Small Business Tax Advice

Forgetting to track reimbursable expenses

Many small-business owners pay for some business expenses with cash out of their own pocket or through a personal credit card. Thats fine. The mistake is if they dont track those costs and submit the expenses to their company for reimbursement. Also, the company must have an established plan that does deduct the expenses and enables reimbursements to be nontaxable to employees

But if you dont keep track of and substantiate the expenses, you will at best have a non-reimbursed business expense. These can be deducted on your personal tax return only to the extent that all of your miscellaneous Schedule A expenses exceed 2% of your adjusted gross income.

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Saturday, March 31, 2012

This is my Tax Bracket for 2011?



Currently, the tax brackets 2011 are broken into six major sections which begin at 10 percent through up to as much as 35 percent. Now, it is essential to know or calculate which tax bracket you are going to be in for 2011 in order to determine your      comprehensive tax withholding or tax estimates during the course of the year. There are some things that you will need to know before you can figure out your tax bracket for 2011. The first thing you must decide is what your filing status is. This is the most crucial step of the filling process. What you choose as your 2011 filing status will not only affect the outcomes on your tax bracket, but it will also affect the outcomes of your standard deduction and your eligibility for tax credits. Here is a brief description of the different filing statuses for 2011 and how they affect your tax bracket 2011. For each and every status that we list, we're going to calculate an estimate of the tax liability for 2011, supposing you've made $100,000.

The 1st filing status this year is "single." You may file your 2011 taxes as a single man or women if you're not wedded, were married but legally divorced at the conclusion of 2011, or widowed during the course of 2011 and not remarried. In general to be able to file as a single person, you've got to be single or otherwise not wedded on Dec. 31. In the event you file single this year, your standard deduction is going to be $5,800. Individuals who choose to file single as a rule share the two smallest standard deductions and tax brackets with "married filing separately" men and women. And listed below are the tax brackets 2011 for single individuals:
Taxable Income Tax Rate
$0-$8,500 10%
$8,500-$34,500 15%
$34,500-$83,600 25%
$83,600-$174,400 28%
$174,400-$379,150 33%
$379,150+ 35%
The following is an approximation of 2011 taxes for single tax payers. Make sure to remember that this is simply an approximation with out including in depth tax deductions, exemptions, or credits.

The other filing status for 2011 is "married filing jointly." Married filing jointly is a exclusive filing status for wives and husbands. Married couples have the opportunity to enjoy a larger sized standard deduction not to mention more preferential treatment in regards to tax brackets and tax credits. The obvious explanation for the preferential treatment is that the federal government wants to support marriage and procreation. If you choose to be a married filing jointly couple, you have access to a standard deduction of $11,600 for 2011. You may notice that this amount is exactly double the amount of the single deduction. Also some of the tax rates end up being more beneficial. Below are the tax brackets 2011 for married 
filing jointly taxpayers:
Taxable Income Tax Rate
$0-$17,000 10%
$17,000-$69,000 15%
$69,000-$139,350 25%
$139,350-$212,300 28%
$212,300-$379,150 33%
$379,150+ 35%
The above chart is an estimate of 2011 taxes for married filing jointly taxpayers. Understand that is simply an estimate with out including added tax deductions, exemptions, or credits.
Another filing status is "married filing separately." You may have deduced from the label that this filing status is designed for people who currently married however are separated or want to keep on being on a financial basis divided. Many of these couples are in the steps involved in divorcing at the end of the year. In accordance with the law, these peopla are really nevertheless married despite the fact that they are currently in the process of divorce. When you are married on December 31, 2011, the Government deals with you as married whether you are divorcing or not. There are a lot of couples in the middle of a divorce who wish to keep their finances separate, for them to file married filing separately. By filing separately, each taxpayer will receive a standard deduction of $5,800-the same as a single person. While the standard deduction is the same as a single taxpayer, the tax bracket is not. People married filing separately have a lot more unfavorable tax brackets. Let us discuss the tax brackets 2011 for married filing separately taxpayers:
Taxable Income Tax Rate
$0-$8,500 10%
$8,500-$34,500 15%
$34,500-$69,675 25%
$69,675-$106,150 28%
$106,150-$189,575 33%
$189,575+ 35%
What we have here is an estimate of 2011 taxes for head of household people. Take note that is simply an estimate without including added tax deductions, exemptions, or credits.

Another filing status is "head of household." If you want to file your 2011 tax return as a head of household, you need to be single on December 31, 2011. Maybe you have never been married, or you could have been divorced or widowed. You are required to also provide a home and a minimum of 50 % of the cost of living for one or maybe more dependents. A lot of the time these dependents are young children, impaired individuals, as well as the elderly. Head of household persons get agreater standard deduction of $8,700 for 2011. Head of household taxpayers will also get another range of tax brackets.Here are the tax brackets 2011 for head of household taxpayers:
Taxable Income Tax Rate 
$0-$12,150 10% 
$12,150-$46,250 15% 
$46,250-$119,400 25% 
$119,400-$193,350 28% 
$193,350-$379,150 33% 
$379,150+ 35%
The above is an estimation of 2011 taxes for head of household individuals. Keep in mind that is simply an estimate withoutincluding added tax deductions, exemptions, or credits.

How can I File My Income Tax Return?



The very last step, and also the most significant step, to filing your tax returns each year is turning in your forms.There are two ways to send your forms in to the federal government. The first is by postal mail, and the other is online or e-filing.

If you decide to send your forms in by mail, just go to your neighborhood Post Office and send your forms there. If you would rather send your forms through a private delivery service, you will need to use one approved by the IRS to take care of tax returns and payments. These organizations include DHL Express, Federal Express (FedEx), and the United Parcel Service (UPS). If you are filing your taxes by postal mail, you must make sure to get your tax packet postmarked by the deadline. It makes no difference what your tax brackets 2011 were if you don't file your tax returns on time. 

Traditionally, the personal filing deadline is April 15; however, April 15, 2011 falls on a Sunday. In this case the IRS ordinarily postpones the date to the following day or Monday, April 16. Nevertheless this creates another problem. Washington D.C. commemorates Emancipation Day that is April 16 in 2011. The IRS has made a decision to move the filing due date back a further day, so your actual due date to mail in your 2011 1040 is April 17, 2011. Here is some more information on how to paper file your 2011 income taxes.
The state that you live, and whether you owe money or are receiving a refund check, will impact where you are to file your taxes (see below). Make sure you make duplicates of all of your finalized forms, for your own records, before you mail them.
If you live in Alabama, Georgia, North Carolina, or South Carolina and are not enclosing a check or money order, send your returns to Department of the Treasury, Internal Revenue Service Kansas City, MO 64999-0014. If you are enclosing a check or money order from these states, send your returns to Internal Revenue Service P.O. Box 105017 Atlanta, GA 30348-5017.
If you live in Florida, Louisiana, Mississippi, or Texas and are not enclosing a check or money order, send your returns to Department of the Treasury, Internal Revenue Service .Austin, TX 73301-0014. If you are enclosing a check or money order from these states, send your returns to Internal Revenue Service P.O. Box 1214 Charlotte, NC 28201-1214.
If you live in Alaska, Arizona, California, Colorado, Hawaii, Nevada, Oregon, or Washington and are not enclosing a check or money order, send your returns to Department of the Treasury, Internal Revenue Service Fresno, CA 93888-0014. If you are enclosing a check or money order from these states, send your returns to Internal Revenue Service P.O. Box 7704 San Francisco, CA 94120-7704.
If you live in Arkansas, Idaho, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Montana, Nebraska, New Mexico, North Dakota, Ohio, Oklahoma, South Dakota, Utah, Wisconsin, or Wyoming and are not enclosing a check or money order, send your returns to Department of the Treasury, Internal Revenue Service Fresno, CA 93888-0014.  If you are enclosing a check or money order from these states, send your returns to Internal Revenue Service P.O. Box 802501 Cincinnati, OH 45280-2501.
If you live in Kentucky, Missouri, New Jersey, Tennessee, Virginia, or West Virginia and are not enclosing a check or money order, send your returns to Department of the Treasury,
Internal Revenue Service Kansas City, MO 64999-0014. If you are enclosing a check or money order from these states, send your returns to Internal Revenue Service
P.O. Box 970011 St. Louis, MO 63197-0011.
If you live in Connecticut, Delaware, District of Columbia, Maine, Maryland, Massachusetts, New Hampshire, New York,  Pennsylvania, Rhode Island, or Vermont and are not enclosing a check or money order, send your returns to Department of the Treasury, Internal Revenue Service Kansas City, MO 64999-0014. If you are enclosing a check or money order from these states, send your returns to Internal Revenue Service P.O. Box 37008 Hartford, CT 06176-0008.
Electronic submitting is, somewhat, easier than submitting by means of mail. If you choose to file your income tax returns electronically, you can use the IRS' e-file software or, if eligible, its "Free File" software. Of course, the same exac tdue dates pertain to e-filing that apply to paper filing. You must file your 2011 electronic return no later than April 17, 2011.
E-file involves preparing taxes electronically, using pre-approved tax filling software, and filing taxes electronically. You can even e-file while using IRS' Fillable Forms. Fillable Forms are online versions of the IRS' paper forms. With such Fillable Forms, it is possible to prepare your tax return by typing in the numbers on your computer. Clicking on "submit" will then file your return.

If eligible, it is possible to electronically submit your returns via the IRS' "Free File" software. If you have an adjusted gross income of under $57,000, you can allow the Free File brand-name software perform the work of filing income taxes, absolutely free.

These are the two ways to file your 2011 income tax returns. Be sure to file them by the deadline. It is not important which one of the tax brackets 2011 you fall in if you can't file your taxes by the due date.
Source:  http://www.articlesbase.com/taxes-articles/how-do-i-file-my-income-tax-return-5771203.html

Friday, March 30, 2012

Don't worry by Filing your Taxes at the Earliest Be Stress Free



Are you true to yourself? Have you been paying your taxes at regular intervals? Well, if you are worried about the fact that the tax year is approaching and you still haven't been able to proceed any further with your tax payment process then, contact professionals to derive advice on tax. There are huge numbers of citizens in UK who don't seem to bother about tax payments until the last minute arrives. It is highly recommendable of a tax payer to complete tax filing at an earlier date in order to avoid unnecessary harassments.

Why should you file your taxes?

If you are an individual who is least bothered about filing taxes then, you should have knowledge about the fact that missing out tax filing would mean losing some extra pounds. Yes, you may just miss out the tax refunds. Tax advice UK gives you the biggest reason to why you should complete filing earlier than deferring the entire process. It actually contributes to the fact that you will receive your tax refunds earlier than what you might have imagined.
Last minute tax filing is never welcome

The tax authorities never encourage late filings; simply because the chances of last minute miss outs are increased. An early filing adds to the advantage of the tax payer because the later can avail newer options issued by the tax authorities.

You can even appoint professional to offer you advice on tax. The professional might help you file your tax documents and get you ready with it. On the contrary an early filing of taxes can help you to avoid unnecessary costs of hiring a professional to do the job for you. Who knows he might charge you some extras on seeing that you need immediate help.

However, there are tax payers who would rather opt for filing the same at a later date in order to complete the process in a smoother manner. In most cases availing tax refunds may involve complex processes and would demand the tax payer to wait until the end of the current tax year. Issues of wrong figures in tax forms can delay the filing process.

Situations get a bit tough for the tax payer if he has already got his taxes filed and there is a need to incorporate updated figures. Incorporating incorrect figures on the form can lead to further complicacy. In order to avoid such situation it is advisable that the tax payers seek proper tax advice UK.
Source:  http://www.articlesbase.com/taxes-articles/be-stress-free-by-filing-your-taxes-at-the-earliest-5776046.html

So What are Tax Brackets? And What Should you Know About Tax brackets



For the country to develop everyone ought to pay their taxes. One of the largest sources of government revenue is tax. Sowhat are tax brackets? Tax brackets are tax rates that you pay depending on the amount of money you earn. The dollars you earn will select tax brackets for you and determine the amount of tax you will pay. Tax brackets are, therefore, basically divisions within a taxing system that narrate who pays what amount of tax.
The more amount of money you earn, the more tax you will pay. Your marital status will also determine your tax brackets and ultimately your tax rates in some countries. Single people essentially living alone will pay different tax rates from married couples. As a couple you could choose to file separately for your tax payments or file to make payments jointly. The tax rates are different in both cases. Widows and widowers pay the same rates as couples filing jointly while household heads pay taxes in their own special rates. These are specific in some countries.
It's important to know your tax brackets 2011 and be able to calculate your tax rates. This knowledge will help you balance your expenditure and income and pay off your debts for the year 2011. Knowledge of tax brackets2011 helps you manage your finances and if you are able to make savingsthen good for you because the only way to get rich is to save up.
Each year tax brackets are reviewed as per the prevailing economic situation and welfare concerns among other social-economic issues. Tax brackets 2011 don't have much difference with other years.
Tax brackets allow for different types of calculations on tax payable amounts. Some governments would calculate by the tax bracketspercentage directly on the income as you earn it. So say that you earn about $10,000 in 2011 then you qualify to pay tax as per rates on the tax brackets 2011 of people earning between $0 to 10,000. If the rate is 10% for the tax brackets 2011 then you pay 10% of your $10,000 which is $1,000 in taxes.
If you fall under a bracket that pays 20% then 20% of your income will be recorded in your balance sheet as your income liability. Some systems will calculate differently. Let's say you earn $30,000 in 2011. Then you will pay 10% of the first $10,000 under tax brackets 2011, then this amount will be deducted and you have $20,000. Then you will pay another maybe 15% for the 10,100-20,000 tax brackets. The resulting amount is then added up to make your total due tax value for 2011.
Calculating the tax payable as per the tax brackets can be a hard concept to grasp at times but not all hope is lost. You can find tools that will help you calculate your tax rates online as per the values for tax brackets 2011. You can also have a professional do it for you or show you how.

When can you Claim a Tax Relief?



With the financial year coming close to end, are you concerned about claiming tax relief in the right way possible? If tend to be self-employed then, chances of such concerns arising in your mind are high. Well, do not despair, as you can claim a relief upon your allowance and expenses to lessen your tax bill considerably.

It is to be remembered that you can deduct various expenses and running costs attached with your business to earn profits, but taking away your private expenses is never a prospect and is not favoured by the govern ent. In addition, it is also to be remembered that you can claim reliefs on specific "capital items" – an off-cost that you use to buy or improve assets forbusiness use.

When can your Claim a Tax Relief?

It is to be noted that you can claim tax reliefs for the present financial year along with the preceding four years. However, in some cases, the claim period can reduce considerably. Therefore, if you have been concerned about making the right tax relief claims being a self-employed or a business person then, it is essential for you to know about the various expenses that you can claim and the ways of making the claim.
Knowing the Expenses

If you are in the mind of starting with a business venture then, it is important for you to know about the things related to claiming tax relief. Usually, people who are self-employed tend to have a varied range of expense and running costs associated to the business. You can well consider deducting these expenses from the income you draw to reap a good amount of profit. Additionally, you might also avail a ‘capital allowance' for other specific costs attached to your business like, machinery and other equipment to lessen the taxable profits.

Knowing a bit about Allowable Expenses

Well, allowable expenses are nothing, but costs that you eventually end up paying in the run of earning profits. Usually, you can consider claiming a tax relief on such allowable expenses. Well, it is to be remembered that you cannot seek a claim for personal or non-business items. Improving or buying capital items like machinery and business equipment that have a lasting use does not fall under the category of taxable business expenses. However, you can well claim a relief for them, as they are related to your business purpose.

Since, claiming relief on your tax is a complex issue and requires extensive knowledge on the same, seeking help with taxfrom expert professionals is always advisable.
Source:  http://www.articlesbase.com/taxes-articles/know-about-your-tax-relief-claims-5776052.html

Find Out How Turn Taxes Into Profit with a Help of skilled and Professional Bookkeeping



Tracking your pay and expenses are most business owners' primary concern in the market. Therefore basic bookkeeping knowledge pays to, regardless on the dimensions of your online business. While bookkeeping and accounting are definitely more complex than they may first appear, this data will help someone to realize what your bookkeeper or accountant is dealing with, and it may even help you set about to try and do the books yourself within a smaller business. 

Tracking your pay is significant. You choose to do keep asking the amount of you will be making, and ways in which much you will be having. Now is your revenue. It will be the sum of the much money you take from customers, before taxes. Your revenue will not be your actual income, given it isn't going to yet are the reason for the prices of running your online business. It's only the funds consume, whether it's cash, cheques, plastic cards, or on invoice on your clients. Add all of these up and you've your total revenue. Some businesses will count this with sales taxes, but that's incorrect and purchaser's taxes ought to be made up separately. 

The prices regarding operating an organization are the expenses. These are typically any cost that's required for making this company work and are also associated directly together with the business. It is your payroll expenses (including any benefits and government taxes which the industry is liable for? not the worker deductions that happen to be taken from their cheques). It will be the rent and operating expenses within your building or office. It will be the valuation on the many goods you sell or deliver or sell. It is additionally the prices of advertising, licensing, cleaning, and so-forth. All of these together makeup your expenses. 

Direct expenses are which might be tied into the sale within your goods and services, whatever it is. These could become the wholesale valuation on a program, commissions on selling this product, as well as maintenance and repairs needed using a product before it is sold. When you finally subtract the direct expenses through your revenue, well then, your available you're Revenues. Meaning your pay before your indirect expenses.

Indirect expenses are that cannot be bound to this product itself. To as are youthful rent, professional fees, administrativesalaries, sales promotions and advertising that happen to be general to your whole business, or anything else. Once these are typically made up, you will have the many expenses within your business as well as amount that may be leftover with your Income Statement is the best Post tax profit. Don't feel bad for anyone who is only starting at and there is a loss. It's really common undertake a decrease of the primary several years of any business, but undertake a loss past four years can be something you seriously want to look at. 
Source:  http://www.articlesbase.com/taxes-articles/turn-taxes-into-profit-with-skilled-and-professional-bookkeeping-5780419.html

Description about Uniform Tax



Did you know that every year, there are around millions of pounds, which go unclaimed? Surprisingly there are a huge number of people who don't bother to claim for tax rebate. If you have queries related to uniform tax rebate then here are some basic points which might come helpful to you. Here take a look:

What tax rebate can I claim when I have a Uniform to wear at my workplace?

It is important that you be aware of claiming tax rebate when the employer you work with provides a uniform to you. This is simply because the uniform he provides needs to be maintained, which ultimately results in paying for maintenance costs.

The cost associated with taking good care of the uniform can be clubbed for claiming tax rebate. It is also to be noted that some job profiles require employees to put on attires, which may result in higher maintenance costs. In such cases the employee can avail larger amounts as tax refund. If you have larger sum to claim you may consider taking help from professionals who may assist in claiming tax rebate.
How is your uniform related to claiming tax rebate?

As mentioned in the aforesaid lines every employee has the right to claim for uniform tax refund because he has to pay maintenance costs to keep the attire in the best possible condition. However, if you are about to claim tax refund it is important that you wear the attire at work. Wearing a uniform would actually help people understand that you work for a particular organization.

Uniform that clearly helps identify the profession of an individual are the ones worn by policemen, nurse, firemen, supermarket employees and maids. In most cases uniform have logos attached helping people identify the employer you work with. Additionally there are organizations, which demand employees to wear safety uniform to avoid hazards involved in the work they do.

Do I have to request for claiming tax rebate?

In most cases employers have a talk with tax authorities to help employees claim for tax rebate; however, there are several employers who don't engage in taking initiatives to help employees avail tax relief. In such instances you may consider requesting the authorities to assist in claiming tax rebate. Moreover, you should have knowledge about the fact that you cannot claim an amount as per your wishes. The tax authorities have flat rates for uniform tax relief and your requirements have to comply with standards consider by them.

If you are worried about "what tax relief can I claim", you need to seek professional help from experts who are trained at handling such issues.
Source:  http://www.articlesbase.com/taxes-articles/an-insight-to-uniform-tax-5776049.html

All Tax Relief Get Tax Liens Removed



A tax lien is usually filed by your state tax agency or by the IRS due to unpaid taxes. Tax liens can be filed on real and personal property, as well as vehicles, alimony, bank securities, etc. A lien filed by the IRS is public information and credit reporting agencies take note of it. It is very essential that you are completely aware of all the factors involved in it.
Tax liens are especially important because they are first position liens. This means that if you sell property that has a tax lienagainst it, then the tax lien will be paid prior to all other liens. It is thus necessary that you make complete attempts to remove tax liens from your property. In order to do this, you must first be fully acquainted with the intricacies of the tax lienconcept. You must understand how the lien was placed on the property and the procedure to remove it.
The impact of tax liens can be considerable. As soon as it is filed by the IRS, all your creditors are notified. This greatly affects your credit report and credit score. It becomes very difficult for you to get any kind of credit extended. However, the IRS has specified four reasons due to which you can remove tax lien from your property. Firstly, you are allowed to remove the lien if you will be able to borrow money for infusing fresh capital into the business. This is advantageous to the government because infusion of capital often translates into profits which can then be used to pay taxes. Secondly, tax liens can be removed if the IRS is ready to settle your debt for a lesser amount and if you are equipped to pay such amount. The third and the fourth reasons occur rarely. The third reason for lien removal can be that the officer who imposed it did so without the approval of his superior. The fourth reason is simply that the government wants the tax liens on you be removed.
Once you obtain approval to get your lien removed, you can either do it yourself or engage an attorney with expertise in negotiating taxes. The disadvantage of doing it yourself is that there is very little chance of getting your tax liability removed. It takes professional experience to achieve mitigation of tax liens. Therefore, engaging a tax relief specialist or attorney is a better option. Tax relief specialists are recommended for contacting and negotiating with the IRS. They can effectively deal with a government agent who can be very intimidating while making demands on the taxpayer. IRS agents tend to be less forceful and more reasonable while dealing with a tax professional. The rates for the services of a tax relief specialist are not high and vary based upon the circumstances. The fees depend on factors such as the type of tax issues you face, whether you are individually applying for it or own a business and the severity of your case.