MARIELA RUIZ, CPA, PLLC

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Tag: tax season

Reasons You Need to Hire a Tax Expert

April 3, 2023 / / 0 Comments

Often, people hesitate to hire a professional tax expert because they can be quite expensive. But one must understand that hiring a tax professional can be a big help for those dealing with more complicated situations. In addition, if you’re self-employed, a professional tax expert can take the stress out of doing your taxes. Are you wondering whether you should tackle filing yourself or hire a tax preparer to do it for you? To help you, we have listed some of the pros that you can consider to make the right choice.

Reasons Why You Need to Hire a Tax Expert

  1. Itemizing your taxes

Itemizing your taxes can be a bit difficult and time-consuming to do correctly. Though it’s a common practice, it can still make your tax returns more complicated. However, a professional tax preparer will help ensure you don’t make mistakes and ensure your return is submitted on time. They can also help you figure out how to optimize your itemizing situation.

Related: “Common Itemized Deductions”

  1. Tax knowledge and advice

A certified and professional tax expert may have much more specialized knowledge of tax laws and regulations. They can provide you with professional advice to make sure your tax return is free of errors and accurate, reducing the likelihood of mistakes and protecting you from additional penalties or audits.

Situations That Might Require You to Hire a Tax Professional

  • Dealing with multiple sources of income

When you’re juggling different kinds of tax forms, it can get complicated quickly. However, a tax expert can help you handle both W2s and 1099s in a much more professional manner.

  • Planning to adopt a child

A professional tax expert will assist you incollecting the proper documentation and can also help you qualify for a tax credit toward adoption-related expenses per the IRS.

  • Help you resolve a previous tax return mistake:

If you’ve made tax mistakes in the past and are not sure how to overcome these errors, a professional can help you avoid these mistakes in the future and file an amended return.

Related: “Why Is It Essential to Hire an Accountant When Starting a Business?”

  • Assist you in caring for your elderly parents.

If you’re providing financial support for an elderly parent, a professional tax expert can help you claim them as a dependent or qualify for tax breaks.

Conclusion

We hope the above guide helps you make the right decision about whether you need to hire a tax professional or not. Moreover, if you’re looking for professional help, MARIELA RUIZ, CPA, PLLC, offers financial consulting, professional accounting, bookkeeping, tax preparation services, and more in Mission, TX. Visit our website to learn more about our services, or call us at (956) 997-0067 for further assistance.

How to Prepare Yourself for Tax Day 2023

February 17, 2023 / / 0 Comments

As soon as the tax season starts, the countdown to Tax Day begins. However, many Americans hold no brief on paying taxes and take this matter for granted, but at the end of the day, Tax Day is inevitable. Also, Tax Day brings a mountain of paperwork; therefore, the sooner you get started, the better prepared you’ll be. Here are some tips to help you get ahead of the game and ensure filing your 2023 taxes is easier.

Check the Latest Tax Laws

Every year brings something new to U.S. income taxes, and 2023 will be no different. This means staying updated with the latest tax laws is a necessity. The tax code is constantly changing due to many reasons, such as high inflation and stock market volatility, which calls for new tax brackets that you don’t want to miss.

Organize Your Tax Documents

After having a good understanding of the newest tax codes, now it’s time to get organized for Tax Day. Gather the necessary documents you need to file your return. You can check our blog, where we talked about how to file your taxes in 2022. Follow the same steps, and by implementing the new tax codes, you’ll figure out whether it’s feasible to file your own taxes or outsource the task to a tax professional.

Related: learn more about the importance of hiring a tax expert here.

Update Your Information

This may sound obvious, but it can be easy to overlook. If your marital status, address, or employment has been changed, it’s important to reflect these changes to SSA and IRS. IRS clearly states that any delay can affect the process of your tax return and might lead to penalties – and this is the last thing you want.

Review Your Past Returns

Take a look at your past tax returns to see if there are any areas where you may need to improve your record keeping or documentation. This will help you avoid any errors or misunderstandings when preparing your current year’s return. Now, with everything in order, you are ready to file your taxes!

Enlist MARIELA RUIZ, CPA, PLLC’s Help

Preparing for tax season is a bit stressful and overwhelming experience, but you don’t have to play it by ear. MARIELA RUIZ, CPA, PLLC is here to ensure that your return is accurate and complete. We offer the best tax preparation services in Mission, TX. Check our website to learn more about our services or simply give us a call at (956) 997-0067 for further assistance.

How to File Your Taxes in 2022

March 25, 2022 / / 0 Comments
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Tax season is upon us. It can be a daunting and tiresome experience, especially for the people who are filing taxes for the first time. So, if you are in a jam thinking about how you are going to file your taxes, we have a cheat sheet for you to follow up with. Read the following article and get the basics of filing your taxes.

1. Select Your Tax Filing Method

There are basically 3 ways to file your taxes. The first one is that you fill out an IRS Form 1040 and send it through mail. We don’t recommend it because paper processes take up to 6-8 weeks.

The second way is to file taxes online through a tax software. It is a fairly easy method that covers all the areas that are under inquiry during the audit. IRS also offers access to tax preparation software. You must have an adjusted gross income of $75,000 or less to avail this service.

The third one is to hire a professional tax expert or tax preparer. The professionals are well-aware of everything that goes in the system. They are familiar with all the requirements and technicalities involved in the process of the IRS audit. You might want to seek the guidance of a professional if you have a healthy earning side gig.

2. Have a Clear Understanding of How Taxation Works

Your payable tax amount is determined by dividing your taxable income in to tax brackets. Each bracket gets taxed at a corresponding tax rate. This system ensures fairness. So, a person with a high taxable income will pay more taxes and a person with a low taxable income will be subject to a small amount of tax as per the laws.

3. Know Your Tax ABC

You need to gather all the right documents and get them organized or you will be scrambling for everything at the last minute. It is good to be prepared and ready for everything. Here is a list of must-have documents that you will need during the process.

  • Social Security Numbers (Yours and the dependents)
  • W-2 Form (Form that states your annual earnings from last year and how much tax you have already paid)
  • 1099 Forms (Records that a person or entity gave or paid you money)
  • Contributions towards retirement
  • Proof of state and local taxes you paid
  • Educational expenses
  • Unreimbursed medical bills

4. Settle Your Score With the IRS

If you have outstanding balance against IRS, now would be a great time to pay it all back. You can use cash, electronic payment methods, wire transfers, checks, and credit/debit cards to clear whatever you owe to the IRS.

If you can’t pay your taxes in one go, you can opt for an IRS payment plan. You can choose between a long-term plan or a short-term payment plan. Both come with their own pros and cons. Whatever you select, you will be making monthly payments after this.

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Conclusion

As discussed in our blog, it is quite helpful if you hire the services of a professional tax expert to file the taxes for you. This will give you the freedom of mind so you can focus on better and more productive things in your life. MARIELA RUIZ, CPA, PLLC offers professional accounting, bookkeeping, and tax preparation services at affordable rates in Mission, TX. Check our website to learn more about our services or simply give us a call at (956) 997-0067 for further assistance.

What You Need to Know for the 2021 Tax Season

December 21, 2020 / / 0 Comments

Many will agree that 2020 has been a year of unique challenges but 2021 is just right around the corner! With that being said, below we discuss some things to keep in mind as we approach 2021 and the upcoming tax season.

Tax Day is Thursday April 15th, 2021

This is the date you must file you taxes before! Most can take the standard deduction which has increased from this year to $12,400 for single filers and $24,800 for married couples filing jointly. You may also itemize your deductions which is a little bit more painstaking, however is worth it if your itemized deductions exceed your standard deduction.

Stimulus Checks Aren’t Taxable

The CARES Act was instituted near the beginning of the COVID-19 pandemic and gave many citizens a onetime payment of $1200. These payments will not count as taxable income in the upcoming year which is great news for most tax payers! You can think of it as a kind of advanced refund you would have received as part of your 2021 tax refund.

Unemployment Income is Taxable

The pandemic has caused much of the country to shut down for extended periods of time, leaving many Americans jobless through no fault of their own. If you were one of the millions of Americans who received unemployment benefits in 2020, you have to pay taxes on that income. If you opted to defer taxes on your unemployment payments before you received them then you will need to save for the taxes that will be due when you file, or pay estimated quarterly taxes to stay ahead.

Final Thoughts

As always, consult your tax professional to get the most out of your taxes in 2021 and speak with someone who can help you in your specific financial situation. Mariela Ruiz, CPA, PLLC is here to help individuals and business owners in the Mission, TX community with their taxes and wishes you all a prosperous 2021!

Should You File Your Taxes Jointly or Separately?

August 26, 2020 / / 0 Comments

For married couples who live together and share finances, tax season can bring with it a lot of questions about how you should file and why. In this month’s blog post we briefly dive into what couples need to know before filing their taxes and how they can determine if they should file jointly or separately.

Married Filing Jointly

Your filing status determines your tax rate and the amount of deductions you can qualify for. For most couples filing jointly is the best option for several reasons. Basically, married couples can continue to qualify for a lower tax rate despite having a higher taxable combined income. This tax break in addition to one of the largest standard deductions offered by the IRS makes filing jointly the best option for the vast majority of married couples.

Married Filing Separately

The circumstances in which a married couple would benefit more from filing separately are far and few between. They mostly include situations where one spouse has outstanding deferred debt that needs to be collected promptly. Examples can include having large amounts of student debt or costly outstanding medical bills. Filing separately is also the best option for couples who are expecting to get divorced within the year.

Final Thoughts

If you’re still unsure of which status makes the most sense for you, call on a highly qualified and experienced CPA. One tax service does not fit all so it’s important to turn to a professional who is committed to finding the absolute best option for you and your family. Contact the experts here for a variety of services including forensic accounting, tax services, financial consulting, bookkeeping, and much more.

Strategic Tax Planning Tips

April 29, 2020 / / 0 Comments
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Planning for the upcoming tax season? Perhaps you’re already thinking about next years? If you want the best outcome for your tax return, it’s a good idea to do a little bit of research before you click ‘submit’ to the IRS. From looking over previous tax documents to claiming medical and education expenses, there are many ways you can make a difference when it comes to filing. Follow along in our blog for strategic tax planning tips.

Check Last Year’s Documents

Before starting on your current taxes, review the previous year to check for errors. If you have documents like W-2 and 1099s in your filing cabinet, go through them and make sure there are no inaccuracies. Identifying any problems early on can give you more time to resolve any issues with the company who sent the document.

Organize Investment Earnings

According to WrapManager, “the IRS requires that you report your interest and dividend categories separately.” With your investment accounts, it’s important to keep all statements and records pertaining to your earnings. Even if yearly statements have an overall review included, details of monthly or quarterly statements may be needed for your filing too.

Write Down Medical or Education Expenses

Having proof of medical records will allow you to make tax deductions, but only if you have the proper documentation. Claims that are commonly made can be anything from travel expenses to medical appointments, treatments that aren’t covered by insurance, and much more. Likewise, college-related expenses can also be deducted. Costs for tuition, books, and boarding are just a few examples. WrapManager advises to “keep track of these records throughout the year, either in a paper folder or an electronic file.”

Conclusion

Talk with a tax professional at MARIELA RUIZ, CPA, PLLC today. We work with individuals and businesses that need assistance with tax planning and much more. For a full list of our financial services, visit our website here. You can also reach us at (956) 997-0067 to speak directly to one of our advisors. Contact us today!

Ways Small Business Owners Can Prepare For Tax Season

March 31, 2020 / / 0 Comments

Just the thought of tax season approaching can cause people of all kinds to stress. Whether you are self-employed or own a small business, taxes are confusing and overwhelming. If you are a small business owner, we’re here for you! Follow along with these tips to see how you can best prepare for filing!

Here are some tips: 

One of the first ways you can feel prepared is by consistently keep your personal tax information separate from your business’s tax information. It is important to remember you will have to file each separately, so keeping them from getting mixed together is a great way to avoid stress later on down the line. 

Another great way to prepare is by keeping track of all your business records. Ensuring your payroll and other lists detailing your expenses are all in order is a great way to feel less lost. When you can easily lay everything out, there will be less confusion! If you are struggling with understanding the types of documents needing to be saved, hiring a professional bookkeeper is the best way to ensure your confidence. 

Finally, seek help with payroll! While it may seem easy enough, hiring a professional who can keep track of all your payroll expenses and documents is a great investment. Not only can you cross the worry of weekly payroll duty off your list, but also come tax season you are going to have a perfectly laid out file. You and your tax professional will be much happier with perfectly kept records from an experienced bookkeeper!

Conclusion

Tax season is unavoidable, so instead of stressing and putting off the inevitable, feel prepared! Hire a bookkeeping expert to help you year-round. Visit MARIELA RUIZ, CPA, PLLCto get started today.

How to Minimize Your Chance of an Audit

March 2, 2020 / / 0 Comments

Tax season is upon us. Whether you intend on getting money back from the government or paying in, every citizen is at risk of being audited if the IRS is tipped off by discrepancies or other suspect information on your tax return. Read the following tips to learn how to avoid an audit this tax season.

Inaccurate Donated Amounts

The IRS encourages individuals to donate clothes, food and even used cars to charities. It does this by offering a deduction in return for a donation. The problem is that it is up to the individual owner to determine the value of the item. As a general rule, the IRS likes to see individuals value the items they donate anywhere between 1% and 30% of the original price. Unfortunately, many taxpayers ignore this guideline or simply aren’t aware of it.

There are several other ways that the taxpayer can ensure that they are valuing donated goods at an equitable price.  One of the ways is hiring an appraiser to write a letter, naming their opinion on the worth of the item.

Simple and Avoidable Math Errors

Many returns are selected for audit due to basic mathematical mistakes. When filling out your tax return (or double-checking your accountant’s work) make sure that the numbers add up. Also, make sure that the total dollar value of and/or losses are properly calculated. Even the smallest errors can alarm the IRS.

Failure to Sign

A surprisingly large number of people simply forget to sign their tax returns. Don’t be a part of this group. Failure to sign the return will almost guarantee additional examination because the IRS will wonder what else you might have forgotten to include in your records.

Under-Reported Income

It is vitally important that you report all income that you received throughout the year from work and/or from the sale of an asset. If you fail to report income and get caught, you will be forced to pay back-taxes plus penalties. While it may be tempting to not report some income, it’s better to be safe than sorry.

Home Office Deductions

Be careful with home office deductions. Deductions that are too large in proportion to your income can raise a huge red flag. For example, if you earned money as an accountant working from home, extravagant home-office related deductions will raise the ire of the IRS.  Deduct only items that were used in the course of your business.

Conclusion

When it’s time to file your annual taxes, make sure you cover all your bases to avoid scrutiny from the government. While there is less than a 1% chance you will be chosen for an audit, there’s no reason to not take every precaution just to be safe. For exemplary accounting services and tax services you can trust, contact the experts at Mariela Ruiz, CPA, PLLC.

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