Resolve IRA tax debt with a NY CPA
By: Jonathan Medows, CPA | Posted: 02nd December 2009
Do you fear tax time? Most people who live in NY and all around do because they would rather get back then to be required to give. Going to a CPA can be scary if you are not prepared. Here are some helpful tips and hints to help you resolve IRA tax debt with a NY CPA.
You can take the pressure off by preparing yourself from one year to the next. Buy a five subject notebook and label each section according to your expenses. You will need a notebook for household expenses and if you run your own business, you will need one for your business expenses as well. You can find the five subject notebooks that have a folder with a pocket to divide each section. You can use the folder to keep your receipts in.
Keep one section for utility expenses and include any item you had to buy throughout the year, for example a hot water heater.
The next section could be on medical expenses. You will want to keep receipts for all medical expenses including prescriptions, doctor visits, co-pays, lab receipts, insurance payments and more.
The next section could be on loan payments and interest. You want to keep track of all the interest that you pay out each year because if you are able to itemize these receipts will verify that. Most financial institutions will send out a statement at the end of the year which includes the amount that you have paid the past year in interest.
Child care is another expense that can be itemized. If you work outside of the home and rely on child care then keep your receipts. If you are able to itemize then you can write down all the expenses associated with child care including all payments made, any supplies required, and any other expenses that may be associated with child care. If you have an elderly parent living with you and are claiming them on your taxes this year you can also include your expenses of day care for them if you use a day care program so you can go to work.
Keep a miscellaneous section in the notebook as well. Here you can include anything else that does not fall into the categories listed above. Keep receipts so you will always be able to prove your expenses to your CPA or tax advisor when they prepare your taxes.
If you run your own business then you will want to keep the same records in a notebook. You can keep a section for business supplies and include items that you purchase, shipping and handling charges, gas expenses, and any expense that helps you get in contact with supplies or customers.
You will need to keep a section for employees. If you hire employees you can keep track of all the expenses associated with them. Be sure to include any bonuses that you pay out along with other expenses that come out of your business expenses.
Use the other sections according to your business. If your business is small then the notebook is a great way to keep track of business. If you have a large business then you can use a software program to help you keep track of everything so you can present everything to your CPA at tax time. Resolve IRA tax debt with a NY CPA and save money.
Jonathan Medows, CPA, MBA is the Managing Member of MEDOWS CPA, PLLC, a boutique New York CPA firm serving the needs of individuals, freelancers, self employed individuals & small businesses. To see how he can help you reduce your tax liability and keep you in tax compliance please visit his website: Medowscpa.com
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Tags: own business, helpful tips, receipts, financial institutions, medical expenses, loan payments, business expenses, day care, insurance payments, household expenses, child care, tax time, elderly parent, doctor visits, tax debt, hot water heater