Plan Now to Save Taxes Later

Plan Now to Save on Taxes Later

Even though tax filing time is far away, the fall is the perfect time to start your planning so you can take advantage of all opportunities to minimize your tax bill. That begins with ensuring you’ve taken all the deductions that can help reduce your taxable income. Have you maxed out retirement plan contributions, for example? Set aside money for 529 college savings plans or health savings accounts? Considered which charitable donations you want to make before year’s end? Those are just a few of options that might help cut your taxes.

At the same time, since tax rates for high-income taxpayers have risen in recent years, it’s also smart to investigate ways to lower the income you report this year and to avoid generating passive income. With only a few months left in the year, contact our offices today for advice on steps you can take now that will pay off on April 15.  

Source AICPA

A Simplified Home Office Deduction

A Simplified Home Office Deduction

Do you work at home or have a home-based business? If so, you should be aware that the IRS has created a simpler option for calculating the deduction for the business use of your home. The new option makes recordkeeping easier because, instead of maintaining records of specific home office expenses, you can use a standard rate per square foot. The rate is $5 per square foot (up to a maximum of 300 sq. feet or $1,500) for qualifying business use space in place of taking a pro rata percentage of items such as mortgage interest, taxes and repairs.

Keep in mind there are good and bad aspects to this “simpler” method. The new method gives you back your full interest and tax deduction on schedule A, but you will lose your depreciation and loss carryover deductions. Of course, you must still use your home office regularly and exclusively for business. This may be a welcome relief for some taxpayers, but it might not be the best choice for others. Is it the right choice for you? Please contact us for answers to all your financial questions.

What You Should Know about Changes in Education Provisions in the Tax Law

What You Should Know about Changes in Education Provisions in the Tax Law

Are you making the most of tax benefits designed to offset some of the high costs of education? The American Opportunity Tax Credit, extended through 2017, provides a tax break of up to $2,500 for qualified college expenses. The Act also made permanent several education-related tax options, including a $2,000 maximum contribution amount for Coverdell education savings accounts, which can be used to pay certain elementary, secondary and post-secondary expenses.

Given the many changes, we can help you make sense of the benefits available to you and ensure you’re taking full advantage of them. We can also offer advice on smart steps for financing the high cost of education, so please contact our office with all your questions.

Source : AICPA

Don't Be Taken in by Phony IRS Request

Don’t Be Taken in by Phony IRS Requests

The phone rings. The caller says they are from the Internal Revenue Service and they claim you owe taxes and must submit payment through a wire transfer or prepaid debit card. Or you receive an email supposedly from the IRS asking you to share your bank account, credit card or Social Security number. What should you do?

The sad truth is that many scammers pretend to be IRS agents as part of identity theft or other criminal activity. If you receive a surprising or suspicious communication purportedly from the IRS, we would urge you to call us immediately. We can help you identify a bogus request for information and work with you to respond to a legitimate IRS contact. You can also call the IRS directly at 800-829-1040 to verify any communication you receive.

Source:AICPA

Seeking a Job? You May Be Able to Deduct the Expenses

Seeking a Job? You May Be Able to Deduct the Expenses

Did you know that if you are trying to find work in your current occupation, the costs of your search, including expenses for preparing and sending resumes, employment agency fees and related travel expenses, should be deductible?

The deductions aren’t available in all cases. For example, you’re not eligible to use them if you are seeking employment in a new field or if this will be your first job. If it’s been a long time since you left your last job, your costs also may not qualify. Don’t try to navigate the rules on your own. If you want to learn more about these deductions, or ask any questions about your tax situation, contact us today.

Let Us Help You Leverage What You Can Learn from Your Tax Return

Let Us Help You Leverage What You Can Learn from Your Tax Return

What does your tax return say about your financial situation? The fact is, the paperwork you file each year offers excellent information about how you are managing your money—and about areas where it might be wise to make changes in your financial habits. If you have questions about your financial situation, remember that we can help. Our firm is made up of highly qualified and educated professionals who work with clients like you all year long, serving as trusted business advisors.

So whether you are concerned about budgeting; saving for college, retirement or another goal; understanding your investments; cutting your tax bite; starting a business; or managing your debt, you can turn to us for objective answers to all your tax and financial questions

Source: AICPA

Conquer Your Capital Gains Concerns

Conquer Your Capital Gains Concerns!

Do you take your cost basis into account when it’s time to sell an asset or investment? When you sell an asset or investment, your cost basis—or the amount you originally paid for it—is subtracted from the sales price to determine your capital gain on the sale. If your last tax return included some surprises on capital gains you incurred last year—and the related taxes—then you’re probably aware of the need to plan ahead when buying or selling assets or investments. It’s even more important in light of some recent tax law changes, including the new tax on net investment income.

The good news is that we can help. Be sure to turn to us with questions about your overall investment strategies, as well as the tax implications of asset and investment purchases or sales. We can offer the advice you need to minimize your tax outlays and make the most of your investments.

Source: AICPA

We Can Help You Address the Issues that Keep you Up at Night

We Can Help You Address the Issues that Keep You Up at Night

Where will your business be in five years? Would strategic budget cuts in some areas improve your company’s health? Are there ways you can boost revenue? If you’re nearing retirement, is there a buyer or successor in the wings? These are the kinds of questions that keep many business owners up at night. Fortunately, as your CPA, we can probably help you sleep a little easier. Our firm is made up of highly qualified and educated professionals who work with clients like you all year long, serving as trusted business advisers. We act as coaches, guides and trainers for our business clients, helping them chart the best route to success. So be sure to turn to us with all your business questions or concerns.

How Do Taxes Affect Your Financial Picture?

How Do Taxes Affect Your Financial Picture?

Do you know how much you’re paying in taxes? You may have a sense of what you spend on income taxes, but have you also considered the taxes you pay on utilities, gasoline, cigarettes and alcohol, hotel stays and numerous other items? The CPA profession’s Total Tax Insights™ calculator (www.totaltaxinsights.org) can put these numbers in perspective, enabling you to make better informed financial decisions.

Take a few minutes to drop in your numbers, and if your results raise questions about your financial planning choices, we can help. If you’d like to get started, don’t hesitate to contact us with all your questions.

Source:  AICPA

Have Questions ? We're Here All Year!

Have Questions? We’re Here All Year!

Many clients see their CPAs at tax time, when the main focus is on completing and filing their tax return. As a result, they may not take the opportunity to ask questions about long-term tax planning or about other important financial concerns. The good news is that we are available to you all year. We have a full-time, year-round staff of experts with extensive expertise in a broad range of financial areas. We’re ready when you are to take some time reviewing your financial situation, helping you understand your options and make the best decisions. We’re also here in an emergency to help address unexpected financial concerns. So, give us a call to discuss your important financial issues whenever they arise.

Is Your Will Up To Date

Is Your Will Up To Date?

When was the last time you reviewed your will? People generally make wills to guarantee the proper disposition of their money and property, which is why it’s a good idea to consult your CPA when it’s time to create or update your will.

We recommend that you revisit your will every time you experience a major life event, such as marriage, the birth of a child, retirement or other significant milestones. Even if there is no meaningful change in your life, it’s smart to review the document every couple of years to ensure it still addresses all your estate concerns and reflects your wishes. Changes in the value of your investments—such as a stock portfolio or real estate—may also require adjustments in your estate plans.

Reviewing your will may raise questions about various areas of your financial life, including your retirement or estate planning, college savings or other financial concerns. Be sure to turn to us for the perspective and advice you need to make the best choices

Source AICPA - 

Smart Disaster Planning Steps

Smart Disaster Planning Steps

Too often natural disasters strike and serve as reminders that it’s important for both individuals and businesses to protect themselves against the potential financial consequences of such events. A few smart steps we recommend include making electronic backups of important records, including your insurance policies, tax returns, bank and credit card account information, and vital records. It is critical that you store this backup in a separate location that will be easy to access if your area suffers damage. You should also take the time to take pictures or videos of your home or business and store them separately in case you need to make an insurance claim.

If you run a business, you must consider how you will get up and running again after a disaster. It’s a good idea to develop contingency plans that will enable employees to work from home or elsewhere if your location is damaged or inaccessible. Both businesses and families should consider using phone trees or other methods to maintain contact in an emergency. Review your contact and contingency plans every year to be sure they are up to date.

Want further advice on protecting your family’s or business’s financial well-being in case of a disaster? We can help. Contact us today with all your financial questions.

Source AICPA - 

Documenting Your Charitable Donations

Documenting Your Charitable Donations

Many people make donations to charities whose work they support, but if you are planning to take a tax deduction for your gift, you must have the proper paperwork. Assembling the right documentation can also be tricky because the requirements vary based on whether the donation is cash and on the value of your gift. If you donate less than $250 in cash, for example, a canceled check, credit card statement or similar record may be sufficient, but if you give more, you will need a written acknowledgement from the charity. An additional tax form—and possibly an appraisal—may be needed for non-cash donations, depending on their value. Of course, the organization itself must also qualify as a charity under IRS rules.

                                                   

We can offer advice that will make it possible for you to fund the causes you believe in and qualify for the deductions you deserve. We can also help you incorporate charitable giving into your long-term tax and estate planning. Be sure to contact us with all of your questions on charitable giving or any other financial concern

Source AICPA - 

Do you have Foreign Assets? FBAR May Apply to You

Got Foreign Assets? FBAR May Apply to You

Are you aware of the nature of all your investments, domestic and international? Do you know if you have foreign accounts with an aggregate value higher than $10,000 at any time during the calendar year? U.S. taxpayers (including individuals and business entities) are required to report on foreign assets or investments they hold in offshore accounts. Under the Bank Secrecy Act, you may be required to e-file what is known as the FBAR directly with the Financial Crimes Enforcement Network (FinCEN), a bureau of the Treasury Department. Given the diversity of assets that many people hold, we advise against assuming that the FBAR rules don’t apply to you. If you’re not sure, we can help you determine the answers.

As is often the case with tax laws, there are some exceptions and intricacies to the FBAR rules, so be sure to contact our office for more details. We can help you understand whether the rules apply to you and what you need to do to comply with them.

Source AICPA - 

The true meaning of the Holidays and beyond

This year as many go about getting ready for the holiday's, I know that doing for others is truly what it is all about.  dcs Accounting & Tax was a drop off point where people could donate items to gather and give to those who are somewhat over looked this time of year.  We collected items from so many wonderful small businesses and individuals for the senior population and the terminally ill.

My youngest son and I put bags together to give out with the items we received from our collection and he also came to deliver the items to Saucon Valley Manor, St. Vincent DePaul Society, St. Lukes Hospice, Saucon Valley Community Center and Safe Harbor. He is getting ready to get confirmed this year so he had to sum up his volunteering with the corporal works of Mercy "Feed the poor" we packed up special snacks for seniors "Clothe the Naked "  we gave warm blankets to those that were cold and needed comfort and "visit the sick" we visited the local assisted living home to give out items and to say hello.  It really does not have to be a great big project but yet so many can be touched.

We would like to take the time to thank the following Individuals and Businesses for their generosity in bringing joy to over 100 people this season.  

Tammy Huk of Coldwell Banker
Lynn Hufton of Coldwell Banker
Charles & Linda Smith
Jane Croissette Stichin Witch Embroidery, LLC
Denise Cassidy-Dietsch of Doodie Calls, LLC
Various Patrons of the Hellertown Area

In closing here is a quote from someone who inspires much of the kindness of giving and has recently been canonized as a Saint.  "We ourselves feel what we are doing is just a drop in the ocean. But the Ocean would be less because of that missing drop" Mother Teresa

Wishing all very Merry Christmas and Happy 2016!

Summer Jobs- 5 valuable takeaways that can be so important to Teens.

Many years have gone by since my days of working a summer job during my teenage years.  Two of my teenagers are now experiencing some of the benefits of working a summer job. It got me thinking of some of the great things summer jobs provide to teenagers while out of school.

There are lessons that I learned during my days of working a summer job that have helped me throughout life and made me stronger and prepared in my professional life my hope is that my children will learn the same and have the same experience from working a summer job. Here is a quick list.

1)  People skills- working a summer job taught me how to work with people in a way that can not be taught in any school, when you  work day in and day out during the summer months with customers, co-workers and management you learn so much when it comes to service, communication and being a good listener these things are so much better when they are taught hands on like in a summer job situation.  

2)  Responsibility- Learning to be timely, know what was expected of you when you show up for work and also knowing your schedule but also working the days you are scheduled to work.  Very important things that working can teach and are not taught in any book.

3)  Professionalism- You may say well it is only a summer job, but many summer jobs you are required to have a sense of professionalism.   Many summer jobs may require a uniform, looking clean and neat. Also professionalism by not taking phone calls from friends or making personal phone calls while working.  Now it would be no texting or looking at your phone while working the phone is locked up until you are done with work.   This is a great lesson that can be learned in being professional while working.  

4)  Money Management-  Well the best part of working a summer job is getting paid.  It can teach you budgeting, setting goals and also money management.  Many times it is the 1st time you open a savings and checking account and will have some spending money.  This can be the best teacher in money management that a teenager can ever have. It also teaches financial responsibility something that is a can be a great lesson from a summer job because it can be so hard to teach in a school setting.  Parents can use this as a great teaching tool and guide their teenager.   Also a great time to introduce how taxes work and how to read a pay stub.  Such an important lesson also will be after the summer job and teaching them the importance of filing their Income Tax Returns.  These are items that you as a parent can use as teachable moments and also create a more independence as your teen goes into adulthood.

5)  Resume -  Summer jobs especially when you are doing something skilled like office assistant or life guarding can be used as a good solid resume item.  This will be a great thing for future jobs after high school or college that can lead you to a more skillful job situation. This was very helpful to me because one of the jobs I had made a great resume item because it was working in an office and I had some great skills in which I learned from this job.  It also had me in contact with some leaders in the community.   Never underestimate the power of a summer job as adding to a skill set and becoming a great resume builder.

5 ways to Get Ready , Get Set , Get Organized with your financial life

1) Computerize your finances - A great way to make things organized and automated , also a good way to keep safe because it is so important to monitor your finances on a regular basis. Also makes reconciliation of accounts more manageable.

2)  Create a place in your home just to work on your finances and household paperwork- keep everything centralized. You will find you will keep up with your finances and household paperwork if you have a place in your home that is conducive to keeping you on track with this task. Make it pleasant , neat , organized and comfortable.

3)  Create a system for organizing important paper work - This can be a paper filing system, computerized system or a combination of both. Also incoming and outgoing system of organization. Keeping a handle on important mail vs junk mail is also a big part of keeping a handle on organization of paperwork.

4) Invest in a Shredder this can be a good investment, try to invest in a micro-cut shredder.

5)Consider investing in a safe deposit box or a fire proof lock box to keep permanent important identification cards, certificates, bonds , paperwork , digital pass words and account info.


Many times it may take a professional to  help you  get set up with a computerized way of setting up your finances , what to shred, what to keep, how to set up files , how to set up your personal home office space and plan a space, also helping you with a list of important financial documents that need to be kept safe and accounted for when setting up  a safe place.

Daily Money Managers are a great starting point if you are looking at professionals to help get you set up because they have experience with finances, organization , tax , computerized options for financial organization and a knowledge of what is important when comes to financial paperwork.

Simplifying and organizing your financial life will lead to a much more calmer and stress free lifestyle and worth the investment of your time and also the enlisting of a professional. The investment of a professional may even more important if you are divorced, starting a new career after college graduation, recently widowed, couples that are just in need of  an extra hand and are too busy , seniors who may have problems with vision, medical problems or just need guidance.

 

5 things needed when keeping a Business Mileage Log

This is always a very important thing many people do not realize what they need to record when tracking business mileage.


1)   Date - Be sure to record the date of business travel

2)   Destination- City, Town or area

3)   Business Purpose-  What is the purpose of this travel

4)  Odometer Readings - Start and Stop

5) Total Mileage of this Trip- Total the mileage traveled for this trip

Be sure this is neatly tracked in a journal of choice ie Notebook, journal book

Also there are different apps that can be used that follow IRS Business Mileage log guidelines that can also be used and printed.  

Be sure to keep these records each year in case it ever comes into question by the IRS.  

Also January 1st be sure to record your odometer reading for the start of the year and also Dec 31st record your year end odometer reading.  

3 things to know about QuickBooks Online that will help you distinguish how it is different than the Desktop version.

This question is asked by many everyday.  We are seeing more and more start off or even switch over to QuickBooks Online.   Why ?  Intuit is advertising more on TV, in magazine ads, computer ads and many small business owners are checking it out.

QuickBooks Online has a much different feel than QuickBooks Desktop, it does have some really stand out features that comes with your subscription.

1. What are some of the differences?

•  Access from anywhere.
• Cloud based which means it will be backed up even if your computer crashes.
• Bank feeds that automatically update without having to do the connection yourself each time.
• Many of the same features that are in   desktop are now in QuickBooks Online.
•  Ability to easily add on enhancement apps as your business needs inventory, time recording, etc.
• No worrying about updating or sun setting of the product. Intuit is always making updates because it is cloud based you do not have to do these updates they are automatic. No having to worry about files being corrupted because of windows versions not being updated or QuickBooks not being updated or files getting too large.   No need to update to a newer version like in the desktop version. 
• Intuit is putting increased resources in improvement in QuickBooks Online to make it the "premier accounting software", It is their latest focus.   

2. Is it important to get training in QuickBooks online?
Absolutely,  it is important to get some kind of training, because if things are not done correctly it can cause problems that will take time to fix later  which may involve working with a Certified QuickBooks Online ProAdvisor and can cost some money to fix.  The same even holds true for those using the desktop version.  Certified QuickBooks Online  ProAdvisors are even available to work with clients on training. It usually is a good investment to hire someone who knows the latest and is up to date on their certifications in QuickBooks Online because it is different than the desktop version in many ways. Even if you decide to contract out for someone to keep up your QuickBooks , look for a Certified QuickBooks Online ProAdvisor and even better one that has a CPA they are teamed up with  it can help greatly and offer you even more value.  

3. Cost of QuickBooks Online?
Pay monthly, different discounts are available, talk to a Certified Quickbook ProAdvisor about which version is best for you. This is important because they will do a needs assessment and fit you with the best version.   Certified  QuickBooks online ProAdvisors may offer some different  packages for those who want support or want actual work to be done on a monthly basis. It does help to have a  professional looking at your QuickBooks on a monthly basis to be sure it is being done correctly and review the important things you as a business owner should be watching in QuickBooks to help you grow your business.

The best thing is don't go into it alone, talk to a Professional who knows the Online version of QuickBooks and even look for them to be certified.  It does make a difference. The QuickBooks Online Certified ProAdvisor time is worth the financial  investment  because it is an important part of your business. Look at references on LinkedIn and other published references via the web when looking for a Certified ProAdvisor or Certified Online ProAdvisor.  Also see if Online is for you, it is for many small businesses out there but not for all.

Is it time for a change?

Is it time for you to change what you are doing when it comes to your personal finances  ?

• You have piles of unopened mail?

• You  have never done a bank reconciliation or do not do bank reconciliations regularly?

• You are falling short of your financial goals or not saving money?

• Do get nervous when you hear the word budget?

• Your  financial paperwork is not in order or   many times are  not  able to find important financial paperwork ?

• You are not reviewing  bank activity and credit card activity on a regular basis?  

• You want to  computerize your financial records with personal finance software but don't know where to start?

• You are  not Paying  bills on time which is causing you  to have late payments or interest charges?

If you answered "yes" to 1 or more of these questions  Maria Smith ,BS - Daily Money Manager at dcs Accounting & Tax says "many times when some of these things are not being done it can cause problems with your finances and anxiety that effects your daily life".  Maria also noted "having a game plan to get these things started is key to change ".

Maria spends time with clients helping them with a game plan and it  really helps give them " Peace of mind" she says, but she says  "follow up with her clients has been key with keeping them accountable with working their plan".

Sometimes clients hire her to take care of some of their financial tasks because she says they "just don't have the time" and other times they hire her to set them up on a plan and meet with her on a regular basis to discuss how they are making changes and where they may be having challenges.   Maria's background is not only been spending the last  5 years in the financial organization field but she also spent over a decade as a social worker.

Maria closed the topic on this note " There is no need to have additional stress added to everyday life if you  know you are working on a  plan to improve your financial house and taking steps to make a change".