M.E. Accounting Service LLC

As important tax records start filling mailboxes, how can you make sure your tax preparation goes smoothly and efficiently this year? Here are some tips. Keep it all in one place. It seems obvious, but how often have you found yourself going through piles of paper looking for that elusive 1099 tax form or charitable deduction receipt? If you only do one thing, this is it. Time to sort. Now that everything is all together, best practice is to sort your information into the sam...e buckets used in your tax return. At a minimum, sort the information into the basic categories below. If you have a lot of one category, sort that stack into the following sub-categories. A. Income Wages (W-2s) Alimony Business income (1099's, K-1s) Interest income (1000-INT) Dividends (1099-DIV) Winnings (W-2G, 1099-G) Social Security Investments (1099-B) Other Income Items B. Income Adjustments Student loan interest Tuition & fees deductions Alimony paid Educator expenses Other education expenses IRA contributions HAS/MSA contributions C. Itemized Deductions Taxes paid Charitable contributions Interest expense (mortgages) Medical/Dental expenses Investor/Other expenses Casualty/Theft losses D. Credit Information Child & dependent care expenses Other credit-related expenses Adoption expenses Education expenses E. Business/Rental Sort income and expenses for each business activity or hobby activity or rental unit Note: Remember this list is not all-inclusive, it is here to help you sort your information into a usable form to make tax filing easier. Not sure bucket. There may be things you receive that you are not certain about needing for tax filing purposes. These items should be gathered in one place for review. Sum it up. Once the information has been categorized, create a summary of the information. This summary can be a printed copy of an organizer or it could be a simple recap you create. Is something missing? Pull out last year’s tax return and create a list of things you needed last year. Use this as a checklist against this year’s information. While this process will not identify new items, it will help identify missing items that qualified in prior years. Finalize required documentation. Certain deductions require substantiation and/or logs to qualify your expense. Common areas that require this are: business mileage, charitable mileage, medical mileage, moving mileage, non-cash charitable contributions, and certain business expenses. These logs should be maintained throughout the year, but now is a good time to make sure they are complete and ready to go for tax filing. It is very easy to overlook something given the lengthy list of taxable income items, deductions and credits. By following these tips you can greatly reduce that risk. See more

If anyone has dropped off a tax return and does not want to physically come right now to sign, please message me your email address. I can send you the forms that I need signed, so we can get them filed. We can worry about payment later. I just want to make sure you get your refund, especially now when a lot of people could use the money. Also, if anyone does not want to physically drop of paperwork, you can email it to me. [email protected] I will get it done,... so it's one less thing you have to worry about during these trying times. Thank you, Mike

Most of you probably know this already, but just wanted to put it out there again for everyone. In light of the global pandemic, tax season has been extended until July 15 this year. So if anyone has any anxiety over taxes, don't. Also, there are plenty of electronic options available for those who may have anxiety over physically transferring paperwork between one another. We can do everything virtually. Rest assured, we will find a way to get your information filed, so you ...can get your refunds in your hands during these trying times. Also, if you are deemed essential and have to keep your business activities running, I will be on hand ready to help with your payroll and any other accounting functions. If you had to temporarily shut your doors and need to talk out options on how we can keep your business viable, call, I will do whatever I can to help you navigate these trying times. As a small business owner, I understand and feel your pain. If we put our heads together, we can overcome this. Thank you!

We are officially in the swing of things with this tax year. If you need an appointment or just some advice message me, call me, check out www.meaccountingservice.com

Merry Christmas from M.E. Accounting ServiceMerry Christmas from M.E. Accounting Service