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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.

Expenses That You Didn’t Know Were Tax Deductions!

July 22, 2022 / / 0 Comments
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Tax deductible expenses are basically work or company expenses in which the government allows tax relief. During tax season, it is much better to come prepared and have all your books and records straight for a successful financial audit. You can claim tax deductions on expenses that are exclusively made in the interest of the business as per HMRC. The following is a list of tax deductibles that you can claim this tax season.

1. Expenses of Your Business

If you have invested a significant amount of capital on the expenses of a startup or your business, you can claim it all as a tax deductible by showing it as a business expense. All the hardware and supplies like computers and office stationery necessary to set up your business, the cost of business registration as a licensed product, the web domain fees, and advertising are all under the umbrella of tax deductibles. Any expenses that are paid for using personal funds can be claimed when the company or legal entity starts trading, so be sure to keep receipts and maintain accurate records.

2. Office Maintenance

For any repairs and maintenance work for your office, the amount is tax deductible. If you are working from an office, you can also file your rent for the premises as a tax deductible as well. This also includes small business owners who work in a home office. In this case, you would have to report what percentage of your home is used for your business and measure your work space.

3. Electricity, Water, and Gas Bills

Due to the spread of COVID-19, people were assigned to work from home. If you also work from home, you can easily claim a certain percentage of your electricity, water, and gas bills as tax deductibles. Determine how much of your home is used for professional work purposes. The said amount will be registered as a tax deductible amount from all your expenditure. This includes power bills, council tax, and even some part of the interest on your mortgage payment.

4. Subscriptions

If you are paying for subscriptions strictly for professional purposes, it can also be stated as a tax deductible. For example, a production company will have access to multiple editing and animation software products.

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Conclusion

Claiming tax deductibles is a technical aspect and should be left to seasoned professionals to take care of it. Are you looking for a public accountant to take care of your financial affairs? Let a professional do it for you. MARIELA RUIZ, CPA, PLLC offers professional accounting, bookkeeping, and tax preparation services at affordable rates in Mission, TX. Visit our website to learn more about our services or simply give us a call at (956) 997-0067 for further assistance.  

Ways to Help Your Clients Survive an Audit

June 24, 2022 / / 0 Comments

Audits can happen to anyone and at any time and can easily stress and petrify any client or tax professional. As a result, it is your responsibility to look after your client and ensure that they face the situation with caution. With your assistance, advice, and support, your clients can deal with audits professionally. Not only this, but with your necessary accounting and tax services, your clients can easily overcome late tax payments, fines, and other issues. To help you out, we have created a guide that will help you know what to do if your client ever goes through an audit.

You can be a representative.

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At times, tax rules can be complicated and can vary depending on the situations and clients. Therefore, it becomes necessary to have adequate counsel from a professional and well-experienced tax specialist. If you are a CPA or an enrolled agent, then you can easily be a volunteer and represent your client. This way, you can ease the stress of your client and seek out better solutions for audits.

Related: “How to Minimize Your Chance of an Audit”

Assist your client with their tax record.

Try to assist and work with your client to make sure all the valid records are arranged in the correct order and can easily be submitted to the IRS for a successful audit. You can also advise your clients to keep clear and transparent records throughout the year. This way, you have all the important information readily available if the IRS needs it.

Everything is written in black and white.

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Ask your client to demand their auditors capture their contacts on paper or with narrative explanations. Not only that, but you can also encourage your clients to keep records of all their formal and informal contacts with their auditor. This allows you to easily take care of the official requests and document exchanges that may likely appear in the future.

Related: “What is the Audit Process?”

Plan ahead of time.

Instead of rushing at the end, encourage your client to plan ahead of time. Ask them to arrange all the paperwork correctly and provide support for the position they have taken or plan to take. Though time extensions are frequently granted on legitimate requests, it is still better to take the proper time to plan ahead because you might not know what circumstances and challenges you might encounter in the future.

The Bottom Line

If you need professional auditing advice, rely on MARIELA RUIZ, CPA, PLLC. We are here to make the process easy and stress-free for our valued clients. Just let us know your requirements and we will ensure all your audit needs are successfully met. Learn more about our services by visiting our website or by calling us at (956) 997-0067.

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.

How Accounting Services Can Drive Your Business

December 30, 2021 / / 0 Comments

Accounting refers to the detailed and systematic recording of any financial transaction in a business. Accounting plays an essential role in running a company, mainly because it helps track income and expenditure. In addition, accounting enables statutory compliance and provides the government, investors, and management with qualitative financial information vital to making business decisions. Furthermore, it helps in scaling a business, as it generates critical financial statements, such as:

  • The income statement gives profit and loss information.
  • Balance sheets give a clear understanding of the financial position of any business.
  • A cash flow statement acts as a bridge between the income statement and the balance sheet.

Accounting reports the cash the business generates and spends during a specific period. Any business must keep its financial records clean and updated to enable the company to run smoothly. Below are the key points on how accounting can help speed up your business.

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  1. Enables Business Evaluation

Accounting helps in evaluating your business since financial records reflect the business operations. It also allows you to see the business’s financial position and get a better understanding of the business’s financial state. In addition, it enables in keeping track of gross margin, expenses, and compares the current data with the previous accounting. This report supports allocating budgets appropriately.

2. Allows for Budget Creation and Future Projections

Financial records play a crucial role for any business, especially for future projections. Budgeting is critical as you base business trends and forecasts on vital financial data provided by well-structured accounting processes.

3. Filing of Financial Statements

It is a requirement that businesses file financial statements with the register of companies. In addition, it’s critical to file them with the stock exchange, direct and indirect tax filing purposes. Accounting plays a vital role in these scenarios for business evaluation.

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Conclusion

For any business to be successful, there have to be clear financial records that govern the company. Business success is fundamental if you are looking to understand the financial state of your enterprise. If you need accounting, bookkeeping, audit, tax, and business management consulting services, contact our team of specialists at MARIELA RUIZ, CPA, PLLC.

What is Solar Power Tax Credit?

March 24, 2021 / / 0 Comments

Green energy sources have many benefits to you and the world, including a federal tax credit or home and business owners who have had solar power panels installed before December 31. The federal solar tax credit, known as the investment tax credit (ITC), is much more profitable than a deduction. However, for taxpayers to get the full benefit, the world needs a sufficient income. Here are what tax professionals should know about ITC.

Introduction

When the government provides a tax incentive, it is happy about it, especially when local and state enticements convoy it. According to the Environmental Protection Agency, the government passed the ITC as part of the Energy Policy Act, which has been extended four times since its initial passage. The credit is now at 26 percent for the next two years so that eligible taxpayers can have a dollar-for-dollar decrease in the amount of income tax they owe. Taxpayers are looking forward to 2023 because the tax credit will drop to 22 percent. Renewable portfolio standards are in some states where utility companies give clients a specified minimum amount of electricity from solar. Utility companies buy energy made by a solar customer’s house. The value of solar renewable energy certificates will vary by state, but this is an example of taxpayer liberation.

How Does It Work?

            Solar power panels remain to provide people with prospective savings after filing their taxes. Solar energy creates opportunities to resell excess energy, evade power outages when harmonizing with a battery, and charge electric cars. The sun’s rays shine on the solar panels resulting in generating electricity that gives homeowners lower electric bills. The energy is completely free to the owner once the payment to the solar company ends. Also, solar power works all day, even when it is raining or dark overcast. Utility companies can offer the ability to sell back electricity to the grid for a credit on a homeowner’s electric bill. The utility companies can credit a home’s electric account.

The government is devoted to solar power that many states and cities have recognized property tax exemptions on solar. The solar panel installation calculates property tax fees giving homeowners and companies more money.

Conclusion

Solar energy panels have many benefits for businesses and homeowners. However, it could be challenging to understand everything about the tax deduction that comes with installation. You can count on Mariela Ruiz, CPA, PLLC, to help you with your taxes. We can give you tax advice for any situation you are in and find a financial solution that benefits you. We want to save you money by providing attentive and well-strategized plans, so call us at (956) 997-0067 today!

Common Itemized Deductions

February 25, 2021 / / 0 Comments

When you are preparing to file your taxes, don’t forget about itemized deductions. These are individual tax deductions you can take in lieu of the standard deduction. Making the decision to itemize could potentially save you more money on taxes. To learn more about the types of deductions you can itemize, continue reading our blog.

Charitable Deductions

Did you contribute to a charity in the past year? If you made donations to a qualifying organization, you can itemize and therefore, lower your tax bill. It’s important to keep a record of donations, which can include everything from bank records to receipts. Make sure that you have the name of the organization, the amount donated, and the date. The more information you have, the more accurate your tax form will be.

Medical and Dental Expenses

Medical expenses are deductible as itemized deductions, but in a very limited way. You can only deduct the amount of medical expenses that exceed 10% of your AGI or 7.5% if you’re over 65. You and your family members that have qualifying medical expenses can take advantage of these deductions. Examples include: doctor’s fees, co-pays, prescriptions, transportation to a medical facility, and more.

Work-Related Education Expenses

If you choose to itemize work-related education expenses, you may be able to deduct these expenses from your taxes. To claim this deduction, costs must be related to maintaining or improving job skills and required by your employer. These costs include tuition, books, lab fees, travel, etc. It’s also important to note that you can only deduct these expenses if they exceed 2% of your adjusted gross income.

Conclusion

If you have questions about itemized deductions for your 2020 taxes, then call MARIELA RUIZ, CPA, PLLC. We have the tax solutions you need to get more out of your tax return. From income tax preparation to strategic tax planning, contact our advisors for more details on how you can save money!

Visit our website here.

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.

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