Phoenix Arizona CPA | Arizona Tax Accountant | Arizona Income Tax

The turning of the new year is a time for a new beginning. Unfortunately, January is also the time when the tax season begins in earnest. 1099-MISC filings are on of the first things that come up.

1099 tax forms are known as information reporting forms. They are used to essentially collect data by the IRS on who is paying what to whom. If you received dividends during the year from a company, you’ll receive a 1099 for those dividends.

While there are different types of 1099s, the 1099-MISC is the form that gives the most people the most trouble. Read the rest of this entry »

When it comes to taxes, we all want to reduce the amount we have to pay in. All tax planning basically falls to looking at all of your options and keeping organized records throughout the year. With a little forethought, you can lower your taxes. There are some basic ways to minimize your taxes: reduce your income, increase your deductions and take advantage of tax credits. Read the rest of this entry »

When trying to qualify for the earned income tax credit you or your spouse must satisfy the age test if filing a joint tax return. You can not be a dependent of another taxpayer, and are not a qualifying child of another taxpayer.

If married and filing a joint tax return you must include your social security number on your IRS tax return and that of your spouse. Married couples who file separate returns are not eligible for the earned income credit. If you are married, but your spouse did not live in your home for the last six months of the year, you may be able to file as head of household and take the credit. If you are married and file a joint return, you meet this rule if at least one spouse works and has earned income. Read the rest of this entry »

You can lower your upcoming tax liability by making the following adjustments during the last quarter in the year. (2007)

1. This year, employers may put up to $15,500 of their pretax income into a 401(k). Next year and the next, you will learn about the new and upcoming tax laws during this same period of time.

2. Will you be celebrating your 50th birthday by the end of the year? You can give yourself an extra $5,000 per year. Contributions for IRA, Individual Retirement Accounts are capped at $4,000 this year and for people 50 or older, $5,000 a year. Read the rest of this entry »

A large number of workers are no longer provided with a work uniform; therefore, many individuals now have to buy their own work supplies. Work clothing that is required, but not paid for by an employer, can be listed as a tax deduction.

Itemizing individual purchases that are tax deducible may seem to be too complicated or take a long period of time, taking the time to itemize tax deductions, like a Self Employed Tax Deduction,  is worth it for many taxpayers. Read the rest of this entry »

For many people, life’s routines are perceived as a matter of endless work to earn that weekly or bi-weekly pay check to continue paying off monthly debts. At least, that’s how it feels. In reality, though, we work to earn money as a means to an end; basic living. Being able to eat, care for one’s family, maintain a home, and care for the needs of others are some of the most critical concerns of life. Unfortunately, even addressing these basics all require money, so we work long hours. Read the rest of this entry »

The IRS apart from being in charge of pursuing tax collection also takes care of enforcing the internal revenue laws and the internal revenue tax code.

It is always preferable that you are acquainted with at least the basics of Internal Revenue Tax Code since it is always helpful in the long run. The US tax code is known as the Internal Revenue Code of 1986. The Code is complex and sometimes difficult to understand for most of us. The complexity of the code stems from two major factors, firstly the code is generally amended often with new regulations and rules and secondly the use of the tax code for purposes which are not for raising revenue, for which it is meant for in the first place. Read the rest of this entry »

There’s no arguing that taxes on social security are incredibly high. As a matter of fact, according to current tax law, up to 85 percent of a person’s Social Security income is taxable when their total threshold income exceeds a set limit. What is threshold income?

Threshold income is the government’s formula for determining how much of a person’s Social Security is taxable. It is calculated by adding half of a person’s Social Security income with any other income they may have. The following threshold limits determine how much of a person’s Social Security is taxable: Read the rest of this entry »

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 »

Assets with finite lives lose their value over time. Land is the only asset that is not finite. For all other assets, firms depreciate their value, that is, they attribute the historical cost of the asset over its useful life (the number of years that the asset will be used).

At the end of each fiscal year, firms subtract depreciation claimed to that date from the historical cost of the asset, which results in the asset’s current book value or market value. At the end of the useful life of the asset, the portion left that has not been depreciated is the salvage value of the asset if it were to be sold. Read the rest of this entry »