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.
Before you contact your tax preparer, ensure you have the
necessary documents to hand over. It’s important to have previous year’s tax
information, as well as current receipts and documents. Getting an early start
on gathering these items will not only speed up the process, but give your tax
preparer more time to double check all of your information. Learn more about
which forms you will need to file a complete tax return.
The Essentials
Forms from employers, banks, and other businesses need to be
filed your tax return, so have these documents ready to go. Some of the most
common forms include Form W-2, Form 1099, and Form 1098. These documents
indicate the income you’ve received from the previous year. If you are unsure
about which documents need to be filed, get in contact with your tax preparer
for confirmation.
The Receipts
Receipts act as a form of proof to show so you can properly
itemize your deductions. Whether you choose itemize or claim the standard
deduction, it’s a good idea to compare your findings and see which one has the
greater write-off. Your list of expenses may include anything from medical
costs and mortgage interest to charitable contributions. Consult with your tax
preparer if itemizing is worth it.
The Tax Return from
Last Year
Grab your tax return from last year, even if you are using
the same tax preparer. You can look over it for any inconsistences and ensure
your current tax return is up to date. It can also provide details about forms
you received from last year, and that you have these forms from this year too. Investopedia
also comments, “If you made small gifts, you may not have received any
acknowledgment from the organization, but you can still deduct these contributions
as long as you have a canceled check or other proof.”
Conclusion
The process of filing taxes can be confusing, so let our
certified public accountants do the work for you. We are here to prep your tax documents
and handle all forms with the utmost professionalism. Refer to MARIELA RUIZ, CPA, PLLC for tax
preparation services today.
There are a wide variety of types of court cases that can require the additional support of a CPA. Oftentimes in civil and business litigation, courts and powerful legal teams will require a CPA to weigh in based on their expertise in finances and accounting. Follow along with this blog to learn about the types of cases they typically work on and how having a CPA on your legal team can help you get the case results you seek.
Forensic Accounting
While forensic accounting may sound like a job reserved for detectives or the secret service, it is broad term used when a certified accountant applies the theories and principles of accounting in a legal setting. A CPA hired for litigation support purposes will review bank statements, receipts, time sheets, and any other necessary financial documents involving the case.
Business and Civil Litigation
Too often complex
accounting, appraising, and tax issues find their way into business litigation.
A certified public accountant with litigation support experience most often
work either for or against a business to prove or disprove alleged disputes. For
example, forensic accounting can either make or break cases involving bankruptcy,
fraud, data analysis, damage evaluations and more.
In addition
to business litigation, civil litigation cases will often require the additional
support and expertise of a CPA as well. Most often their role in court will be
as a consultant, but there are times when they are asked to stand as an expert
witness too. Civil cases that could benefit from a CPA’s support can include
those involving marital settlements, taxes, valuations and more.
Conclusion
When litigation is simply unavoidable, ensure that you have a solid legal team working in your favor. A CPA working to support your case will able to provide a judge and jury with indisputable evidence and facts that less qualified individuals wouldn’t have been able to uncover. For a CPA who’s highly experienced in providing top notch litigation support and forensic accounting services, contact us today!
Forensic accounting is a combination of accounting, auditing
and investigative skills used to examine financial settings of an individual or
business. These accounting experts are enlisted during a fraud or embezzlement
among other legal proceedings, where they provide accounting analyses to help
the court better understand the financial crimes that took place. Insurance
companies, police forces, banks, and government agencies typically employ them.
The financial information that they compile can be used in court, and may be
asked to testify in court as well as provide visual aids to support the trial
evidence that they discovered.
There’s a variety of forms in which an accountant provides
these services. Read along as we discuss a few of them.
Litigation Support
Running a business or company is not an easy task, and when
dealing with financial crimes or legal disputes, simply relying on your
in-house staff to resolve an issue is not enough. This is where litigation
support comes to play. Litigation support is used in litigation cases where the
quantification of damages needs to be determined, through legal research and
valuation of property. These services are provided to help both parties
involved come to a resolution before they reach the courtroom. If a dispute
reaches the courtroom, the forensic accountant may then be asked to testify as
an expert witness.
Civil and Criminal
Investigation
Forensic accounting in criminal investigations is used to
determine if financial criminal matters such as employee theft, fraud, and
insurance fraud have been committed. A forensic accountant can be used during a
civil matters as well. A civil investigation will help identify: hidden assets
in a divorce case, breach of contracts, or business valuation disputes.
Finding the Right
Forensic Accountant
The right forensic accountant delivers a vast array of
accounting services during legal matters. Their evidence can be used during
court, and will often be asked to testify as an expert witness. They are
reliable, thorough, and highly experienced in accounting, and have a good
understanding of the courtroom.
Mariela Ruiz, CPA, PLLC is here to provide efficient and
trustworthy forensic accounting services to the community of Mission, TX. From litigation
support to criminal and civil investigation, you can depend on our team to help
your company determine the facts in your current financial situation. To learn
more about our accounting firm and services, visit our website.
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!
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.
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.
Chances are you have seen the letters LLC posted after a company’s name, but do you know what it means? It’s important to first understand what a limited liability company (LLC) is and what it does in order to understand what a professional limited liability company (PLLC) is. Follow along with this blog to find out the difference between the two, who can form these groups, and why they do.
LLC vs PLLC
An LLC is a term used in the U.S. to describe a type of hybrid
corporate structure used by some professional companies. These companies are
owned by multiple partners, or members, which work to ultimately combine the liability
protections of a corporation with the tax benefits of a partnership. The most
notable difference here between the two is that unlike a PLLC, virtually anyone
can become a member of an LLC.
A PLLC is essentially the same as an LLC but is owned and
operated by licensed members of the same profession who will only be performing
services specific to their profession. Some states require these professionals
to form PLLC’s rather than standard LLC’s because they are licensed specialists.
A major difference between these two types of companies is that members of a
PLLC are personally liable for their own malpractice, should it occur, but not
each other’s.
Who can form a PLLC?
In the states where PLLC’s are required to do business, groups are generally made up of lawyers, doctors, engineers, accountants, and other licensed professionals. This partnership arrangement requires documents to be filed with and approved by the state the business hopes to operate in. Additionally, each of the members will need to have their licenses validated by the state before approval.
Benefits of a PLLC
There are some pretty notable benefits in establishing an LLC or PLLC rather than a corporation. The main benefits of PLLCs are their limits on liability and the tax perks. More specifically, their limitations on liability for owner’s taxation and the availability of pass-through taxation. Pass-through taxation enforces that PLLC’s are the responsible parties at tax time, and not the owners. Additionally, these individuals will not be personally liable for the business’ debts or any lawsuits against the business.
Conclusion
At the end of the day, only licensed professionals
of the same profession can establish PLLC’s. Though it’s important to
keep in mind that each state has their own list of rules and
regulations about PLLC’s and the steps that must be taken to establish and
operate one. Ultimately, these two types of companies are much easier
and cheaper to form than traditional corporations are.
Deciding if you should choose to do business with a member of a PLLC is a no brainer. Professionals who are members of PLLC’s will most likely be very serious licensed professionals who are supported by a group of other educated professionals. For a top notch certified public accountant who is also a PLLC member, call on the offices of Mariela Ruiz, CPA, PLLC.
When it comes to our finances, there is no such thing as too
much organization and attention to detail. The notion of having our money taken
care of and kept in the right places can do wonders for alleviating our stress and
allow us peace of mind. One of the best ways to ensure our financial security
is by hiring a professional. The only tricky part of bringing in a certified
personal accountant (CPA) is finding one you can trust with your livelihood.
Keep reading to learn some tips on how to spot a qualified CPA and help you
keep the money rolling in smoothly.
They Are Always
Communicating With You:
One of the most vital aspects to a good CPA is their
communication skills. If your accountant isn’t keeping you in the loop about
what’s going on with your finances, that’s not a great sign it will be a smooth
working relationship. The ability to articulate information to you about the
state of any aspects of your portfolio, from your assets to your investments or
liabilities, is paramount to your future and the reason CPA’s are hired in the
first place.
They Plan Your
Finances Throughout The Entire Year:
While this statement seems to be a no-brainer, you would be
surprised to find out how many accountants struggle to focus on your long term
futures and securities as opposed to more immediate financial management
strategies. One of the best upsides to having a CPA you can trust should be the
knowledge that they are spending time planning your financial strategy
throughout the entire fiscal year or even longer, as opposed to advising you on
week to week transactions. Keeping an eye on the future while managing the
present is always the best way to grow your personal wealth, so finding a CPA
that understands that can be crucial.
They Give You Tips On
How To Budget:
Hiring a personal accountant that cares more about coming
in, doing the basic necessities of their job each day and then clocking out
will never bring you the returns that you are looking for. It is often hard to
see from the outside if your accountant is going above and beyond or not, but
one of the best indicators of this is the advice they give you and the
regularity with which they give it. Daily, weekly and monthly budgeting tips,
while not a requirement, should be expected from any CPA. The more any client
knows about their finances, the better it will work out in the long term.
Whether it’s merely calling to advise against a trend of purchases they see you
making or providing a helpful way to save money in an area they see you are
spending too much, a CPA is your financial lifeline, which means they should
always be there to have your back on any financial matter.
They Don’t Mind
Explaining Anything To You:
To most people, this seems like a relatively simple and
obvious task for a CPA, because it merely requires them to not find your lack
of knowledge about intricate financial matter frustrating. However, it is
shocking how many CPA’s believe relative autonomy is the way to go when it
comes to your money, which is a relatively absurd notion. While it’s true that
any CPA should have deeper knowledge of your financial situation, there needs
to be a consistent dialogue between them and their client that centers around
informing them as much as they can about any financial matter. The more a
client knows, the better they can work with their CPA to ensure they flourish
when it comes to short-term and long-term financial goals.
Conclusion:
There are so many factors that go into choosing the right
CPA for you. It’s important to feel safe and secure leaving your finances in
another person’s hands, so why not know you are getting the best person for the
job right from the start? With Mariela Ruiz, CPA, there’s nothing
more important than the financial success of clients, so schedule a
consultation today and take that first step towards a more prosperous future!
Making the decision to
bring on a business consultant can be a step in the right direction for your
business. Whether you’re searching for a strategic planning partner or more insight
into your financials, finding a consultant who can keep your business on track
is a game changer. You should hire someone with background knowledge on your
industry, organized planning skills, and the ability to develop training
programs based on your needs. For more information on what a business
consultant can do for you, keep reading!
Initial Assessment
When you set up an
official meeting with a consultant, he or she will be able to provide you with
an initial assessment. With this assessment, the consultant can detail your
business’ strengths and weaknesses, as well as ways to implement improvements.
You can also discuss goals and expectations up front, which will help your
consultant understand what your wants and needs are. The more information you
give up front, the better results and growth you will see overall.
Strategic Planning
Once you’ve gone over the
assessment of your business, here’s where your consultant’s organized planning
skills will come into play. He or she will come up with manageable business
strategies that you can start applying to the company. Small adjustments to
your business, like upgrading to newer technology or addressing management
problems, are just some of the suggestions your consultant might talk to you
about. Of course, a quality
business consultant will hold you accountable to make these actions,
while giving you guidance along the way. The proper consultant would want your
business to succeed!
Effective Training
If your business is
underperforming in certain areas, your consultant might recommend management
and staff development training. Training targeted for specific levels in your
departments can improve communication between management and build quality
leadership skills. Although the progress and change you’re hoping for will take
time, aiming for the desired results is possible today. Your commitment as a business
owner and as a leader to the company is important; your goals can be achievable!
Conclusion
If you want to see
improvements for your business, we suggest hiring a business consultant to meet
your financial and consulting needs. Here at MARIELA RUIZ, CPA, PLLC, we can
address your management concerns and form a plan of action. To get in contact
with one of our professional consultants, please call or visit our website today!
