Small Business Accounting Waukesha | Edith Christian

Don’t squander away your precious time by struggling with complicated IRS forms and complex bookkeeping chores. You can get fast and effective solutions to all of your tax and accounting affairs when you employ Edith I Christian, CPA of Waukesha. We know how stressful your life can be. But when you call on us, you can relax a little bit. Our professionalism, integrity and trusty service make your life less taxing. Plus, we focus on delivering peerless customer service to ensure the satisfaction of every single client. Our name is indelibly linked with characteristics such as honesty, reliability and outright excellence. You can count on us! Are you ready for more information? Call today.

Tax Consulting for Individuals / Business

Tax Preparation and Consulting

New Business Start-Ups

What To Keep on a Balance Sheet

A balance sheet is the financial condition of your business at an instant in time. In your business balance sheet, you must put financial information that's in constant motion because the activities of the business go on nonstop. A business doesn't shut down to prepare its balance sheet.
The activities, or transactions, of a business fall into three basic types:

• Operating activities: This category refers to making sales and incurring expenses, and also includes the allied transactions that are part and parcel of making sales and incurring expenses. For example, a business records sales revenue when sales are made on credit, and then, later, records cash collections from customers.
  Keep in mind that the term operating activities includes the allied transactions that precede or are subsequent to the recording of sales and expense transactions.
• Investing activities: This term refers to making investments in assets and (eventually) disposing of the assets when the business no longer needs them. The primary examples of investing activities for businesses that sell products and services are capital expenditures, which are the amounts spent to modernize, expand, and replace the long-term operating assets of a business.
• Financing activities: These activities include securing money from debt and equity sources of capital, returning capital to these sources, and making distributions from profit to owners.

Waukesha and Milwaukee Bookkeeping | Edith Christian CPA

 When it comes to bookkeeping, it is important to start out correctly.  Here is some advice from Score.org  regarding tips on bookkeeping.  When in doubt feel free to contact us at Edith I Christian CPA.  We can handle it for you.  Serving Milwaukee and Waukesha for all your accounting needs.

1. Use the right accounting system. Most businesses use either cash-based or accrual-based accounting. If you use the cash method, you count income when you receive it and expenses when you pay them. Under the accrual method, you count income and expenses when they happen, not when you actually receive or pay them.
In practical terms, this difference in timing is relevant if your company keeps inventory on hand or handles transactions on credit. In these cases, the accrual method might be a better choice for your business. And in fact, if your firm has more than $5 million in sales or keeps an inventory, the IRS might require that you use the accrual system. In other cases, however, the simpler cash system could be all you need.
2. Maintain daily records. This is one of the most basic rules: If you don't keep accurate daily records, you don't have an accurate way to track the financial condition of your business. Different people use different record-keeping systems; what matters is that you have one and use it every day. Once you have a good system set up, accurate record keeping will take just a few minutes a day.
3. Handle and review checks carefully. It's easy to be on autopilot when you're writing checks and tossing canceled ones into a filing cabinet without reviewing them. Remember: Those checks are as good as cash. And if something goes wrong, you — not the bank — will be on the hook. Take the same care with checks as you would with cash. Sign checks using a clear, distinctive signature that won't invite forgery. Review canceled checks before anyone else, including your bookkeeper or employees, sees them; that way you can catch unauthorized checks. And if your business is a partnership, it's a good idea to have at least one of the partners co-sign the checks.
4. Get a bank statement with a month-end cutoff. This is another basic tip that can reap big rewards. Synchronizing your bank statement with other monthly records will make it much easier to reconcile your statement and track expenses.
5. Leave an audit trail. Your record keeping will be much more effective if you have a system that allows you to quickly and easily retrace your company's financial activities. This means keeping your invoices and checks in numeric order, not skipping check or invoice numbers, and keeping separate bank accounts for your business and personal funds. If you can't go back a year and reconstruct your company's finances, you probably aren't leaving an effective audit trail.
6. Use a computer. Computer bookkeeping software is absolutely essential for all but the smallest businesses. These applications make it easy to track income and expenses, prepare tax documents, summarize your company's financial activities and back up records for safekeeping. If you're working with an outside bookkeeper, make sure they know how to use a computer.

Obamacare and your taxes | Waukesha Accounting and tax tips

 Nice article on the Obama care tax issues you may be wondering about.

by Sally P. Schreiber, J.D. 

Published November 01, 2013

 

The IRS released final regulations on the Sec. 5000A shared-responsibility payment—the penalty or tax imposed on individual taxpayers who do not obtain minimum essential health care coverage beginning in 2014 (known as the “individual mandate”) (T.D. 9632). The Treasury Department also released a fact sheet discussing the final rules.
The final rules adopt the proposed regulations issued in January with a few clarifications (REG-148500-12). They also cross-refer to rules issued July 1 by the Department of Health and Human Services governing eligibility for and granting certain exemptions from the shared-responsibility payment, which include circumstances in which insurance exchanges will grant hardship exemptions from the requirement to obtain minimum essential health care coverage (78 Fed. Reg. 39494 (July 1, 2013)).
Under Sec. 5000A, starting next year, a taxpayer will be liable for the shared-responsibility payment if the taxpayer or any nonexempt individual whom the taxpayer may claim as a dependent for a tax year does not have minimum essential coverage in a month included in that tax year. Married taxpayers filing a joint return are jointly liable for the payment.
The regulations cover the following topics:

• Maintenance of minimum essential coverage and liability for the shared-responsibility payment: Regs. Sec. 1.5000A-1 defines minimum essential coverage and liability for the shared-responsibility payment, including for dependents.
• Minimum essential coverage: Regs. Sec. 1.5000A-2 defines the different types of health plans that qualify as minimum essential coverage.
• Exempt individuals: Regs. Sec. 1.5000A-3 defines who is exempt from the payment.
• Computation of the shared-responsibility payment: Regs. Sec. 1.5000A-4 contains rules for computing the amount of the payment.
• Administration and procedure: Regs. Sec. 1.5000A-5 states when the payment is due, that liens or levies to collect the payment are prohibited, that the taxpayer is not subject to criminal penalties for nonpayment, and that the IRS has authority to offset overpayments of tax to collect the payment.  

Click here to read more

Waukesha Accountants | Small business accounting

Here are 5 simple tips to keep your small business accounting in order from Forbes ,

Edith I Christian, CPA. We’ll help you maximize your earnings in a fast, efficient and economical fashion. With our peerless personnel, we can handle virtually any accounting and income tax need in a timely and efficient manner.

• Tax Consulting for Individuals / Business
  
• Tax Preparation and Consulting
• New Business Start-Ups
• Divorce Financial / Tax Consulting
• Collaborative Divorce

You can benefit from our wide-ranging knowledge and expertise. Contact us today and learn more about our unique capabilities.

1. Keep it separate. That new backpack for your kids isn’t a business expense, but your business credit card was handy so you used it. Sure, you can pay back your business for a personal expenditure, or the other way around, but if you’re going to do it right you actually have to record an accounting transaction. Things get complicated fast, and you don’t need that headache. By keeping separate bank and credit card accounts for business and personal, you’ll save yourself hours of work and make it easy to keep track of deductible expenses in one place. Some applications can automatically handle the behind-the-scenes accounting for crossover expenses, but even so, we recommend handling business and personal finances as independently as possible.
2. Call in a pro. Since the days of the abacus, accountants have been trusted and respected allies to small business owners everywhere. Their intimate knowledge of the profession as well as tax laws in their jurisdiction will save you money almost every time. I know how tempting it can be to save a buck and do it yourself, but it’s almost never more cost-efficient in the end. An accountant will almost always find more deductions and keep you penalty-free. On that note, the cleaner your records, the fewer billable hours you’ll have to pay, so make sure you’re organized year-round. But when things get technical or taxes are due, save yourself the money, time and headaches and call in a trusted professional.
3. Pencil it in. Actually, use a pen. A permanent marker even. Set aside about 15 minutes every week — that’s the equivalent of just one Facebook visit every seven days — to organize your finances, and don’t let other things take priority during this time.  You’ll have more insights into your business, be able to make more informed financial decisions and have everything organized when tax time approaches. Something always feels more pressing than your finances. But when you find the time every week, you’ll feel your stress levels — now and at year-end — fall fast.
4. Consider your people. When you’re looking for insights into your businesses spending, don’t forget to properly track what is likely one of your biggest expenses: labor. Whether you’re paying a full staff or you’re the only one on the payroll, make sure you’re tracking the costs of wages, benefits, overtime and any other costs associated with labor. By tracking your spending on labor, perks and benefits, you may find you have more money to incentivize your employees — or that you’re outspending your budget. Either way, doing the math now can help you make better decisions later.
5. Finally, don’t forget to get paid. This one seems pretty obvious, but you would be shocked at how many small business owners don’t properly track invoices and customer payments. If you’re not keeping proper records that you can make sense of at a glance, it could be months before you realize you have outstanding invoices. You could be collecting payments late, or missing some altogether. Make sure you’re properly tracking all payments due and recording when each invoice is paid, how long customers generally take to pay, and which customers you’ve had difficulties collecting payments from in the past.

Tax Notices from the IRS Help | Edith Christian CPA

If you receive a letter or notice from the IRS, it will explain the reason for the correspondence and provide instructions. 

Many of these letters and notices can be dealt with simply, without having to call or visit an IRS office.
The notice you receive covers a very specific issue about your account or tax return. Generally, the IRS will send a notice if it believes you owe additional tax, are due a larger refund, if there is a question about your tax return or a need for additional information.

Here is a link to the IRS with more Information


When your accounting tasks are too much to bear, don’t lose heart. Just call on Edith I Christian, CPA. We’ll help you maximize your earnings in a fast, efficient and economical fashion. With our peerless personnel, we can handle virtually any accounting and income tax need in a timely and efficient manner.

• Tax Consulting for Individuals / Business
• Tax Preparation and Consulting
• New Business Start-Ups
• Divorce Financial / Tax Consulting
• Collaborative Divorce

You can benefit from our wide-ranging knowledge and expertise. Contact us today and learn more about our unique capabilities.


262-646-2008
N9 W29360 Thames Road
Waukesha, WI 53188

Waukesha Accountant | Edith Christian CPA

We offer professional services that will satisfy your tax and accounting needs with relative ease. If you are ready to learn more about our offerings, just pick up the phone and give us a ring. Our friendly and accommodating staff is waiting to field your call, answer your questions and discuss your circumstances. When it comes to your finances, every delay can be costly, so don’t waste any more time. Contact Edith I Christian, CPA!

 Don’t squander away your precious time by struggling with complicated IRS forms and complex bookkeeping chores. You can get fast and effective solutions to all of your tax and accounting affairs when you employ Edith I Christian, CPA. We know how stressful your life can be. But when you call on us, you can relax a little bit.

Bookkeeping for Small Business Waukesha | Edith Christian CPA

We know how stressful your life can be. But when you call on us, you can relax a little bit. Our professionalism, integrity and trusty service make your life less taxing. Plus, we focus on delivering peerless customer service to ensure the satisfaction of every single client. Our name is indelibly linked with characteristics such as honesty, reliability and outright excellence. You can count on us! Are you ready for more information?

When your accounting tasks are too much to bear, don’t lose heart. Just call on Edith I Christian, CPA. We’ll help you maximize your earnings in a fast, efficient and economical fashion. With our peerless personnel, we can handle virtually any accounting and income tax need in a timely and efficient manner.

• Tax Consulting for Individuals / Business
• Tax Preparation and Consulting
• New Business Start-Ups
• Divorce Financial / Tax Consulting
• Collaborative Divorce

You can benefit from our wide-ranging knowledge and expertise. Contact us today and learn more about our unique capabilities.

Waukesha CPA | Edith Christian

 We know how stressful your life can be. But when you call on us, you can relax a little bit. Our professionalism, integrity and trusty service make your life less taxing. Plus, we focus on delivering peerless customer service to ensure the satisfaction of every single client. Our name is indelibly linked with characteristics such as honesty, reliability and outright excellence. You can count on us! Are you ready for more information?

When your accounting tasks are too much to bear, don’t lose heart. Just call on Edith I Christian, CPA. We’ll help you maximize your earnings in a fast, efficient and economical fashion. With our peerless personnel, we can handle virtually any accounting and income tax need in a timely and efficient manner.

• Tax Consulting for Individuals / Business
• Tax Preparation and Consulting
• New Business Start-Ups
• Divorce Financial / Tax Consulting
• Collaborative Divorce

You can benefit from our wide-ranging knowledge and expertise. Contact us today and learn more about our unique capabilities.


262-646-2008
N9 W29360 Thames Road
Waukesha, WI 53188

Small Business Accounting In Waukesha | Edith Christian

Here are 5 tips for small business owners.

1. Budget your spending. Hyder says the best way to run your small business is to know how much money you need to make in order to break even and how much you have to spend to run your business on a daily basis. Separate your business budget into 4 categories:
i) prospective income
ii) fixed expenses
iii) variable expenses
iv) paycheque-allowance
The key to financial discipline is realistic balancing of needs versus wants.
2. Don't Spend. Invest. Spend your hard-earned money on things that will reap long-term benefits. Every expense has two faces: current benefits and long-term benefits. Businesses that spend on a long-term investment nature reap its benefits much longer. But remember to balance the cost versus the benefit. If your expense doesn't directly help you in increasing your business or quality of your work, don’t spend on it.
3. Maintain Records. Keep all receipts, organized, in a safe place where you will be able to find them when you need them. The top four reasons for lost records are:
i) They simply weren't kept.
ii) They were kept but are so disorganized you can't make sense of them.
iii) They were kept very organized but got washed or destroyed.
iv) They were kept safely and organized in a place but you can't find them. Spend a few minutes a day to organize your documents and avoid losing anything.

Don’t squander away your precious time by struggling with complicated IRS forms and complex bookkeeping chores. You can get fast and effective solutions to all of your tax and accounting affairs when you employ Edith I Christian, CPA. We know how stressful your life can be. But when you call on us, you can relax a little bit. Our professionalism, integrity and trusty service make your life less taxing. Plus, we focus on delivering peerless customer service to ensure the satisfaction of every single client. Our name is indelibly linked with characteristics such as honesty, reliability and outright excellence. You can count on us! Are you ready for more information? Call today 262-646-2008

Waukesha Tax help | Affordable Care Act info

Information regarding the affordable Care Act

The Affordable Care Act (ACA), or health care law, includes new health insurance coverage and financial assistance options, including the Premium Tax Credit, for individuals and families. The IRS will administer the tax provisions included in the law. Visit HealthCare.gov for more information on coverage options and assistance.
  

When is it time to hire an accountant or Bookkeeper | Edith Christian Accounting Milwaukee | Waukesha

Sometimes you can only go so far as far as being on top of your Milwaukee business and its accounting, sometimes it is time to have someone take over your accounting and bookkeeping so you can concentrate on your business
Here is a great article from FORBES.com

Entrepreneurs thrive on a DIY mentality: Do everything you can yourself and don't pay for anything new until you have absolutely have to. It's especially difficult to justify hiring financial help like a bookkeeper.
With user-friendly software such as QuickBooks available, many business owners feel they should be able to do keep their records on their own, even as they wrestle with finding the time and wonder if they're doing things correctly.
Deciding about "hiring a bookkeeper is something I struggle with all the time," says Randy Mitchelson, owner of National Web Leads, an Internet marketing company in Estero, Fla. While he finds basic accounting easy to do, it takes him away from working on his business. Meanwhile, his accounting and tax planning have become only more complicated in the six years since he founded his business.
Entrepreneurs who hire accounting help usually discover they weren't doing nearly as well on their own as they thought they were.
Zalmi Duchman, chief executive of The Fresh Diet, a meal-delivery company based in Miami, lasted five years without a bookkeeper then hired one three months ago. The new employee cleaned up records that incorrectly mingled expenses and assets, reviewed employee purchases for duplications, and took over the mundane but critical task of paying bills. Duchman estimates his company is saving $500 to $1,000 in late fees every quarter. "I definitely have been able to make better and more educated decisions," he says.
So what are a small-business owner's options for professional help with financial tasks? Here is a primer:
Do I Need a Bookkeeper or an Accountant?Actually it's a trick question. You may need both.
Aaron Sylvan, a serial entrepreneur who lives in New York, compares the situation to needing to hire both a carpenter and an architect when building a house.
An accountant can analyze the big picture of your financial situation and offer strategic advice. He or she produces key financial documents, such as a profit-and-loss statement, if needed, and files a company's taxes.
After tax season is over, an accountant can also act as an outsourced chief financial officer, advising an entrepreneur on financial strategies, such as whether to secure a line of credit against receivables when introducing new products.
In contrast, a bookkeeper does the day-to-day hands-on tasks: making sure new employees file all the right paperwork for the company's payroll, submitting invoices (promptly) and following up on them, and paying the bills. The bookkeeper also tracks company expenses and can assure that every cost has been entered -- and recorded correctly -- into software like QuickBooks so that the business is ready for tax time along with filing any other reporting to, say, creditors or investors.
"I don't keep receipts; they're a pain," says Sylvan, who runs Sylvan Social Technology, an ecommerce-services company. "Every month I get a bank statement with a gazillion transactions," such as taxi rides, meals, conferences and other expenses he has placed on his company's debit card.
His bookkeeper spends a few hours a week sorting it all out. As a result, Sylvan has a better idea about how his expenditures stack up against his budget. He knows he won't bill clients incorrectly or miss important payments.
"Knowledge is power," even when it comes to the small details, Sylvan says. "If you don't have a bookkeeper, you're probably not being as strategic as you could be in how you spend your money."
When to Bring in a BookkeeperIn his running a half-dozen businesses the past 15 years, Sylvan has typically hired a bookkeeper for a few hours a week within a few months after starting a new venture. For the first six to nine months, he's usually too busy to focus much on recordkeeping, then "things begin to stabilize," he says. "Then you can see trends and you can start to think strategically about where your money is going and where you can save." And this is when a bookkeeper becomes valuable. Since Sylvan has fewer than a dozen employees at each new company, the bookkeeping takes about one day a month, he says.
The rates for hiring a bookkeeper on a part-time basis in the U.S. can range from $15 to $60 an hour, depending on location, the workload and whether work is done at the company's office or from home.
Sylvan typically sees his accountant once a year, at tax time. But business owners requiring capital or frequently negotiating credit with a bank are likely to contact their accountants more often.
When to Hire a Staff Accountant or Bookkeeper Many small entrepreneurs can probably stick to outsourcing accounting or bookkeeping services for quite some time. The typical service business can often outsource its chief financial officer tasks and bookkeeping until its revenues rises well above the $1 million mark -- or until it has about 30 employees. Until then, most businesses usually don't have enough work to keep a full-timer busy every day.
It's time to hire full-time help, though, when you're calling your accountant often enough that you wish he or she were in the office all the time. Bring in a full-time bookkeeper when your part-timer is spending two or three full days in the office and still falling behind.
Most new business owners find a staffing solution somewhere along the continuum that ranges from trying to go it alone and paying for full-time help.

Read more here 

 

Waukesha Accountant Edith Christian CPA | Organize your Accounting

Tips for keeping your Accounting Organized for Small business.

1. Keep it separate. That new backpack for your kids isn’t a business expense, but your business credit card was handy so you used it. Sure, you can pay back your business for a personal expenditure, or the other way around, but if you’re going to do it right you actually have to record an accounting transaction. Things get complicated fast, and you don’t need that headache. By keeping separate bank and credit card accounts for business and personal, you’ll save yourself hours of work and make it easy to keep track of deductible expenses in one place. Some applications can automatically handle the behind-the-scenes accounting for crossover expenses, but even so, we recommend handling business and personal finances as independently as possible.
2. Call in a pro. Since the days of the abacus, accountants have been trusted and respected allies to small business owners everywhere. Their intimate knowledge of the profession as well as tax laws in their jurisdiction will save you money almost every time. I know how tempting it can be to save a buck and do it yourself, but it’s almost never more cost-efficient in the end. An accountant will almost always find more deductions and keep you penalty-free. On that note, the cleaner your records, the fewer billable hours you’ll have to pay, so make sure you’re organized year-round. But when things get technical or taxes are due, save yourself the money, time and headaches and call in a trusted professional.
3. Pencil it in. Actually, use a pen. A permanent marker even. Set aside about 15 minutes every week — that’s the equivalent of just one Facebook visit every seven days — to organize your finances, and don’t let other things take priority during this time.  You’ll have more insights into your business, be able to make more informed financial decisions and have everything organized when tax time approaches. Something always feels more pressing than your finances. But when you find the time every week, you’ll feel your stress levels — now and at year-end — fall fast.
4. Consider your people. When you’re looking for insights into your businesses spending, don’t forget to properly track what is likely one of your biggest expenses: labor. Whether you’re paying a full staff or you’re the only one on the payroll, make sure you’re tracking the costs of wages, benefits, overtime and any other costs associated with labor. By tracking your spending on labor, perks and benefits, you may find you have more money to incentivize your employees — or that you’re outspending your budget. Either way, doing the math now can help you make better decisions later.
5. Finally, don’t forget to get paid. This one seems pretty obvious, but you would be shocked at how many small business owners don’t properly track invoices and customer payments. If you’re not keeping proper records that you can make sense of at a glance, it could be months before you realize you have outstanding invoices. You could be collecting payments late, or missing some altogether. Make sure you’re properly tracking all payments due and recording when each invoice is paid, how long customers generally take to pay, and which customers you’ve had difficulties collecting payments from in the past.

Edith Christian Cpa Waukesha | Accounting Services for Small Business

Bank Reconciliation
^{Reconciling your business checking account each month allow us to keep your bank account, accounting, and taxes up-to-date.
Having us reconcile your account each month allows you to...}

• ^{Identify lost checks, lost deposits and unauthorized wire transactions.}
   
• ^{Detect and prevent excess/unjustified bank charges and ensures transactions are posted correctly by your bank.}

 

• ^{Know how your business is doing? You can't really know unless all accounts are reconciled and properly accounted for on your financial statement.}
   
• ^{Manage your cash more effectively. Proper management of funds not only saves money, it makes money for you.}
   
• ^{Protect yourself. By timely reconciling and promptly objecting to your bank about any unauthorized, fraudulent or forged checks presented to your bank and paid by that bank, you can relieve your agency of responsibility for the shortfall and transfer the risk to the bank. This reason to reconcile alone should be enough. Crime exists.}
   
• ^{Sleep Better. You will sleep more peacefully at night knowing your bank accounts are reconciled, in balance and that all escrow funds, accounts, checks and disbursed funds are properly accounted for.}

 
^{Income Statement
An income statement, otherwise known as a profit and loss statement, basically adds an itemized list of all your revenues and subtracts an itemized list of all your expenses to come up with a profit or loss for the period. An income statement allows you to...}

• ^{Track revenues and expenses so that you can determine the operating performance of your business.}
   
• ^{Determine what areas of your business are over-budget or under-budget.}
   
• ^{Identify specific items that are causing unexpected expenditures. Like phone, fax, mail, or supply expenses.}
   
• ^{Track dramatic increases in product returns or cost of goods sold as a percentage of sales.}
   
• ^{Determine your income tax liability.}

^{Balance Sheet
A balance sheet gives you a snapshot of your business' financial condition at a specific moment in time.
A balance sheet helps you...}

• ^{Quickly get a handle on the financial strength and capabilities of your business.}
   
• ^{Identify and analyze trends, particularly in the area of receivables and payables. For example, if your receivables cycle is lengthening, maybe you can collect your receivables more aggressively.}
   
• ^{Determine if your business is in a position to expand.}
   
• ^{Determine if your business can easily handle the normal financial ebbs and flows of revenues and expenses?}
   
• ^{Determine if you need to take immediate steps to bolster cash reserves?}
   
• ^{Determine if your business has been slowing down payables to forestall an inevitable cash shortage?}

^{Balance sheets, along with income statements, are the most basic elements in providing financial reporting to potential lenders such as banks, investors, and vendors who are considering how much credit to grant you.}

^{Maintaining a Clean General Ledger
The general ledger is the core of your company's financial records. These records constitute the central "books" of your system. Since every transaction flows through the general ledger, a problem with your general ledger throws off all your books.
Having us review your general ledger system each month allows us to hunt down any discrepancies such as double billings or any unrecorded payments. Then we'll fix the discrepancies so your books are always accurate and kept in tip top shape.}

 

Payroll Accounting Waukesha | Edith Christian CPA

 Don’t squander away your precious time by struggling with complicated IRS forms and complex bookkeeping chores. You can get fast and effective solutions to all of your tax and accounting affairs when you employ Edith I Christian, CPA. We know how stressful your life can be. But when you call on us, you can relax a little bit. Our professionalism, integrity and trusty service make your life less taxing. Plus, we focus on delivering peerless customer service to ensure the satisfaction of every single client. Our name is indelibly linked with characteristics such as honesty, reliability and outright excellence. You can count on us! Are you ready for more information? Call today.

Payroll Taxes

• The most important function of payroll accountants is to process the payroll taxes for the federal and state taxes. Each employee's W-4 is reviewed and entered into the payroll system accordingly. Most payroll systems automatically calculate the tax percentages.

Additional Withholding

• Some individuals require additional withholding amounts from their paychecks. Items such as garnishments, child support and student loan repayments can all be withheld legally from an employee paycheck.

Company Benefits

• Each company offers certain employee benefits such as medical, dental, vision or life insurance that must be properly deducted from employee paychecks. These items are handled by the payroll accountant, who deducts them from the paychecks and moves the money into the company benefits plans.

Direct Deposit

• Most large companies use direct deposit for paying employees. Payroll accountants must verify the information in the payroll file before it is sent to individual banks. After submission, an exception report is run and any paychecks not deposited must be paid to the employee by paper check or re-submission.

Payroll Clearing Account

• Companies that do no have direct deposit utilize a payroll clearing account. This is a special bank account that holds only money relating to paychecks. An accountant must reconcile the bank account after payroll checks are issued to ensure that no discrepancies have occurred with employee paychecks.

Read more: What Is Payroll Accounting? | eHow.com http://www.ehow.com/facts_5262312_payroll-accounting.html#ixzz2SXV98pZV

Waukesha Payroll Accounting | Edith Christian

For All your Waukesha business accounting needs contact Edith Christian CPA.
We offer

• Accounting Services
• Bookkeeping
• Business Taxes
• Filing Taxes
• Payroll Accounting and Services
• Tax Preparation
• Tax Reporting Service
• Tax Return Preparation

Tax extensions for Waukesha and Milwaukee taxpayers | Milwaukee Tax Preperation by Edith Christian

 Need to file an extension on your tax returns?  Call Edith Christian CPA serving Waukesha and Milwaukee.  We can help you with that.

Here is some information on applying for a tax extension.

Extension of Time To File Your Tax Return

Need more time to prepare your federal tax return? This page provides information on how to apply for an extension of time to file.
Please be aware that an extension of time to file your return does not grant you any extension of time to pay your tax liability.

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Extensions for Individuals
If you are not able to file your federal individual income tax return by the due date, you may be able to get an automatic 6-month extension of time to file. To do so, you must file Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return  by the due date for filing your calendar year return (usually April 15) or fiscal year return. This form is also available en español.
Special rules may apply if you are:

• living outside the United States
• out of the country when your 6-month extension expires, or
• serving in a combat zone or a qualified hazardous duty area.

You can also go to Filing Information in Publication 17, Your Federal Income Tax (HTML page), for more information regarding the rules for automatic extensions and filing federal individual income tax returns.

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Extensions for Corporations, Partnerships, REMICs, and Certain Trusts

• Form 7004, Application for Automatic Extension of Time To File Certain Business Income Tax, Information, and Other Returns
• Form 1138, Extension of Time for Payment of Taxes by a Corporation Expecting a Net Operating Loss Carryback

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Other Extension Forms

• Form 2350 Application for Extension of Time to File U.S. Income Tax Return (For U.S. Citizens and Resident Aliens Abroad Who Expect To Qualify for Special Tax Treatment)
• Form 4768 Application for Extension of Time to File a Return and/or Pay U.S. Estate (and Generation-Skipping Transfer) Taxes
• Form 5558 Application for Extension of Time to File Certain Employee Plan Returns 
• Form 8809 Application for Extension of Time to File Information Returns 
• Form 8868, Application for Extension of Time To File an Exempt Organization Return.
• Form 8892, Application for Automatic Extension of Time to File Form 709 and/or Payment of Gift/Generation-Skipping Transfer Tax
  

click here for full info from irs.gov

Last Minute Tax Deductions | Waukesha Tax Preparation

Tax Day is this Monday, April 15. Yes, that's right -- THIS Monday!
Haven't filed your taxes yet? Check out these tips to ensure you and your spouse receive the maximum benefits on your returns, even in the last minute rush to pay good 'ol Uncle Sam.

• Be aware of extended tax breaks: This year, in efforts to avoid the fiscal cliff, legislation extended some family-friendly tax breaks that previously expired. This includes the tuition and fees deduction and a credit for energy efficient home improvements, both of which were set to expire after 2011.
The tuition and fees deduction can lower your taxable income up to $4,000 for qualified higher education expenses you paid in 2012.
You are eligible to claim a credit for up to 10 percent of the cost of eligible home improvements to your main residence, with a maximum lifetime credit of $500! For example, in 2012, if you and your spouse purchased and installed energy efficient windows and doors or insulation, you may be eligible for this tax break.
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We offer professional services that will satisfy your tax and accounting needs with relative ease. If you are ready to learn more about our offerings, just pick up the phone and give us a ring. Our friendly and accommodating staff is waiting to field your call, answer your questions and discuss your circumstances. When it comes to your finances, every delay can be costly, so don’t waste any more time. Contact Edith I Christian, CPA! 262-646-2008 http://www.edithchristiancpa.net

Tax Returns Waukesha | Tax Prepartation Edith Christian

Most people hate filling out tax forms almost as much as they hate forking over dough to Uncle Sam. That's why you should use the simplest tax return form you can, especially if you're still filling out your forms by hand.
But choose carefully. While all the personal income tax forms -- 1040, 1040A and 1040EZ -- are designed to get the appropriate amount of your money to the Internal Revenue Service, the differences in these returns could cost you if you're not paying attention.

The EZ is the shortest and simplest form, Form 1040A is a bit more complex, and the long Form 1040 is the most detailed and potentially difficult. But even though your tax life is simple and straightforward, it might be worth your while to investigate the other two forms. Why? Generally, the longer the form, the more opportunities for tax breaks.

How the EZ could cost you

Take the case of 2012 tax filer Joe P. Taxpayer. Joe finished college last year and got his first full-time job making $40,000. He's single, renting and has no investment income. A perfect 1040EZ filer, right? Sure, if you're Uncle Sam, because Joe will overpay his taxes by using the short form.
Why? The Form 1040EZ doesn't offer Joe some valuable tax breaks found on the other two returns.
Joe has a student loan. By filing Form 1040A he can subtract from his income the $2,500 interest he paid on that debt. He can't do that with the shortest form. Joe also started planning for his retirement by putting $5,000 into a traditional individual retirement account. Because his new employer doesn't offer a company retirement plan, Joe's deductible IRA contribution can reduce his taxable income further, but only if he files the longer form.
By choosing the 1040A over the 1040EZ, suddenly Joe owes taxes on just $32,500 instead of on his full $40,000 salary. And he's dropped into a lower tax bracket -- the 15 percent one instead of the 25 percent tier -- even before he reduces his taxable income further by taking the personal exemption that every taxpayer is allowed and his standard deduction amount.
Joe also would get the chance to reduce his actual bill if he files the longer 1040A. If Joe took a course to improve his job skills and was not reimbursed by his employer for the cost, he could claim the Lifetime Learning tax credit; it's also available on the long Form 1040. The better tax news for Joe is that a credit allows you a dollar-for-dollar reduction of what you owe the IRS. But the only tax credit available on the 1040EZ is the Earned Income Tax Credit, available only to low-income taxpayers.
So, opting to file Form 1040A instead of 1040EZ saved Joe a bundle. And there are even more tax-saving opportunities found on the long Form 1040. They might not apply to Joe, but they could cut your tax bill -- if you take the time to look over each of the forms. Here are the basic guidelines for the three individual tax returns.

Form 1040EZ

The simplest IRS form is the Form 1040EZ. And ever since the IRS doubled the earning limit on filers who use it, the EZ has been available to even more taxpayers.

You can file the 1040EZ return if:

• Your filing status is single or married filing jointly.
• You're younger than 65. Your spouse also must meet the age requirements if you file a joint return. If you or your spouse's 65th birthday is Jan. 1, then for filing purposes you are considered to have turned 65 last year and therefore cannot file this form.
• You (or your spouse if filing jointly) were not legally blind during the last tax year.
• You have no dependents.
• Your interest income is less than $1,500.
• Your income, or combined incomes for joint filers, is less than $100,000.

The ease of the one-page 1040EZ is appealing, but it limits the number of ways to save on your tax bill.
As already mentioned, this shortest personal return restricts filers to claiming just one credit: the earned income tax credit, or EITC, a tax break designed to help out individuals who don't make much money.
You also need to look at those other two individual tax returns to take advantage of additional income adjustments and tax credits.

 

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Business Tax Preparation Waukesha | Edith Christian CPA

Owning a small business, whether you are a restaurant owner or doctor’s office, requires effective tax planning and compliance to ensure  your success.  No two businesses are the same and require unique and specific needs. The great extent of our small business experience enables us to provide a hands on approach to detailed tax planning and effective coordination of personal & business tax burdens.

We also understand the importance of filing your taxes correctly and on time.  Our team can efficiently and properly prepare your tax return. We review what you’ve done in the past and offer ideas and options to lower your taxes in the future.  We stay in tune to the newest tax law changes to ensure you’re taking advantage of all the opportunities to minimize taxes.

Business tax services include:

• Preparation of income tax returns
• Coordination of personal and business tax burdens
• Proper entity selection tax considerations & issues
• Tax Elections & Positions to achieve favorable tax results
• Succession planning

 When your accounting tasks are too much to bear, don’t lose heart. Just call on Edith I Christian, CPA. We’ll help you maximize your earnings in a fast, efficient and economical fashion. With our peerless personnel, we can handle virtually any accounting and income tax need in a timely and efficient manner.

• Tax Consulting for Individuals / Business
• Tax Preparation and Consulting
• New Business Start-Ups
• Divorce Financial / Tax Consulting
• Collaborative Divorce

You can benefit from our wide-ranging knowledge and expertise. Contact us today and learn more about our unique capabilities.


262-646-2008
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Waukesha, WI 53188

Income tax Credit | Waukesha Accounting

If you earned $50,270 or less in 2012 (this number will vary depending on your filing status), you qualify for one of the least-talked-about but most-valuable tax credits for low- and moderate- income working individuals and families. The Earned Income Tax Credit (EITC), created in 1975, was originally established to help offset the regressive nature of Social Security payroll taxes. As you may know, you contribute a portion of your paycheck to Social Security up to what's known as the Social Security wage base, which was $110,100 in 2012 and will increase to $113,700 for 2013. If you earn more than the wage base, those dollars are not subject to the payroll tax. This puts a greater burden on low-income workers.
If the EITC sounds familiar, it’s because it was extended five years with the passage of the American Recovery and Reinvestment Act of 2009. It also added an extra tier, for those with three or more children, and mitigated the marriage penalty by increasing the phase-out for married couples. In addition to the federal EITC, 25 states and the District of Columbia also have their own EITC.
What is the EITC and who is eligible? IRS Publication 596 covers the details of the EITC, also called the Earned Income Credit (EIC). It's a refundable tax credit that taxpayers can claim if they meet the EITC income limits.
Those limits are:

• Single Filers - $13,980 with no children, $36,920 with one child, $41,952 with two children, and $45,060 for three or more children.
• Married couples - $19,190 with no children, $42,130 with one child, $47,162 with two children, and $50,270 with three or more children.
• Married filing separately are not eligible.

The best way to determine if you qualify is to use tax software. If you don't want to use tax software, your next best option is to use the IRS's EITC Assistant.
Who is a qualifying child? The rules of qualifying children match those for other tax credits and take into account their age, relationship to the tax payer, and where they lived. They need to be young than 19 unless they are a full time student or disabled. For relationship, any children (son, daughter, adopted children, stepchildren, or grandchildren) count and siblings can count if you care for them. To pass the residency test they, need to live with you for more than half the year.
How much do you get as a credit? The calculation of your credit is complicated, so it's best to use a calculator. There is a phase in period, a plateau period, and then a phase-out period that ends with the income limits listed above.
At the maximum, single filers with three or more children could get back $5,236, while married filing jointly with three or more children could get $5,891 back. Single filers with no children still see $475 at the maximum.
As for the 25 states that offer EITC, those are typically calculated based on federal requirements and vary in terms of generosity.
Regardless of how you feel about the politics of the EITC, it's a boon for low- to moderate-income workers and it incentivizes people to pursue employment. Since the phase-in increases with income to the plateau, workers get a greater credit if they work more. Proponents argue that this rewards working and detractors say you're better off being more direct and increasing minimum wage and other pay measures.

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Tax Preparation Waukesha | Collage Tax Credits for 2012

The Internal Revenue Service today reminded parents and students that now is a good time to see if they qualify for either of two college education tax credits or any of several other education-related tax benefits.
In general, the American opportunity tax credit, lifetime learning credit and tuition and fees deduction are available to taxpayers who pay qualifying expenses for an eligible student. Eligible students include the primary taxpayer, the taxpayer’s spouse or a dependent of the taxpayer.
Though a taxpayer often qualifies for more than one of these benefits, he or she can only claim one of them for a particular student in a particular year. The benefits are available to all taxpayers — both those who itemize their deductions on Schedule A and those who claim a standard deduction. The credits are claimed on Form 8863 and the tuition and fees deduction is claimed on Form 8917.
The American Taxpayer Relief Act, enacted Jan. 2, 2013, extended the American opportunity tax credit for another five years until the end of 2017. The new law also retroactively extended the tuition and fees deduction, which had expired at the end of 2011, through 2013. The lifetime learning credit did not need to be extended because it was already a permanent part of the tax code.
For those eligible, including most undergraduate students, the American opportunity tax credit will yield the greatest tax savings. Alternatively, the lifetime learning credit should be considered by part-time students and those attending graduate school. For others, especially those who don’t qualify for either credit, the tuition and fees deduction may be the right choice.
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Waukesha and Milwaukee Accountant | Most unknown Tax Deductions

Tax deductions and credits are key to ensuring you maximize your tax refund. People have gotten away with some crazy deductions, all IRS-approved. For example, a gas station owner deducted his beer expense because he gave it away as a part of a promotion and was able to write off the cost as a business expense. There’s the ‘body oil’ deduction used by body builders who can write off their oil expenditure as a business expense. A parent was once able to write off their child’s clarinet lessons as a medical expense, claiming that playing the instrument was correcting the child's overbite.
While these are extreme and very unique examples of tax write-offs, there are some lesser-known deductions and credits that often go unclaimed. Most Americans are aware of tax deductions and credits for new additions to the family, buying a house, home-mortgage interest, and medical and dental expenses, but as you get ready to file by the April 17 deadline, make sure to get the tax refund you deserve by keeping the following lesser-known deductions and credits in mind:
• Casualty Loss: If you were a victim of damage caused by a sudden and unexpected natural disaster, like a roof collapsing due to heavy snow, you could qualify for a casualty loss deduction. However, if damage is caused from something happening gradually, such as water seepage in a basement, you would not qualify.
• Volunteer expenses: Not only are charitable donations of money and goods to a qualified charitable organization tax-deductible, if you spend money out-of-pocket in the course of performing volunteer duties, you are entitled to some modest tax deductions.
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Milwaukee Tax Accounting | Itemizing or Standard Deductions

When it comes to reducing your tax burden, itemizing deductions may be the way to go. The standard deduction is certainly easier, and might be a better option if you have a simple tax situation or don’t own a home, but if you determine that itemizing is right for you, it could lead to substantial savings.

Itemizing vs. Standard Deduction

The standard deduction is exactly what it sounds like—a flat amount that you can deduct from your taxable income. The amount you can deduct is based on your filing status, number of dependents, and what year you’re filing the taxes for. For additional information on the standard deduction, see IRS Publication 501.
When you itemize deductions, you have the ability to deduct the actual dollar amount of individual deductions. Some of these deductions come in the form of mortgage interest, property taxes, medical expenses, and more. If you think that if you totaled up all of your allowed deductions and it would be greater than the standard deduction, it would probably be wise to itemize.

What Expenses Can be Itemized?

The most common expenses include:

• Mortgage interest.
• Charitable contributions.
• Property taxes.
• State and local income taxes.
• Medical expenses that exceed 7.5% of your adjusted gross income.
• Various miscellaneous expenses that exceed 2% of your income such as: union dues, tools and supplies needed for work, tax preparation fees, some legal fees, and many more.

Should You Itemize?

There is no right or wrong answer, and it ultimately depends on your situation. To determine if itemizing would be worthwhile, you should take a look at Schedule A of Form 1040. On this sheet, you can list your itemized expenses, and then total them up to compare the amount to the standard deduction. If the itemized amount is greater, then you would want to itemize. If the total itemized amount is less than the standard deduction, you would not want to itemize.
The largest deductions for most people come in the form of mortgage interest and property taxes, and in these situations, even a modest mortgage could put you over the standard deduction limit. Since this can total into the thousands of dollars over the standard deduction, the tax savings can be significant. While this can be a big deduction, keep in mind that just because you own a home it doesn't mean the mortgage tax deduction is better than the standard deduction.

Accounting Waukesha | What Tax Forms do I file?

Which Form – 1040, 1040A or 1040EZ?
The three forms used for filing individual federal income tax returns are Form 1040EZ (PDF), Form 1040A (PDF), and Form 1040 (PDF).
Form 1040EZ is the simplest form to fill out. You may use Form 1040EZ if you meet all the following conditions:

1. Your filing status is single or married filing jointly
2. You claim no dependents
3. You, and your spouse if filing a joint return, were under age 65 on January 1, 2013, and not blind at the end of 2012
4. You have only wages, salaries, tips, taxable scholarship and fellowship grants, unemployment compensation, or Alaska Permanent Fund dividends, and your taxable interest was not over $1,500
5. Your taxable income is less than $100,000
6. Your earned tips, if any, are included in boxes 5 and 7 of your Form W-2
7. You do not owe any household employment taxes on wages you paid to a household employee
8. You are not a debtor in a Chapter 11 bankruptcy case filed after October 16, 2005
9. You do not claim any adjustments to income, such as a deduction for IRA contributions, a student loan interest deduction, an educator expenses deduction, or a tuition and fees deduction
10. You do not claim any credits other than the earned income credit

If you file Form 1040EZ, you cannot itemize deductions or claim any adjustments to income or tax credits (other than the earned income credit).
Form 1040EZ LinksReferences:
Form 1040EZ Instructions
Filing Options
If you cannot use Form 1040EZ, you may be able to use Form 1040A if:

1. Your income is only from wages, salaries, tips, taxable scholarships and fellowship grants, interest, or ordinary dividends, capital gain distributions, pensions, annuities, IRAs, unemployment compensation, taxable social security or railroad retirement benefits, and Alaska Permanent Fund dividends
2. Your taxable income is less than $100,000
3. You do not itemize deductions
4. You did not have an alternative minimum tax adjustment on stock you acquired from the exercise of an incentive stock option
5. Your taxes are only from the Tax Table, the alternative minimum tax, recapture of an education credit, Form 8615 or the Qualified Dividends and Capital Gain Tax Worksheet
6. Your only adjustments to income are the IRA deduction, the student loan interest deduction, the educator expenses deduction, the tuition and fees deduction, and
7. The only credits you are claiming are the credit for child and dependent care expenses, the earned income credit, the credit for the elderly or the disabled, education credits, the child tax credit, the additional child tax credit, and the retirement savings contribution credit

You can also use Form 1040A if you received dependent care benefits.
Form 1040A LinksReferences:
Form 1040A Instructions
Filing Options
Often used Schedules:
Form 1040A or 1040, Schedule B (PDF) - Interest and Ordinary Dividends
Form 1040A or 1040, Schedule R (PDF) - Credit for the Elderly or the Disabled
Form 1040A or 1040, Schedule EIC (PDF) - Earned Income Credit
Form 1040A or 1040, Schedule 8812 (PDF) - Child Tax Credit
Often used Forms:
Form 8917 (PDF) - Tuition and Fees Deduction
Form 2441 (PDF) - Child and Dependent Care Expenses
Form 8863 (PDF) - Education Credits (American Opportunity and Lifetime Learning Credits)
Form 8888 (PDF) - Allocation of Refund (Including Savings Bond Purchases)
Finally, you must use Form 1040 under certain circumstances, such as:

1. Your taxable income is $100,000 or more
2. You have certain types of income such as unreported tips; certain nontaxable distributions; self-employment earnings; or income received as a partner, a shareholder in an "S" Corporation, or a beneficiary of an estate or trust
3. You itemize deductions or claim certain tax credits or adjustments to income, or
4. You owe household employment taxes

A complete list of conditions outlining when Form 1040 must be used is in the Form 1040A Instructions.
Form 1040 LinksReferences:
Form 1040 Instructions
1040 Central
Filing Options
Often used Schedules:
Form 1040, Schedule A (PDF) - Itemized Deductions
Form 1040A or 1040, Schedule B (PDF) - Interest and Ordinary Dividends
Form 1040, Schedule C-EZ (PDF) - Net Profit From Business
Form 1040, Schedule D (PDF) - Capital Gains and Losses
Form 1040, Schedule E (PDF) - Supplemental Income and Loss
Form 1040A or 1040, Schedule EIC (PDF) - Earned Income Credit
Form 1040A or 1040, Schedule 8812 (PDF) - Child Tax Credit
Form 1040A or 1040, Schedule R (PDF) - Credit for the Elderly or the Disabled
Often used Forms:
Form 8917 (PDF) - Tuition and Fees Deduction
Form 2441 (PDF) - Child and Dependent Care Expenses
Form 8863 (PDF) - Education Credits (American Opportunity and Lifetime Learning Credits)
Form 8888 (PDF) - Allocation of Refund (Including Savings Bond Purchases)
If you were a nonresident alien during the tax year and you were married to a U.S. citizen or resident alien, you may use any one of these three forms, based on your circumstances, only if you elect to file a joint return with your spouse. Other nonresident aliens may have to file Form 1040NR (PDF) or Form 1040NR-EZ (PDF). For more information on resident and nonresident aliens, refer to Topic 851 and Publication 519, U. S. Tax Guide for Aliens, Chapter 7.

Waukesha Tax Preparation | Edith Christian CPA | Earned Income Tax Credit

 The Earned Income Tax Credit is something that should be taken advantage of especially in this economy.  Keep more of what you earn.
Full article from IRS here

EITC, the Earned Income Tax Credit, sometimes called EIC is a tax credit to help you keep more of what you earned. It is a refundable federal income tax credit for low to moderate income working individuals and families. Congress originally approved the tax credit legislation in 1975 in part to offset the burden of social security taxes and to provide an incentive to work. When EITC exceeds the amount of taxes owed, it results in a tax refund to those who claim and qualify for the credit. To qualify, you must meet certain requirements and file a tax return, even if you do not owe any tax or are not required to file.

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EITC Assistant--Find out if you qualify for EITC this year

Find out if you are eligible for EITC by answering questions and providing basic income information. The EITC Assistant also estimates the amount of your EITC. Click here for the English version of the EITC Assistant or o hag click aquí para seleccionar la Versión en Español del Asistente,

Quick Guide to Topics on this Page (please scroll down for the following topics and more) Do You Qualify for EITC? Need Help Preparing Your Return? Find information on EITC and other Public Benefits and Other Child-Related Tax Benefits Other Resources and Tips for Claiming EITC Resources and Tips if You Receive a Notice from IRS or are Audited IRS Reports on EITC Missing Children Link

Guides to Find Everything EITC Online For You, Publication 4935  For Return Preparers, Publication 4933

Find Specific EITC Information for: Tax Professionals Employers Partners Para información en español sobre EITC, vea "Información sobre los límites del Crédito por Ingreso del Trabajo." EITC Central hosts the Partner Toolkit, the Tax Return Preparer Toolkit, Marketing Express and Information for the Press.

Do You Qualify for EITC?

To qualify for EITC you must have earned income from employment, self-employment or another source and meet certain rules. Also, you must either meet the additional rules for workers without a qualifying child or have a child that meets all the qualifying child rules for you.

Earned Income

 

Find out more about what is earned income here.

EITC Rules for Everyone

Find out about the rules you and your spouse, if you file a joint return, must meet to claim EITC.

Qualifying Child Rules

If you and your spouse, if filing a joint return, meet the EITC rules for Everyone and you have a child who lives with you, you may be eligible for EITC. Your child must pass the relationship, age, residency, and joint return tests to be your qualifying child. All four tests must be met for each child you claim. Find the rules for a qualifying child for EITC here.

Rules for those Without a Qualifying Child

If you and your spouse, if filing a joint return, meet the EITC Rules for Everyone and you do not have a qualifying child, you may be eligible for EITC. Find the rules for those without a qualifying child here.

Go to our website for more info on how we can help you with your Waukesha Tax Preparation!

 

Tax Preparation Waukesha | Edith Christian CPA

Still expecting a W-2 from your employer to come in the mail? Now is the time to act if you haven’t received all of them, because by now, you should have received all your W-2s from the jobs you worked at. Employers had up to January 31, 2012 to mail them out.

If you still haven’t received your W-2 yet, here is what you should do:

1. Contact your employer. Inquire if and when the W-2 was mailed out, if any, to you. If it was mailed, it could be that the return was sent to an incorrect/incomplete address. After contacting the employer, allow a reasonable amount of time for them to be resent/reissued.

2. Contact the IRS. If by February 14, 2012, you tried step #1 above but either couldn’t find the employer or the employer failed to cooperate, then contact the IRS for assistance at 1-800-829-1049. When you call, you must provide:

a. Your information such as name, address, city and state, including zip code, Social Security number, and phone number

b. Employer information such as name, address, city and state, zip code, and phone number

c. Dates of employment

d. Estimate of the wages you earned; federal tax withheld, etc. The estimate should be based on your last year-to-date final pay stub if possible.

3. File your return. You still must file your return or request an extension to file by April 17, 2012, even though you haven’t received a W-2. If you have completed steps #1 and #2 above, then you may use Form 4852 (Substitute for Form W-2) and attach it to your return. Please note that you can download the Form 4852 from the IRS website and print it.  There may be a delay in any refund due while the information is verified by the IRS.

4. File Form 1040X. On occasion, you may receive your missing W-2 after you filed your return using Form 4852, and the information may be different from what you reported on your return. If this happens to you, you must amend your return by filing a Form 1040X (Amended US Individual Income Tax Return).

Tax Preparation Tips | Edith Christian CPA

Tax Preparation Tips | Waukesha CPA Edith Christian    

It’s common for people to cash their paychecks month after month without taking the time to review what’s really on them. While you most certainly have withholdings included in your check, make sure everything adds up. Sometimes, even employers make mistakes, and this adjustment can affect you come tax time.

Being ready for your tax preparation can help make the process much more painless.  Its never to early to start planning for April 15th. Waukesha Accountant and tax return specialist Edith Christian CPA has a few tips for you

File Your 2011 Records
It’s a great idea to have everything in its place when it comes time to filing your taxes, so make sure that you file away your 2011 tax returns so you can easily access them come 2013.
Review Your Paycheck Information
Withhold Less from Your Paycheck
It may be nice to get a larger tax refund, but you may want to adjust your withholdings. If you do, you can take away more each month and get less at tax time, something that is welcoming to families on a budget.
Decrease Taxable Income
It’s almost the end of the year, so now is the time where people should look for itemized deductions that can save money come tax time. For example, maybe there is an early property tax payment you can make that will help for itemized deductions come tax time. The goal is to lower your taxable income to lower your liability.
Perfect Your Recordkeeping Skills
From receipts to charity donations, it’s essential that you have everything accounted for and in its place. If you don’t have a system under way, now is the time to make one. You don’t want 12 months of receipts and paperwork lying around, and you want to make the most of your deductions. If you’ve moved away from paper copies, scan important documents into your computer.
Find Your Tax Professional
Finally, find your tax accountant who will be helping you during tax season. You don’t want to rush close to tax season or have to settle for someone you don’t enjoy working with. Instead, use this time to choose a professional you trust today so that you can