunately, when families are faced with an unexpected medical bill they often turn to their credit cards to cover the costs to offset the financial burden that may come with paying once a bill comes due. 

Emergencies

Similarly, several other emergencies can arise putting individuals in the same predicament. Vehicle breakdowns, housing costs, or other life-altering circumstances can also put people in a place where they may need to use credit to cover immediate costs.

Education

The rising cost of education may also force the use of a credit cards. For books, housing, classes, etc. some people may choose to not use immediate funds. Instead, an attempt to delay the payments for these services by initially driving up a balance instead of paying them off as they arise can occur.

No Plan

Once debt begins to accumulate, not having a plan can lead to increased risks. Instead of focusing on the pay-off quantities, some will only contribute the minimum amounts due each month. Not only does this do little in terms of paying down what is owed, but often people end up spending much more than the initial item or service may have cost in the beginning.

Overspending (Food, Retail, Vacation)

Simple overspending has also caused many people to end up owing credit card companies. Emergencies aside, there are still those out there who attempt to live beyond their means. Just because you have available credit, doesn’t necessarily indicate it is in your best interest to use any or all of it for items that can either be paid for using another method or deemed non-essential.

Should you need help managing debt or paying off credit card bills then let the accounting professionals at Bloch Rothman and Associates assist you today. In addition to providing answers to 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 of helping clients with any 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 several 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!