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Showing posts from January, 2014

Are You Required to File a 2013 US Tax Return? What if I live outside of the U.S.?

Are You Required to File a 2013 US Tax Return?
According to the IRS, generally, you must file a return for 2013 if your gross income from worldwide sources is at least the amount of your standard deduction and exemptions.  This criteria applies if you are a U.S. citizen, or a resident alien and if you are in the United States or abroad.  
In addition to the income requirement for filing you may still need to file if your self employment income exceeds a certain amount and you also may want to file to get excess taxes withheld refunded.
Below is an excerpt from website from publication 54. Filing Requirements
If you are a U.S. citizen or resident alien, the rules for filing income, estate, and gift tax returns and for paying estimated tax are generally the same whether you are in the United States or abroad. Your income, filing status, and age generally determine whether you must file an income tax return. Generally, you must file a return for 2013 if your gross income from world…

5 After Year-End Opportunities to Reduce Your 2013 Taxes

It's not too late to take action to reduce your U.S. income taxes for 2013.  Here are some post year-end tips to reduce your 2013 taxes.

Estimated Tax PaymentsPaying estimated taxes, what you project you will owe, can lower the amount of the check you will write when you file your tax return.  While it won't reduce your actual income taxes it can reduce any penalty for under payment of taxes.  The estimated tax payment for the fourth quarter was due January 15th but you can still make estimated tax payments.  So you can project the amount you will owe on your taxes and send a payment in with form 1040-ES.  This can be complicated and if you need assistance I would be glad to help you as your CPA.
IRA ContributionsIf you were under 50 years of age in 2013 you may be able contribute and deduct from income up to $5,500 or your taxable compensation for the year, which ever is smaller.  If you were 50 or older before 2014 your limits are higher, at $6,500 or your taxable compensati…

Seven Reasons Why You Should be Investing After Tax Dollars!!!!!!!

Updated May 31, 2018
Seven Reasons Why You Should Be Investing After Tax Dollars

Investing after tax dollars puts your money to work for you.  Your tax return should show dividends, interest or other investment income.  Why? Because investments are opportunities to make things happen for you now and into retirement.
Seven Reasons Why You Should be Investing After Tax Dollars:Don't do all the work.  All your earned income comes from you.  Your money can be working for you and bringing you more value.After tax dollars are dollars that have already been subject to income tax. These after tax dollars won't get taxed again when you take the money out of your investments while the money in retirement accounts will be subject to tax when you take it out.  Yes the profits from your after tax investments can be subject to taxes but the principal won't get taxed again.When you decide to open your own business you will need money to get it started.  Having after tax investment money…

Avoid The Four Big Reasons People Fail

What keeps a person from really succeeding?  Let me start with a story.  Legend has it that Chicago Bulls coach Phil Jackson wanted John Paxson to shoot more.  What did Jackson do?  He told Paxson he wanted him to miss at least 3 shots a game.  Jackson wanted Paxson to fail more times per game.  Fear apparently kept Paxson from shooting enough.  Paxson responded to the direction to fail and the Bulls wound up winning 6 NBA Championships.

What about you in your business, where do you need to fail more to succeed?

Fear of failure keeps many from reaching the success that is possible for them. Here are four big reasons people fail and how to avoid them.

1. Giving up too soon.  Most people give up just before they would have succeeded.  Just be determined and when things aren't working adjust, don't give up.

2. Headtrash.  That noise in your head that says I'm not worthy of this success.  Learn to identify this noise and tell it to go away.  Also, don't watch or read thin…

Tax implications for an LLC?

Should my business be an LLC.  My mechanic told me there are unbelievable tax benefits for an LLC. With all due respect to mechanics, pilots, plumbers, money management bloggers, etc., it is in your best interest to get your information from experts in the field.  When an LLC is recommended for tax purposes realize that the IRS does not have a tax return for an LLC.  There are tax returns for sole proprietors, partnerships, S-Corporations and C-Corporations but none for LLCs.  How can that be?  Since the IRS does not recognize an LLC as a tax entity when you form an LLC you have to choose how that LLC will be treated for Federal income tax purposes.  So you can choose to have your LLC treated as a sole proprietor (if it is a single member LLC), as a partnership (if the LLC has more than one member), as an S-Corporation or C-Corporation.

What tax benefit comes from your business being an LLC depends on the tax status you choose.  What type of tax treatment you should choose for your LLC…