Which Tax Form Should You File?

Individual Tax Preparation – Which form should you use to file your federal income taxes? These days, most people use a computer to prepare and e-file their tax forms. It’s easy, because tax software selects the right form for you. If you file on paper, you’ll need to pick the right form to use.

Before you decide, check out IRS Free File on IRS.gov. It has free tax software or a Fillable Forms option that allows you to fill in your tax forms using a computer. You can e-file the completed forms for free!

If you still prefer paper and pen, here are some tips on how to choose the best form for your situation.

You can generally use the 1040EZ if:
• Your taxable income is below $100,000;
• Your filing status is single or married filing jointly;
• You are not claiming any dependents; and
• Your interest income is $1,500 or less.

The 1040A may be best for you if:
• Your taxable income is below $100,000;
• You have capital gain distributions;
• You claim certain tax credits; and
• You claim adjustments to income for IRA contributions and student loan interest.

However, reasons you must use the 1040 include:
• Your taxable income is $100,000 or more;
• You claim itemized deductions;
• You are reporting self-employment income; or
• You are reporting income from sale of a property.

We’re here to help! For no obligation free consultation contact us today!
ABA Tax Accounting
info@abataxaccounting.com
(952) 583-9108, (651) 621-5777, (612) 224-2476, (763) 269-5396, (818) 627-7315, (773) 599-7182, (404) 884-6903
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Foreign Assets of U.S. Tax Obligations

International Tax – The Internal Revenue Service reminds U.S. citizens and resident aliens, including those with dual citizenship who have lived or worked abroad during all or part of 2012, that they may have a U.S. tax liability and a filing requirement in 2013.

The filing deadline is Monday, June 17, 2013, for U.S. citizens and resident aliens living overseas, or serving in the military outside the U.S. on the regular due date of their tax return. Eligible taxpayers get two additional days because the normal June 15 extended due date falls on Saturday this year. To use this automatic two-month extension, taxpayers must attach a statement to their return explaining which of these two situations applies. See U.S. Citizens and Resident Aliens Abroad for additional information additional information on extensions of time to file.

Nonresident aliens who received income from U.S. sources in 2012 also must determine whether they have a U.S. tax obligation. The filing deadline for nonresident aliens can be April 15 or June 17 depending on sources of income.

Federal law requires U.S. citizens and resident aliens to report any worldwide income, including income from foreign trusts and foreign bank and securities accounts. In most cases, affected taxpayers need to fill out and attach Schedule B to their tax return. Certain taxpayers may also have to fill out and attach to their return Form 8938, Statement of Foreign Financial Assets.

Generally, U.S. citizens, resident aliens and certain nonresident aliens must report specified foreign financial assets on Form 8938 if the aggregate value of those assets exceeds certain thresholds. Instructions for Form 8938 explain the thresholds for reporting, what constitutes a specified foreign financial asset, how to determine the total value of relevant assets, what assets are exempted and what information must be provided.

Separately, taxpayers with foreign accounts whose aggregate value exceeded $10,000 at any time during 2012 must file Treasury Department Form TD F 90-22.1. This is not a tax form and is due to the Treasury Department by June 30, 2013.

Considering a Tax Professional? For no obligation free consultation contact us today!
ABA Tax Accounting
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Year-End Tax Planning For Businesses – Three Most Common Budgeting Errors

Year-End Tax Planning For Businesses – Three Most Common Budgeting Errors

Small Business Tax Planning – When it comes to creating a budget, it’s essential to estimate your spending as realistically as possible. Here are three budget-related errors commonly made by small businesses, and some tips for avoiding them. 

Not Setting Goals. It’s almost impossible to set spending priorities without clear goals for the coming year. It’s important to identify, in detail, your business and financial goals and what you want or need to achieve in your business. 

Underestimating Costs. Every business has ancillary or incidental costs that don’t always make it into the budget–for whatever reason. A good example of this is buying a new piece of equipment or software. While you probably accounted for the cost of the equipment in your budget, you might not have remembered to budget time and money needed to train staff or for equipment maintenance. 

Failing to Adjust Your Budget. Don’t be afraid to update your forecasted expenditures whenever new circumstances affect your business. Several times a year you should set aside time to compare budget estimates against the amount you actually spent, and then adjust your budget accordingly.

 Call our office if you want to discuss setting up a budget to meet your business financial goals. We’re happy to help.

ABA Tax Accounting

Amare Berhie, Senior Tax Accountant

amare@abataxaccounting.com

612-282-3200

866-936-0430 Toll Free

http://www.abataxaccounting.com

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Why Outsource Tax Preparation?

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Strategic Domestic Outsourcing – The obvious reasons companies choose to outsource business processes are to reduce operating costs and increase flexibility to respond to business requirements. By outsourcing tax return preparation to ABA Tax Accounting, your company could focus on reducing operating costs and increase profitability. Most America’s Tax professionals and CPA firms outsource tax preparation. The most successful CPAs have gone to outsourcing tax returns and now have the time and money to differentiate themselves. Do you want to discuss how ABA Tax Accounting can put low cost and 100% U.S. based outsourcing solutions to work for you? For no obligation free consultation contact us today!

ABA Tax Accounting

Amare Berhie, Managing Member

amare@abataxaccounting.com

612-282-3200

866-936-0430 Toll free

http://www.abataxaccounting.com

www.abatax81.blogspot.com

www.abataxaccounting.wordpress.com

Published in: on October 23, 2012 at 1:02 pm  Leave a Comment  
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Strategic Domestic Outsourcing Lowers Overhead Costs

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Strategic Outsourcing will give your business a competitive advantage and provide a reduction in expenditures.  One of the prevalent motives why businesses seek an outsourcing partner is in order to lower overhead costs and expenses. Immediate savings to the client are derived from the vendor’s lower cost in wages, benefits, and operational expenses. Do you want to discuss how ABA Tax Accounting can put outsourcing solutions to work for you? For no obligation free consultation contact us today!

ABA Tax Accounting

Amare Berhie, Managing Member

amare@abataxaccounting.com

612-282-3200

866-936-0430 Toll free

http://www.abataxaccounting.com

www.abatax81.blogspot.com

www.abataxaccounting.wordpress.com

Published in: on October 17, 2012 at 1:34 pm  Leave a Comment  
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