Resources & FAQs

You’ll need to collect all relevant income statements like W-2s from employers, 1099s for freelance or contract work, and statements for any other income such as investment earnings. Additionally, gather documentation for deductions like mortgage interest, property taxes, charitable contributions, and medical expenses. Don’t forget about student loan interest statements or educational expenses if applicable.

Here are the minimum income requirements for filing taxes in 2025.

• Single - $14,600
• Head of Household - $21,900
• Married, filing jointly - $29,200 if both spouses are under age 65. $30,750 if one spouse is under age 65 and one is 65 or older
• Married, filing separately - $5
• Individuals who have more than $400 in net earnings from self-employment

Whether to itemize or take the standard deduction depends on your specific financial situation. If your allowable itemized deductions (like mortgage interest, medical expenses, or charitable contributions) exceed the standard deduction for your filing status, itemizing may lower your taxable income. Otherwise, the standard deduction is typically the simpler and more beneficial option.

Credits like the Child Tax Credit, Earned Income Credit, and education credits can reduce or even refund taxes owed, depending on your situation.

Tax credits reduce the amount of tax you owe dollar-for-dollar, making them highly valuable. Common credits include the Earned Income Tax Credit, Child Tax Credit, and education-related credits like the American Opportunity Credit. Eligibility for these credits depends on your income, family size, and other factors. We can help you identify and claim all the credits you’re entitled to.

Form 4868 needs to be filed by an individual by April 15th. The form can be filed by mail or online. The form will report the estimated tax for the report year along with any tax withheld or estimated tax payments. If there is a balance due, it should be paid with the extension.

You may face penalties and interest. Filing as soon as possible—even if late—can reduce additional costs.

Refunds are typically issued within 21 days of the IRS and any other state tax authorities receiving your return. You can check the status of your refund using the IRS’s “Where’s My Refund?” tool online or through the IRS2Go mobile app. You’ll need your Social Security number, filing status, and the exact amount of your expected refund to track it.

The tax form filed by a small business is determined by how the business is structured.

Sole Proprietorships file Schedule C which is included with the individuals personal tax return.

Partnerships file Form 1065 along with Schedule K1 to allocate the different sources of income among the partners.

C Corporations file Form 1120 and pay tax on any income reported by the entity.

S Corporations file Form 1120-S along with Schedule K1 to allocate the different sources of income among the shareholders.

LLCs file based on the number of members. If the LLC has a single member, they file as a sole proprietor. If the LLC has multiple members, they file as a partnership. LLCs also have the ability to elect to be treated as an S-Corporation.

Businesses may need to pay quarterly estimates on income not subject to withholding. This helps avoid underpayment penalties.

A business expense is an expenditure that is ordinary and necessary to the operations of the business. Ordinary means that the expense is generally incurred by businesses within your industry. Necessary means that the expense is relevant to the operations of the business but is does not have to be required.

Yes, if the space is used regularly and exclusively for business. Square footage and usage will determine the amount deductible.

• Financial Records: This category covers various documents such as accounts payable and receivables invoices, ledgers, schedules, bank statements, deposit tickets, cancelled checks, expense reports, inventory records, notes receivable ledgers, schedules, sales contracts, documents related to payments to vendors and employee reimbursements, withholding tax reports, and purchase orders.
• Operational Records: This includes expired contracts, mortgages, notes, leases, investment records (like expired options and canceled stock/bond certificates), and insurance documents (like settled claims, accident reports, closing statements, purchase and sales invoices, and proof of payment).
• Payroll Records: Keep payroll checks, records, time reports, attendance records, terminated personnel files, medical benefits documentation, and commission reports.

Trusts and Estates both file Form 1041 to report income and expenses of the entity. If distributions are made to beneficiaries Schedule K1 is used to report their allocated share.

Form 1041 is due by the 15th day of the fourth month following the end of the tax year. For trusts and estates with a December year end, the return is due April 15th.

The appointed trustee or personal representative is generally responsible for accurate and timely filings.

Yes, often. The trust may issue a Schedule K-1 outlining the beneficiary’s share of income for reporting.

Bookkeeping entails the recording of transactions related to the income and expenses of the business. This would be reporting deposits and checks from the bank account, revenue and expense invoices and company payroll.

It is important to be consistent in your bookkeeping procedures to maintain records that can be comparable for both tax and financial reporting.

Software helps, but a knowledgeable bookkeeper ensures entries are correct and can flag potential issues early.

Bookkeeping and accounting are both crucial for managing business finances, but they differ in scope and function. Bookkeeping focuses on the day-to-day recording of financial transactions, while accounting involves analyzing, interpreting, and reporting on financial data to provide a broader understanding of a company's financial health.

GAAP, or Generally Accepted Accounting Principles, are a set of accounting rules, standards, and procedures that govern how financial statements are prepared and presented in the United States. They ensure consistency, comparability, and transparency in financial reporting, making it easier for investors, creditors, and other user’s to understand a company's financial situation.

While GAAP is not mandatory for private companies, some businesses choose to use to it, particularly if they are seeking certain loans or potentially obtaining a surety bond.

Start with clean books, a clear chart of accounts, and regular reporting. From there, consider annual reviews or audits for added confidence.