Do you find yourself groaning every time you check out at the grocery store? Are you tired of it costing an arm and a leg to fill up your car with gas? Americans are feeling the effects of rising prices for goods and services across all industries. Although inflation has been in the back of everyone’s mind, you may catch a little break this tax season.

Due to the rising inflation rate, the Internal Revenue Service raised income tax brackets’ thresholds in 2023. Along with the standard deduction increasing to $27,700 for couples filing together and $13,850 for single taxpayers, there are additional adjustments to the alternative minimum tax, estate tax exemption, earned income tax credit, and flexible spending account limits.

What does this mean for taxpayers? The changes to the 2023 tax brackets may result in you having a smaller tax bill.

Tax changes don’t need to be stressful or confusing. AA Tax & Accounting Services, LLC is here to walk you through the tax bracket changes impacting your 2023 taxes so you can feel confident as we head into tax season.

2023 Tax Bracket Changes

In the United States, taxpayers face higher rates as they increase their income. These rates remain unchanged for 2023. However, the income taxed at each of these rates is being adjusted.

This tax season, a single filer with a taxable income of $90,000 will have a rate of 22%, which has been reduced from the previous year’s rate of 24%. Assuming no changes to their income level, this results in tax savings.

Here’s a breakdown of the math behind that. At quick glance, you may be wondering if your tax bill in 2022 took 24% flat off the top. In short, it did not. Using marginal tax rates, only a portion of your income was taxed at the 24% rate. The rest was taxed at the 10%, 12%, and 22% rates. The same marginal tax rates apply this year as well.

Looking at a single filer earning $90,000 annually in 2023, the first $11,000 of your income is taxed at the 10% rate for $1,100 of tax. The next $33,725 of income (the amount from $11,001 to $44,725) is taxed at the 12% rate for an additional $4,047 of tax.

After that, the next $45,275 of your income (from $44,726 to $95,375) is taxed at the 22% rate for $9,960 of tax.

Whereas in 2022, there would have also been a portion of your income that would be taxed at the 24% rate. When you add it all up, your total 2023 tax is $15,107 — which is $4,693 less than if you were taxed your income by a flat 22% rate.

When filing your taxes, you will not be required to take any special steps to take advantage of the adjusted tax brackets. They will be automatically applied based on your annual income.

Tax Consulting Services in Cedar City, Utah

While everything is getting more expensive with inflation rates, taxpayers may be able to catch a break this tax season with a lower tax bill. If you are still determining how the adjustments to tax brackets are going to impact you and your filing status in 2023, we can help.

If you’d like to feel confident in how these tax bracket changes affect your taxes, we recommend consulting certified public accountants like AA Tax & Accounting Services when making any decisions or changes to your tax return.

From one-time tax consulting services to ongoing consulting services, our tax consultants work with many clients as both their tax advisors and tax preparer — ensuring that your tax team understands your taxes backward and forwards.

You can have peace of mind knowing that our team has the experience to provide you with the most effective strategies for maximizing deductions and tax credits with our tax consulting services.

The AA Tax & Accounting Services team can help you execute the right tax strategies to save you money come tax season. Contact us to schedule an appointment.

As a small business owner, taxes are one of the most significant expenses you’ll have to deal with each year.

While it may be unavoidable, there are several strategies you can employ to reduce your tax bill and save money. Let’s look at some of the most effective and clever ones.

Take Advantage of Tax Deductions

A tax deduction is an expense that can be deducted from your taxable income, reducing the amount of income subject to taxation.

For example, if you spend money on advertising or travel for business, you can deduct those expenses from your taxable income.

Keep careful and detailed records so you can take advantage of all the tax deductions available to small businesses and maximize them to minimize your tax bill. This may be the most important thing you can do. You may be surprised how much your deductions add up to at the end of every year.

By keeping detailed records, you won’t ever have to guess or forget important information that may save you money.

Utilize Retirement Accounts

Another way to reduce your taxable income is by contributing to a retirement account such as an IRA or 401(k).

These accounts allow you to set aside pre-tax dollars for retirement while reducing your current taxable income. This means that while you’re saving for retirement, you’ll also have less money subjected to taxation in the present.

Depending on the type of account and plan you choose, there will be limits on how much money you can contribute each year. However, even small contributions can lead to significant savings over time.

Take Advantage of Tax Credits

A tax credit is an amount of money subtracted directly from the total amount of taxes due.
Unlike deductions which reduce taxable income before taxes are calculated, credits reduce taxes after they have been calculated.

Many tax credits are available for small business owners, including credits for research and development costs, energy efficiency improvements in buildings or equipment owned by the company, hiring employees from certain disadvantaged groups, and more.

Make sure to research all available credits, so you can take advantage of all opportunities to save money.

Pay for Health Insurance

Health insurance costs can be an enormous burden, and it’s even more difficult if you’re self-employed or don’t have an employer-sponsored plan.

Fortunately, the IRS offers many advantages for those who are their own boss and pay for their insurance. With these benefits, self-employed workers can save substantial money that would otherwise go toward paying taxes.

For example, if you are self-employed and pay for your health insurance, you can take advantage of the Self-Employed Health Insurance Deduction.

This means that all premiums—including coverage for yourself, your spouse, and your dependents—are eligible for a tax deduction. Additionally, certain medical expenses may be tax-deductible as well.

Contact AA Tax and Accounting Services for Consultation

Many individuals and small businesses are looking for ways to reduce their taxes legally, but navigating the complex US tax code can quickly become daunting. This is where AA Tax and Accounting Services come in.

We provide full-service consultation to individual taxpayers and small businesses to help lower their taxable income and thus reduce their tax bills.

To start the process, we’ll review your last two years of financial statements, including any existing investments or deductions available that can help optimize your tax situation.

We can suggest strategies such as deferring income or shifting assets to take advantage of current laws and develop creative solutions tailored specifically to your needs.

We also keep up with changing regulations, identifying new options for reducing liabilities or optimizing deductions. Contact AA Tax and Accounting Services today for an initial consultation if you want professional assistance in reducing your tax bill.

Our team of experienced accountants will work with you every step of the way to ensure that you save money this season — and many more in the future.

Conclusion

Reducing your tax bill as a small business owner doesn’t have to be complicated or stressful—with some strategic planning and savvy maneuvering, it’s possible to significantly lower your taxes without breaking any laws.

Taking advantage of deductions, utilizing retirement accounts wisely, and taking advantage of applicable tax credits are just a few ways you can do this responsibly and effectively. Spend some time researching every tactic to get the most out of every dollar spent on taxes. You’ll be glad that you took the time when filing season rolls around! And don’t forget to let AA Tax and Accounting help.

It’s that time of year again. Whether you are a business owner or an individual, filing your taxes can be a daunting and stressful task. To help make the process easier, here are five year-end tax tips that can help you save money this tax season.

Save Money on Taxes With a Year-end Deferral Strategy

One of the best ways to save money on taxes is to defer your income until after the new year. This means delaying income until January 1st to reduce your taxable income for the current year.

This strategy works best for business owners who can easily delay invoicing their clients until the beginning of the new year and then collect payment in January instead of December.

Charitable Donations and Office Supplies Could Save You Big

It may sound too good to be true, but you could save some serious money before the end of the year if you are strategic about allocating your resources.

If you still need to do so, consider taking some last-minute deductions before the clock runs out – this could include making charitable donations or investing in essential business expenses.

Do you know those new pens or that stack of poster board for upcoming marketing campaigns? Those can be deductible expenses that bring down your total liability when filing taxes come springtime.

Keep careful records and receipts of every penny spent, ensuring all is properly documented when tax time sneaks up on us. For now, get ahead of the game and feel good doing by helping your favorite charity and giving yourself the best chance to make a financial impact.

It’s always possible to do good and reap the tax benefits simultaneously! To learn more about how charity initiatives and office investments can help reduce your taxable income, we suggest speaking with a tax expert, such as AA Tax and Accounting Service.

Sell Off Your Losers Before Taxes Skyrocket

Taking a proactive approach to managing your investments can make all the difference come tax time. If you’ve held onto stocks that have lost value since last year, now is the time to consider selling off those “losers” that you feel have little or no chance of regaining their value.

Doing so can help you offset potential taxable gains from earlier in 2022 and pave the way for a lower overall capital gains tax liability when the time comes to file. Plus, it could create an opportunity to invest in new positions that could capture market upside as we move into 2023.

Whatever you decide, taking control of your losses before December 31st will ensure that you’re in a better financial position come tax season.

401K, IRA, and Roth IRA Contributions Can Save You Money on Taxes

Contributing to your retirement accounts, such as 401Ks, IRAs, and Roth IRAs – is one of the best ways to save on taxes and save money. Not only will this increase your savings for when you retire later on down the road, but you’ll also benefit from potential tax savings next spring when it’s time for tax season.

And because you’re contributing sooner rather than later, there’s more time for compound interest to work in your favor!

Conclusion

Many strategies can help taxpayers save money during tax season – from deferring income to taking last-minute deductions.

Consult a qualified accountant or financial advisor to determine which strategies work best for your unique situation.

Need help with taxes?

Tax season is quickly approaching, and while it may be easy to put it off until the last minute, you’ll benefit immensely if you start planning now.

Changing regulations due to tax reform laws means that staying on top of your taxes is more critical than ever. You need help to ensure that you remain compliant and get the maximum amount of deductions for your filing.

That’s why you can start preparing for 2022 taxes with knowledgeable professionals who will provide personalized guidance by visiting AA Tax and Accounting Service. Our helpful staff can explain any changes to tax regulations and answer questions as they arise.

Whether your needs are simple or complex, AA Tax and Accounting Service is here to ensure you’re ready for the 2022 tax season. Don’t wait until the last minute—take control now!

Visit AA Tax and Accounting Service for all your 2022 tax preparation need today.

To succeed in the long run, you must understand how to manage your finances if you’re a small business owner. This includes creating a cash flow statement, understanding your expenses and revenue, and more. We know this can be confusing and overwhelming.

This article will discuss some of the most common financial issues that small business owners face. We’ll also provide tips on overcoming these challenges so you can have peace of mind–and profitability–while running your business.

Cash Flow Issues

As a small business owner, you’re likely no stranger to financial issues. One of the most common problems you may face is cash flow issues. Simply put, cash flow is the money coming in and out of your business.

When there’s more money going out than coming in, it can be challenging to keep your business afloat. You can do a few things to manage your cash flow more effectively.

• Take a close look at your expenses and see where you can cut back.
• Try to increase revenue by offering new products or services or increasing your prices.
• Make sure you’re staying on top of your invoices and collections.

By taking these steps, you can help ensure that your business has the cash flow it needs to thrive.

Expenses vs. Revenue

Your expenses are the costs of running your business, such as rent, utilities, inventory, and payroll. Your revenue, on the other hand, is the money that you bring in through sales.

It’s important to track both your expenses and your revenue carefully so that you can stay profitable. Otherwise, you risk running into financial trouble down the road.

If you’re unsure where to start, plenty of resources are available to help you better understand small business finances, including consultation with one of our professionals.

Managing Debt

According to a recent survey, managing debt is the most common financial issue that small business owners face. While debt can be a valuable tool for financing growth and expansion, it can also quickly become overwhelming.

If you struggle to keep up with your monthly payments, it may be time to reconsider your debt strategy. Here are a few tips for managing debt:

1. Make a budget: This may seem like an obvious step, but it’s one that many small business owners skip. By creating a budget, you’ll better understand where your money is going and where you can cut back.

2. Negotiate with creditors: If you’re struggling to make your monthly payments, reach out to your creditors and see if they’re willing to negotiate. You may be able to lower your interest rate or extend your repayment timeline.

3. Consolidate your loans: If you have multiple loans with different interest rates and repayment terms, consolidating them into one loan can help simplify your finances and save money.

4. Seek professional help: If you’re overwhelmed by debt, don’t hesitate to seek professional help. A financial advisor can help you create a plan to get out of debt and stay out of debt.

Tax Preparation and Filing

As a small business owner, you’re likely all too familiar with the most common financial issue small business owners face in tax preparation and filing.

Not only is tax preparation time-consuming. And if you’re not careful, you may end up owing more taxes than you can afford to pay.

The good news is that a professional tax and accounting advisor can help ease the burden of tax preparation and filing.

With a bit of planning and effort, you can take care of your taxes and avoid some of the financial stress that comes with being a small business owner.

Visit AA Tax & Accounting Services To Discuss Your Business Finances

At AA Tax & Accounting Services, we understand the unique challenges that small business owners face. We offer a variety of services to help you manage your finances and meet your tax obligations.

Contact us today to schedule a consultation. We’ll be happy to answer any questions and help you find the right solutions for you.

Real estate investing is a buzzword that has started to get thrown around quite often — and for a good reason. When real estate investing is done right, it can be financially rewarding and allow you to fund your retirement account steadily.

Unlike stocks, which can be pretty volatile, real estate offers more stability, allowing you to grow your investments over time consistently.

Investing in real estate is a reliable way to build and sustain long-term wealth, which may allow you to retire early and continue funding your retirement after the fact. If you’re looking to get started in real estate investing so you can retire on your timeline, or you have a varied real estate portfolio and are looking for retirement advice, you’ve come to the right place.

Follow along as AA Tax & Accounting Services, LLC discusses real estate investing and navigating retirement.

Can I Fund My Retirement with Real Estate Investments?

Most people spend their days working to earn a living — allowing them to bring in cash for the here and now while also saving for their future. Knowing that you will be working day in and day out for the indefinite future can be extremely daunting, especially if you cannot put aside any money for your retirement each month. That’s why many people are intrigued by real estate investing.

Whether you want to invest in real estate as a side hustle or go all in and make it your main income stream, real estate can be an effective way to fund your retirement account. However, it isn’t as simple as buying a property and renting it out.

To be an effective real estate investor, you need to understand the market, have the capital to get in the game and have patience throughout the process (as it is a long-term game).

Benefits of Real Estate Investing in Retirement

As we mentioned, real estate investing is an excellent source of income to fund your retirement accounts. It’s also an effective method to bring in revenue during your retirement. Here are a few benefits of real estate investing in retirement.

Positive Cash Flow

During retirement, you rely on the money you previously set aside to fund your lifestyle. This can seem daunting if you don’t have any additional money coming in. Investing in real estate allows you to continue bringing in money month after month. On average, income yield from investment properties ranges from 6% to 8% annually.

Over time, as you continue gaining equity in your rental properties, the income you generate will be able to cover your mortgage, taxes, and fees — allowing you to net money each month, thus generating income in retirement.

Depreciation

As your rental properties age, you may experience depreciation. Depreciation reduces the value of your property, and as a result, you’ll be able to claim a lower property value and reduce your tax burden come tax season. The depreciation lowers your property’s value, reducing the taxes you owe on that property each year.

The lower your property taxes, the more income you can generate from renting it out. Plus, if the total depreciation amount ends up being higher than your rental income for the year, you can claim a tax loss.

1035 Exchange

Another tax benefit real estate investors can take advantage of is a 1035 Exchange. When selling a property, you must pay the Internal Revenue Service taxes on any profit earned from the sale and on any depreciation claimed over the years you owned the property.

These tax payments can be avoided if the sales profits are used to purchase another real estate investment property, which is an attractive tax benefit for many retirees interested in real estate investing.

Tax Consulting Services in Cedar City, Utah

If you’re hoping to retire soon and aren’t sure if real estate investing will be enough to fund your retirement, reach out to the AA Tax & Accounting Services team. We can help you navigate retirement planning and walk you through everything you need to know — considering your real estate investments.

The AA Tax & Accounting Services team is committed to helping you feel confident and happy to walk you through our real estate retirement planning tips. Contact us to schedule an appointment.

It’s alright to admit that you aren’t a fan of tax season. Unless you’re a tax-fiend like the AA Tax & Accounting Services, LLC team, you probably dread the tax deadline. That’s where we can help.

Filing a tax return can be complicated for business owners, including nonprofit organizations. If you own or manage a nonprofit organization, you may wonder if you are exempt from filing a tax return or what needs to be filed come tax season.

Although most tax-exempt nonprofit organizations do not pay federal taxes, nonprofit organizations are still required to file an IRS Form 990, an annual information return, with the Internal Revenue Service. This form demonstrates to the IRS that your nonprofit organization is fulfilling its purpose. Not sure where to get started with filing an IRS Form 990?

Keep reading as AA Tax & Accounting Services, LLC explains what an IRS Form 990 is and the various stipulations related to filing it.

What Is an IRS Form 990?

An IRS Form 990 is a reporting form that federally tax-exempt nonprofit organizations must file with the Internal Revenue Service each year. The form’s purpose is to provide the IRS with important information about the nonprofit that allows them to evaluate the organization’s mission, programs, and finances.

The Types of Form 990s

There are various types of Form 990s that a nonprofit may be required to fill out depending on the filing year and financial standing, including Form 990, 990-EZ, and 990-N. Here is a breakdown explaining when each type of Form 990 should be used based on assets, gross receipts, and public charity status:

• Form 990 can be filed by larger nonprofit organizations with gross receipts of more than $50,000.
• Form 990-EZ is a shorter version of Form 990 for nonprofit organizations with total receipts of $100,000 and fewer than $250,000 in assets.
• Form 990-N is required for small-scale nonprofits with gross receipts less than $50,000.

Is Filing a Form 990 Required?

Certain types of nonprofit organizations are exempt from filing an annual tax return, including:

• Branches of other nonprofits
• Government corporations
• State organizations providing essential services
• Small nonprofit organizations (yearly incomes of $25,000 or less)
• Nonprofits that have not yet applied for exemption from federal income tax
• State institutions providing essential services
• Churches and other faith-based organizations

When Is the IRS Form 990 Due?

Any nonprofit organization required to submit a Form 990 to the Internal Revenue Service must be submitted by the 15th day of the 5th month after the end of the organization’s taxable year.

If your nonprofit fails to file a Form 990 with the IRS three years in a row, the organization will lose its tax-exempt status with the Internal Revenue Service. There is no appeal process if this happens, and it would then require your nonprofit organization to pay income taxes, which is why your nonprofit must submit your Form 990 each tax season properly.

Tax Consulting for Nonprofit Organizations in Cedar City, Utah

Tax season is stressful for many businesses, including nonprofit organizations. We recommend consulting certified public accountants like AA Tax & Accounting Services for help navigating tax season so you can rest easy knowing your Form 990 has been submitted correctly.

For nonprofit tax services in the Cedar City, Utah, area, you want a team backed with years of experience in the nonprofit world. The AA Tax & Accounting Services team can help you execute the right tax strategies for your nonprofit organization. Contact us to schedule an appointment.

So you’ve decided you want to start a new business. There are few things as rewarding as becoming an entrepreneur and being your own boss. But if you haven’t created a business before, you will face many obstacles when starting out (and throughout the years).

You may be dealing with endless stress without the proper understanding of how to face these challenges. Instead, it can be beneficial for new business owners to hire a business consultant to help them navigate starting a new business.

An experienced business consultant can provide new businesses with insight and advice, helping them flourish in the early days and succeed. A business consultant can help you create a streamlined plan for improving, growing, or maintaining a company. Working with a team like AA Tax & Accounting Services, LLC will allow you to enhance your business operations and efficiency by addressing challenges and identifying goals.

Keep reading if you’re starting a new business in 2022 to learn how you can benefit from hiring a business consultant from the skilled team at AA Tax & Accounting Services, LLC.

How a Business Consultant Can Help

Although being your own boss is excellent, that doesn’t always mean you have all the knowledge and know-how needed to run a successful business — and it’s alright to admit that! If you’re starting a new business for the first time, getting it up and running as successfully as possible is essential. But you may be wary about bringing in an outside business consultant if you don’t fully understand how they can help.

Business consultants can provide value to many areas of your business, meeting your business-specific needs. While each business consultant’s services are going to vary slightly, you can expect most business consultants to help with the following:

• Identify challenges preventing business growth
• Observe the business with a big picture perspective
• Outline adjustments to improve operations and efficiencies
• Facilitate necessary changes to the business model
• Train up new and existing staff to new standards
• Offer out-of-the-box solutions to upscale the business
• Assist in business planning and creating new businesses
• Analyze budgets and provide solutions to increase profits
• Monitor the budget to ensure nothing is eating into profits
• Brainstorm additional revenue streams
• Provide industry knowledge and trends to be aware of
• Offer access to a network of partners

No business is the same, which means you don’t want a cookie-cutter business consultant. Instead, you want to work with a business consultant that will adjust their service offerings to match the needs of your new business.

Schedule a Call for a Business Consultation with AA Tax & Accounting Services

Don’t hesitate to ask for help if you’re starting a new business in 2022. At AA Tax & Accounting Services, LLC, our business consulting services are unmatched and will help your business get started from the group up.

From helping with the planning of your business, entity restructuring, accounting services, taxes, and helping with revenue recognition strategies, our accounting firm enables you to see what your business needs to move forward and grow.

As a business owner, it can be easy to fall into the rhythm of trying to tackle everything yourself. However, it is vital to recognize when it’s time to ask for help. Our Southern Utah accounting firm is perfect for entrepreneurs, small businesses, medium-sized companies, and corporations.

Call AA Tax & Accounting Services, LLC to schedule business consulting services with our team or to find out how our skilled team can assist you in starting a new business in 2022.

The pandemic has taken a financial toll on many of us. While some were laid off early in the pandemic, others may struggle with medical bills or the rising costs of goods and services. No matter what led you to this point, you may be considering a 401(k) loan to help ease the financial burden for your family.

But taking out a 401(k) loan isn’t as simple as depositing the money from your retirement account into your bank account. You need to be aware of significant tax consequences before committing to this type of loan.

Follow along as AA Tax & Accounting Services, LLC explains how a 401(k) loan works and the tax consequences of defaulting on the loan.

How a 401(k) Loan Works

If you need some extra cash and need it relatively quickly, you may be considering a 401(k) loan instead of a traditional one. Any money you borrow from your retirement savings account is tax-exempt if you pay the loan back in the stipulated period.

When borrowing from your 401(k), you can borrow the lesser of 50% of your 401(k) balance or $50,000. Any interest you pay over the specified period will return to your 401(k) account since you borrowed against your savings.

Once approved for the loan, you will be granted five years to pay back the money into your retirement savings account. If you leave your current job during this repayment period, you must pay the unpaid amount back by the tax due date. If you cannot make the repayments, you may be forced to default on your 401(k) loan — resulting in serious tax consequences.

For example, the Internal Revenue Service will consider you defaulting on your loan if you have missed multiple payments and have an outstanding balance of $10,000. If you fall within the 22% tax bracket, you must pay $2,200 in income taxes when filing your tax return.

Plus, if you are under 59 ½, you will owe an additional $1,000 in early withdrawal fees. You would owe the government $3,300 in taxes from your defaulted 401(k) loan.

401(k) Loan vs. 401(k) Withdrawal

For those considering a 401(k) loan, a 401(k) withdrawal may be more beneficial to your needs. However, a 401(k) withdrawal does come with taxes and penalties from the getgo. In most cases, an individual can early withdraw from their 401(k) at any time and for any reason. But to do this, you will pay a 10% penalty for withdrawing before the age of 59½. A few exceptions to the penalty include:

• Total and permanent disability
• Unreimbursed medical expenses
• Employee separated from service at age 55 or older
• Hardship distributions (medical or funeral expenses, eviction or foreclosure, etc.)

Should you take out a 401(k) loan? If you are confident that you will be able to make the payments over the next five years, then a 401(k) loan is a viable option for short-term funds with minimal tax consequences.

Tax Consulting Services in Cedar City, Utah

If you’re considering taking out a 401(k) loan, we recommend consulting certified public accountants like AA Tax & Accounting Services to understand all the tax consequences better. We have the experience to guide individuals on their retirement finances with our top-rated tax consulting services.

If you’re overwhelmed with the amount of information, the AA Tax & Accounting Services team can help navigate the retirement planning process. Contact us to schedule an appointment.

Are you experiencing deja vu when we mention filing your taxes? We know it feels like you just got done filing last year’s taxes, but next year’s tax season will be here before we know it. We realize that tax season can be stressful for many, which is why AA Tax & Accounting Services, LLC has compiled a list of helpful tips to prepare you for next year’s tax season.

To help alleviate some of the stress that comes with tax season, you can get ahead by taking on small tasks now to minimize the heavy lifting down the line. With our help, you can seamlessly navigate everything from tax credits and side hustle income, ensuring you maximize your tax return. Follow these tips for getting organized ahead of tax season so you can confidently prepare yourself for filing your tax return.

Have questions about the upcoming tax year? Turn to the trusted team at AA Tax & Accounting Services, who are happy to answer any questions you may have.

Tax Planning Strategies

Filing taxes can be complicated and stressful, but it doesn’t have to be. If you find yourself Googling questions like “Will I pay more taxes in 2022?” or “How do I prepare my taxes for 2022?” you’ve come to the right place. Use these tax planning strategies to help get ahead, so you don’t need to worry come tax season.

Perform Quarterly Tax Checks

A big reason filing taxes can seem daunting is that you may not look at your finances unless it is tax season. If the last time you looked at anything tax-related was a year ago, it’s time to change things! Instead, you should be taking time to review your finances regularly — quarterly is an excellent frequency to check-in.

By performing a quarterly or mid-year tax check, you can gauge how things are shaking out financially and make changes before you get to tax season. This allows you to make strategic decisions that may help save you money in the long run. If you aren’t sure where to get started with a quarterly tax check, a certified public accountant can help you get everything organized and keep a pulse on what’s going on.

Organize Tax Documents

To avoid running around your home frantically looking for important tax documents the day before tax returns are due, it is beneficial to have an organizational system in place. Filing your taxes requires you to keep track of several documents, ranging from a Form W-2 to a Form 1099. To ensure you can find everything you need come tax season, we recommend organizing a filing system to know where everything is when you need it.

This can be a physical filing cabinet where you store physical copies of your tax documents or a digital version stored (and backed up) on your computer.

Make Quarterly Estimated Tax Payments

If you bring in any additional income through a side hustle, you must pay taxes to the Internal Revenue Service. To avoid penalties, you must pay your taxes at regular intervals throughout the year. These estimated payments quarterly should be paid by the following deadlines:

• April 15 of the current year
• June 15 of the current year
• September 15 of the current year
• January 15 of the next year

Budgeting for income and self-employment tax will provide peace of mind knowing that you’re prepared for tax season and won’t be hit with an expensive tax bill — you may even get a refund.

Tax Consulting Services in Cedar City, Utah

From one-time tax consulting services to ongoing consulting services, our tax consultants work with clients as their tax advisors and preparers, ensuring that your tax team understands your taxes backward and forwards.

With our tax consulting services, you can have peace of mind knowing that our team has the experience to provide you with the most effective strategies for maximizing deductions and tax credits.

The AA Tax & Accounting Services team can help you execute the right tax strategies that will make filing your taxes more streamlined. Contact us to schedule an appointment.