Phoenix Arizona CPA | Arizona Tax Accountant | Arizona Income Tax

It is every company, business and income earning individuals wish to pay lesser tax on the income earned.  However, paying lesser tax and tax evasion is separated by a thin border, which can be costly if not dealt with carefully.

Big organization engaged experienced knowledgeable tax professionals to work out the company tax liability. These professionals take into account all deductible expenses, capital allowances, etc, in a legitimate manner to achieve their objective, pay lesser tax. On top of it, the organization employs accounting professional to maintain the transaction records of the business, detailing every sales, purchases and expenses. These records enable the auditors and tax professionals to accomplish their objective. Read the rest of this entry »

Are you ready for a productive Tax Planning Season with knowledge and understanding of how to plan for your Tax Preparation in January? With a little planning this fall, you too can save money on your taxes in the Spring.

Recently, I had a tax client come by after she received a letter from IRS. She was understandably concerned, but her manner was rude, full of entitlement, and demanding. I responded to her rude demands with polite and courteous answers, and spent several hours on the phone researching her problem. On several occasions during the process of answering her questions, I had to call and ask for more information, each time she got ruder and more demanding. Read the rest of this entry »

Knowing income tax law is not enough. In order to offer value to taxpayers, tax law knowledge must be combined with effective tax planning strategies in order to yield maximum benefit. What would you do if you owned a landscaping business with the upcoming facts and circumstances? I will tell what I would do.

While having a quiet night out at a local restaurant, listening to music from a local band, I am approached by a friend that has just started a landscaping business. He is married and has one young daughter, age twelve. He will have gross receipts of $48,000 and will receive a 1099 for his efforts. His first question to me is how he should go about making quarterly estimated tax payments to cover both income tax expense and social security tax (SE tax). My response to him was; “hold on there young fellow. Let’s have a discussion of the facts and circumstances before we begin”. Read the rest of this entry »

As the tax filing season draws near tension fills the air and many people tend to get stressed. If you plan your tax filing exercise you can undertake filing of tax returns without getting into a flap.

To ease the process of filing tax returns H & R Block have designed a check list that will not just save time but ensure that you make no mistakes in filling out the tax forms. Keep the list on your PC and use it through the year to stay organized.

To breeze through the tax form filling and filing you need: Read the rest of this entry »

If you sell on eBay, or if you have an online business, listen up.  There are several tax issues in the news right now that could have a huge impact on the way you do business.

The first issue, and the one that is getting the most attention, is Congress’s push to get the IRS to force brokers (companies such as eBay and Amazon) to report personal data on their customers.

In this proposal, brokers (such as Amazon and eBay) would be required to report names, addresses, and gross proceeds of each customer that completes more than 100 separate transactions and generates more than $5,000 in gross proceeds each year. Read the rest of this entry »

Every year I always get asked at least a dozen times the same thing…”Who must file an income tax return?” The answer is almost always the same…”you!”. But, there are a few who are not required to file, the I.R.S. recently responded with this response.

2.1 Filing Requirements/Status/Dependents/Exemptions: Filing Requirements
How much does a student have to make before he or she has to file an income tax return?
If you are an unmarried dependent, you must file a tax return if your earned and/or unearned income exceeds certain limits. To find these limits refer to Filing Requirements for Dependents in Publication 501, Exemption, Standard Deduction and Filing Information. If part of your earned income is from tips, see Tax Topic 402, Tips. Read the rest of this entry »

There are three types of tax that you will be responsible for when you start your eBay business.  They are 1) sales and use tax, 2) payroll tax and 3) income tax.

Sales and use tax - Just about every state, and many cities and other local authorities, imposes a sales tax on items sold.  Each state has different rules, so it’s important to find out the rules in your state and city.  As a seller, you are responsible for collecting and remitting the proper sales tax to the state you live in.  You are also responsible for preparing and submitting a report detailing the amount of your sales and the sales tax collected. Read the rest of this entry »

If your business has employees, it’s going to have to account for benefits and payroll. Let’s explore the term ‘payroll’ and look at some things that are included in benefits and payroll accounting.

Within payroll accounting there are specific things that must be accounted for. These include such things as salaries, wages, commissions and bonuses paid to employees, overtime pay and various payroll costs and taxes.

Payroll costs and taxes are made up of Medicare, social security, state and federal income tax, unemployment tax and worker compensation insurance. There are also paid benefits extended to employees such as vacations, holidays, sick days, health insurance, profit-sharing plans and retirement plans. Read the rest of this entry »

If you itemize your deductions, you may be in for a windfall on this years tax. Yep, Congress has renewed the optional sales tax deduction. Of course, you have to figure it out.

If you itemize your tax deductions, you already know that you can claim a deduction for the total state income taxes you paid during the year. Depending on your state, that can be a very large tax deduction. But what if you live in a state that doesn’t collect income taxes? For the last couple of years, you could claim a deduction for the total state and local sales tax you paid on your purchases. In fact, you can do this regardless of whether you live in a state that collects income tax or not. Read the rest of this entry »

Are you looking for some REAL information about taxes when you’re self employed, or have your own small business? Would you like to find Real tax help when you need it?

Even the most experienced small business person needs a little help when it’s tax time. If you are self employed or own your own small business you must pay 15 percent tax on your net profit. Which means… After you have subtracted your total business expenses from your total business income you must pay 15 tax on the leftover amount. Read the rest of this entry »