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!
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!
