EVERYTHING YOU NEED TO KNOW

Spend less time doing the tedious work of balancing the books and more time enjoying your business and your life. Let us give you the tools you need to achieve your business and personal goals. We can erase confusion and help you gain financial confidence. Learn more by exploring some of the most frequently asked questions we hear.

Fees for tax preparation are based on the forms used in the creation of your tax return. In most cases the basic fee does not change. Compiling of un-summarized data is an additional charge if the data is substantial. To see a detailed listing of our pricing, visit our pricing page by clicking here.

Due Dates for 2018 Estimated Quarterly Tax Payments:

  • Q1: Monday, April 16, 2018
  • Q2: Friday, June 15, 2018
  • Q3: Monday, September 17, 2018
  • Q4: Tuesday, January 16, 2019

Due Dates for 2019 Estimated Quarterly Tax Payments:

  • Q1: Monday, April 15, 2019
  • Q2: Monday, June 17, 2019
  • Q3: Monday, September 16, 2019
  • Q4: Wednesday, January 15, 2020

Be on the look out for some (but usually not all) of these forms:

  • Form W-2 (wage and salary income)
  • Form W-2G (gambling winnings)
  • Form 1099-A (foreclosure of a home)
  • Form 1099-B (sales of stock, bonds, or other investments)
  • Form 1099-C (canceled debts)
  • Form 1099-DIV (dividends)
  • Form 1099-G (state tax refunds and unemployment compensation)
  • Form 1099-INT (interest income)
  • Form 1099-K (business or rental income processed by third party networks)
  • Form 1099-LTC (benefits received from a long-term care policy)
  • Form 1099-MISC (self-employment and other various types of income)
  • Form 1099-OID (original issue discount on bonds)
  • Form 1099-PATR (patronage dividends)
  • Form 1099-Q (distributions from an education savings plan)
  • Form 1099-QA (distributions from an ABLE account)
  • Form 1099-R (distributions from individual retirement accounts, 401(k) plans, and other types of retirement savings plans)
  • Form 1099-S (proceeds from the sale of real estate)
  • Form 1099-SA (distributions from health savings accounts)
  • Form SSA-1099 (Social Security benefits)
  • Form RRB-1099 (Railroad retirement benefits)
  • Schedule K-1 (income from partnerships, S corporations, estates, or trusts)

A referral fee of $10.00 is paid for referring your friends for income tax preparation.

Have all information requested at the time of your appointment. File all Federal and State returns electronically. Electronic filing will cut the refund time down to 10-18 days instead of usual 5-8 weeks.

Call the Internal revenue Service at 1-800-829-4477 for refund inquiries. Have your social security number, filing status and refund amount ready. Wait 18 days for electronic filing and for mailed returns wait 4-6 weeks. For online inquiries click the following link: Online Inquiry

File your taxes on time and include a form 9465, Installment Agreement Request to request a payment plan in installments for up to 5 years. Or file on time and call the Internal Revenue Service at 1-800-829-1040 to request an installment plan. Remember that there are penalties for not filing on time and penalties for not paying on time. If at all possible file your taxes on time even if without a payment.

The Internal Revenue Service suggest to keep receipts, bills and credit card statements for 3 years after the due date of the return, including extensions. Keep your tax returns, W2s, 1099s, other records of income and assets that you currently own indefinitely.

As a regular tax client there is no fee when you contact me whenever you have a tax question that needs an answer. It is so easy to call and may save you thousands of dollars with a simple email or phone call. Do not hesitate to call when you are planning major changes that may affect your taxes. For more detail consultations in my office I will charge my normal hourly rate of $80.00 per hour.

The old rules that require you to buy a new house within two years and pay more than the previous home, along with the $125,000 once in life-time exclusion were repealed in 1997. The new rules require that you lived in the home as your personal residence for two years of the last five, which qualifies you an exclusion from capital gains tax of $250,000 for single people and $500,000 for married couples with no age limitations.

All personal documentation from the individual tax question above in addition to a detailed report of expenses. Whether tracked through a software system like Quickbooks or tracked in your own spreadsheet, depending on the size of your business it may be as simple as defining categories for your expenses and it may be as big as defining cost centers. As part of our small business consulting and Quickbooks consulting services, we can decide together what the best way for you to keep track of your yearly expenses.

When you establish a business, one of the first things you need to do is decide on the business structure. The most common types are sole proprietorship, LLC, LLC acting as an S-Corp, and S-Corp. Your decision will impact many things, including your capability to raise money, your control over business operations, and the amount you pay in taxes. Understanding the differences to compare the advantages and disadvantages of each option is the best way to ensure you make the right choice.

To provide an in-depth answer to this, we have written a blog post for you. Click here to read: Should I establish a Sole Proprietorship, LLC, LLC acting as a S-Corp, or an S-Corp?

Filing taxes on your own is by no means a simple task — you should expect the process to take you at least a few days. First, you need to find all your records, then input the information into software, and, finally, you must double check everything to confirm there are no mistakes. Even after all this time and effort, you may be missing out on deductions that are not offered through software, such as less-common deductions applicable in your situation.

If you are still unsure that it would be worthwhile for you to use an accountant, consider all the benefits going through a tax preparer brings you by reading this blog post here about the benefits of tax preparers versus self-filing.

Personal taxes are due Monday, April 15, 2019. For corporate taxes, please see Quarterlies question above.

Tax obligations are just part of owning a business. While you can’t escape them entirely, there are steps you can take that will reduce your overall tax burden. The best time to start considering how to minimize your taxes is early in the year. Records you start keeping now can ultimately benefit you in the end. Click here to read our latest blog post on the most important deductions that business owners should remember.

Yes! Medical insurance costs are a business expense, and personal medical costs that exceed 7% of your overall income can be written off from your individual taxes for maximum benefit.

Write-offs reduce the amount of income that will be taxed. Categorize your deductions to make this process as easy as possible. You can think of these write-offs in terms of ordinary and necessary. Ordinary deductions are write-offs that are common in your field or industry. This could include things like insurances, rent for office space, or office supplies. A necessary expense describes something you need to do your work properly. That varies more particularly according to your occupation. For example, a sales representative of a big corporation may be able to list expensive meals with a client as a write-off, while a freelance writer would probably not be able to make the same claim.

Avoid write-offs that are too luxurious or broad. For example, you can categorize research trips as an ordinary business expense. A three week vacation without meeting any clients might be harder to justify. If you have specific questions as to what deductions you can claim, we are here to help.

Many business owners are nervous about the prospect of trying to find affordable medical insurance — for good reason. While this is an ever-changing topic, we decided to keep you up to date with all the details by putting this answer in a blog post. To read the complete post, visit How do I sign up for medical insurance as a business owner by clicking here.

Ultimately, it is up to you. While using a bank specific to your business is a "cleaner" way of accounting, many small business owners use their personal credit card and maintain detailed expense report and reimbursement documents.

No matter whether you choose to take standard or itemized deductions, you will pay federal tax on a smaller amount of your income. However, one will likely lead to a greater deduction than the other, depending on your situation. For the most updated information on this frequently asked question, visit our blog post: Should I take the standard deduction or itemized deduction on my taxes by clicking here.

Common tax forms and detailed instructions can be found on the IRS website, here: https://www.irs.gov/forms-instructions

At McKay Tax & Accounting we use Secure File Pro to ensure that you can securely send and receive tax documents to us.

Your upload documents to your personal SecureFilePro username sent to you via email. Keep this login for any future files you may receive from Rich or need to send in return, such as signed documents.

Keep in mind, if you have a business you will have a separate business login from your individual tax login. You can use the same link to log in, but your login credentials will vary.

You set your own password the first time you log in to the system. We do not have access to your password information. If you forget your password, please click the "Forgot Username or Password" link on the SecureFilePro site.

Need to log in to your SecureFilePro link to upload documents to Rich? You can log in at any time here: https://mckaytax.securefilepro.com/portal/login.aspx

Some people like to hand off their taxes to someone else to file, while some people prefer to handle it themselves. To see instructions on how to file your own taxes on the McKay Tax Website, click here.

HAVE MORE QUESTIONS?

At McKay Tax & Accounting, we are happy to provide the answers! We are passionate about customer service and believe that we succeed when our clients succeed. Call us at 801-731-1857 to speak with Richard McKay or a member of our staff today.

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