The list of common tax deductible expenses discussed below should help you as you face the income tax hurdle this year.  As figuring out your taxes gets harder and harder, we all need more go-to information to cut our tax bills. Recognizing tax deductible expenses is essential as we gather information to reduce the amount we pay in taxes.  Here are some areas that may give you ideas for tax deductions.

Health and Family Expenses

Education expense deductions can be significant if you have a family with a number of children. Make sure to include any interest on student loans along with the typical expenses such as travel, books and supplies, and other college related expenses. In addition, families can receive tax deductions on items such as childcare costs, child tax credits and costs relating to adoption. Also, if your medical/dental expenses are greater than 7.5% of your gross AGI, you can include them in tax deductions.

Losses from Investments

Log on to your account online and print off the 1099-B form. This will give you the breakdown of any losses from stocks, mutual funds, and any other investments you may be involved with.

Real Estate

If you are a first-time homeowner – congratulations! Use the 5405 form to get a big tax break. If you have been a homeowner for a while, get the amount of property taxes you paid during the year from your escrow company. With so many people updating their energy usage at home, you can also take advantage of the home energy improvement tokens.

Retirement

Contributions to your SEP, IRA, and traditional retirement investments are tax deductible. Check out your payroll and W2 to see if some of your retirement investments are already being factored in.

Personal Property and Vehicles

If you have already paid off taxes for personal property or have spent money on registration fees for your vehicle, these expenses can sometimes be applied for tax deductions, depending on the state where you live.

More Help

There are income tax computer programs on the market that can help you double-check your list of tax deductible expenses by pinpointing tax deductions as you answer a series of questions.

Additional Help

If you would like help with anything tax-related or would like to make sure you are preparing your taxes correctly, check out TalkLocal. You will be connected directly to professional accountants right in your area who can help you at a time that is most convenient for your schedule.

Preparing personal budget information is not terribly exciting or fun. In fact, it can be downright depressing when you begin to delve into your monthly spending habits. However, if you are financially strapped and want to save money, a budget is the only way to go.

Creating a budget is easy. You simply need to keep detailed records of the money you spend and earn on a monthly basis. Your budget will highlight areas of unnecessary spending, so you can cut back on things you don’t need.

The following steps will put you on the path to financial stability:

1. Make note of every source of income. You may have two jobs and your spouse another. Document the net amount from your paycheck(s). If you have a job where your monthly income varies – whether from waiting tables, freelance work, or commission – take a monthly average based on your previous year’s income after taxes.

2. List your monthly expenses. Write down each expense that occurs on a monthly basis (in other words, everything you purchase and every bill you pay). Your checkbook register is a good place to find this information (click here to learn how to balance a checkbook).

3. Divide your expenses into fixed and variable. Take your master list of expenses and break each item down into the ones that remain relatively constant and those that vary from month to month. Fixed expenses include items like rent, car payment, cable, Internet, and trash service. Variable expenses will be things like gasoline, groceries, clothing, and pet care.

4. Come up with separate totals for monthly income and monthly expenses. If your expenses equal or exceed your income, you are in serious need of budgetary adjustments.

5. Reduce your expenses. If you feel confident that your list of monthly expenses is accurate, your first order of business is to cut unnecessary spending. Start by reducing expenditures on non-essential items like eating out, dry cleaning, and gifts. Even small changes like this will bring you closer in line with your income.

6. Revisit your budget every month. You may need to make slight adjustments to your budget throughout the year. For instance, you may have failed to allocate enough for groceries. Increase your grocery budget by reducing another variable expense such as entertainment.

Creating objectives and staying on a budget may be painful at times, but you should always keep your long-term financial success in mind. Whether your plan is to pay off credit card debt or create a comfortable nest egg, never lose sight of your goals!

If you are still struggling with your budget, check out TalkLocal – this free service will connect you with up to three accountants in your area who specialize in personal finance. You will be connected in minutes with a local professional who is available when you are.

If you are running a small business, then it is advisable for you to research about a few basic accounting tips to ensure that you are able to account all your transactions accurately. These tips are extremely useful in your attempt to determine how much you are losing or gaining for a specific period. It should be noted that financial and accounting transactions are sensitive so you need to record them accurately. Here are some of the most basic tips for your small business that can help you in effectively recording all transactions:

1. Choose an accounting system which you can use consistently. You have to avoid jumping from one accounting system to another or mixing up different systems into one as this will only cause everything to fall out of place. If you do not use one accounting system, then it is greatly possible for you to get different accounting results, and this is confusing. You have to look for the most reliable and suitable accounting system for your business and use it for a long time.

2. Keep accounting records in a timely manner. This is one of the most essential accounting tips that you should follow. You have to record all your business transactions starting from the money that you have spent to the money that you have received. It is also important for you to make sure that these are recorded accurately. By doing this, it will be easier for you to determine the current financial condition of your business. To avoid confusion, it is also advisable for you to keep your financial records in an organized manner.

3. Use a computerized system. A computerized system is more beneficial than that of paper and manual system as this allows you to keep your records automatically. Just make sure that you have a backup for every file stored in the system so that it will never get lost. Computerized systems also allow you to easily compute a number of transactions. This is one of those accounting tips that can help reduce the tasks involved in accounting different financial transactions so you have to consider following it.

If you need help with the accounting for your small business, allow TalkLocal to help. We can connect you to local accountants in just minutes, without the hassle of searching for one!

Everyone hates thinking about April 15th–but not as much as they hate forgetting about it. If you missed the deadline for filing a tax return and are getting a refund, there is no penalty, given you file within three years. If you file after that, you will not receive your tax refund.

If you do owe additional taxes, you need to e-file as soon as possible. The penalty for late filing (5% of your owed taxes for every month it is late) is worse than the penalty for late payment (.5% of your owed taxes for every month it is late). The maximum charges accumulated for both penalties is capped at 25%. So suppose you file a late tax return in April and make your payment of $1,000. The late filing charge would be $50 whereas the late payment charge would only be $5.

There are certain situations that are exempt from penalties and given a two month extension. This includes:

1. Being out of the country (the U.S. or Puerto Rico) for your main place of work or military or naval service. You can receive and additional four months by filing an extension and paying taxes you owe.

2. Not receiving your Form W-2.

3. Receiving a Form W-2 you believe is incorrect.

4. Being self-employed.

Not Filing a Tax Return At All

If you fail to file a tax return, the IRS will send you a reminder to do so. If three years have past since the deadline, you forfeit your tax refund. The IRS will eventually help you file a substitute return based on other sources; it will not include exemptions or expenses you may be entitled to. Continued non-compliance can lead to other penalties and even criminal prosecution.

TalkLocal can connect you with local tax preparation services to help you file your taxes as soon as possible. With TalkLocal, you don’t have to flip through the yellow pages and call unresponsive businesses. TalkLocal matches you with up to three companies in minutes because time is money–especially during tax season.

As a small business owner, embezzlement can be incredibly devastating to your livelihood, so you need to make sure that you take the proper precautions to prevent embezzlement.  The following three steps are tips on how to stop embezzlement for small businesses.

Know the warning signs of embezzlement

The earlier you catch embezzlement, the faster you’ll be able to prevent further damage to your business and take the necessary actions against the individuals committing the embezzlement.  Some of the most common warning signs are bounced business checks indicating that funds are being taken out of your account, inventory shortages pointing towards unrecorded sales or employee theft, and profit declines in conjunction with increases in expenses (cash is being taken out of your business illegitimately).

Basic internal precautions

You should screen all applicants before you hire them to make sure they are of good character. Periodically examine all finances related to your employees to make sure that everything is legitimate. Your payroll should be prepared by more than one person or do it personally, which will prevent illegitimate employee checks from being written. Dividing financial responsibilities and functions will make it more difficult for an individual to embezzle money.  You should also set up an internal audit system that creates a paper trail so you can always trace an illegitimate check back to the source.

Bonding Employees

Bonding is the common practice for employers to protect themselves from employees committing fraudulent and dishonest acts such as theft, forgery, and embezzlement. You’ll want to talk with your insurance agent about the different types of coverage that you want for your business, which can range from an individual employee to a blanket fidelity bond, covering all employees at your business.

If you’re really worried about the possibility of embezzlement, you should consider hiring an accountant.  An accountant can help you monitor for signs of embezzlement, so if you don’t already have one that you trust, you should use TalkLocal to find an accountant.  You can be sure that the accountants you talk to will be high quality and highly rated!

You might be asking yourself, how do I balance my checkbook?  This article outlines . Hopefully it will make balancing your checkbook appear as a much less daunting task than you originally perceived it to be. Balancing a checkbook may seem like an outdated chore but it still can be an effective way to save money and know where you are spending your precious dollars.

Essentials to balancing a checkbook

– Your checkbook register and a pen

– Copy of your bank statement

– A calculator or phone/computer with calculator functions

– Check withdrawal or deposit slips

– ATM withdrawal or deposit slips

– Credit card purchase history

– Interest rates for your bank accounts

– Information about bank charge fees

If you need help balancing your checkbook or or have other financial questions, check out TalkLocal, a free service that can help you get connected directly to top rated professionals right in your area! You will be connected to high quality accountants within minutes of submitting a service request.

Filing for annual income taxes can be a confusing process. Filling out numerous forms as well as making sure you meet all the deadlines can also be very stressful. Referring to a list of effective income tax preparation tips will make the whole process much more simple. Here are some general tips that will assist you in filing your annual income tax:

1. Plan ahead. Never wait too close to the deadline to get started. Planning ahead can even increase your chances of obtaining a higher refund. It will also help you avoid mistakes and miss out on extra exemptions that can reduce the total amount you pay in taxes.

2. Try out E-filing. Completing your taxes online will definitely quicken up the process. E-filing is considered to be one of the fastest ways to file your taxes and process your refund, and it will help you avoid a lot of paperwork.

3. Use Reliable Software Programs. There are a lot of available software programs that are designed to help people with income tax preparation. These programs are extremely useful in accurately and quickly filing your income taxes, and they can be updated annually. Make sure that you look for a program that is compatible with the operating system that you are currently using. Download the complete version online or install it using a set of disks that can be purchased locally.

If you’re still looking for help filing for taxes, consider hiring a professional. TalkLocal can connect you with a highly rated local accountant within

It’s that time of the year again: tax season. But don’t worry- there are many ways you can prepare for April 17th.

The first thing you should do is organize your papers and documents. Do this at least a few weeks before the dreaded tax day. You could try use a computer program like TurboTax, or keep it low-tech and organize everything by hand.

If you’re experiencing problems, use the IRS free tax assistance online that offers plenty of information on doing your taxes properly. Simply download the IRS’s Publication 17: Your Federal Income Tax from www.irs.gov. The IRS also has a toll-free TeleTax service at (800) 829-4477, with recorded messages on 150 tax topics. Have more questions? You can call the IRS’s 24-hour help line at (800) 829-1040. However, be careful because the IRS does not hold itself liable for tax information given over the phone.

If this doesn’t help, or you’re feeling very overwhelmed, you should get the help of a professional. One way to find help for your tax returns or to figure out which tax bracket you’re in this year, is to use TalkLocal. This free service will contact numerous accountants for you so you can get the help you need when you want it.

Not everyone is interested in preparing taxes. Not everyone has extensive knowledge on tax preparations either. To those who fit these descriptions: worrying is not the solution. If you a novice in the field and want to learn the basic of taxation, there are varieties of free services you can find online that offer lessons on how to prepare and file tax returns. All you need is a little patience.

Here are some tips on preparing taxes:

1.  Be ready.

Gather all the related information that you may need during the process of preparation such as personal information about the people you are filing for (as well as dependents), adjustments to your income, deductions, and specifics about your income, to name a few. This information is crucial for the accountant or the hired tax agent to come up with the accurate tax total.

2.  Be honest.

Higher gross income with fewer deductibles means a higher net. When the net income is high, and the exemptions and other tax deductibles are low, the result is more money in your pocket. For this reason, one may  avoid telling actual figures to the tax preparers. This is illegal, and quite frankly not worth the risk. You should always report your actual earnings because your tax preparer may be able to help minimize your tax payments.

3.  Be ahead of the deadline.

You never know when an emergency will arise and get in the way of financial matters. Take care of your taxes well before the deadline to avoid rushing through your papers and other documents. By planning ahead, you can have more time to clear up questions and double check your tax returns.

4.  Be updated.

Being informed is the most important of all. Relying completely on the tax preparer or accountant will not allow someone to learn. You should try to make your own calculations–both for your own benefit and to double check. Get updates on tax laws including the tax rates, exemptions, and deductibles, as well as the tax preparation tips. Be a wise taxpayer.

Luckily, there are plenty of tax professionals to help you along the way.  TalkLocal can help you find one in your area who can meet your needs on your schedule. Just fill out a service request on TalkLocal’s website stating your problem, availability, and location.

One of the most dreadful and tiring tasks a business owner must deal with is bookkeeping. Keep this process as simple as possible by following these simple bookkeeping tips that every business owner should know:

Use Automated Invoicing

Automated invoicing software makes bookkeeping tasks much simpler. This software allows you to automatically schedule invoices for your clients. It also saves a lot of time when preparing invoices, and reduces your risk of errors.

Schedule Essential Financial Reports

This is another bookkeeping tip you should always remember. Scheduling essential financial reports will help keep you organized. This includes balance sheets, and accounts’ receivable aging, profit or loss, or income statement on a daily, weekly or monthly basis. Once the reports are scheduled, you can begin emailing them to their recipients. This tip will also help by keeping you constantly reminded of your due dates, especially for state sales tax.

Take Advantage of Reliable Accounting Software

Using automated software to record accounting and financial transactions allows you to complete a number of tasks at a time. Fortunately, when it comes to choosing reliable accounting software, you have plenty of options. QuickBooks and Open Source are both examples of good accounting software that will make your job much easier. Some software is also free to download, and comes with free online tutorials and manuals.

Keep your Papers Organized

This will help you overall by reducing your bookkeeping tasks. Make sure that you are consistently organizing the invoices and receipts in your desk. Not doing this will most likely result in a large stack of unmanageable papers, making locating specific files nearly impossible. To help you organize, consider using a file folder or a box for all unrecorded papers.

If you are still having trouble with bookkeeping, you should consider hiring an accountant. TalkLocal can help. Simply visit our website and give a brief description of you service needs to be put in contact with a professional within minutes.