Services, Taxes & Tips
Business Services Customized to YOUR Business and Personal Needs!
Provide us with your monthly check register, bank statement and sales information.
• Reconcile your bank statement.
• Reconcile your checkbook.
• Prepare your sales tax report<
• Prepare financial statements
• Update your depreciation schedule
• Review financial reports with you
Additional Monthly Services
• Accounts Receivable
• Accounts Payable
• Check Preparation
• Direct Deposit
• Federal Deposits
• State Deposits
• WI “My Tax Account” Reporting
• Quarterly Reporting
Each Pay Period
• Payroll checks
• Employee earnings statement
• Payroll check register
• WT-4 New Hire Submission
• Federal and State deposit coupons prepared as required
• Federal 941 reports
• State unemployment reports
• 940 Federal unemployment forms
• 943 Federal Agricultural wage
We are available throughout the year to assist with your tax questions. Tax Planning and Consultation available monthly, quarterly or annually. Federal and State (all) Tax Preparation available for:
Tax planning and consultation available monthly, quarterly and annually.
Fees based on time and materials.
• Quickbooks Consulting
• Personalized Forms
• Loan Packages Prepared
• Personal Financial Statement
• Tax Planning
• Workman’s Compensation Audits
• WT-4 Submission
• QuickBooks Set-up & Consults
• Federal Employer ID Application
• Non Profit Application
• State Business Registration
• Corporate Registration
No one likes to receive a letter in the mail from the IRS. The assumption is that if you aren’t expecting a refund of some sort, it can’t be good news. Don’t worry. Often there is no reason to panic. More importantly, don’t make matters worse by ignoring the notice and hoping it will go away.
If you receive a notice from the IRS claiming that you may owe additional tax, don’t assume that it is correct and automatically pay the amount shown. Many notices just require you to give the IRS additional information to show why you do not owe the additional taxes or penalties. If something was omitted from your return and you are required to pay additional tax, do so right away. In any event, contact us as soon as you receive a notice from the IRS so we can quickly resolve the issue.
• Up to $2,500 of interest you paid on a student loan is deductible if your income is below $65,000 if single ($135,000 for joint filers).
• Beginning in 2019, the penalty under the Affordable Care Act for failing to have minimum essential health care coverage is suspended.
• In 2018, the estate and gift tax exemption has been increased to roughly $11.2 million ($22.4 million for married couples).
• Deductions for personal exemptions for yourself, a spouse and any dependents are no longer allowed.
• Charitable contributions of cash to certain charities are limited to 60% of your income.
• Once you convert a regular IRA contribution to a Roth IRA, it can no longer be converted back into a regular IRA contribution. In other words, you can no longer undo a Roth conversion.
• State and local income tax, property tax and sales tax are limited to an aggregate $10,000 deduction.
• In 2018, medical expenses are allowed as an itemized deduction to the extent they exceed 7.5% of adjusted gross income for all taxpayers.
• The deduction for job-related moving expenses and the exclusion for moving expense reimbursements have been eliminated, except for certain military personnel.
• For post-2018 divorce decrees and separation agreements, alimony will not be deductible by the paying spouse and will not be taxable to the receiving spouse.
Renting your home
A hidden source of tax-free income
Have you ever thought of your home as a source of untapped income? Consider this: Your home is located in an area that has a lot of tourism or large events that attract many people. Sometimes hotel space is limited or fills quickly. You prefer to be out of town while these events are taking place. If you rent your home for less than 15 days during the year, you just earned some tax-free income.
If you itemize deductions, your mortgage interest and real estate taxes are deducted on your Schedule A. None of the income you collect is taxable, nor is it reported on your tax return. The key to keeping the income tax-free is the number of days you rent your home. You must keep it to less than 15 days during the year. If you rent your home for 15 days or more, tax reporting becomes a bit more complex. Since you also use your home for personal purposes—meaning you live there—you must divide your expenses between the rental use and the personal use based on the number of days used for each purpose. If, after you reduce your rental income by allowed expenses, you have a profit, that profit is taxable. Deductions are limited to rental income.
If you are considering renting your home to others, regardless of the number of days, consult with me first so we can discuss all potential tax consequences.
Children and their money
What you should know about kiddie tax
Is your child the next Warren Buffet? As a young boy at the age of 11, Warren Buffet invested the money he earned delivering newspapers into some farmland. He continued to invest and reinvest his money; now he is worth an estimated $85 billion. His parents didn’t have to worry about kiddie tax, but you might.
Special rules apply to the unearned income of certain children. Generally, your child is subject to kiddie tax if the following apply:
• The child is under age 19 by the close of the tax year, or is a full-time student under age 24 with earned income less than half of his or her support;
• The child’s unearned income exceeds a certain inflation-adjusted amount ($2,100 for 2018); and
• The child isn’t married filing a joint return.
Unearned income for purposes of the kiddie tax rules is income other than amounts received as compensation for personal services actually rendered (wages, etc.) and distributions from qualified disability trusts.
Saving for college
Qualified tuition plans provide options
Many of you are already aware that contributing to a qualified tuition plan, commonly referred to as a 529 plan, can be a tax-free way to save for your child’s college education. But did you know that the Tax Cuts and Jobs Act added a provision that also allows you to use a 529 plan to pay for the enrollment costs for your child to attend an elementary or secondary public, private or religious school?
There is one catch, however. While distributions from a 529 plan for college expenses are unlimited provided they are used to pay for qualified educational expenses, distributions for elementary or secondary education expenses are limited to $10,000 per year per designated beneficiary.