Go-Pro Inc

Let Us Help You Keep More of Your Money

January 1, 2018
by admin
0 comments

Thank You! Thank You! Thank You!

Special thanks to all our clients and friends who graciously referred us

to their friends and neighbors this last year. Our business is built on

the positive comments and referrals from people just like you. We

couldn’t do it without you!

To show our thanks we are going to give three people that has sent us the most clients in February, March and April a gift. We will announce each person here on our web site. So keep track of how many friends you send us and see if you are the winner.

We welcome your comments here and on our Facebook page  https://www.facebook.com/goproinc/

December 9, 2017
by admin
0 comments

Proposed Bill and SE Tax on S Corps

American Flag Waving

Hello, is your business set up as an S. Corp? Even and LLC that is taxes as an S. Corp will have this same situation. According to my understanding of the proposed Bills in the House and Senate if your business is taxes as an S. Corp ALL your income will be subject to self employment taxes if this bill passes. The only way to get around this is to become Incorporated. As a C. Corporation you have more paper work to fill out and keep but you also have more deductions available to you.

A C. Corporations can deduct life insurance expenses for their officers for example.  If either of these bills pass your max. tax rate will be 20% or so depending on which bill. With a C. Corp you have to take a pay check which is subject to self-employment tax. But that is just a small portion of your income compared to all your income.

If you do not understand what I am talking about maybe this will help. When you get a pay check from a job the employer deducts Social Security and Medicare taxes. They then match this and send the total to the government. So if you made $100 then $6.20 will go to Social Security and your employer will need to also send $6.20 to Social Security in your name. The same for Medicare which would be $1.45 each. Plus you pay Federal taxes and State taxes out of your income.

 

November 29, 2017
by admin
0 comments

Are employee awards taxable?

Length-of-service or safety awards [IRC §3121 (a) (20)] can be excluded from federal taxable wages—if they:

  • are not “disguised compensation”;
  • are given under a written, qualified plan or program that does not favor highly compensated employees
  • do not exceed an average of $400 per employee (or $1,600 for the year) and, if not paid under a qualified plan, do not exceed $400 per employee
  • are not tangible personal property, cash or cash equivalents, such as stocks, bonds, meals, lodging or sports or theater tickets; and  are given in some kind of ceremony. [IRC §74(c), 274(j)]

Length-of-service awards are federal taxable wages if given before 5 years’ service but nontaxable after 5 years’ service and not more frequently than every 5 years.

Safety awards are excluded from federal taxable wages if also given to management, administrative, professional, clerical and part-time employees but not to more than 10% of eligible employees during the taxable year. If, say, 12% of employees qualify, all safety awards are taxable for all employees.

Suggestion awards are excluded from an employee’s hourly pay rate when calculating overtime pay—if . . .

  • the employee was not required to give suggestions;
  • the award was not geared to the person’s salary;
  • no time limit was set for submitting suggestions;
  • offering suggestions is not part of that job (e.g., the job is not troubleshooting the equipment the suggestion applies to, or surveying employees for ideas on how to improve some procedure);
  • the employee made a suggestion completely on his or her own (no employer input at all); and
  • the employer had no idea that the employee was working on the suggestion.

October 5, 2017
by admin
0 comments

What to do when you owe the IRS money you can’t pay

You got that dreaded letter from the IRS. They want money! What can you do? Well, here are your choices……

  1. (IA) Installment agreement, This is available to those that do not have the ability to pay their taxes in a  lump sum but can make monthly payments. If you owe less then $25,000 your chances are good the IRS will accept your request.
  2. Currently not collectible, You may be granted this if you do not have the means to pay the taxes owed. This is a temporary pause. The IRS will continue to monitor your situation. If it improves they will start the collection process back up.
  3. Offer in Compromise, the IRS will need proof that it is not worth their time to try to collect from you.
    1. You may apply for this if there is any doubt the amount you own is not correct
    2. Doubt you will ever have the money to pay this
    3. Effective tax administration - you do not deny you owe the tax, however, if it were collected it would be unfair or inequitable because it would create financial hardship. Typically, when an Offer in Compromise is granted under this requirement it is for the disabled and elderly.
      1. You will have to submit 20% of your offer with your request. If your request is not granted the amount you pay will be used as a payment on the amount you owe.

The IRS has 10 years to collect any amount that is owed to them.

Allowable expenses include:

October 1, 2017
by admin
0 comments

Audit Proof your records

Audit Proof your records is not as hard as you may think. First you need a couple of things. Most are FREE, in fact you may already have some of these.

Use a professional tax person. The IRS knows we (tax people) do not want our clients audited and if I do something wrong on your returns the rest of my clients will also be audited. It is not worth the Continue Reading →

September 21, 2017
by admin
0 comments

4 Back-to-School Tax Tips

Its Back to School, what better time to think about tax deductions for school.

Education Tax Credits

Lifetime Learning credits or the Tuition and Fees Deduction are available for taxpayers enrolled in a college or university.

Under the Lifetime Learning Credit, taxpayers can claim qualified tuition and related expenses they’ve had at eligible educational institutions. A taxpayer can claim a tax credit equal to 20% of the first $10,000 paid for tuition, required fees, and certain other expenses during the calendar year.

Under the American Opportunity Tax Credit, student taxpayers can reduce their amount of tax owed as long as they are paying for tuition, supplies, and fees to an eligible educational institution. The student must be working towards a degree in order to qualify. The IRS will send the student a refund check for about 40% of the credits they qualify for.

Taxpayers cannot claim either deduction if their filing status is married filing separately or if another person can claim an exemption for them as a dependent on his or her tax return. This deduction phases out at higher income levels.

Before the 2017 tax year, if a student taxpayer didn’t qualify for either of the above credits, they were able to claim the “tuition & fees deduction” for qualified educational expenses. This deduction is available for qualifying expenses paid during the tax year in connection with enrollment during the year or any academic term. This deduction can be worth up to $4,000 whether or not the taxpayer itemizes their tax deductions. Unfortunately, Congress did not renew this deduction for the 2017 tax year so taxpayers cannot use it on their 2017 returns. If your clients still haven’t submitted their 2016 return, they may claim it on that return.

Student Loans

Back-to-school time also means the start of a new job for many recent college grads. If your client recently graduated and is paying the interest on their student loans, they will qualify for the student loan interest deduction. Their school will send them a 1098-E that will show how much interest they paid in the year. To deduct student loan interest, they will write the total of their interest paid (subject to a $2,500 annual limit) on the Student Loan Interest deduction line on Form 1040 or Form 1040A. They will be able to subtract that interest paid from their total earnings as an adjustment so they will have a lower adjusted gross income.

529 Plans

A 529 plan is a savings plan derived from Section 529 of the Internal Revenue Code (IRC). A 529 plan is an account used to pay for qualified higher education expenses such as tuition, fees, books, etc. This investment account can yield returns and also has tax advantages. For example, withdrawals from a 529 aren’t subject to federal taxes as long as they are used for college-related expenses. Each 529 plan is sponsored by a state so details of the plan will differ depending on the state.   

Coverdell Education Savings Account

A Coverdell savings account is another type of educational savings account for students. If a taxpayer’s modified adjusted gross income (MAGI) is less than $110,000 ($220,000 if filing a joint return), they may be able to establish a Coverdell ESA to finance the qualified education expenses of a designated beneficiary. Qualified education expenses include college expenses and certain elementary and secondary school expenses. Taxpayers can open both a Coverdell ESA and a 529 account. If a withdrawal is made from either or both accounts, the qualified educational expenses will need to be allocated appropriately for the beneficiary.

Back-to-school season can be stressful for parents and students alike. Review these tax savings tips and help your clients transition back into school with ease.

Author: Nushin Zarrabi

 

 

September 20, 2017
by admin
0 comments

New Service: Tax Concierge

What is a Tax Concierge you might ask? Glad you did. Has your tax person asked you to total your receipts and give them the totals?

Do you keep your receipts in a box till tax time? Then sit down, sort them, and finally total them?

This would literally save your sanity what I will do is sort your receipts, scan them, and total them by the categories your tax person wants. Saving you time.

If you use QuickBooks, I will send you a file you can import with all the individual transactions. If you use QuickBooks online I can import them for you.

Our fee is just $0.25 per receipt.

Sign up NOW in order to have your receipt ready for tax time.