Frequently Asked Questions about Taxes and Tax Preperation

What do I need to get you to do my taxes?

Go to this link and get us all items on this list that apply

TAXACT CHECKLIST

What credits can I get by attending school?

The American Opportunity is the best.

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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:

What are the four ways an LLC is taxed?

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

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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.

What is my tax bracket?

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

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What tax credits can get in Arizona?

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:

o Married couple – Maximum contribution of $400, or

o Single – Maximum contribution of $200.

o Sample Contact/Provider – For Mesa Public Schools – mpsaz.org/pay

Contribution to Qualifying Charitable Organizations:

o Married couple – Maximum contribution of $400, or

o Single – Maximum contribution of $200.

o Sample Contacts/Providers –House of Refuge ]aztaxcredit.org / savethefamily.org / TurnaNewLeaf.org (A New Leaf)

Contribution to Private School Tuition Organization:

o Married couple – Maximum contribution of $1,070 (special increase to $2,134 for 2015 with the “Plus” credit for “certified” school tuition organizations), or

o Single – Maximum contribution of $535 (special increase to $1,067 for 2015 with the “Plus” credit for “certified” school tuition organizations).

o Sample Contacts/Providers – asct.org (AZ School Choice Trust) / azscholarships.org / ArizonaTuitionConnection.com

Contribution to Qualifying Foster Care Organization:

o Married couple – Maximum contribution of $400, or

o Single – Maximum contribution of $200.

o Sample Contacts/Providers – aask-az.org (Aid to Adoption of Special Kids)

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. Learn how to Determine “Reasonable Salary” in an S-corporation

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