Service Details

1. Tax Planning & strategy

Taxes are a necessity. Just as you wouldn’t want to overspend on other necessities like food and housing, you don’t want to spend any more than you have to in taxes. The key to frugal shopping is to conduct research and have a spending plan. The same goes for minimizing your tax bill.

In addition to saving people money, tax planning strategies help taxpayers avoid tax penalties, get the most from their tax deductions, keep their financial documents organized, and plan for the future. By contrast, doing no tax planning takes money away from life’s other necessities by increasing tax bills unnecessarily.

  • Timing of income
  • Timing of purchases
  • Planning expenditures
  • Retirement savings strategy
  • Tax filing status and deductions

A tax planning strategy becomes part of an overall plan for making expenditures and allocating retirement and other savings accounts. It allows you to be proactive in all spending and savings rather than reacting when the tax bill comes due.

  • American opportunity tax credit: The American opportunity tax credit (AOTC) program provides an annual tax credit of $2,500 per eligible student with qualified education expenses, such as tuition. Students who don’t owe any taxes can receive 40% of the credit, or $1,000, as a cash refund. (Note that the AOTC has a four-year maximum.)
  • Lifetime learning credit: The lifetime learning credit (LLC) program provides up to $2,000 to reimburse students for tuition, fees, and other qualified education expenses. The LLC program doesn’t offer cash refunds for students with no tax liability. The program has no limit on the number of years it can be claimed.
  • Tuition and fees deduction: The IRS explains that students are allowed to deduct up to $4,000 from their taxable income each year to compensate for tuition and fees. As with the LLC program, the deduction isn’t available to students who owe no taxes. Also, the deduction doesn’t apply to college costs other than tuition and fees.
  • Student loan interest tax deduction: Students or parents who made payments on a qualifying student loan may deduct up to $2,500 of the interest they paid on the loan in the tax year. The deduction applies even if extra payments were made on the loan in the year.

2. Tax Filing

We help and assist you in filing

A. 1040 : INDIVIDUALS

  •    Form 1040 is what individual taxpayers use to file their taxes with the IRS.
  • The form determines if additional taxes are due or if the filer will receive a tax refund.
  • Taxpayers must include personal information on Form 1040, such as name, address, Social Security number, and the number of dependents.
  • A filer also needs to report wages, salary, taxable interest, capital gains, pensions, Social Security benefits, and other types of income.
  • Taxpayers may need to file supplemental tax 1040 forms depending on their situation.

B. 1120 : C CORPORATIONS

                 A C corporation (or C corp) is a legal structure for a corporation in which the owners, or shareholders, are taxed separately from the entity. C corporations, the most prevalent of corporations, are also subject to corporate income taxation. The taxing of profits from the business is at both corporate and personal levels, creating a double taxation situation.

  • A C corporation legally separates owners' or shareholders' assets and income from that of the corporation.
  • C corporations limit the liability of investors and firm owners since the most that they can lose in the business's failure is the amount they have invested in it.
  • C corporations are mandated to hold annual meetings and have a board of directors that is voted on by shareholders.

C. 1120 S : SMALL CORPORATIONS

                 An S corporation is a business entity permitted under the U.S. tax code. It is meant for smaller companies with fewer than 100 shareholders. S corporations are considered pass-through entities as they don't pay corporate taxes. Instead, they pass the tax liabilities to their individual shareholders.

  • Form 1120-S is the annual tax return for businesses that are registered as S corporations.
  • The form is used to report income, gains, losses, credits, deductions, and other information for S corporations.
  • Form 1120-S must be accompanied by Schedule K-1, which lists individual shareholders and the amount of profit and loss allotted to each.
  • The company's information must be included on Form 1120-S along with details about its income, deductions, taxes, and payments.

D. 1065 : PARTNERSHIP

              Partnerships do not pay taxes on their profits, their partners do. Partnerships are pass-through entities that report their income, deductions, credits and other items to partners so that partners can then enter their share of this information on their personal tax returns.

The partnership, as well as an entity treated as a partnership for federal income tax purposes, uses Form 1065, U.S. Return of Partnership Income, to list this information.2 An allocation of the items is made to each partner on a Schedule K-1, Partner’s Share of Income, Deductions, Credits, Etc., based on their ownership interests.

  • Business partners, S corporation shareholders, and investors in limited partnerships and certain ETFs use Schedule K-1 to report their earnings, losses, and dividends.
  • Schedule K-1s are usually issued by pass-through business or financial entities, which don't directly pay corporate tax on their income, but shift the tax liability (along with most of their income) to their stakeholders.
  • Schedule K-1 requires the business entity to track each participant’s basis or ownership stake in the enterprise.
  • Several different types of income can be reported on Schedule K-1.
  • Schedule K-1s should be issued to taxpayers no later than Mar. 15 or the third month after the end of the entity's fiscal year.

E. FORM 990 : NOT FOR PROFIT

                        Even organizations that are exempt from paying federal income tax have to report their activities annually to the Internal Revenue Service (IRS). This requirement by the IRS is detailed in the Internal Revenue Code (IRC). Some tax-exempt organizations are required to use Form 990: Return of Organization Exempt From Income Tax for their annual reporting.

  • Form 990 is a form that some tax-exempt organizations are required to submit to the Internal Revenue Service (IRS) as a part of their annual reporting.
  • Organizations that use Form 990 are federal income tax-exempt under the tax categories that are outlined in Section 501(c), Section 527, and Section 4947(a) of the Internal Revenue Code (IRC).
  • Unlike federal income tax returns that are private, Form 990 is open to public inspection.

 

f. FORM 1041: ESTATE TAX RETRUNS

                         Form 1041 is an Internal Revenue Service (IRS) income tax return filed by the trustee or representative of a decedent's estate, trust, or the bankruptcy estate. Part of Section 1041 of the Internal Revenue Code (IRC), Form 1041 is used to declare any taxable income that an estate or trust generated after the decedent passed away and before designated assets were transferred to beneficiaries.

 

  • Form 1041 is a tax return filed by estates or trusts that generated income after the decedent passed away and before the designated assets were transferred to beneficiaries.
  • The executor, trustee, or personal representative of the estate or trust is responsible for filing Form 1041.
  • Form 1041 does not need to be filed if the estate or trust generated an annual gross income (AGI) less than $600 unless one of the beneficiaries is a non resident alien.
  • Certain income or deductions may require a complementary form or schedule.
  • Form 1041 is due by the fifteenth day of the fourth month after the close of the tax year and can be sent electronically or by mail.