Latest News on Denver Accounting & Taxes

Depending on your status and the impending circumstances some meals are deductible when compiling your tax return. While the details vary significantly and can be difficult to cycle through, there are essentially three main categories for deduction purposes.

First, employees cannot deduct their expenditures if they are being reimbursed for them through their employer. Only non-reimbursed expenses may be accounted for and even then only a limited amount is deductible.

The three main areas for potential deductions involve each of the following concepts: meals while traveling, meals for business purposes, and special events.

Meals While Traveling

When you are required to spend the night away from your home area or office then meals can be deducted but only at a 50-percent rate. The specifics involved are detailed and described by the Internal Revenue Service (IRS) through Publication 463 but essentially if an overnight or multiple nights stay is required then half of all meals are deductible. This includes food, drink, and any gratuity added to the final bill.

Meals For Business Purposes

Sometimes employees, owners, and corporations will use meals as a method of conducting business with potential clients or for specific business propositions. When these occur, then the same rate of 50-percent from the total bill may also be deducted. While still qualifying as a potential business meal while traveling, if applicable, these type deductions require more than one individual and some type of business related activity occurring either just prior, during, or following the conclusion of the meal in question.

Special Events

Meals conducted for the purposes of training or special events like holiday parties are 100-percent deductible. These are corporate functions and can either be open to the general public for purposes of conjuring up more business or even limited to employees with their spouses. At times, even the occasional break room coffee and donuts will apply.

The most important aspect of any deduction is keeping a good track record of the anticipated meal expenses. There are a few general rules to consider as the IRS will not allow “extravagant” deductions and could also view an extremely high bar tab as an environment not conducive to business related activities. For these reasons, keeping the drinks to a minimum and always documenting who was present, the business discussed, and any results, if applicable, is vitally important.

The experts at Bloch, Rothman, and Associates can help you examine records and determine which meals are applicable and what records will be necessary in order to claim them. In addition to providing expert tax advice, we can also assist with a variety of bookkeeping and other payroll options. These associates at Bloch-Rothman are happy to help view specific data as every tax situation is unique, along with finding resolutions for your issues and estate complications making certain you receive the most profitable deductions on your return. All services can and will be completed in a timely manner. Whether you need an explanation for an acquired tax form, are in need of representation, or would like help with a variety of other services then our tax experts are ready and willing to assist. Call 303-321-7160 or contact us for your initial free no obligation consultation.

If you are getting ready to file your taxes, it is good to be aware of the different ways an individual or organization can choose to prepare their taxes. There are two primary ways you can file your Denver taxes, as you can opt for either the standard deduction or choose to go with an itemized deduction. In deciding which way to file, there are a few factors to consider when making your decision, as you can only choose one way to file your taxes.

Standard Deduction

For those filing their taxes for 2018, the standard deduction has gone up to $6,500, up from $6,350 in 2017. For married couples the standard deduction is $13,000, which is up from 2017 when it was $12,700.

If you decide to go with the standard deduction, you will simplify your tax filing process, as you won’t have to add up all expenses that could be tax-deductible, which is what you would do if you were choosing the itemized deduction. Choosing to file with the standard deduction may be the best option for you if you and/or your partner receive a single W2 from your place of employment.

In most cases, the standard deduction will be the best option in this case, as you won’t have enough write offs to make it worth going for the itemized deduction. Obviously, it makes the most sense to go with the filing method that will give you the largest return when filing your Denver taxes.

Itemized Deduction

Choosing to go with an itemized deduction method can be the best option for your if you are self-employed, as you will have plenty of things to write off. If you work for yourself and you know you will be choosing the itemized deduction, it is a good idea to start collecting receipts and documenting your expenses to make tax filing time less of a headache.

You may also benefit from the itemized deduction method if you have large, uninsured medical costs, if you were the victim of a large uninsured theft or casualty, such as a fire or flood. If you made large contributions to charities, had unreimbursed expenses as an employee, or had large miscellaneous expenses, it might make the most sense to choose the itemized filing. As always, it is best to choose the option that will give you more money, so if you think you can write off more things to give you a higher return, choose the itemized option.

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. Specializing in various accounting services such as tax litigation, IRS audits, and tax preparation (to name a few), we are a full service Denver and Aurora accounting firm that offers personal and affordable accounting and tax services for both individuals and businesses. Contact us today and we will be happy to help you receive the highest return possible.

Odds are 2018 will not be the first year you are filing a tax return for reported income to the Internal Revenue Service (IRS) for earnings made during the 2017 calendar year. However, with the brand new Tax Cuts and Jobs act that was recently passed, your return may or may not look different this year. Even with the changes taking place, if you or your household have received a refund, especially a sizable one on which you rely, then expectations are this year will not be much different without any major changes to your income levels or other factors that may influence your tax levels.

If consistent refunds are the norm and one is anticipated again, then knowing when you can file in an effort to receive the refund as fast as possible is an important piece of information. Last year, the IRS began accepting tax returns on January 23 meaning individuals had essentially three months in order to file a return without asking for an extension. This year, especially with the recent changes, that date is expected to be delayed.

While no official submission date has been released by the IRS, some anticipate it may be mid-February before acceptance and a firm date on when you can begin filing tax returns. If this is the case, then everyone will receive only approximately two months worth of time to file with acceptance.

A key factor to consider is that filing and acceptance are two different issues. Employers must deliver W-2 Forms to their employees by the end of January and typically any 1099 employees will receive their needed paperwork by then as well. Once these and any other information needed for filing is collected, then an individual can technically file their taxes for the prior year although they may not officially be accepted and reviewed until the date set forth by the IRS.

Regardless, the end date has been set for returns filed without any extension. This year, everyone must file or request an extension by Tuesday, April 17. The April deadline received a small bump forward due to a holiday celebrated in Washington D.C. giving taxpayers a little cushion for submission.

The experts at Bloch, Rothman, and Associates will be happy to help you determine individual tax implications and filing status, assist you in determining which deduction would be right in your situation and answer any questions regarding individual or business income taxes. We can also assist with a variety of bookkeeping and other payroll options. It is recommended for those who are selected for an audit, that they enlist the services of a professional tax service before they begin engaging with the IRS auditor, especially before they submit any information.

Included in the services offered at Bloch, Rothman is a fully detailed review of your individual or business tax situation, which will be completed with the unique and planned resolution to your issues and estate compilations. All services will be completed in a timely manner, depending on your restrictions and possible tax deadlines. Covered are simple and complex tax and financial situations; from random tax forms to more robust representation, our tax experts are ready and willing to assist. Call 303-321-7160 or contact us for your initial free no obligation consultation.

Most employees across America will receive their W-2 forms and immediately begin preparations for filing their taxes prior to the April deadline. For some, this requires gathering numerous documents pertaining to retirement, savings, stocks, rental properties, etc. and for others the simple W-2 may be all that is required.

Typically, an individual’s tax situation doesn’t fluctuate too much from year to year but picking up a second job, getting married, or a family addition can definitely impact the results. Especially when finding new employment or a way to earn extra spending money, an individual must consider the tax implications of their earnings.

This is where a form 1099-MISC from the Internal Revenue Service (IRS) comes into consideration. Instead of a W-2, which is given from an employer to employees reporting their earnings during the prior tax year, the 1099-MISC must also be considered if applicable for a given situation. Companies issue 1099-MISC forms to those individuals who they have paid over $600 to in the prior year. These miscellaneous earnings then become the responsibility of the individual to report on their income tax.

Individuals who should expect to receive 1099-MISC forms from others include: Lawn Care Providers, Farmers, Child Care Workers, Barbers, Hairdressers, Artists, and Freelance writers. These service occupations are typically performed for others and the individuals are either independent contractors or self-employed.

While the limit for distribution of a 1099-MISC form may be limited to the $600 threshold, the IRS definitely expects any monies made under that mark to be reported by the individual. For example, if you are a child care provider who earned $550 over the past year through employment with an agency or family, the employer is not required to distribute a proper 1099-MISC form to you but this income should be shown when filing your taxes for the year.

While tricky, the 1099-MISC form is a way for the IRS to track monies earned for services which may not have easily traceable income methods over a wide variety of individuals. For those receiving a 1099-MISC, remembering and accounting for the taxes that will be taken out on the money earned during the year is an important step to avoid any surprises when filing.

The tax specialists at Bloch, Rothman, and Associates will be happy to help you determine your individual tax implications and filing status, assist you in determining which deduction would be right in your situation and answer any questions regarding individual or business income taxes. We can also assist with a variety of bookkeeping and other payroll options. It is recommended for those who are selected for an audit, that they enlist the services of a professional tax service before they begin engaging with the IRS auditor, especially before they submit any information.

In addition, a fully detailed review of your tax situation can be completed alongside resolution to your issues and estate compilations. All services will be completed in a timely manner, depending on your restrictions and possible tax deadlines. Whether you need a simple explanation on a random tax form, are in need of representation, or would like help in a variety of other services our tax experts are ready and willing to assist. Contact us or call 303-321-7160 for your initial free no obligation consultation.

Your Denver accounting firm can help with getting a head start on filing for our taxes. After every year, employers must gather the wages paid to their employees and report them for the purpose of tax benefits and requirements. Prior to January 31, these figures must be recorded on a form known as a W-2 and mailed or issued to each respective employee. These are then in turn, used by individuals and those filing as a household in an effort to summarize their tax implications from the prior year.

Employees often receive these forms and pay little to no attention to their contents. These forms are sometimes even left unopened and instead just forwarded to a taxpayers accountant to deal with the results. Instead, employees should take time to ensure their forms are completed accurately as the withholdings included go a long way in determining the impact on a taxpayers responsibilities.

According to the Internal Revenue Service (IRS) a W-2 Form must be issued by, “every employer engaged in a trade or business who pays remuneration, including non cash payments of $600 or more for the year (all amounts if any income, social security, or Medicare tax was withheld) for services performed by an employee must file a Form W-2 for each employee (even if there is a familial relationship between the employee and employer) from whom:

• Income, social security, or Medicare tax was withheld.
• Income tax would have been withheld if the employee had claimed no more than one withholding allowance or had not claimed exemption from withholding on Form W-4, Employee's Withholding Allowance Certificate.”

These papers, of which you should receive three copies include a wealth of information for different purposes. Boxes corresponding to letters A-F include identifying information such as an employee’s social security number, name, and address in addition to identifying numbers, name, and address of the issuing business where identified employee works.

Following are numbered boxes 1-20 which may or may not contain numerical figures and other identifying characteristics for tax purposes.

Box 1: Total taxable wages or reported salary
Box 2: Total amount withheld by the employer for federal income taxes
Box 3:  Amount of wages subject to social security tax
Box 4: Amount of social security tax withheld
Box 5: Amount of wages subject to medicare tax
Box 6: Amount of medicare tax withheld
Box 7: Any tip income reported to your employer
Box 8: Any tip income submitted by your employer
Box 9: Should be empty. Originally used for advanced Earned Income Credit reporting
Box 10: Reimbursed amount for dependent care (Taxable over $5,000)
Box 11: Amounts distributed by non-qualified deferred compensation
Box 12: Coded deferred compensation and benefits explained
Box 13: If subject to being a statutory employee, retirement plan, third-party sick pay the corresponding box will be checked
Box 14: Additional reported tax information
Box 15: Employers state and identifying number
Box 16: Taxable wages earned in the corresponding state
Box 17: Corresponding state income tax withheld
Box 18: Wages subject to other local taxes (i.e. city)
Box 19: Taxes withheld by localities above
Box 20: Description of entity being paid from local taxation

The experts at Bloch, Rothman, and Associates will be happy to help analyze your W-2, individual tax implications and filing status, assist you in determining which deduction would be right in your situation and answer any questions regarding individual or business income taxes. We can also assist with a variety of bookkeeping and other payroll options. It is recommended for those who are selected for an audit, that they enlist the services of a professional tax service before they begin engaging with the IRS auditor, especially before they submit any information.

Continuing further, associates at Bloch, Rothman can analyze and compile data for your unique tax situation, along with finding resolutions for your issues and estate complications. All services provided can and will be completed in a timely manner, and will account for any restrictions or tax deadlines. Whether you need a simple explanation on a random tax form, are in need of representation, or would like help in a variety of other services our tax experts are ready and willing to assist. Call 303-321-7160 or contact us for your initial free no obligation consultation.