FAQS
 

What documents do I need to gather up to get my taxes done?

Go to this link and get us all items on this list that apply. https://www.taxact.com/return-checklist/2016/1040.pdf

How does income, withholdings, deductions and credits impact my 2016 tax refund or balance due amount?

Use the calculator: https://www.taxact.com/tools/tax-calculator.asp

What credits can I get by attending school?

The American Opportunity is the best.

https://www.irs.gov/uac/american-opportunity-tax-credit-questions-and-answers

What is the best tax structure for my business?

Our model at K&RTax Accounting Services LLC is to save you money on your taxes. If you have a for profit company, then will make sure you are an LLC and have it taxed as an S Corp. This video is our model:

Video Link

Do I want to be taxed on all my income or just on a portion of my income?

Another resource that describes our model is noted is this great video:

Video Link

What are the four ways an LLC is taxed?

Most people do not realize that there are four ways an LLC is taxed.

https://www.avvo.com/legal-guides/ugc/what-are-the-four-ways-an-llc-can-be-taxed-under-the-internal-revenue-code

Richard Keyt is the number one LLC attorney in the state. Get his word on the issue:

http://www.keytlaw.com/azllclaw/forming-llcs/llc-tax-methods/

What does the IRS say about my LLC and it’s default federal taxation structure?

The IRS word on the LLC’s. A Limited Liability Company (LLC) is a business structure allowed by state statute. An LLC that does not want to accept its default federal tax classification, or that wishes to change its classification, uses Form 8832, Entity Classification Election, to elect how it will be classified for federal tax purposes. You have a federal default federal classification.

https://www.irs.gov/businesses/small-businesses-self-employed/limited-liability-company-llc

How can I become a real estate professional and take all my real estate losses on my tax return?

Real Estate Professional Rules so you can take all your passive losses on your taxes. If you spouse stays home this video can help you have money on rentals.

https://www.irs.gov/businesses/small-businesses-self-employed/limited-liability-company-llc

Read the court cases to make sure you’re not in violation:

https://www.irs.gov/businesses/small-businesses-self-employed/limited-liability-company-llc

What is my tax bracket?

Here is the best site to help you with this answer:

https://www.irs.gov/businesses/small-businesses-self-employed/limited-liability-company-llc

What is a good website to answer basic question about taxation for personal and business?

Once of the best sites to answer questions about questions on individual taxation, corporations and s corps, etc.

https://www.irs.gov/businesses/small-businesses-self-employed/limited-liability-company-llc

What tax credits can get in Arizona?

https://www.irs.gov/businesses/small-businesses-self-employed/limited-liability-company-llc

Currently, there are four special Arizona Tax Credit Contribution Programs available which should be strongly considered in your annual tax planning. Each of these programs provide a “dollar-for-dollar” Arizona tax credit, meaning that your tax liability is reduced “dollar-for-dollar” by the amount of your contribution (not to exceed the amount of your Arizona tax liability), PLUS you receive a Federal tax deduction, which reduces your Federal tax liability based on your income tax bracket. Therefore, you can receive an overall reduction of your tax liability, and possibly a benefit in excess of the contribution amounts.

The four contribution programs currently offered by Arizona include:

  • Contribution to Public Schools Extracurricular Activity Fund:
  • Married couple – Maximum contribution of $400, or
  • Single – Maximum contribution of $200.
  • Sample Contact/Provider – For Mesa Public Schools – mpsaz.org/pay
  • Contribution to Qualifying Charitable Organizations:

  • Married couple – Maximum contribution of $400, or
  • Single – Maximum contribution of $200.
  • Sample Contacts/Providers –House of Refuge www.houseofrefuge.org / GoodwillTaxCredit.org / aztaxcredit.org / savethefamily.org / TurnaNewLeaf.org (A New Leaf)
  • Contribution to Private School Tuition Organization:

  • Married couple – Maximum contribution of $1,070 (special increase to $2,134 for 2015 with the “Plus” credit for “certified” school tuition organizations), or
  • Single – Maximum contribution of $535 (special increase to $1,067 for 2015 with the “Plus” credit for “certified” school tuition organizations).
  • Sample Contacts/Providers – asct.org (AZ School Choice Trust) / azscholarships.org / ArizonaTuitionConnection.com
  • Contribution to Qualifying Foster Care Organization:
  • Married couple – Maximum contribution of $400, or
  • Single – Maximum contribution of $200.
  • Sample Contacts/Providers – aask-az.org (Aid to Adoption of Special Kids)

Are there any other options for health insurance besides Obamacare?

Look at Liberty Healthshare. We love this, but they can discriminate if you have any pre-existing conditions, are a smoker or are pregnant. Check it out and see if its right for you

https://www.irs.gov/businesses/small-businesses-self-employed/limited-liability-company-llc

What do you recommend for additional coverage for my family that is inexpensive?

You want great protection for you and your family – choose the AFLAC Policies of accident, cancer, sickness, intensive, care, and hospital to supplement your regular insurance. Contact ASAP – Jennifer Goedken at 480-351-2427 and have her meet with you. Policies are very inexpensive yet protective.

https://www.irs.gov/businesses/small-businesses-self-employed/limited-liability-company-llc

Should I buy whole life or term insurance?

You need term life insurance on your life and your spouse. – see

http://www.bestliferates.org/companies/

Look at the top ten companies. Call them directly and price shop for both. MetLife continues to be the largest provider of life insurance in the United States, but this was not enough to put them in the top 3 for the year 2016; simply being the largest life company is not enough. Call them ASAP at 1-800-Metlife. Buy Term – never whole life or universal

Suze Orman Expert See Video:

https://www.youtube.com/watch?v=WzgtWfQngII

Dave Ramsey Recommendation:

https://www.youtube.com/watch?v=WzgtWfQngII

What sort of retirement plan do I need?

The best retirement plan for a small business owner with no employees:

https://www.youtube.com/watch?v=WzgtWfQngII

How do I calculate my W-2 as an S-Corporation owner?

LLC’s taxed as an S Corp must pay a reasonable w-2 each year.

How to Determine “Reasonable Salary” in an S-corporation

https://www.youtube.com/watch?v=WzgtWfQngII