Avoiding Big Tax Surprises

This is a friendly note from Bob Martin, USN veteran with BW James LLP to inform you that if you had a significant change in your finances this year, such as a fluctuation of income or a major purchase, then it is best to make an appointment with you tax professional right now.

If there are changes in your life currently you should definitely review the impact it will have on you taxes to determine if you will owe more or less on your 2013 tax return.  After all, no one likes a big surprise on April 15th.

A higher-than-expected tax liability that you cannot immediately pay isn’t just costly, it can also be stressful.  Avoid those headaches now by visiting one of the tax professionals at BW James during the slow season so we can easily help you to accommodate and plan.  Getting a head start can allow you to begin a savings program or adjusting your payroll withholdings to prepare for the liability.  So avoid those April blues and start off strong today!

For more information about the professionals at BW James visit http://www.bwjames.com

Top 5 Ways to Maximize Your Tax Benefits

Paying tax is an inevitable part of your adult life. Barry W James of BW James CPA’s shares some tips on how you can maximize your benefits and at the same time, minimize your taxes due. Here are some useful suggestions you can use for the tax season.

Make necessary adjustments for your withholding.

There are plenty of Americans with withheld taxes higher than what is required of them. If you are receiving a large refund, it is due time to review your withholding so you get of that money in your own paycheck.

Keep your records organized.

Make sure you have all the tax related documents prepared and organized. This simple tip can save you a lot of time and possibly help you further with minimizing your taxes.

Make contributions to your retirement accounts.

Your additional deductions can be increased by funding your retirement plan. One way to do this is to use a Traditional IRA. Your contribution becomes a deductible if you are an active participant or if your spouse is.

Sign up for a Flexible Spending Account.

According to BW James accountants, a Flexible Spending Account may be beneficial to your case, which is why it is worth considering. With this program, funds are deducted from your salary on a pretax basis. That automatically reduces your taxable income. The funds taken from your paycheck will then be refunded as soon as you present claim forms to your company's benefits department. The two kinds of FSAs worth considering include healthcare and dependent care.

Support a charity.

Making a charitable donation can also help minimize your taxes. And when you do, make sure you itemize these deductions properly so you can receive tax related benefits that is due you. Keep in mind however, that only the actual contributions are considered deductible. Check the guidelines regarding this matter for more information.

For more information about the professionals at BW James call 281-420-1040 or visit http://www.bwjames.com 

Get a Head Start on Tax Season in Four Simple Steps

While the end of the year may seem like it’s a long time from now, it’s only three short months away. When you factor in the hectic weeks of the coming holiday season, that really only leaves a few weeks to pull your tax information together to avoid the stress that being unprepared for tax season can bring.

Now is the time to think about what information you will need for the 2013 tax filing season and the steps you can take in the next few months to minimize your tax burden. To help you get a jumpstart on your end-of-year planning and organization, here are a few tips courtesy of BW James Certified Public Accountants.

1) Take a look at last year’s income tax return and determine what documentation you will need to complete this year’s return.

2) Review the expenses, retirement contributions, and charitable giving that you have planned before year-end to determine if there are any additional deductions that you may still be able to capture for this tax year.

3) Organize your receipts and invoices by category and start scanning them so you are prepared for a paperless tax preparation process.

4) If you’re not already comfortable using your portal on our website, make sure to check how the process of uploading your tax documents works and how to review your return online so these tasks are quick and easy for you during tax season.

Getting a head start on your taxes now will benefit you come tax time. Providing us with your documentation as early as possible will allow us to process your return sooner so you can receive any tax refund you may be eligible for more quickly. In addition, preparing now will also help you avoid the stress of scrambling for information with a looming tax deadline before you. And remember, we are always here to help. If you have any questions, please give us a call at 281-420-1040 or visit www.bwjames.com