Latest News on Denver Accounting & Taxes

We would like to give our website visitors another friendly reminder about the tax-filing and payment extension deadline of Wednesday, October 15th - it is fast approaching!

The IRS is urging tax payers who have filed an extension to double-check their returns for often-overlooked tax benefits and then file electronically using the IRS' e-file of Free File system. IRS e-file is available through October 15th. 

According to the IRS, 13 million taxpayers requested an automatic 6 month extension, and more than a quarter of those taxpayers still have yet to file. 

Members of the military and others serving our country overseas typically have at least 180 days after they leave the combat zone to both file returns and pay any taxes they have due. 

Some of those often overlooked and under-utilized tax benefits the IRS is encouraging taxpayers to look over before filing on the 15th are:

• Earned Income Tax Credit
• American Opportunity Tax Credit
• Benefits for same-sex couples that were legally married in jurisdictions that recnognize their marriage

And as always, if you have any questions about the filing and payment extension of October 15th, please contact us at Bloch, Rothman & Associates LTD in Denver, Colorado at (303) 321.7160.

Continuing with our Getting Ahead for 2015 series, we have tax tips for October and the Fourth Quarter. 

Aside from April 15th, October 15th is one of the most important tax dates to know. As we mentioned in our last post, October 15th is the tax extension filing deadline. 

Additionally, around mid-October, open health insurance enrollment begins at many companies and larger corporations. This is a good time to re-assess your current benefits and find potentional tax savings. If it is offered, it may be a good idea to participate in a Flexible Spending Account (FSA), or other benefit programs they offer that will result in tax breaks. FSA accounts, however, have to be utilized within a specific period, so you will want to make sure to contribute an amount that you will actually use throughout the year. An HSA, Healh Savings Account, does not require that, so be sure to participate in this option if you are a part of a high-deductible health plan with your employer.

October is also a great time to do a bit of research or contact us as your professional Denver accountant about any changes in the 2015 deducation limits or retirement contributions. Call us today at Bloch, Rothman & Associates, LTD. as 2015 fast approaches. (303) 321.7160.

Thousands of Americans file a tax extension every year, which allows six additional months from the filing date of April 15^th to get your taxes in order and file with the government. There are many reasons for filing a tax extension, most often due to lack of time to prepare, or having a particularly complicated tax return that was not completed in time for the April deadline. Filing a tax extension does not lower, or raise, your taxes in any way, but simply allows you more time in which to appropriately file. Please note that you must actually submit a tax extension form to the government to be eligible for this 6 month grace period, if you do not file an extension but wait until October 15^th to file your taxes you may be subject to late payment penalty fines.

As October 15^th is fast approaching, we have a few tips to make filing easy and simple:

• Gather and keep all your financial information in one place – whether it be a shoe box, file cabinet or dresser drawer, keeping these items in one place will help make it easier to locate need information when it comes time to prepare your taxes
• Make sure you have your W2 (sent to you by your employer to show taxes withheld), form 1099-INT (for interest earned on a bank account) and Form 1098 (mortgage interest statement)
• Don’t forget to double check that your social security number has been input correctly and to sign and date your return!

If you need help with your taxes, or with deciphering any of your tax documents, give Bloch Rothman and Associates a call, we are here to help.

The most commonly used tax forms can often be confusing - W4, 1040, W9, W2, 1099 - with a slew of letters and numbers, we are often asked as Denver tax preparers how one is ever supposed to fully understand the difference between these forms, when to use them, and what they mean.

We thought no better opportunity than a post to our website about these forms and how to differentiate between them.

W4: The form you fill out upon starting a new employment venture/job - it tells your employer how much to withhold from your paycheck for taxes. You can always fill out a new W4 at anytime if you want to change/adjust your withholding amount.

W9: If you are self-employed and/or a freelancer and contractor, this form is one that clients or companies you work for may ask you to fill out - it contains your basic contact information and social security number.

W2: This form is recevied at the end of the year from your current employer by Mid-February. It shows how much you earned and paid in both fedral and state income taxes and Social Security. It will also detail your 401K amounts you paid, if applicable.

1099: Yet another form that will be sent to you at the end of the year from companies or clients who hired you as a contractor. It summarizes the amount of money the company or client paid you, which you then have to pay taxes on. 

1040: The most basic tax form everyone fills out in order to give the IRS the whole gist of your tax situation. There are 3 different kinds of 1040 forms, tailored to your tax situation. Consult a Denver tax expert and professional, such as us here at Bloch, Rothman & Associates, LTD. for more clarification on which 1040 form you should be using. 
 

We receive tons of financial and accounting related questions here at Bloch, Rothman & Associates, LTD in Denver, Colorado. These questions become great material and advice for us to share with you on our website. 

We recently received this question: How long should I obtain/keep financial records and documents?

The answer: It all depends on the type of document. There are certain documents you always want to keep for financial purposes. These would be records of assets you own, investment account financial statements, bank statements, and credit card statements if they have a record of any tax-deductible items you have purchased. 

Once you file your taxes, the IRS has up to 3 years to audit you. However, if the IRS discovers that you have underreported your income by 25% or more, this gives them the authority to audit you up to six years back. Seven years back if you claim a loss for bad debt, and if fraud is suspected, there are no time limits for the IRS. So while it's personal preference, we advise to keep any tax and expense records for seven years or more.

FInancial documents you can safely shred: any credit card statements that are over a month old and contain no deductible items, utility and phone bills over a month old unless you can deduct them on your taxes, reciepts and ATM deposit slips once you have reconciled them, and additionally any paperwork that is just a mirror copy of something that is archived and accessibe online at any time.

We hope this helps you to "de-clutter" your financial life a bit, and please do not hestitate to contact us at Bloch, Rothman & Associates, LTD in Denver, Colorado for expert tax preparation and Denver accounting services: (303) 321.7160.