Updated Links

Hi friends! I updated the links on the right side of this page. I included two pages that many people have been asking about- "fees" and "services." Check it out, and as always, email if you have any questions.

ebtaxservices@gmail.com

Questions?

Usually when people find out I prepare tax returns, I get all kinds of questions- Eric, can I deduct this? That? Should I incorporate?

Usually, I get a lot of the same questions over and over. Therefore, every now and then I'll post some answers, some one word answers, and sometimes I'll use scenarios to answer your questions.

So, if you got a question, write me an email. If you ask me in person, don't expect a straight answer on the spot. The truth is, tax consultants need a lot more information before they can give you a sufficient answer.

In the meantime, I'll just do a Q&A here with many of the questions I've been asked before. Hope it helps!

It's October 15!!

... leave me alone!

;-)

Starting a business?

Ah! So, you've got a great idea, and now you want to turn it into money. Great! But before you take a leap, don't forget to count the cost. How's your budget? Do you have enough capital to get your business running for the long term? Are you properly registered with the State? Are your taxes paid on time?

... yeah, I bet you weren't really thinking about those variables when you were calculating how much money you'd be making on the back of a napkin.

But that's okay... leave all the accounting stuff to us, and get back to what you can do best- turning your bright ideas into money. Majority of successful business have as a part of their team a good accountant to throw this burden on.

Here's some links that will help you get your business started. Come to us if you need any help or would like some accounting services.

Planning your business step by step:
http://www.sba.gov/smallbusinessplanner/index.html

How the IRS views your business:
http://www.irs.gov/businesses/small/article/0,,id=99336,00.html

October 15!

It's crunch time.

Deadline for those who filed for an extension is right around the corner.

Remember, if you have tax due, I would recommend paying whatever you can. Many people tell me they do not have the money to pay their taxes. If so, you have two problems to tackle: 1) paying now, and 2) planning for next year. There's no easy solution for both problems, but we're here to help you get back on track.

Got kids? Then get a credit...

The government wants to look benevolent by giving families with kids a little tax relief. Generally, you claim $1,000 credit for each kid under 17 ("minor"). However there are limitations. If your AGI is too high (exceeds the $55,000, $75,000, or $110,000 limits), the government figures you have enough money to take care of your kids for now, and your credit will be phased out.

All right! Now go have some kids. And kick the kids that are over 18 out the house.

Do your "tax chores"

If you have not yet, it's time to start thinking and preparing for next year's tax filing. I found a good article written by the people at Motley Fool (a fun financial website) with some good tips on the big four categories...

Organize. Designate a folder or envelope now to hold tax documentation that you'll be collecting throughout the year. Use it to collect receipts for donations, medical bills, or anything else that might reap a deduction on next year's tax forms. You might also use a folder like this to collect stock-sale confirmations or any other paperwork related to investments in taxable accounts. If this is the only thing you do, it will make your life a lot easier, and it will probably take less than a minute.

If you want to really set yourself up nicely for tax season, you can start a slightly more complex filing system and sort your tax paperwork instantly. This one might take you two minutes, instead of one.

Anticipate. Do you have any major life changes on the horizon? Getting married? Having a baby? Sending your oldest to college? I'm sure you've still got your tax forms lying around somewhere, or the software installed on the computer. Now's the time to play with the program or have a quick chat with your professional tax preparer to see how that will affect next year's bill.

Adjust. If you wrote the IRS a big check, or you expect to get a hefty refund, consider adjusting the amount of tax withheld from your paycheck to bring things closer to balance. The IRS's own publication, or one of the Internet's many withholding-tax calculators, can help you with this task. Just file some simple paperwork, and you're done. You'll have reclaimed your interest-free loan from Uncle Sam or avoided writing a painful check a year from now.

Shelter. Take a look at the last line on the first page of your 1040 form (or the line marked "adjusted gross income," if you're not using the regular 1040). We all know you really want to see your income go up, but for tax purposes, you want to see the number on that line go down. Ask yourself whether you've done everything you can to hide your money (legally, of course) from the tax man.

Commit now to depositing more money into your retirement accounts, college savings plans, or other tax-advantaged accounts. Ask yourself, too, whether you're holding investments in the appropriate place. If you're saving for retirement, as most everyone should be, you can get much more detailed advice about where to stash your cash and minimize your tax hit by checking out the Fool's Rule Your Retirement newsletter, [or, you live in Hawaii, check out Ron's long term financial website.]

Deduct. Remember all those questions your accountant or your tax software asked? They're not just trying to pry into your personal life. (You're no Paris Hilton anyway.) If you have expenses this year in any of the categories covered in those interviews, you might be eligible for a tax deduction. Look back over the form to jog your memory a little bit. As you see those items cross your path in the next year, toss the paperwork into your new tax-information folder, and you can review your eligibility next year.

Then go outside, enjoy the weather, cheer your hometown baseball team, and do it all with the happy thought that next April will be a little bit easier.