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Kick Your Tax Records Maintenance in Gear

There may still be more than six months off, but the smart businesswoman will already be gathering together all the information and records that will be necessary to prepare returns as early as possible for the coming year.  While tax preparation is one of the major hassles any person goes through every year there is a great sense of satisfaction that accompanies the knowledge that you have completed and submitted yours in time and without excessive headaches and hassles.

 

After you’ve successfully gotten your tax records and materials gathered and ready for review you should don your business suit, put on your Stuart Weitzman shoes and take all the materials to visit your accountant and tax advisor.  If you’ve used a Groupon coupon to buy those shoes at a significantly reduced price – such as the 50% discount they are currently offering on selected boots – then make certain you let your tax preparer know about the deal you got on the classy shoes you have on.  It will clearly show that you are not only a good client but also a frugal shopper with an eye for high quality as well as for good deals and bargains.  And your tax advisor might appreciate your heads up if they are trying to think of a really stylish present to get their significant other for the holidays.

 

You can also take advantage of compiling your tax records early to begin preparing your budget for the coming year.  By reviewing your expenditures and costs for the past year you can have a fair estimate of how next year’s expenses will look.  And you will also be able to identify where you spent money wastefully or where you would have benefitted from looking for more deals like those you found using Groupon coupons and promo codes. Finally, by having all the materials ready and on hand you can eliminate that last-minute hassle that always seems to accompany the tax preparation process and that results in high stress.  Instead you are prepared in advance and are ready for any questions or issues that may arise.  And you can breathe a sigh of relief knowing this particular period of stress has been properly handled.

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How to Spend, Save, or Stretch Your Tax Refund

How to Spend, Save, or Stretch Your Tax Refund

Come April, everyone’s thoughts stray not only to spring weather but also to what to do with your tax refund. Whether to spend, save or try to stretch your tax refund is often a personal decision that you should make after weighing all of your options. We’ve compiled a few tips to help you with whatever your decision is.

Reduce your debts to “pay it forward” to yourself

Start by thinking of your tax refund less as a gift and more as money that the government set aside for you throughout the year. The “free money” mindset is why many people end up wasting their tax refund money instead of doing something useful with it. If you have any debts, use your tax refund to pay a chunk of them! Also consider paying your bills forward a few months. Imagine what you could do monthly with that money! Often a large tax refund is a sign that you have had too much withheld from your paychecks during the rest of the year. Although a smaller tax refund isn’t all that exciting, it’s a good sign that you’re doing something right the other 11 months out of the year. Your refund is based on the number of exemptions you take on the W-4 that you fill out with your employer once you start a new job. However, you can always change that! If your marital status changes or if you have a baby, check your W-4 to make sure it’s as accurate as it can be. You can also check online for a W-4 calculator that will help you estimate which scenario will work best for you. Grab your paycheck and your last tax return and check one out!

Splurge a little!

Even in the best case scenario, sometimes it’s unrealistic to think that you won’t splurge a little if you get a large tax refund. That’s ok! If you know you’re getting a large amount of money back, plan to set some of that aside for pleasure. Go on a small vacation. Buy a new television or a new pair of shoes! Then set the rest of that money aside in an emergency fund (it’s recommended to have 3 – 6 months expenses set aside)  or to help pay off those high interest rate credit card loans. You’ll feel better about being responsible with the rest of it if you allow yourself a portion to spend on what you really want. It’s good psychology. In the end, it is your money. You worked for it. Allowing yourself to spend a portion of it as a thank you to yourself for all your hard work can help motivate you to do the responsible thing moving forward.

If you’re receiving a sizeable tax refund, make sure you budget for it. Splurging a little and then using the remainder to pay down bills and save for the future is the best plan of action, even if it isn’t the most fun! Please check www.taxreturn247.com.au for additional tips, tricks and information.

 

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In and Out -Will the Trustee Take My Tax Refund?

In and Out -Will the Trustee Take My Tax Refund?

During the course of your bankruptcy, the issue of your tax refund may arise. Everyone wants to keep their refund, especially if the amount is considerable. However, the trustee assigned to your case may request that you turn over your refund. Whether you can keep your refund depends on several factors that you should discuss with your attorney. Any payable, but not yet received, income (including tax refunds) is considered part of your ‘Bankruptcy Estate’.

Your tax refund may be part of your estate if it is sitting in a bank account, unspent.

One factor that will be considered by the trustee is the size of your refund. The trustee may view those funds as money to be used to satisfy some or all of your creditors’ claims. If your refund is smaller-perhaps in the $500 range-it probably will not be worth the trustee’s time take that refund, because distributing those funds to each of your creditors would be more expensive than the amount of the tax refund.

Depending on your specific circumstances and whether you are looking to file in the future or have already filed for Chapter 7, or Chapter 13 bankruptcy, you may not be able to hold onto your tax refund even if you received it before filing. However, there are always exceptions to the rule.

A Few Exceptions

Some of these exceptions will indicate that all refunds should become part of the bankruptcy estate. In many cases, filers are allowed to keep a portion of their refund. How much a person can keep depends on numerous factors which include whether any exceptions or exemptions apply and when the bankruptcy was filed.

A way of calculating the portion of the refund that is due to the trustee is this: Generally, the part of a tax refund that belongs to the bankruptcy estate is the part that was accrued before the date of filing, in proportion to the entire refund.

If you receive your tax refund before you file bankruptcy and then spend it wisely (keep the receipts – the trustee may ask for them!) then you will have averted the problem.

Best Ways to Keep Your Refund

  • Spending your refund to cover your rent, mortgage, car payment, or your bankruptcy attorney fee is probably the safest way to use your tax refund.
  • Another course of action for filers is to avoid the problem altogether by simply correcting your W-4 withholdings for the year so that little or no refund will be due.

Since every case is different, you should never make any assumptions about whether or not you will be able to keep your tax refund. This is true whether you have filed or plan to file for bankruptcy in the near future. Whether you have already filed or are planning to file in the future, you should consider the benefits of discussing your case with your lawyer ahead of time.

Do I have to turn over my income tax refund to the trustee in my Bankruptcy? Check more www.taxreturn247.com.au

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3 Reasons Why the IRS Audits Income Tax Returns – Will Yours Be On the List?

3 Reasons Why the IRS Audits Income Tax Returns – Will Yours Be On the List?

Tax returns have become hated and something most people really struggle with. It’s not hard to understand why they’re so disliked. They are often difficult to understand and if you don’t get them perfect, you run the risk of being audited. This is truly one of the most feared elements for any business and more and more run the risk of being audited too. The following are just three simple reasons as to why the Australian IRS may audit you and your tax returns.

Inconsistencies in What Information You Provide

One of the biggest reasons for someone to be audited is through incorrect or inconsistent data. If you say one thing on one section and then another relative section say something totally different then it’s going to cause some concern. Also visit our article link:http://quickbooks.intuit.com/r/taxes/8-common-tax-audit-triggers/ here. Incorrect information can always cause suspicion amongst IRS professionals and that is why you always have to double check what you provide. If you end up providing them with incorrect or missing information then there are going to be a few problems. When you submit your tax return, you always need to look into what you provide even if you think it’s accurate.

Are Late In Filing

If you own a business, you have certain deadlines to make and if you miss them then you have a few problems on your hands. Worse still, if you don’t look at filing for an extension to file the necessary tax returns then you are going to raise a flag or two. It might seem a little strange because might think it’s not too bad to miss the deadline by a day or two, but it is for most corporations and businesses. That is why it is wise to always file well before the deadline so that everything can be in good order. If there are any issues or you think you’ll miss the deadline, file for an extension. Most will find they are audited because of late submissions.

3 Reasons Why the IRS Audits Income Tax Returns – Will Yours Be On the List?

Have a Long List of Unbelievable Deductions and Expenses

Most people file a few different types of deductable expenses on their returns and that isn’t bad, but if you try to get a bigger deduction by adding dozens of expenses, it’s going to raise a red flag. If you need to know more you should click this site here. Having one or two expenses is one thing but having twenty is something entirely different and it’s something the Australian government will want to look into further. You might think these are all genuine, but it can raise an eyebrow or two amongst officials, especially if you add expenses that aren’t really legitimate ones. If you are looking at deductions and adding a few to your tax return, you must be very careful what you add. There should be only legitimate and eligible deductions; you might avoid an audit if you’re genuine about every piece of information.

Keep Good Order and Always Be Prepared

It would be so easy to say that you are always in the right and that nothing will go wrong. Unfortunately, that isn’t always the case as things can easily take a turn for the worse. You shouldn’t have too much to worry about as long as you have everything in order. Be prepared and you’ll hopefully be able to avoid being audited. Submit your tax returns on time and keep your info in good order.

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