A LOT TO LEARN AND KNOW ABOUT TAXES!
Frequently asked questions
When should I contact a CPA?
As soon as you start to think about your business, or you have a tax query about which you are not very clear. Your CPA can help you navigate the complexities and assist in taking the next steps. If you already have a CPA assisting you, Do you feel comfortable asking them a question? Do you feel heard? With the right accountant, the answers should be a resounding "Yes!"
My parents are living with me in US and have income in India. Do they need to file taxes in US?
It is very important to identify your correct tax obligation. The immigrant status of your parents, amount of income and several other factors will play a role in determining if your parents need to file taxes in US.
I received a notice from IRS. What do I need to do?
Getting a notice from IRS could be unnerving. There are several different types of notices and it is often important to understand the reason for the notice. Each notice deals with a specific issue and includes specific instructions including a date by which response is due (if an action is required). Here are the basics to follow: Make sure the letter is from IRS, do not ignore the communications, do not panic and reach out to a professional when in doubt.
What are the important tax deadlines?
For Individuals (Form 1040) the deadline is April 18, 2023
For S corporations and Partnership, generally the deadline is by the 15th day of the 3rd month after the end of its tax year. Calendar year corporation the deadline is March 15th, 2023
Who must pay estimated taxes?
Individuals, including sole proprietors, partners, and S corporation shareholders, generally have to make estimated tax payments if they expect to owe tax of $1,000 or more when their return is filed.
For estimated tax purposes, the year is divided into four payment periods with specific payment due date. If you don’t pay enough tax by the due date of each of the payment periods, you may be charged a penalty even if you are due a refund when you file your income tax return. Estimated tax payments are due as follows:
January 1 to March 31 – April 15
April 1 to May 31 – June 15
June 1 to August 31 - September 15
September 1 to December 31 – January 15 of the following year
TIPS ON TAX STRATEGIES
End of year Tax Tips
You may be able to do several things that could potentially help reduce your taxable income, maximize your charitable deductions, and reduce exposure to future taxes. Some of the strategies you may want to consider includes:
For Individuals
Tax Loss harvesting
Contributing to tax advantaged accounts such as 401(K), IRA, HSA etc.
Consolidate charitable donations
For small business
Reviewing the timing of your income and expenses
Consider using Sec 179 deduction
Contributing to retirement plans
