My Blog

Blog

« Back to Blog

ALL YOU NEED TO KNOW ABOUT THE STIMULUS CHECKS.

Posted on April 3, 2020 at 4:04 PM Comments comments ()


                   

stimuluschecks

   We are aware that these are unprecedented Times and there are a lot of challenges during these Period. We are encouraging you to rise above this Situation and remain confident, that you will come out Stronger, Bigger and Better off. 
 
   President Trump just signed off a $2 Trillion Relief Bill, which will come in form of Stimulus Checks to offer Assistance to Millions of American Household, affected by the Corona Virus Pandemic. We are aware that most of us have Questions  and we want to enlighten you more about, what in this for us.

   The Following are the Basic Things to know about the Stimulus Checks:

  •  Your Eligibility for the Stimulus Check is based on your 2019 Tax Returns as well as your Adjusted Gross Income. If you are yet to file your 2019 Taxes, the IRS will use the 2018 Taxes to determine your Eligibility. The IRS will only use your 2018 Tax Returns, if you have not filed your 2019 Tax Returns. 


  • You must have a Valid Social Security Number to be eligible for this Check. People with  ITIN Numbers and Tax ID Numbers will not be issued Checks.     


  • The Check Values are based on 3 Plans Income Qualification: 

  1. SINGLE TAX FILERS - The Adjusted Gross Income Qualification is $75,000 or Less. This Category will get a $1,200 Stimulus Check.     
  2. HEAD OF HOUSEHOLD FILERS - The Adjusted Gross Income Qualification is $112,500 or Less. This Category will get a $1,200 Stimulus Check.
  3. MARRIED FILING JOINTLY - The Adjusted Gross Income Qualification is $150,000 or Less. This Category will get a $2,400 Stimulus Check.        

       It is important to note that if the Income Exceeds the threshold, the Amount will be reduced on a Sliding Scale. 


  • For Each Dependent/Child, that is Under the Age of 17 Years and Below, you will get an Additional $500 Check, for each Child. Please Note, that this is as long, as the Child/Dependent was stated in the Tax Returns, at the time of Filing. 


  • If a Parent claims the Dependent/Child as a Dependent and this Child/Dependent files their own Taxes, the Parent will not get the Additional $500 Stimulus Check.       



  • The IRS will send the Payment to the Bank Account Information, that you have on File. 



  • If you did not indicate a Bank Account  nor used a Direct Deposit Method for your Tax Refunds, the IRS will mail the Check to the Address on File. 



  • In the Event, that you have moved from the Address on File, you need to File a Form 8822 with the IRS. This is a Change of Address Form to update your Address with the IRS.



  • The IRS will not withhold your Stimulus Check, if you are owing Taxes, the only clause is, if you are backed up on your Child Support Payment. You may have to call the Agency, in charge to make Payments and settlement, so that you are assured of getting your Full Stimulus Check Payment. 

  • The Earlier you file your Taxes, the Earlier you are assured of getting your Stimulus Check.      



        We are available to help you with all the Questions, that you may have , regarding the Stimulus Check as well as any other Question on the Stimulus Package. We are also available to assist you virtually. Call us on 202-422-4586 to set up an Appointment.

      It is always our Pleasure to Help you. 
  

RENEW YOUR ITINS.

Posted on August 17, 2018 at 5:36 PM Comments comments ()






















More than 2 Million Individual Tax Payer Identification Numbers( ITINs) are set to expire at the end of 2018.

* Tax Payers whose ITIN is expiring and needs to file a Tax Return in 2019 must submit a Renewal Application.

* ITINs that are affected are the ones with the middle digits 73,74,75, 76, 77, 81 or 82. ( For Example: 9NN-73-NNNN) needs to be renewed even if the Tax Payer has used it in the last 3 Years. 

*ITINS with middle digits of 70,71,72,78,79 or 80 have previously expired. Tax Payers with these ITINs can still renew at anytime.

* Acting Now to renew ITIN Numbers will help Taxpayers avoid delays, that could affect their Tax Filing and Refunds in 2019.

* As a Reminder, the IRS no longer accepts passports that do not have a Date of Entry into the US as a Stand Alone Identification Document for dependents from a country other than Canada, Mexico or dependents of US Military Personnel Overseas.

* The Dependents passports must have a Date of Entry Stamp, otherwise Additional Documents to prove US Residency will be required.


Read on and Be Enlightened. Feel Free to Share.

IRS Increases 401K Contribution Limits by $500 from January 1st 2018.

Posted on November 16, 2017 at 2:40 PM Comments comments ()
  IRS Increases 401K Contribution limits by $500 from January 1st 2018   What this means for you. 
   The IRS had announced sometime in October, that effective from January 1 2018, the contribution limit for Employees who participate in 401(k), 403(b), most 457 plans and the Federal Government’s Thrift Savings Plan will be increased from $18,000 to $18,500.

  This is surely a Big Deal. As we all know, this extra $500 can help us more than we may think and it could also mean up to $70,000 more in your retirement account, assuming you decide a retirement age of 67 for yourself and at a 6 percent annual rate of return.  

 This is also important to know, as we have only few weeks to the end of the Year and most of us have less than 3 Payroll Cycles to the end of 2017. We need to ensure that we are working towards reaching the limit of $18,000 for this Year and if you are over 50, try to ensure that your Payroll Company implements your catch-up contribution limit of $6,000. It’s been discovered that most time, they don’t implement it, unless you inform them.

  If you have not been contributing the maximum amount to your 401(k), this IRS Announcement is a useful reminder to push your contribution rate higher.  Even if you’re not saving that much, increasing your savings rate by a percentage point or two every year, and anytime you get a pay raise will make a Big Difference to you in Retirement.

  In addition to this announcement, the income ranges for determining eligibility to make deductible contributions to traditional Individual Retirement Accounts (IRAs), to contribute to Roth IRAs and to claim the saver’s credit is also increased for 2018.

 Taxpayers can deduct contributions to a traditional IRA, if they meet certain conditions. If during the year either the taxpayer or their spouse was covered by a retirement plan at work, the deduction may be reduced, or phased out, until it is eliminated, depending on filing status and income. If neither the taxpayer nor their spouse is covered by a retirement plan at work, the phase-outs of the deduction do not apply.

           Here are the phase-out ranges for 2018:

  • For single taxpayers covered by a workplace retirement plan, the phase-out range is $63,000 to $73,000, up from $62,000 to $72,000.
  • For married couples filing jointly, where the spouse making the IRA contribution is covered by a workplace retirement plan, the phase-out range is $101,000 to $121,000, up from $99,000 to $119,000.
  • For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the deduction is phased out if the couple’s income is between $189,000 and $199,000, up from $186,000 and $196,000.
  • For a married individual filing a separate return who is covered by a workplace retirement plan, the phase-out range is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.
 
           Highlights of Limitations that Remain Unchanged for 2018:

  • The limit on annual contributions to an IRA remains unchanged at $5,500. The additional catch-up contribution limit for individuals aged 50 and over is not subject to an annual cost- of – living adjustment and remains $1,000.
  •  The catch-up contribution limit for employees aged 50 and over who participate in 401K, 403(b), most 457 plans and the federal government’s Thrift Savings Plan remains unchanged at $6,000.

 

Please Note that If you don’t have a 401(k), there are other ways to put your money to work. Consider alternate retirement savings accounts, such as Roth IRA , Traditional IRA and/or Health Savings Account.
 
The IRS issued technical guidance detailing these items in Notice 2017-64
   

Lowering Your Tax Bill For 2017 ( Day 2)

Posted on December 22, 2016 at 12:23 PM Comments comments ()

                                                

Are you taking up the Challenge towards reducing your Tax Bill for Next Year Taxes? We're now on Day 2 Challenge towards helping you achieve this Goal .Be Sure to implement and Keep Checking back for more information.

CLUE 2: Accelerate your Deductions:
If you plan to itemize your deductions, you are better off accelerating your deductible expenditures into this Year to produce a higher write-off. You will pay less in Taxes, if you have more deductions.
Ways of accelerating your Deductions are:
* Donations to Charitable Organizations (We mentioned this in our earlier post).
* Replacing Old Business Equipment.
* Prepaying State Income Taxes.
* Pay Next Year's Fees and Subscriptions in the Current Year.
* Pay Outstanding Medical Bills.
* Pay your Real Estate Property Taxes.
* If you own your Home, Make an Extra Mortgage Payment at the end of the Year, so that you can get an additional Tax Deduction for the Interest Paid.

This is the Right Time to do all these, If you want a Reduced Tax Bill in 2017.

Lowering Your Tax Bill For 2017( Day 1)

Posted on December 21, 2016 at 12:47 AM Comments comments ()
                                                     
                               

The Year 2016 is fast coming to an end; As we Close out the Year, We would like to thank all our Clients, Customers and Fans for your Business and Referrals. We look forward to your continued patronage in 2017; As the Year comes to a Close, So does the period for Tax Planning. 
For Each Remaining Day of the Year, We would share some Tax-Saving Strategies to consider before the Year 2016 closes Out. 

CLUE 1: Make Charitable Contributions - Charitable Donations are an easy way to get a Tax Deduction; The Most Obvious way to make a Donation is to write a Check to your local Church or Non- Profit Organizations. At the End of the Year, the Organization would give you a record of all the Donations, you have been making for the year and you can use this to make your Claims. Both Ways, you are giving to God ( A worthy cause) as well as lowering your Tax Bill.

According to the IRS, A Donor claiming a deduction of $250 or more is required to obtain and keep a written acknowledgement for a charitable contribution, so be sure to get a donation receipt. It's also a good idea to take a picture of your Contribution, just as a Back-up.

Also , making a Donation with your credit card this month means you don't have to pay it off until January- and you still get the deduction.  BeSure to check out our website each day till the End of 2016 for more updates on how to lower your Tax Bill. #loweryourTaxBill

2016 Tax Season Begins on January 19th 2016.

Posted on January 18, 2016 at 11:52 PM Comments comments ()
  January 19 2016 will mark the beginning of the 2016 Filing Season. The Internal Revenue Service (IRS) announced that Tax Return filing for the year will begin one day earlier than the previous one.

  The IRS will begin accepting individual electronic returns from this day. They will also begin processing paper tax returns at the same time. There is no advantage to people filing tax returns on paper now instead of using the e- file method.

  The Tax Day also witnessed slight changes as Washington, DC celebrates Emancipation Day on April 15 instead of the usual April 16th, which is a Saturday. Hence,The filing deadline to submit 2015 tax returns will be Monday, April 18, 2016. Please Note that this Date coincides with Patriot's Day so Massachusetts and Maine will observe their Tax Day on Tuesday, April 19, 2016.

  All in all, this Tax Season starts early and ends with a Delay. With this, Tax Payers have more than the regular time period to file their returns. But NOTE that filing the Returns within the IRS time frame can be a smart and effective way to stay safe. The IRS urges all tax payers to make sure that they have all their year-end statements in hand before filing, including Forms W-2 from their employers, Forms 1099 from Banks and Other Payers and form 1095-A from the Marketplace for those claiming the premium tax credit.

  One Aspect that Tax Professionals should take care is the tax software that they use for Tax filing and submitting forms to the IRS. It is better not to choose your tax filing software only on the basis of filing dates that they provide. 
   
  Below are some tips to consider as you file your Tax Returns:

  • Ensure that all your Income Statements - W-2, 1099, 1098 and 1095-A are all collected, reviewed and organized.
  • Collect all your Receipts and Sort them all out, as this will help you get your maximum deductions during your Tax filing.
  • Coordinate and organize all your Deductions.
  • Business Owners need to organize and review their financial reports for the previous year to ensure that all Business Expenses are accounted for and recorded, so that they can claim all the necessary deductions.
  • Please note that picking up software that serves your tax needs better should make a smart choice.  
  • You have to think of the various requirements, that your return filing will depend upon such as the number of Transactions, Business Size and States in consideration, then analyze the choices available to meet those requirements and pick the most suitable one.
  • Get a Trusted Tax Professional that can provide helpful information about advice and the ever- changing tax code.
  • Remember that Choosing E-File and Direct Deposit for Refunds remains the fastest and safest way to file an accurate income tax return and receive a Refund.

      If you need Assistance with organizing your Documents and Accounting Records, as well as getting them ready for Tax Purposes, Feel free to call us on 202.422.4586. 

    Let the Tax Season Begin....................................
 

Getting Ready for Year End Accounting.

Posted on December 22, 2015 at 10:49 AM Comments comments ()

Merry Christmas and A Prosperous New Year 2016 to all our Current and Prospective Clients. We want our Clients and Fans to know that we appreciate them and continually look forward to a great working relationship. The Year is almost coming to an end and It's a Busy Season for everyone. As you make your Holiday Plans, Remember to close your Books and Accounting Records for the Year 2015.
We have listed some Tips to help you close the year properly, so that you can make great plans for the upcoming year:


  • Evaluate Your Accounting System: This is the time to start searching for a good Accounting System for the Year 2016. If you are the technology savvy person, who prefers High-tech financial management tools like Digital Vaults, Smartphone Apps, QuickBooks or Peach Tree, you will need to evaluate your system to confirm if it has worked for you. If you are the Old School of thought that prefers the Shoe Box, Envelopes and Spreadsheet System, you also need to evaluate this to see how it has improved your Accounting System. If you cannot truly attest to the effectiveness of the Accounting System that you are using presently, This is the best time to consider switching to a more effective Accounting System.

 

  • Review Your Sub Contractor Data: Every Organization needs to confirm if they have paid anyone for services more than $600 during any given year; If you have, You are required to send a Form 1099 to the recipient by January 31st of every year. You have to ensure that the Subcontractor completed the information on the Form W-9 issued, at the inception of the Contract. Your Bookkeeper needs to update the 1099 Detail Reports and reconcile the amount paid during the year with the amount in the Books.

 

  • Reconcile your Expense Account Data: This is the best time to ensure that you look at your expense data and accept all reimbursement checks prior to December 31st. This will ensure that your Company will receive Tax Deductions for all the Business Expenses being claimed. You also need to ensure that you have all your Receipts Handy and properly filed.

 

  • Evaluate your Financial Standing: This is the best time to review your Profit & Loss Statements, Balance Sheets and general Ledger to ensure Accuracy and to make sure that all transactions have been recorded, so that you can get your Tax Deductions. Examples of Transactions to watch out for are as follows:

          1) Ensure that the Bank and Credit Card Accounts have been reconciled.
          2) Ensure that the Loan Interest has been separated from the Principal Amount and is accurately entered into your Books.
          3) Check for the Accuracy of Accounts Receivable and Accounts Payable.
          4) Write Off Bad Debts for Customers who are Noncollectable.



  • Make a Charitable Giving Budget Calendar: Charitable Gifts are some of the easiest Expenses to overlook, when it comes to itemizing Deductions. During the Year End, Gifts and Donations to Thrift Stores are easily forgotten. You can use this Holiday Season to make your Donations to your Chosen Organizations, so that you are sure of claiming them for the Upcoming Tax Season.

 

  • Review Your Personal Expenses: If your Business entity is a Sole Proprietorship or Partnership, then it's time to ensure that your Personal Expense is not co-mingled with your Business Expenses. You will have to get your Receipts and Cancelled Checks and record these expenses to your Company's Books. Many Tax Payers have ended up paying extra taxes needlessly because they overlooked Business Expenses paid from Personal Funds. 

 

  •  Re-evaluate your Retirement Plan: This is the time to find out if you are putting away enough money for your Retirement. Maxing out a SEP Plan or taking advantage of an Employer match can be your best option. The IRS limits on Tax deductible IRA Contributions can change just as the benefits an Employer provides changes. You have to find out if you are putting away enough to offset your Tax Burden.

 

  • Prepare an Income Projection: Most Organizations prepare income projections to gauge their income and expenses during the mid-year and year end; It's actually advisable to take stock every Quarter, Half Year and Year End. The Projection looks at your Cash Flow, Estimated Taxes for the Self - Employed, Stock Options, Bonuses and other things impacting your Income. This is necessary especially if your Profit increased substantially during the year, your Bookkeeper/Accountant will help you prepare and analyze your Books to see where you need to reduce your taxable income by implementing some last minute strategies. 

 

  •  Take your Bookkeeper to Lunch: Everyone knows that all Bookkeepers and Accountants are always busy starting from the Month of January through April of every year; We all have these Last - minute Questions, which we all need answers to at the last minute. Now is the Time to get them answered. Try to set up an appointment with your Bookkeeper/ Accountant, to find out what you can do better next year to help reduce your Tax Burdens. If putting together your information was challenging for your Bookkeeper/Accountant, Try to make the meeting over a meal or another token of appreciation. Otherwise if you have a less- than - ideal experience with your current Bookkeeper/Accountant, This is an ideal time to shop around for one that is a better fit. 

   Another Tax Season is about to start; Filing your Taxes will probably never be fun, but being proactive when you are not under a Deadline can help ease some of the burden and save you time and frustration when April Comes around. If you need help with getting your Books ready for Taxes, We are available to help you. Please Free to give us a Call on 202.422.4586. You will be glad you did.

Categories

ROSYAN BOOKKEEPING SERVICES  |  5620 St. Barnabas Rd, Suite 318 Oxon Hill , MD , 20745 USA  |  Phone (202) 422-4586 (301) 485-8109

/
Lightbox image