Whoever invented the calculator, the computer, and Cloud computing deserves a million thanks. It’s so convenient to solve complex financial problems, come up with a solution, and store them online for people to review. Some of the best professional tax software in preparing clients, such as TurboTax, H&R Block, and TaxSlayer, fit the bill for empowering individuals to compute their fiscal statements. Yet even with these technologies, are these clients of the right mindset? Are they saving up or simply planning for a nest egg already? The early bird indeed gets the worm, so it’s in their best interest to prepare now instead of later. Some fundamental principles you should be mindful of include: Coaching Them to Start Early Are you noticing that your younger clients haven’t begun preparing clients with their retirement contributions? Talk to them regarding the benefits of compound interest over time and encourage them to start as soon as possible. Understanding Their Tax Scenario Regardless of preparing clients ‘ types of retirement accounts, their tax situation is likely to change once they begin drawing from them. Before you introduce anything else, you’ve got to be familiar with how the most common retirement sources are taxed, such as: Traditional 401ks and IRAs: Distributions from these funds are subject to regular income tax since retirees made the contributions on a pre-tax income. Roth 401ks IRAs: On the other hand, distributions from these sources aren’t taxed since your clients already paid the taxes on the contributions. They only need to be over 59.5 years not to be penalized for early withdrawal. But if their employers made any contributions on their behalf, those are income tax-deductible. Social Security (SS): These benefits are taxed according to your clients’ total income. Combine their yearly SS benefit amount with their other income sources to determine this amount. Your clients filing single, HOH, or qualifying widow/widower, income between $25,000 and $34,000 are taxed 50 percent of their benefits. While income above $34,000 represents an 85 percent tax on their benefits. On the contrary, couples who are married and filing jointly should add half of their Social Security benefits and other income sources. If their yearly income is $32,000 – $44,000, half of their benefits are considered taxable income. If they make above $44,000, 85 percent of their benefits are taxable. And if your clients balk at those numbers, remind them that this doesn’t mean they are being taxed at 50 percent or 85 percent. Instead, only 50 percent or 85 percent of their benefits will be taxed at the appropriate rate for their tax bracket. If they’re still unsure, this questionnaire from the IRS can help them understand how they’ll be taxed: Are My Social Security or Railroad Retirement Tier? Pension Plans: Like traditional IRAs and 401(k)s, most pension plans’ distributions are considered taxable income since the contributions were not taxed. A few states have made exceptions for residents’ pension income, so be sure to look into the rules in your state. Pay Off Debts Though starting early is beneficial, it might make more sense for your clients to pay off debts that have higher interest rates first. The earned interest from their retirement savings could be far less than the money they’d save by paying off debt early. Guide Them with the Best Professional Tax Software The best thing about early retirement projections is your clients can prepare for the life they want as early as now. They’ll know which expenses to prioritize, how to budget, where to budget, and what to put off for the meantime. Then, that’s where you come in to guide them through every step, helping them reach their financial goals. Plan for your clients’ retirements with the help of Keystone Tax Solutions! We’re the best professional tax software on the market, which offers 3-year prior access, low fee options, unlimited free e-files, and unlimited additional users! Visit our web page to know more about this fantastic technology even more!

Sure, your company’s new tax software gets the job done, but you know there’s always space for improvement. Tax season can be stressful and chaotic, but removing time-consuming processes and streamlining and automating the tax workflow can be revolutionary for you and your team. Furthermore, you’ve discovered a new software solution that you believe will provide your company with all of the powerful, time-saving capabilities it needs to operate more efficiently. Then there’s a pause: any upfront cost and onboarding necessitate careful deliberation in the boardroom. It’s no different when it comes to implementing a new software solution. So, how can you encourage your boss to join you? Outline Efficiency and Potential For Expansion Finally, all new tax software produces the same result: a finished client tax return on an IRS-approved form. The journey is the game-changer—how you arrive at that final product and what efficiencies you achieve along the route. Document all of the challenges you and your team face during tax season. Why? There’s a strong possibility you won’t recall all of the workflow bottlenecks and inefficiencies you faced once tax season is done. Keeping a log as you go through tax season can be a simple and effective technique to guarantee that nothing is forgotten. Documenting your challenges can also help you describe the most important benefits a new tax compliance software for tax preparers can provide for your company. It can help you convince your boss that change is necessary. Benefits could include how the new software will save staff time and remove manual, duplicate work, increase cooperation between staff and clients, and assist the firm in uncovering higher-margin growth prospects. Calculate The Cost-Benefit Ratio Consider how much your company could save if it implemented software for tax preparers to help your boss understand why it is a must-have for your company. To begin with, remember that time is money. Automating what would otherwise be time-consuming manual activities, such as data re-keying, is a significant cost-cutting measure. Furthermore, comprehensive data exchange capabilities and connections with third-party sources can aid in the streamlining, efficiency, and accuracy of processes. This means that employees will have more time to devote to higher-value, revenue-generating initiatives. It’s also worth noting that putting in place effective tax tools and resources might assist your company in better attracting and retaining employees. Employee turnover is not only pricey, but it can also affect morale. Staffing has long been a source of concern for many businesses, and it remains so in the wake of the “Great Resignation.” Create A Strategy For Implementing The New Technology Change can be frightening. Provide some suggestions for when and how to implement the program with the least amount of interruption to your boss’s worries. To begin, assemble a group of important stakeholders who can participate in decision-making and study the difficulties and bottlenecks that need to be solved and assess how the new tax software solution may assist. If all parties decide to move forward with the new solution, it is best to start the process as soon as possible once tax season ends so that implementation may be phased in throughout the summer. Then start using the new solution and becoming familiar with it by processing several extension tax returns. This is a wonderful strategy to ramp up during the summer and hit the ground running when tax season arrives. Support Your Tech Adoption Business Case Even More You can strengthen your case by utilizing resources given by the solutions supplier once you’ve detailed the benefits and cost reductions that new tax compliance software can provide. Obtain testimonials and chat with other businesses that have utilized the solution to learn from their experiences. Where did they succeed? Where did they have problems? How did they put the solution into action? It’s also crucial to keep in mind that each company is unique. As a result, it’s critical to engage with a solutions provider who is adaptable and can design an implementation package to your company’s specific requirements. Conclusion Are you ready to go on the path to improved tax software? Use the powerful, time-saving tools available with the best professional tax software to automate your whole business or professional tax preparation. Keystone Tax Solutions provides the best professional tax software for tax preparers to help enhance accuracy and streamline the process. Request a free demo right now!

Health insurance can be costly, and some Americans look to reduce their monthly medical expenses by claiming tax deduction on their premiums. Many of us know healthcare can be expensive, so tax deductions can help you save during tax time. Here’s what you need to know about claiming tax deductions for your health insurance. Are Health Insurance Premiums Tax-Deductible? Health insurance premiums are not always deductible. Depending on your income and other factors, your health insurance premiums may be fully or partially deductible. In some cases, you must meet a certain requirement if you want to claim a tax deduction for health care costs. When Health Insurance is Not Tax-Deductible First of all, if you’re not paying for health insurance for yourself or a dependent, you can’t deduct those premiums. In addition, you can’t claim your health insurance premiums as a tax deduction if any one of the following is true: You’re a tax-exempt organization. You’re a governmental employee. You’re a member of a health care sharing ministry. You didn’t pay the premiums yourself, such as when your employer pays for all or part of them. You or your spouse is not a US citizen, and you have not received a waiver. You’re not filing a tax return because, for example, you have too little income. If you can’t claim a tax deduction for health care costs because you fall into any of these categories, you may be able to claim the health insurance premium tax credit. Conditions for Claiming a Tax Deduction for Health Insurance Premiums There are certain conditions you must meet if you want to claim a tax deduction for health insurance premiums. The Affordable Care Act requires that you must have a minimum level of health coverage or pay a tax penalty for the months you, your spouse, or your tax dependents don’t have coverage. This requirement is known as the shared responsibility payment. If you have a marketplace health insurance plan, you’re complying with this requirement. If you have coverage through a spouse’s employer, you’re also complying. However, if you’re not your spouse’s tax dependent, you’re not complying. If you don’t have coverage, you may choose to pay the shared responsibility payment (effectively increasing what you pay for insurance), or you can claim a tax deduction. If you want to claim a tax deduction for your health insurance, you must meet all of the following requirements: You itemize deductions on your tax return, not take the standard deduction. Your insurance premiums were not paid with pre-tax dollars, such as through a flexible spending account or health savings account. You have coverage for the entire year. If you don’t have coverage for the entire year, you can deduct only the premiums you paid for the months you were covered. Your employer did not pay any part of your insurance premiums. Your health plan isn’t a “health flexible spending arrangement” or FSAs, “health reimbursement arrangement,” HRAs, or health savings account. These plans must be funded with pre-tax dollars. You do not have coverage under another plan that’s not on this list. If you’re eligible for Medicare, you’re also eligible for a tax deduction. You do not qualify for other health coverage tax deductions. If you’re under 65, you can’t claim a tax deduction if your employer pays for a portion of your health insurance. If you’re over 65, you can’t claim a deduction if you have other health coverage. Conclusion Tax season can be stressful, but you don’t have to stress out over health insurance premiums. As long as you qualify, you may be able to claim a tax deduction for health care costs on your federal tax return. If you are unsure, speak with your tax professional to determine your eligibility. Keystone Tax Solutions is a leader in the professional tax preparation software industry with more than 15 years of experience. Our software packages are designed to help tax professionals become more efficient in preparing taxes for their clients. If you’re looking for the best professional tax software in the market, Keystone Tax Solutions is the answer. Contact us to get a free demo today.

So, you’ve recently filed your income tax refund and expected to get a massive refund check. Unfortunately, you find out that the refund check you planned to use for other things isn’t coming back anymore. In other words, your tax refund got seized. Why did this happen? Well, for a lot of reasons, actually. Tax refund seizure happens more often than you realize, and mostly because the IRS believes in paying themselves first for anything that you owe. Either way, here are a couple of reasons the IRS has seized your income tax refund: 1. You’re behind on Your Tax Payments One of the biggest reasons why the IRS will seize your income tax refund is because you owe taxes. In other words, when you fail to pay your taxes on time, the IRS will take your income tax refund if they can. Of course, they need to make the request first and serve you with a payment notice first before they can do it. If you don’t pay your taxes within a specified amount of time, your tax refund gets seized and applied to your outstanding tax balance. Depending on how much you owe and your tax refund, the IRS is likely to take up to 100% of your tax refund. 2. You Owe Back Child Support If you have a child support debt, you’re likely to have your income tax refund seized as well. The IRS is required to seize your income tax refund and apply it towards your outstanding child support debt. That being said, the courts actually have to order the IRS to deduct the amount of your income tax refund, which you owe on your child support debt. After that, the IRS will take the amount directly from your income tax refund and apply it towards your child support debt. 3. You Haven’t Paid Your Federal Debts If you have any federal debts, you may find that your income tax refund gets seized if you don’t pay them off. The IRS will withhold a certain percentage of your income tax refunds and apply it towards your outstanding federal debts. You may have a more difficult time repaying the debt if your income tax refunds is seized, but then again, you can’t just ignore paying off your federal debts either. If you don’t pay your federal debts, the IRS will eventually seize your income tax refunds, which makes things worse for you. So, don’t ignore your federal debts and pay them off before the IRS has to take action. 4. You Have Unpaid Amounts in Your State Unemployment Fund If you’ve failed to pay your state unemployment fund, you may find that your income tax refunds gets seized as well. Keep in mind that this only applies to certain states, so make sure to check if it applies to yours. For example, the state of Indiana will seize your income tax refunds if you owe money in your state unemployment fund. However, if you file your state income tax return and you owe money in your state unemployment fund, you’ll be notified of it, and the court may allow you to pay it off within a certain amount of time, thereby preventing your income tax refunds from being seized. Conclusion As you can see, if you have debts such as federal debts or child support you owe, you can’t simply ignore them and expect to get away with them. The IRS will seize your income tax refunds. So, if you want to enjoy that fat tax refund check at the end of your fiscal year, always be sure to stay on top of your debts. Of course, not all debts count, such as your credit card debt, but staying on top of debts nevertheless is a good thing to ensure you never run into financial challenges you cannot overcome. Keystone Tax Solutions offers the best professional tax software for tax preparers. Check out our solution today and ensure your client’s taxes are dealt with quickly and successfully!

While tax software is simple, choosing from the numerous available software options is not always easy. Specific software is designed to help you file your state income tax return, while others are there to help you file your federal income tax software . This is why it’s vital to know what digital tool will work best for your needs. Before finding the right program to assist you, consider the following questions to help you. 1. Which Version of Tax Software Do You Require? One of the first things you need to consider is which version of tax software you will be required to use. You can choose between Basic, Deluxe, or Premium software. The Basic Version This type of software is designed for people who have a low income and do not have any complicated tax returns. It is designed to simplify the filing process. The Deluxe Version This is designed for people who have more complicated tax returns. The Premium Version This tax software is intended for people with high incomes or who work as self-employed individuals. 2. Is the Price Inclusive of State Tax Returns? The price of the tax softwares you choose should be inclusive of the state tax file. If you are required to file taxes for more than one state, you need to purchase the tax softwares that can perform varied state tax returns. In many cases, your software package will only include federal returns. This means that you will require software for your state to complete. 3. Do You Need Help Organizing Your Tax Deductions? Tax deductions are the expenses you incur during the year that you can subtract from your income. Without the help of tax deductions, your assets would be greater, and so with your income tax. Also, before you can deduct any expenses from your income, you need to organize your deductions into categories. Many tax softwares programs are designed to help you manage your deductions and make it easier to complete your returns. 4. Do You Need to Report Any Investments? You need to file tax reports if you have investments and they have increased in value. Since different assets will vary in their classification as taxable property, you must ensure that your tax software program can provide the accurate computations you need. 5. Is It Advisable to Use Free Tax Software? Free tax softwares is available for people with low incomes. Free tax softwares will help you complete your federal income tax return. However, free tax softwares is not intended to help you complete your state tax return. You will need to purchase state income tax softwares to file your state income taxes. 6. Do You Prefer Online or Desktop Tax Software? There are two types of tax softwares: online and desktop. Online tax softwares is widely available and designed to help you complete your taxes online, regardless of your device. In contrast, desktop software can run solely on your computer for more advanced processes and transactions. Conclusion This simple guide will help you choose the right tax softwares for your income tax returns. Consider your income, deductions, and financial investments before you purchase tax softwares. The software you choose must be designed to help you complete your tax returns. If you are looking for the best professional tax software in the US, Keystone Tax Solutions is here to help you. Keystone Tax Solutions strives to provide exceptional customer service all year. We are here to assist you every step of the way, no matter how large or small your tax office is. Contact us today!

Boring report formats are usually more efficient because they are less likely to contain errors. Also, boring report formats are easier to read and understand, saving time and money. Tax software solutions for CPAs helps accounting and auditing firms increase their profits by making their clients happier and their staff CPAs more efficient. The reports generated by the software give clients the confidence they need to make sound decisions. 1. It’s More Consistent To have successful financial reporting, everyone must agree to use the same template for every balance sheet. This way, standardization and more accurate comparisons can be made between different companies and over different periods. Technology can help deliver more consistent results if the same accounting method is used across different companies and subsidiaries. The way something looks is important to how it is received. This is especially true for financial statements. If they are not formatted consistently, they can be confusing and hard to read. An excellent financial reporting solution will cover the formatting for you to focus on the content. This will result in financial statements that are easy to read and understand and that look consistent from one year to the next. 2. It’s More Accurate A computer program can help ensure accuracy in financial statements by keeping track of expenses and calculations quickly and correctly. By inputting data into a software program, businesses can avoid mistakes that could be made by entering figures manually. Additionally, rounding is consistently applied when using a computer program, which can help create more accurate financial statements. Additionally, a computer program can help you avoid mistakes that could be made by entering figures manually. For example, if you input data into a software program, the program will consistently round numbers. This can help create more accurate financial statements. Overall, using a computer program to create your financial statements is a smart way to ensure accuracy and avoid mistakes. This can ultimately help you make better decisions for your business. 3. It’s Cost-Effective The cost savings from an automated financial reporting solution come from the fact that it is cheaper to have the reports done by a machine than by a human. This is because humans take longer to do the reports and are more likely to make mistakes. With fewer mistakes, there are fewer chances for the client to be unhappy and the firm to lose money. 4. It Tracks Audit Trails The auditor is questioning the accuracy of a figure in the spreadsheet and is asking to see the backup documentation. The accounting clerk looks through the files and finds the figure from the last report, which is incorrect. The accounting clerk goes to the computer’s file box and finds the correct information. It is essential to maintain accurate financial records for any business. Inaccurate records can lead to financial problems and legal issues. I will continue to check the accuracy of the figures in the spreadsheet and will make sure to update the backup documentation accordingly. Conclusion There are many reasons why CPAs should use software solutions for financial reports. Software solutions can save time and money and improve accuracy and efficiency. Additionally, software solutions can provide valuable insights and analytics to help CPAs make better decisions. Keystone Tax Solutions provides professional tax software for tax preparers who prepare taxes for other people. We are a professional tax software industry leader with more than 15 years of experience offering 100 percent web-based tax software while helping thousands of tax professionals start their own tax business and thousands more gain access to affordable technology-driven professional tax software. If you need tax software for CPAs, get in touch with us now! Let us know how we can help.

It’s no secret that small tax businesses will see a lot of trouble before they begin to grow. But in some cases, it can be too much for the small business to handle, ultimately leading to their downfall. But there is still a bright side. In many cases, problems can be mitigated, and mistakes can be avoided. So, if you own a small tax business, it’s best to be aware of these common mistakes, so your business does not end up failing. 1. Poor Understanding of Your Target Market First and foremost, before you even begin to think of your business, you need to take the time to consider your target market. If you are going to run a tax business, then you need to know that your target market will be clients in the tax field. You wouldn’t try to sell health and wellness products to people who you know have a heart condition, would you? And you don’t want to go spreading your tax advice to people who do not need your tax advice. That is a sure-fire way to ensure you are going to have a hard time finding clients. 2. Not Understanding Your Cash Flow Understanding your own cash flow is going to be one of the most important aspects of running a small tax business. Every tax advice business requires a healthy cash flow, and while most small tax businesses don’t need to worry about it early on, you need to make sure that you are doing everything possible to make sure your cash flow can support your business. This means you need to take a hard look at your business plan and ask yourself whether or not your cash flow can support your business plan. You also need to make sure that you are keeping track of your cash flow throughout the year to ensure that you are on track for meeting your goals for the year. Without a good handle on your cash flow, you could find yourself in serious financial trouble. 3. Lack of a Proper Business Plan As you are no doubt aware, a business plan is incredibly important for any business. It is especially important for a small tax business because it is the blueprint for your business. It is literally your business plan for success. You need to have a plan for every aspect of your business, and this includes every part of your business. Even if you work in a small tax business as a sole proprietorship, you need to write down your business plan. If you don’t, you could find yourself making mistakes and not even knowing it until it’s too late. So, if you own a small tax business, make sure you create a business plan. And make sure you take the time to look it over and make sure it’s right. Final Thoughts Running a small tax business is a great idea, especially if you have an interest in the tax field. But if you want to make sure your small tax business succeeds, you need to make sure you are aware of the major mistakes that most small tax businesses make. And if you avoid these mistakes, you are going to have a much easier time running your small tax business, and your success is going to be much more certain. Run a better small tax business with the help of Keystone Tax Solutions. We are a professional tax preparation software helping thousands of tax professionals start their own tax business and thousands more gain access to affordable technology-driven professional tax software. Get a free demo now!

As a small business owner, you will be forced to manage an array of different tasks. It’s important to create the proper structures and systems to help you keep track of everything and reduce the likelihood of costly mistakes. If you want to take advantage of the advanced technology that is available, you will need to invest in the right software to help you maximize your productivity. When it comes to managing your finances, tax software can be a huge asset to you and your team. The process of filing your taxes online is something that can be handled by them with minimal instruction. This is a great way to save time and minimize the need for your team to deal with this stressful aspect of their responsibilities. The Importance of Tax Software to Small Business Owners If you are unsure of how to handle the tax side of your business or are concerned about the liability and security of your information, the right tax software program can help. It will allow you to easily calculate your taxes and import your financial data so you can begin preparing for filing. With that in mind, the list below expounds on the benefits of using tax software for your small business: Benefit #1: Lower Human Errors in Your Computations Human error is one of the leading causes of accounting mistakes. If you are working with a spreadsheet or other accounting method that doesn’t use specific functions, you will have to perform your calculations manually. This can lead to errors and oversight. A tax software program can help you avoid this type of mistake by using formulas and formulas to perform calculations and process the information. This will provide you with a safer, more accurate estimate of your tax liability. Benefit #2: Easily Spot Eligible Deductions to Help You Save on Taxes Another advantage of using a tax software program is that it will allow you to search for eligible deductions in seconds. By using this program, you can easily determine if there are certain expenses that can be deducted if you are self-employed. The program will provide you with a list of expenses that have been organizationally grouped into categories. You will be able to download this information and use it to file your taxes in a manner that is both accurate and efficient. Benefit #3: Keep Multiple Copies of Your Files, Digitally and Locally This feature can also help you manage your taxes more efficiently. Since everything will be electronically saved, you will be able to access your information from any computer. This means that you won’t have to worry about losing your information if something happens to your computer. A digital copy of the information will also help prevent you from making costly mistakes. If you make a mistake with a copy of your files, it can be easily fixed or replaced. You can also easily print or email documents to other members of your team. Benefit #4: Save Time, Money, and Effort The right tax software program will allow you to save time and money by providing you with accurate and timely information. To save you time, the program can perform calculations automatically. This means that you will be able to complete your taxes faster. The Bottom Line: Why It’s Worth Investing in a Tax Software Many small business owners only concern themselves with building the financial foundation of their business. However, it is equally important to keep things running smoothly and efficiently even as your business continues to grow. Taxes are a necessary evil that every business owner must face. There is no way around them. However, you don’t have to let them take over the day-to-day operations of your business. By investing in a tax software program, you can reduce your tax liability and increase your profits. How Can We Help? Dealing with taxes can be challenging for anyone, even as an expert tax preparer. If you’re looking for innovative solutions that can streamline your tax preparation process, our professional tax software for CPAs can help simplify matters for you. Our affordable technology can empower tax preparers and help you start a tax business with no EFIN, so get in touch with us today at 1.800.504.5170 to see how we can ensure your tax business is booming.

The last thing every business owner would want is to make mistakes when filing taxes. Besides getting another pile of work to be done, making mistakes could mean penalty payments. Making one’s way through the tax season can be extremely stressful, especially when you do not know what to do. It is supposedly a straightforward process, but the proper knowledge, skills, and experience are needed to handle such a massive task. To help you out, we have picked up five common tax filing mistakes businesses and their tax preparers make so you know which ones to watch out for. 1. Wrong Business Status Choice in Filing Taxes The most common mistake businesses make is choosing the wrong business status. There are several business structures one can choose from. The most common ones include sole proprietorship, partnership, corporation, S corporation, Limited Liability Company, and C corporation. Each business structure has its advantages and disadvantages. Make sure you know what you are getting into and the tax implications that come with your business type. The consequence of choosing the wrong one is that you will have to file a separate tax return for your business and increase its costs. 2. Incorrect Submission of Forms or Payments Next, it is crucial to make sure your payments are made correctly. There are several forms and fees that need to be either paid or submitted via mail. Make sure that you have the suitable form filled out correctly. If you are filing your taxes via mail, make sure you figure out what you are mailing and when you should send it to the IRS. When it is due and where you should be sending it. If you are filing electronically, make sure you have all your information ready to avoid oversights. 3. Making Wrong Computation Calculations are an essential part of filing taxes. Make sure you know what to include. Make sure you are not overpaying or underpaying. Before filing your taxes, make sure you know what needs to be included. Your business will be required to pay taxes on its gross receipts. You need to make sure that the correct amounts are subtracted, like taxes, freight, and supplies. Make sure you are not double-counting these amounts, or you will end up with the wrong computation and more penalties later. 4. Not Getting the Right Deductions Business owners are entitled to some deductions that are not available to an individual. They get deductions for business use of their home, vehicle, and other things they need. They can claim those business deductions by using Form 2106. It’s best to ensure that they claim all the business deductions they are entitled to get. If you have deductions, you also get to deduct any expenses directly related to the business. They help decrease the taxable income and help achieve a lower tax rate. 5. Using the Wrong Accounting Method Many small businesses do not take advantage of the cash basis and accrual basis of accounting. That is because very many small businesses do not have the capability to do so. To ensure you are saving taxes, have the correct accounting methods, and keep track of the right information. Do not guess when it comes to number crunching. Conclusion in Filing Taxes Doing the tax filing correctly is not just a matter of saving time. It is a matter of saving money. Be sure to get the correct information and ensure you are not missing anything. It is better to be safe than sorry and stress about your tax filing. Mistakes can happen to anyone. Whether you are a business owner who wants to DIY or a professional accountant who handles a lot of businesses’ taxes, make sure you avoid the mistakes mentioned above. Consider utilizing the best professional tax software. Keystone Tax Solution is a professional tax software industry leader with over 15 years of experience. We offer 100% web-based tax software to help thousands of tax professionals in the US do their job. Get a free demo now.

Are you tasked with dealing with tax preparation? Regardless of whether you are dealing with simple or complex taxes, you need to focus and put a lot of time into it. That’s because a simple mistake can be costly on your end, so you should always make sure to do things properly before Filing Your Taxes! That said, to help you file properly, whether for yourself or tasked by a client to do so, here are some of the things you need to double-check before filing your taxes: 1. Double Check The Tax Rates A lot of people forget to double-check the tax rates. That’s because we can’t see what’s going on with the government. In other words, we can’t see what changes have been made. Sometimes the government may change the tax rates because of the current state of the economy. For example, if the economy is doing poorly, the government will probably lower the tax rates. Likewise, if the economy is doing better, the government will raise the tax rates. So, always double-check the tax rates to know what to expect. 2. Double Check The Tax Deductions And Credits Tax deductions are simply expenses and credits that you can deduct from your income. By doing so, you will be able to save more over time! As for tax credits, these are credits that you can use to lower the amount of income tax you have to pay. Make sure that you double-check these deductions and credits so you will be able to maximize your savings and minimize your tax burden in the best way. 3. Double Check The Tax Withholding Taxes are basically the amount of money withheld from your monthly paychecks. However, it’s not uncommon to have fewer taxes withheld than you are supposed to. This is especially true when you are a first-time filer that doesn’t have enough information yet. In this case, ask your accountant to help you out in determining the number of taxes to withhold. 4. Double Check The Accuracy Of Your Tax Return You should always make sure to double-check the accuracy of filing your taxes. If you have made a mistake and forgot to include a certain income or deduction, then that can be problematic. So, always double and even triple-check your tax return, and don’t be afraid to ask for help if you feel you need to. The last thing you want is to make a costly mistake. 5. Double Check The TINs, SSNs, and ITNs If you file the tax return for your business, then you need to make sure that the TINs, SSNs, and ITNs on your tax return are accurate. This will help you avoid an IRS audit! Conclusion Whether you’re running a business or simply dealing with your income, always double-check before you file anything. That way, you can avoid unnecessary trouble with the IRS and continue living your life smoothly! Now, if you’re a tax preparer yourself, then be sure to remember the tips above. Double-checking and even triple-checking will never hurt your efforts, as this will only allow you to check mistakes as early on as possible to ensure you are filing the right documents and information! This, of course, helps you and your client avoid trouble, keeping all parties happy! Keystone Tax Solutions offers professional tax software for tax preparers. If you are looking for the best professional tax software in the US, check out what we have to offer!

If you made an error on your tax return, you would need to fill out an amended return form with the IRS. You can fill out the form yourself or have a professional prepare it for you. You may be charged penalties and interest if you do not file an amended return. To help you figure out what to do, we thought it would be useful to put together a brief discussion on this subject. If this is something that you want to learn more about, read on for a brief break down of what you should do in case of inaccurate tax returns. Will The IRS Catch It If You Have Made A Mistake? The IRS is likely to catch any mistake or incorrect information on your tax return. The IRS has substantial computer technology and programs that cross-reference tax return information with data received from other sources, such as employers. If you report incorrect information on your tax return, their programs will almost surely catch it. Can You Re-File Your Taxes? If you need to change your taxes or if you forgot to add something, you can refile them by filling out Form 1040X. This form is available online or at an IRS office. You can also have a professional prepare the amended return for you. What Is the Penalty for Incorrect Tax Returns? There is no specific penalty for an incorrect tax return. However, penalties do apply to your incorrect tax return, as they are in proportion to the amount you had to pay. For instance, if you had to pay significantly more tax due to a mistake on your return, there would be a much larger penalty than if the mistake had resulted in paying less tax. You cannot go to jail for making a mistake or filing your tax return incorrectly. However, if you deliberately leave off items that should be included, such as tax deductions, and are caught and charged with tax fraud, you can face a separate criminal charge. IRS agents will look to determine how you designed your actions and how you acted in response to being discovered. Should You File An Amended Tax Return If You Received An IRS CP-2000 Notice After Filing My Taxes? If the IRS sends you a CP-2000 notice saying that you underreported income, do not file an amended tax return. Instead, contact the IRS at the number on the notice. The notice may state that you owe additional taxes, and it may also recalculate your taxes based on their information. If you realize that you did indeed leave some income off of your original tax return, contact them and tell them this. You can pay the proposed additional tax without having to file an amended tax return. Conclusion We hope this article proves to be useful when it comes to helping you figure out what to do in case you ever find yourself in this situation. While making a mistake on your tax returns may seem problematic, it can be easily dealt with if you know what you’re doing. Be sure to keep everything you’ve learned here in mind so that you can deal with the problem effectively. If you’re looking for professional tax preparation software to streamline and optimize your processes, our products at Keystone Tax Solutions are just what you need. Get in touch with us to begin your free demo today!

The Employee Retention Tax Credit (ERC) is a fairly new thing, as it has only been implemented since 2020 as part of the CARES Act. It is a refundable tax credit meant to incentivize employers to keep their employees on payroll during the pandemic. But since then, there have been updates made regarding the ERC updates. And here’s what you need to know. What Is ERC? Basically, the ERC gives businesses that have fewer than 200 employees the ability to obtain a tax credit of up to $10,000 for each employee. The amount a business would receive would be based on the average salary of each worker during the tax year in question. The money is meant to incentivize businesses to keep their employees on payroll during the pandemic. If a business has fewer than 50 employees, the business is eligible for a tax credit of up to $5,000 for each employee. Benefits of ERC ERC is meant to be used by businesses to help keep their employees on payroll during the pre-pandemic time. Being able to prove to employees that they can have a job, at least during the pandemic, can give businesses a competitive edge in keeping their workers. But this tax credit is unique in that it can be used by businesses that don’t usually offer any sort of benefits to their employees (comparable to the tax credits given to businesses offering health insurance to their workers). Limitations of ERC It is limited to businesses that have fewer than 200 employees. Only one employee needs to have been hired by the end of year one, to be eligible for the tax credit. The ERC is only good for the first year of the tax year. What the Updates Bring to the Table The first update that was made to ERC is that the tax credit was made refundable for businesses that were previously ineligible for ERC. In other words, businesses that had less than $10,000 in tax liability are now able to claim the entirety of their ERC refund regardless of the amount of their tax liability. In this situation, the business would receive a rebate check from the IRS. Secondly, the updates changed the way that businesses that have more than 200 employees and less than 500 employees can claim their ERC refund. Previously, these businesses were capped at a $3,000 credit per employee. The updates allow these businesses to claim the entire credit for their ERC refund regardless of how many employees they have. The final change made to the ERC is that businesses that have more than 500 employees were previously capped at a $7,000 credit per employee. This update allows businesses with 500 or more employees to now claim the full credit for their ERC refund as well. Final Thoughts These updates illustrate a lot of changes that could come to the ERC in the future. But one thing is clear: the ERC is still a fairly new thing. And it is not yet clear how much it will impact businesses during the pandemic. That being said, it’s best to keep an eye out for further updates regarding ERC in the future. Grow your tax business with the help of Keystone Tax Solutions. We are the best professional tax software for tax professionals. Keystone Tax Solutions is a leader in the professional tax software industry. With more than 15 years of experience, we offer 100 percent web-based tax software while helping thousands of tax professionals start their own tax business and thousands more gain access to affordable technology-driven professional tax software. Get a free demo now!

Your Tax Preparation Business’s practice will require bookkeeping and accounting like any small business. Unfortunately, there is no one-size-fits-all solution for small businesses. You’ll need a company account, an accounting system, bookkeeping software, and at the very least, knowledge on how to pay quarterly business taxes. While you may already possess some of the information and abilities required to keep books for tax purposes, bookkeeping and accounting to manage your small business include a little more. Make sure to read more about accounting and where to find professional tax preparation Business’s software. Creating a Bank Account For Your Business You’ll need to start a business bank account once you’ve registered your tax business with your state. This keeps your personal and corporate finances separate, making bookkeeping much easier. You must have a business bank account if you’ve registered your company as an LLC. Accounting Methods: Cash vs. Accrual-Basis After you’ve set up your business bank account, you’ll need to decide whether you’ll keep your books utilizing the cash or accrual accounting technique. Revenue and costs are recognized in the cash-based system when they arrive in your bank accounts. Even if money hasn’t yet arrived in your bank account, the accrual approach acknowledges revenue and expenditures when the product or service is supplied. Consider preparing tax returns for a client in February but not receiving payment until May. If you employ cash accounting, you won’t be able to recognize that revenue until May. If you utilize accrual accounting, you’ll see it in February. The cash system is a little easier because the accrual-basis technique involves duplicate entries for each matter—a debit in the account that declined and a credit in the account that increased (such as accounts receivable and accounts payable). The accrual approach is essential in most major enterprises. You have the option as a small business owner. Though it requires more effort, accrual-basis accounting is more popular since it provides a more accurate picture of your finances. On the other hand, using the cash technique can save you time because you won’t have to double-enter each transaction. You can choose the time-saving cash technique if your expenses are straightforward and you normally receive paid immediately after performing services for consumers. Software for Bookkeeping and Payroll When filing your clients’ taxes, you already know that having the best professional tax software makes everything. The same may be said for accounting and bookkeeping software. Your bookkeeping software should be able to connect with your business account to avoid making manual entries and automatically generate financial reports and statements. You should be able to attach scanned receipts to your expense entries and switch between cash and accrual accounting techniques. Transaction Entry and Categorization After setting up your accounting and bookkeeping software, you can start categorizing transactions from your bank account. If you use accrual accounting, you’ll manually input transactions as they happen and then reconcile them with payments that arrive in your bank account. At least once a week, go over your transactions and upload any relevant scanned receipts or invoices. Keeping track of your finances will never be a chore, and you won’t lose copies of your receipts. Monitoring of Profit, Loss, and Cash Flow Try to study critical financial statements, including profit and loss sheets and cash flow sheets, at least once a quarter. Your bookkeeping software can generate these reports for you automatically if you’ve been keeping up with your books. Your expenses and revenue are listed on the profit and loss statement for any given period (usually per month). This information will make it easy for tax preparers to track earnings or losses during the off-season vs the busy season, making it easier to set quarterly income objectives. A cash flow sheet allows you to track how much money is coming in and out of your accounts. If you keep your books using the cash-basis method of accounting, you’ll already have a good idea of your cash flow. If you adopt the accrual method, you’ll need to examine your cash flow sheets frequently. If you have outstanding invoices for clients, your books may display bigger amounts than the actual cash in your accounts. All in One Software Package Small and big tax offices with several offices and many workers will benefit from the ALL IN ONE Software Package. This is the most popular package for tax offices with 50 to 500 clients. Stop paying too much in hidden fees and tax software. Save a lot of money on fees. All 1040, Sch C, and state forms are included in one package. Enjoy unlimited returns in 50 states and an unlimited number of additional users, and access to three prior year returns. Keystone Tax Solutions is a great place to start if you want to start a tax business. We are a market leader in professional tax preparation software, providing 100% web-based software and assisting thousands of tax professionals in obtaining affordable technology-driven professional tax preparation software. Get your free demo today!

As you complete your tax return, you are struck with horror. You do not have the finances to pay your tax! You have paid it before, and sometimes, you even get a Pay For My Taxes return. So what do you do now that you are unable to pay? What Happens When You Can’t Pay Your Taxes? There are many reasons why one may have difficulty paying for their taxes. In this case, it may be tempting just to skip your tax altogether. They will probably overlook it, and you can just file for the next financial year. However, it is highly encouraged you to Pay For My Taxes. It is illegal and can result in jail time and fines. The IRS can also take control of your assets, which will make it a bigger and more difficult situation for you. So what do you do now? What Are My Options If I Can’t Pay My Taxes on Time? You will have two main options: to file for an extension or pay for my taxes late. Both of these options will have their consequences, but if you cannot find another way to pay your taxes, they are your only options left. 1. Filing for Extension Most people do not know that they can file for an extension on their tax return form. You can submit Form 4868 to the IRS by the due date to obtain this extension. However, this is only an extension for the tax return filing. This does not free you from paying your tax liability. When your due date comes, you will still be required to pay for your tax liability. Additionally, you doing so will also give you penalties of 5% on each month that your tax is paid late, capped at a max of 25% of your tax liability. If you are late by more than 60 days, you will be paying either $435 or your total tax liability, whichever is smaller. This amount could still be topped off with additional penalties if you have a higher unpaid tax or a later filing date. Filing for an extension may give you blanket protection from legal cases. However, it does not save you from the fees. You will still need to pay for tax liability on your due date, and failure to do so would still give you penalty fees. 2. Paying Late You can send in your documents for tax return and just pay late. However, this will give you additional penalties and charges, as well. How much penalty and costs you have will depend on your total taxes and unpaid balances, and it continues to increase as time passes by that you are late in payment. Eventually, the IRS may end up sending demand letters for you to pay. The worst-case scenario is that they will charge you for non-payment of taxes, which could fine you even bigger or end up in some jail time for you. Conclusion No matter how much you look at it, there is no way out. This is why you are advised to pay your taxes throughout the year so that when the month of filing tax returns arrives, you will no longer have to pay a considerable amount. If you are still unable to pay, you may look for some financial aid through friends and family or apply for loans. Regardless of your situation, you will need to pay your taxes on time, and failure to do so will harm you even more. Running your own tax preparation business? Make it easier with Keystone Tax Solutions, a professional tax software servicing the USA. We make it easier for you to run your business and allow you to focus on your multiple clients. Work with us today to improve your business processes.

Your tax preparation firm requires a properly planned and executed customer acquisition strategy to sustain a healthy influx of new clients. Tax businesses of all sizes and types can benefit from an increase in customer acquisition. For instance, even a firm with a large number of existing clients can experience occasional slow periods. This is when it’s wise to reach out to potential new clients in order to maximize profits and ensure ongoing success. Customer acquisition is a foundation of your marketing strategy and an essential part of your business plan. It allows you to expand your client base–replacing lost clients and maintaining new clients in the long term. Thankfully, you can build and implement a client-winning customer acquisition strategy for your tax preparation business even if you have no prior marketing experience. The following paragraphs offer principles and approaches that will assist you in creating effective marketing strategies that will attract new clients.   Content Marketing and Social Media Content marketing allows tax preparers to establish themselves as industry thought leaders. The more you share your expertise in the field, the more likely potential clients will put their trust in you to handle their taxes. Content marketing delivers valuable tools and information to your target clients. You can reach this goal by writing blog articles, creating videos and infographics, and posting updates on social media. This marketing strategy—whether done online or in print—helps your tax firm obtain attention, reputation, and authority. Social media can be a strong tool for your organization if you have a strong content marketing campaign. Make sure to utilize social media posts and read your analytics to effectively spread your content to more audiences.   Search Engine Optimization (SEO) All small business owners want to be found on search engine results pages (SERPs). There are two ways to get there: organically and through paid search. Paid search: Paid search results are labeled as ads and show up at the top of the page. Organic search: The search engine’s algorithms naturally prefer organic search results as users are more inclined to select organic search results than paid ones. However, if you want your company to appear naturally in search results, you’ll need to work strategically on your SEO and be patient with the results. Many local digital marketing services can assist you in developing an ongoing SEO plan if you find the process of learning and applying SEO to be too challenging or time-consuming. The majority of these firms can assist with content marketing and social media management.   E-mail Marketing E-mail marketing allows you to stay in touch with existing consumers while also converting leads into paying customers. Regular newsletters, special deals, and discounts can all be part of your e-mail marketing strategy. You can also include links to the site for anything that is entertaining and relevant to your customer base.   Customer Referrals Consumers trust family and friends’ recommendations, making word-of-mouth advertising the most trusted kind of advertising. Customer referrals should be a part of your customer acquisition plan because they are low-cost and have a high return potential. It’s not enough to know the strategies for customer acquisition. They must also have a scalable, diverse, and long-term approach. The additional sections below expand on this idea.   Scalable Strategies Your marketing strategies should become more effective over time without becoming prohibitively expensive. Sponsored marketing methods, such as paid search or social media ads, may reach a plateau in terms of the number of new clients they bring in over time. You’ll almost certainly have to boost your investment to obtain more clients using these strategies. On the other hand, a company blog will normally become more effective over time without getting more expensive.   Diversified Strategies Keep in mind that you can spread your resources across different marketing tactics. This is why you will lose potential clients if you rely on a single marketing tactic. You’re also more susceptible to shifts in consumer behavior and tastes if your marketing approach is not diversified. However, you also need to manage your limits. Make sure that the time and money you invest in your projects or campaigns are sustainable. Utilize tactics that will aid in the refinement, diversification, and evaluation of your work. This enables you to have a customer acquisition approach that’s unique to your company.   Conclusion Many small tax firms mistakenly think that the best way to attract new customers is to invest in traditional advertising, especially television ads. However, these strategies often do not provide the desired results and can quickly break the bank. Instead, you should focus on generating organic growth through a well-planned internet marketing strategy. Keystone Tax Solutions is the best professional tax software in the country. This professional tax software for tax preparers will change the way you do business. Set up a consultation with us today!

The Tax Cuts and Jobs Act of 2017 resulted in a massive change in the American tax system. The Qualified Company Income Deduction (QBID), often known as Section 199A, is one provision that helps many business owners. The provision permits particular sole proprietors, S corporation and partnership owners, and partnerships to deduct up to 20% of their qualifying business income (QBI) from their taxable income if a qualified business or trade generates it.   What is a qualified business income deduction? The qualified business income deduction (QBI) is a tax break that allows self-employed and small-enterprise owners to deduct up to 20% of their eligible business income on their federal income taxes. To qualify, the total taxable income in 2021 must be less than $164,900 for single taxpayers or $329,800 for joint filers. The restrictions will increase to $170,050 for single taxpayers and $340,100 for joint filers in 2022. If you exceed that threshold, numerous IRS regulations govern whether your company income is eligible for a full or partial deduction.   Who qualifies for qualified business income deduction? The qualifying business income deduction is available to persons with “pass-through income,” which is business revenue reported on your personal tax return. The following entities are eligible for the qualifying business income deduction: Sole proprietorships   S-corporations Companies with limited liability (LLCs).   How to qualify for QBI Suppose your total taxable income — not just business income but also other income — is at or below $164,900 for single filers or $329,800 for joint filers in 2021. In that case, you may be eligible for the 20% deduction on taxable business income. The restrictions will increase to $170,050 for single taxpayers and $340,100 for joint filers in 2022. However, if your income exceeds these boundaries, it’s time to rethink your options. Here’s why: If your income exceeds those restrictions, your eligibility to claim the pass-through deduction is dependent on the specific type of your business. Even if your company qualifies, there’s a risk you won’t get the whole 20% tax savings because the qualifying business income deduction is tapered down for some companies.   What effect does taxable income have on the QBID? If the taxpayer’s primary source of income is their passthrough business, they will most likely be unable to deduct the full 20% of their QBI. This is because the QBID must be the smaller of 20% of the QBI component plus the REIT/PTP component OR 20% of the taxpayer’s taxable income before the QBID, less net capital gains, and qualifying dividends recorded on the return. Their taxable income will be less than their QBI since standard or itemized deductions and the deductible amount of the self-employment tax lower taxable income. They will most likely be able to deduct only 20% of their taxable income before the QBID.   Where will this deduction appear on my tax return? The qualifying business deduction is applied to the taxable income of the business. That is, it is determined after subtracting the standard deduction and any itemized deductions from the adjusted gross income (AGI). Because it is based on the business’s taxable income, the qualified business deduction is calculated independently for each firm.   What is the purpose of this tax break? The qualifying business income deduction attempts to level the playing field between pass-through businesses and C corporations, both of which benefit from lower tax rates.   Conclusion The recent tax changes show that the government wants to support small businesses and reward entrepreneurs. The qualifying business income deduction is one of the provisions in the Tax Cuts and Jobs Act that supports small businesses and should help many business owners keep more of their profits. If you are looking for the best professional tax software in the market today to help you with the numbers, look no further than what we have to offer here at Keystone Tax Solutions. We have our own patented professional tax software for all tax preparers who want to make their work more effortless in the long run. Call us today for more information about our software and services.

Tax season can be a very stressful time for people, hence the desire that many people have to hire tax preparers that can make the whole ordeal easier for them. As a professional tax preparer, much of your business relies on garnering enough clients during the right times and ensuring satisfaction for a return engagement. Thankfully, there are effective ways to ensure client satisfaction when you are tax preparing for them.   Do Your Research On Market Insights When you are doing your research to learn more about the market, make sure that you are also keeping the needs of your clients in mind. For example, if you notice that tax laws have changed, do your best to research how these changes will affect your clients. This way, you will be able to prepare a plan that is relevant to these changes and will satisfy their newfound needs. It will also allow you to understand the current priorities and perceptions of your client base so you can be mindful and adjust accordingly. Any major shifts and industry changes should be taken into account when setting up for work.   Don’t Forget Customer Care Ultimately, it is important to know and understand your clients. At the end of the day, your service is still one where you have to interact with your clients and make them feel heard. Establishing a good relationship with your clients helps them feel more at ease with you and increases their satisfaction with your services. It’s easier to rely on a face that they know and someone they have had positive interactions with as opposed to a bot or distant worker. The key here is effective communication and establishing what they need. Then, you’ll want to make sure you are reachable through the right channels and at consistent hours.   Invest in the Right Tools and Environment Most of what makes a successful transaction is how efficient it is. So, invest in the right tools to make sure you can do your job effectively. When you have a conducive environment for productivity, you are more likely to turn up with valuable work and even finish things with more ease. Indulge in a comfortable chair for your work and use the tech tools at your disposal so you can really maximize your output. You can even make use of tax pro software to streamline your work. This is a win-win situation as it makes your own labor less taxing (pun intended) and ensures speedy results without sacrificing quality for your clients.   Pin Down Your Own Strengths It’s good to have a niche in a populated market. When you pin down your strengths, it’s easier to narrow down your exact market and deliver the specific results they are looking for. It’s all in discovering your own skillset and leaning into it.   Conclusion Tax season is a time when consumers are looking for tax preparation solutions. Fortunately, you have the opportunity to offer such a valuable service to clients and create a great rapport with them. Do this well, and you can increase your opportunities and get repeat business. If you’re in need of tax software for preparers, check out Keystone Tax Solutions. We offer the best software solutions for professionals.

Are you looking for the best professional tax software or accounting software for your firm? Do you want to team up with a provider to help manage your clients’ books? If so, you need to know what to look for in accounting software. If you are thinking of getting a provider, then you should know what factors to consider:   Accounting Software Factors to Consider As an accountant, your objective is accuracy, both in your books and in your clients’. There are a few other factors you should consider when shopping for accounting software, however:   Accounting Provider’s Customer Service Reputation Customer service reputation is vital because, without customer help, your clients will be in trouble. The time you spend taking care of your own clients’ accounts should be time devoted to creating additional revenue. If you choose a well-known provider for customer service, you can devote more time to other important tasks.   Stability of the Company Choose a stable accounting software provider to ensure that your accounting software is secure. When choosing a provider, you also want to ensure that the company itself is stable so it can ensure that you have a secure product. Try to find out how long the company has been in business. Going back at least three years should give you enough information to make an informed decision. You also need to find out how the company is structured. For example, is it a large corporation, or is it a small business? Knowing this information will help you figure out how stable it is.   Whether the Software Is Desktop (Local) or Cloud-Based Some accounting software providers use a cloud-based system, while others use a desktop, local application. Local software usually runs on your computer, while cloud-based software runs with an Internet connection. Local software is less secure, because it is in your computer, while cloud-based software is more secure, because it runs on the Internet, making it more difficult for hackers to break through.   Kinds of Features the Software Offers There are many features accounting software can offer. You should know what features your firm or clients require and determine whether your accounting software can provide them. Depending on your profession, your firm or clients may require features such as credit card services, payroll, or legal tools. Other features that you may want to take into consideration are the following: Credit Card Services Customer Attachment Programs Billing Tools Legal and Non-legal Tax Tools Integrations with Other Businesses   Cost of Software Your budget should also be a consideration when choosing accounting software. Although you want a good accounting software provider, you want to pay the appropriate fee. If you find software that is affordable, then you should definitely buy it. The cost of your accounting software depends on which features it offers. For example, basic accounting software may be as low as $50 per month, but if you need high-end features like credit card services, the price will be higher.   Conclusion Choosing the right tax preparation software provider can help you manage your clients’ books. Whether you choose a local or cloud-based provider, you should always make sure you choose a reputable provider. Doing so will allow you to focus on other important tasks, such as creating additional revenue for your firm or ensuring that your clients pay their bills on time. Keystone Tax Solutions is the best tax pro software provider that can help make tasks easier for tax preparers like you. Check out the features of our software today and sign up for a demo!

If you live in the United States or have US citizenship and make money, you are very certainly obligated by law to submit an annual tax return with the Internal Revenue Service. Tax software is one of the most cost-effective methods to do your taxes. Tax software can be accessed via your web browser, as an application downloaded to your computer, or as an app on your cell phone or tablet. You can e-file your federal and state tax returns by entering financial information such as your W-2 or self-employment income. With so many highly recommended tax software alternatives to pick from, it can be challenging to decide which one is ideal for your tax situation or if you should consult with a tax professional. Here are some of the best tax software solutions, as well as an explanation of how tax software works.   What Is Tax Software? Tax software is a sort of software meant to help people prepare and file their income tax returns. It’s a step-by-step tutorial, calculator, and, to a lesser extent, organizer. You won’t have to complete your taxes manually if you use tax software; the primary goal of tax software is to automate the procedure. It may save you a lot of time, money, and hassles while also ensuring that you are following the most current tax rules and regulations. Tax software will automatically determine how much tax you owe or how much of a refund you may anticipate once you enter your tax information on your W-2s, 1099s, and other pertinent papers.   How Does Online Tax Software Work? When you complete your income taxes on paper, you spend a significant amount of time switching back and forth between them. When you get to a line on form 1040 that requires a supporting form or schedule, you go there and fill it out, then transfer the number back to the 1040. Sometimes you need to fill out a worksheet, track for a document you received in the mail, or double-check your calculations because something doesn’t appear to be correct. If your return is intricate, you may need to repeat this process several times. Online tax services operate in a very different manner. You can stop thinking about the forms you need and if your calculations are proper after registering an account and meeting the site’s security criteria. You also don’t have to be concerned about how any changes to the tax code would influence your return. Everything is taken care of in the background. When you utilize a digital tax preparation service, you’re essentially filling out a lengthy questionnaire. These websites ask you questions, and you respond by filling in blank forms, picking the proper choice from a list, or pressing a button. You will never be required to examine an actual IRS form or schedule (though in some cases, you can if you want to). If you’re familiar with tax forms, you’ll know the course that the tax site takes. It follows the format of IRS Form 1040. Personal information is given first, followed by income, deductions, credits, health insurance status, and taxes paid. After you’ve gone through all of the sections that relate to you, the site will examine your return and point up any potential errors or omissions. After you’ve fixed any issues, the program sends your tax data to any state returns you’ll need to file. Then you answer a few more questions, go over your complete return, and pay the service fees (if there are any). Finally, you electronically file your return and print or save a copy for yourself.   Conclusion Your federal income tax return can be one of the most stressful and confusing financial tasks. Tax software can make it easier by automating the tax preparation process. Tax software can speed up your return, help you avoid costly errors, and reduce the likelihood of an audit. Tax software can also save you money by reducing the need for tax professionals or even for printing out your return and mailing it in. If you are looking for the best professional tax software in the market today to help you with the numbers, look no further than what we have to offer here at Keystone Tax Solutions. We have our own patented professional tax software for all tax preparers who want to make their work easier in the long run. Call us today for more information about our software and services.

One of the most important tools you can ever have in your tax preparation business is your tax preparation software. With it, your life as a tax preparer is a whole lot easier, and just like how an F1 driver needs to be put in the right car to make the most out of it, you need to have the right tax preparation software to do your job right. That said, with so many tax preparation software to pick from, it can be tough to know which one fits your needs. To help you out, we want to share with you a few considerations to make to choose the perfect tax preparation software for your tax preparation business:   1. The Pricing Of course, price is always a concern. The good news is that there is a lot of tax preparation software that offers a one-time purchase at a very low price. The bad news is that if you want the latest and greatest tax preparation software, you will have to buy it every time there’s a new version. There is also subscription-based tax preparation software that will charge you monthly or yearly. Ensure that you know what you’re getting for your money and if you are expected to pay for yearly upgrades.   2. Ease of Use How much time do you have to learn new software? Would you rather spend your time doing work or just being with your family? The more time you spend on learning a new tax preparation software, the more time you are spending away from your family. So make sure that you choose a tax preparation software that you can pick up easily. Make sure that the software is intuitive and that you don’t have to go through a very long and tedious learning curve.   3. Accuracy Obviously, your tax preparation software must be accurate. If you want to do your job right, then you must be working with the right software. That said, the perfect tax preparation software must be able to provide you with the right info, and it’s up to you to make sure that it’s right. Make sure that you double-check the answers, and if you are not satisfied, you can ask for help.   4. The Device You will have to work with your tax preparation software on a lot of devices. For example, you might be working on your laptop when you have time, but you probably also do your tax return on your smartphone and a tablet as well. Make sure that your tax preparation software is able to be used on all of the devices you are using. That way, you can keep track of your finances, and you can work on your taxes any time, anywhere.   Conclusion You can make many other considerations before making your final decision, such as the customizability of the software down to after-sales support. However, if you can make it to these four considerations, you have yourself a great tax preparation software that will make your work more efficient and accurate. So, take your time to pick the right software. Your business will thank you later for it! Keystone Tax Solutions offers professional tax software to help tax preparers make the most out of their business. If you are looking for the best professional tax software in the US, check out ours today!

As a tax preparer, you are an attractive target for identity thieves. Sensitive financial information, combined with the private details you collect as part of your job, makes you a prime candidate for this crime. It’s especially important to protect yourself and your clients from the dangers of tax identity theft. To help protect yourself and your clients from these threats, we thought it would be useful to put together a brief list of tips to help deal with this problem. If this is something that you’re interested in learning more about, read on for four effective tips that will help protect taxpayers from identity theft.   Have a Data Security Plan Did you know the IRS recommends that tax preparation businesses hire an in-house or outside consultant to create a cybersecurity plan? But, if that’s not in your budget, read IRS Publication 4557 to understand the details of creating your business’s cybersecurity plan. These are a few key points from that publication.   Follow Data Protection Best Practices Basic data protection best practices include using a password manager that generates and manages passwords across all devices, installing an anti-malware program on all computers, encrypting sensitive files and emails with a strong passphrase, and wiping old computers that contain client information before you sell or donate them.   Inform Yourself on Scams Data breaches occur frequently as a result of phishing emails. So it’s important that you and all of your employees know how to identify phishing emails and how to avoid them. Most phishing emails target tax preparers, so they will pose as the IRS in emails to scammers. Always check the domain in the email address and be suspicious of any messages that feel urgent or demand that you take action now, or make requests of you that seem weird. For instance, a common form of phishing scam involves a stranger sending you an urgent request for help because their emails are being hacked, which suggests that if you do not act now, you will lose your account or face legal consequences. Installing malware protection on your computer provides protection against downloading any malicious software that might be attached to emails like these.   Monitor Your EFIN and PTIN Activity Identity thieves might target your EFIN or PTIN numbers and use them to file fraudulent returns. If you receive daily acknowledgments for returns you file, and the IRS posts weekly reports listing the e-filing numbers for every PTIN, you can catch this type of fraud early. If your practice files more than 50 returns per year, you can also access weekly reports of PTIN filings through the IRS website. Contact the IRS e-help desk immediately if the number of returns in their reports never matches up to the actual number of returns your practice has filed.   Conclusion We hope this article proves to be useful when it comes to bolstering your defenses against identity theft. While this may seem like a lot of work, you’ll want to do all you can to keep your and your client’s data safe from potential threats. Be sure to keep everything you learned here in mind to minimize the risk of falling prey to identity theft schemes. If you’re looking for professional tax preparation software to streamline and optimize your processes, our products at Keystone Tax Solutions are just what you need. Get in touch with us to begin your free demo today!

The American tax system is quite complicated, so it’s not too surprising that many Americans have adverse feelings towards tax filing. There are some people, though, who find their passions with taxes. They genuinely enjoy the days leading up to tax season and are eager to share their wisdom and expertise with others, especially with tax preparation. Do you see yourself in a similar situation? Well, you likely already know that you can make a living as a tax preparer. If you would rather begin a tax preparation business instead of pursuing freelancing, here are some steps you must take to begin your journey.   1. Obtain the Required Education and Training If you wish to open a tax preparation business, you will need to acquire the proper education and training. The IRS maintains a list of approved education providers to prepare and represent tax returns. If you don’t find your school on this list, it is likely that your particular school is not properly accredited. The IRS has also set up a Tax Preparer Program to prepare you to be a tax professional by helping you register with the IRS, receive your PTIN, and stay up to date on the new tax laws.   2. Prepare and Submit the Requirements You need to register your tax preparation business with the state, local government, and IRS before proceeding with anything else. Now, you should note that each state has different requirements, which is why you have to double-check the list for submission. Some of the documents you may need to prepare include the following: Preparer Tax Identification Number (PTIN) LLC, incorporation, or corporation application Sole or general proprietorship registration Electronic Filing Identification Number (EFIN) Tax compliance form   3. Ready the Designated Workstation or Office Once you have submitted the requirements, you can focus on other aspects of starting a business, like setting up your workstation. If you’re operating from home, having a designated workstation helps separate work from home life. That said, you likely know about the basics, such as a spacious desk, comfy chair, and a powerful laptop or computer that can handle your productivity tasks. Aside from that, you may also want to invest in trusty tax software for preparers for boosted efficiency. There are many tax software programs right now, so it’s best to do your research beforehand. One example of a software you can rely on is the Keystone tax software, which comes with unlimited e-files, a customizable mobile application, tax estimator, and audit protection.   4. Establish Your Tax Preparation Business in the Market Now that you have the proper education, training, workstation, and tools you require to obtain clients and start making money. You may want to create a strategic marketing plan to reach out to your target audience. For instance, if you want to target those living in your local area, you can create flyers, business cards, and brochures to hand out. If you will focus on those living outside of your local area, you can create a website. Once you have built a site, you can market your business by getting on social media to attract more clients. You may also want to consider joining a professional organization to network with other tax professionals.   Conclusion If you have a passion for taxes, establishing a tax preparation business may be right for you. By taking the steps above, you can get your business up and running in no time at all. Are you looking for the best tax preparation training to get you started on your journey? Keystone Tax Solutions can assist you in this endeavor. Our tax training will equip you with knowledge regarding tax laws and train you for tax preparation. Contact us today to learn more about our training services.

Tax is the lifeblood of the nation. As a good citizen of this fair country, you are expected to pay your fair share. Thankfully, we have reliable taxation software which allows us to efficiently submit our income tax returns. Now, we may understand these taxation concepts, but sometimes, life gets in the way. Even if we have the taxation software to make filing easier, we may still have to file for a tax exemption. The government allows a six-month extension. All you need to do is file Form 4868 to the IRS. If you have no idea how to, continue reading this article.   What You Need to Know about Form 4868 Form 4868 is filled out if you need to file for an automatic extension of your income tax return filing deadline.   Take note that it is also due on the same deadline as your income tax return. In recent years, it falls on April 15 or the next weekday if the said date falls on a weekend. If you are a resident of Louisiana or Mississippi and some parts of Connecticut, New York, New Jersey, and Pennsylvania, you do not have to worry because you are automatically given an extension because of Hurricane Ida. Please also note that residents of Illinois and Kentucky are granted the same clemency because of the tornado that ravaged these states in December 2021. But kindly consult with your IRS disaster relief announcements to determine your eligibility. You should not be afraid to avail of this, even if it is your first time to take advantage of this. It will cost you nothing and is relatively easy. You can even do it online. Whether you will file it in person or online, you would need some pertinent information, such as your identification information (name, address, Social Security number, and your spouse’s Social Security number), and of course, your income tax information. You should already have an estimate of your total tax liability (for the year in question), total payments that you made, the balance due, and the amount you are paying. The form would also ask you if you are a US citizen or resident who is out of the country or if you have filed a Form 1040-NR. It is an income tax return form for nonresident aliens who have businesses in the US during the tax year or otherwise earned income from US sources.   Filing Online The form is pretty much straightforward. You might even say that doing it online is easier compared to working on your tax returns in your taxation software, especially if you have a tendency to be disorganized. Even some of this taxation software can help you file it.   Conclusion Some people are afraid to file for a tax extension because they fear that it entails complicated processes. Contrary to such belief, it is very straightforward. Many tax preparers suggest doing this instead of paying a hefty penalty. If the main reason why you cannot submit your returns on time is that you do not know what to do, you should immediately reach out to a tax preparer. Most of them utilize Keystone Tax Solutions taxation software because it is already designed to be GAAP-compliant. If you’re a tax business interested in our partnership packages, contact us for a free demo.

Many taxpayers file tax returns on April 15, but people do not have to wait for this date to submit theirs. In fact, there are various benefits to accomplishing tax returns early. First off, one will have enough time to prepare and gather the necessary documents in claiming all deductions. After all, last-minute hassle over receipts is something to avoid. As a tax preparer, you can assist your client in staying away from possible tax issues, eventually satisfying them with your service. In this article, you will learn about the other top reasons why filing tax returns early is beneficial for you and your client.   Amended Return Prevention Filing early in the tax season will help you make more accurate tax returns on behalf of your client. Keep in mind that faulty returns are likely to be amended returns and result in nasty audits.   Faster Refunds Filing early will no doubt give you faster refunds. It will also help you avoid rushing and making mistakes that can eventually lead to a stressful audit and an unsatisfied client. Efficient tax planning will give you ample time to estimate capital gains, examine tax losses, and other processes relevant to your tax preparation. Procrastinating and putting off this task will prevent you from achieving peace of mind until you have checked this responsibility off your list. Filing sooner can almost always guarantee a quick refund since the IRS is not as busy early in the season, unlike in the middle of April. Finally, filing tax returns early can get your client’s money in their hands as soon as possible. It will help them pay their bills and expenses right away and avoid taking out expensive loans.   Identity Theft Prevention Naturally, filing early will lessen the chances of someone else stealing your client’s identity and claiming refunds in their name. Solving issues like this can take months or even years. Simply put, filing ahead of the deadline makes an individual less vulnerable to identity theft and other costs to fix the problem.   New Standard Deduction In filing tax returns, you need to choose between itemizing deductions and considering the new and relatively higher standard deduction set forth in 2018. Early preparation of tax returns will help you immediately decide on the most suitable method for your client.   No Penalties Preparing and filing tax returns early provides you the time you need to understand any changes to the tax law. It can also aid with addressing lifestyle and schedule changes that may conflict with your client’s filing status. As already mentioned above, working on tax returns at the last minute can make you more prone to mistakes that inevitably lead to audits and penalties that your client won’t like.   Ensuring a Successful Early Filing Always be honest. If no return needs to be amended, do not resort to correcting it to make things work to your advantage. Early filing can make you miss late-arriving forms. Remember to prepare all necessary documents and statements before clicking “Send” or dropping your tax returns in the mail. Even banks and financial institutions can make mistakes, so you must catch these mistakes before filing tax returns. Check pertinent documents, such as 1099s, interest statements, W-2s, and others.   Conclusion Follow our tips above, and you will definitely reap the benefits of filing tax returns early. If you are looking for the best professional tax software in the US, check out Keystone Tax Solutions. We offer reliable, professional tax software for tax preparers. Purchase now.

10 Reasons Why Startups Should Consider Accounting Software Do you wish to minimize your beginning expenses while increasing your profits? The less you spend on early company expenditures, the more profit you may make in your beginning firm. Cost-cutting measures can help your company in a variety of ways. You may boost your startup working capital by decreasing additional costs. You can potentially use this cash to support other business operations. The best accounting software for startups streamlines your back-office processes and simplifies accounting for your company, allowing you to concentrate on expanding your business. Here are some particular reasons why accounting software may be highly beneficial to companies. Continue reading!   1. Manage multiple projects effortlessly Add tasks to projects and assign them to specific people to perform. Choose suitable charging methods and budgets based on the demands of the projects. Generate project-specific reports to provide a clear view of the time and money spent on your clients’ projects.   2. Invoice customers without a sweat No need for a third-party invoice management system. With integrated invoicing, you can create customizable invoice templates for your clients. It’s a simple process – just enter the invoice details, and it will automatically be submitted to the biller.   3. Keep a clear record of expenses and revenues Track your business expenses and revenues during the month. Invoice expenses to different projects and clients depending on their nature. Get an overall picture of your business finances from the Advanced Budget/Forecast Report.   4. Maximize your cash flow Manage your cash flow within QuickBooks, and maximize your cash flow. Track daily balance sheet figures and get real-time time reports. Get alerts when your banks are about to reach their limits.   5. Get organized with time tracking Tracking time spent on different tasks is crucial to streamlining business operations. Our time tracking tools help you keep a tab on time spent and money earned by your employees.   6. Stay on top of your staff’s performance Accounting software can provide you with a consolidated report of the performance of your staff. Get monthly reports that display the performance of your staff based on the time spent on various tasks.   7. Live on the cloud Most accounting software is SaaS-based, meaning you can access it from anywhere. Be it on the field or from your phone; you can manage your business on the go. You can also get real-time data on your startup’s financial status.   8. Save time with automatic calculation Calculating sales tax, total price, and sales commissions is a breeze with the automatic calculation feature. Accounting software automatically calculates the sales tax based on your tax rate. It also takes care of your sales commissions by automatically calculating them and updating them in your total price, so you don’t have to do the math every time.   9. Get real-time data on your business’s finances Most accounting software offers a dashboard feature that gives you a clear picture of your business’s finances in real-time. It gives you a real-time dashboard of your business’s financial performance.   10. Minimize your tax burden Accounting software ensures you keep track of the tax you owe and what you get refunded. It also allows you to export your tax information to the relevant tax authorities if required. Conclusion If you are looking for accounting software for startups, you must consider your business requirements before picking the right software. As a startup, you will focus on growth and keep your back office operations streamlined. So, avoid jumping in at the deep end. Instead, do your research and find software that offers the best solutions for your business. If you are looking for the best professional tax software in the market today to help you with the numbers, look no further than what we have to offer here at Keystone Tax Solutions. We have our own patented professional tax software for all tax preparers who want to make their work easier in the long run. Call us today for more information about our software and services.

5 Best Practices in Attracting Tax Clients For Accountants  For accountants, seeking new tax clients is one of the most challenging parts of their job. Sometimes, clients come to them without lifting a finger. But most of the time, they would have to actively look for them due to the oversaturation of tax preparers in the market. Therefore, what do accountants need to do to beat their competitors? Here are some ideas.   1. Ensure Good Communication Skills It is not enough for accountants to have technical knowledge of the profession or an extensive network of contacts. They must also have excellent communication skills to have a higher chance of attracting new clients. The ability to listen and speak are some of the most crucial soft skills required in the accounting industry. These soft skills will be helpful in a wide range of interactions, such as talking with clients, business partners, and employers. Therefore, accountants would have to ensure that they have the right communication skills.   2. Study the Competition The competition is always stiff in the accounting industry. However, accountants can differentiate themselves from their competitors by knowing what they are doing. In a way, they can learn from the strengths and weaknesses of their competitors and learn how to use these strengths to their advantage. The first step in this process is to know who your competitors are. You may want to check out their websites to see what they’re doing to get new clients. Also, study how you will secure your clients’ trust and find out how you can be better than your competitor.   3. Build the Firm’s Reputation A good reputation is one of the most critical factors used to determine whether a business will succeed or not. For example, most successful startups are respected in the business community. Building a solid reputation is very important for accountants if they want more clients. They can achieve it by being in the industry for a long time and providing excellent services.   4. Use a Professional Tax Software You can increase your chances of gaining new clients by using business tax software. A client who has used tax software will become more loyal to it because of the convenience. If you have a loyal client, you have a higher chance to secure the client’s trust. When tax season comes around, your accounting firm must have software to help you with your accounting. Tax software can reduce the amount of time you spend on your accounting tasks, allowing you to focus on more profitable aspects of your business.   5. Gain the Clients’ Trust When a client trusts you, there will be a higher chance that they will continue to use your services. Trust is one of the most critical factors in securing new clients. Many people will continue to patronize a particular business due to their trust in it.   Conclusion There are many things to consider when trying to get new clients. One of the most crucial things to keep in mind is that accountants are in a competitive industry. Therefore, they should look for ways to differentiate themselves from their competitors. Other than that, it is also essential to ensure good communication skills and to learn about your competitors. There are many benefits for accountants to get new tax clients. A recent tax client will likely use your services again in the future, leading to the growth of your business. Keystone Tax Solutions offers the best professional tax software to help accountants get ahead of the game. We hope to make the job easier and more accurate through our software for tax preparers to ensure client satisfaction. Check out our all-in-one package today and win clients over your competitors today.

As tax preparers, you are responsible for calculating, preparing and filing income taxes on behalf of our clients. To support this responsibility, you should also be aware of the different changes made by our government regarding other tax laws.   The Income Threshold Increase If your investment income exceeded the annual limit, you could not claim the EITC, historically speaking. In 2021, the limit was increased significantly. From $3,650 in 20210 to $10,000 in 2021. This will make investment incomes’ limit to be raised annually. You can check on your software for tax preparers to assist you.   Married but Separated and Filing Separately Another change broadens eligibility for married people divorced from their spouse and file separate tax returns. They must have lived with a qualifying child for at least six months of the year, but they are not required to claim the child on their tax return. Previously, a taxpayer had to have a qualifying child and have lived apart from their spouse for at least six months if they were married filing separately. However, changes have been made, they can qualify even if they have not lived separately for up to six months if they are under a separation instrument  They may still be eligible if separated and do not share their current residence with their spouse.   Changes in Using Prior Year Income If their 2019 income was more significant than their 2021 income, taxpayers in 2021 could still claim the EITC based on their 2019 income. However, they cannot use their 2020 earnings for filing.   Changes in the Child Tax Credit The 2021 Child Tax Credit has received a lot of attention in the media because of the new advance payments, but it has also changed significantly in other ways. The Child Tax Credit is now refundable to $1,400 per child, with a phase-out at $400,000 in income for married couples and $200,000 for single filers. The refundable amount is calculated as 15 percent of earned income over $3,000.   Changes in the Recovery Rebate Credit In 2020, the Recovery Rebate Credit was introduced, allowing taxpayers who had not previously received stimulus payments to claim them as a refundable tax credit. In connection with the third round of stimulus payments, which began in April, some of your clients may be eligible for a recovery rebate credit in 2021. Depending on the taxpayer’s filing status, the Recovery Rebate Credit can be worth up to 35 percent of their earned income in 2019, with a maximum credit of $1,400 for a single tax return and $3,000 for joint returns.   Changes in the Earned Income Requirements In 2021, the earned income requirements will be removed entirely. To be eligible for the CTC, taxpayers no longer need to have earned income or any income at all. After that, they will receive the maximum $3,000 credit every year, regardless of income. In essence, it will no longer be a work credit. Instead, lawmakers hope that the refundable credit will replace the EITC, making the income tax code fairer and more progressive.   Increased Maximum Benefits and Income Individuals will receive up to $1,502 in benefits in 2021, up from $538 in 2020. Individuals’ maximum income will be $21,430 in 2021, up from $15,820 in 2020.   Conclusion Keeping up with changes to the tax code for 2021 has not been an easy task. Significant changes are made to several areas of tax law, most notably refundable tax credits. Maintain an eye out for changes to the various regulations and incorporate them into your clients’ returns. You can look up the best professional tax software to optimize your business. Keystone Tax Solutions is the industry’s leading professional tax preparation software for you and your clients. Contact us and learn more.

Preparing Tax Return you Begin It’s never too early to start planning for your 2021 US Preparing Tax Return, which is due on April 18, 2022. To submit your Preparing Tax Return, you’ll need specific information and documents, regardless of whether you do it yourself or hire a professional. We’ve come up with a handy tax preparation checklist to make the process less of a hassle for you!   Collect All of Your Paperwork Before you begin, collect all of the forms and documents you’ll need to complete your return. It’s a great idea to gather paperwork throughout the year and then place them in a designated folder. You can always refer to this folder if you need information from a previous year, too. Here are some of what you’ll want to save: W-2 from each employer 1099 forms SSA-1099 for Social Security benefits 1095-A for Health Insurance Marketplace reimbursements 1098 for mortgage interest received 1098-T for tuition paid   Round up Your Receipts It doesn’t matter whether you itemize your deductions or take the standard deduction; you’ll want to know which generates a larger tax deduction. While filing as a single taxpayer, the standard deduction is $12,550; when filing as a married couple filing jointly, the standard deduction is $25,100. Individuals filing single returns will be able to claim $12,950, while married couples filing jointly will be able to claim $25,900 in 2022. If you want to itemize your deductions, you’ll also need to gather any additional funds you may have set aside for charitable contributions. Ensure that you keep track of any receipts for medical expenses that were not covered by insurance or reimbursed by another health plan. Property taxes and costs incurred with an investment are likewise subject to limitations. You may find more information about charity deductions in IRS Publication 1771, available online. You will be required to submit your books and records, such as QuickBooks or any other accounting system, receipts for spending, and applicable bank and credit card statements, as well as any other necessary documents. Preparing Tax charges less for their services because the more structured your records are, the less time it will take them to file your taxes.   Compile Your Details You need to provide your Social Security number and your spouse’s Social Security number if filing jointly. If you were self-employed in the previous year, you’d have to provide your Federal Employer Identification Number. Tax return information is serious business. The IRS will likely analyze any discrepancies in your tax return, especially if you made an error. This is because it’s essential to ensure your tax return is accurate and complete and minimizes the likelihood of the IRS having to correct your return. This is especially important if you’re self-employed. When preparing your tax return, it’s in your best interest to organize your books and records, so your tax return is as accurate as possible.   Retrieve a Copy of the Previous Year’s Preparing Tax Return Before you begin preparing your tax return, make sure to retrieve a copy of your previous year’s tax return from the IRS. You’ll need it to calculate the cost basis of any capital gains or losses you may have incurred throughout the year. Additionally, you may be able to use this to ensure that your identifying information, such as your Social Security number, is current.   Selecting a Tax Preparation Professional Unless you are confident that you can accurately prepare your tax return, it’s in your best interest to hire a professional to do so. Hiring a tax preparation professional means you’ll need to allow enough time before April 18, 2022. It’s a good idea to start preparing your tax return at least three months in advance if you’re planning to submit a paper return. If you’re planning to file electronically, you may be able to submit your tax return as soon as you receive your W-2 and 1099 forms.   Conclusion Preparing your taxes may be a stressful endeavor, but it doesn’t have to be. By following a simple checklist, you can easily organize your tax return. You can even save time and money by hiring a tax preparation professional to file your taxes for you. Tax preparation professionals typically offer a variety of services to suit your needs. If you are looking for the best professional tax software, Keystone Tax Solutions has you covered. Reach out to us today to learn more about our software, or try a free demo now!

Refundable Tax Credits have always been complex for tax-payers, but the complications arise when it involves complying with the ever-changing laws surrounding them. In America, the country welcomed a myriad of tax law changes in 2021, which we will provide a simple overview below so you can stay up-to-date with your taxes.   Refundable Tax Credits Law Changes in 2021: What You Should Know   Income Limits and a Two-Part Phase Out for the CTC The tax year 2021 will see the return of the phase-out for the Child Tax Credit to $150,000 for married couples filing jointly, $112,500 for the head of the household, and $75,000 for the rest. The credit is now at five percent, which will be available for every $1,000 income up until the threshold reaches $2,000. Keep in mind that the credit will be the same until the income increases their income to the next threshold, which is above $3,000.   Advance Payments for CTC Advance payments will be available for the Child Tax Credit during the tax year 2021 by the IRS. Keep in mind that these advanced payments will need to be reconciled on Schedule 8812, so you may have an excess CTC amount.   Different Take on The Child and Dependent Care Credit 2021 The Child and Dependent Care Credit will be different in 2021. For one, there is a significant increase, though the Credit will be refundable for taxpayers who have lived in the United States for more than six months, while those who stayed in the country for less the recommended timeframe will have a non-refundable credit.   The Consolidated Appropriations Act, 2021 The new law on tax provisions allows American taxpayers to prepare for their taxes for another more year, along with the benefit of reaping extensions on their tax relief provisions, deductions, credits, and more. This was passed as a way to ease the burdens and impact of the pandemic, allowing citizens to get the following: Taxpayers can get $600 advance payments of their tax credit, with an additional $600 for individual, qualifying child; Businesses can also deduct 100 percent on meal expenses for employees; Teachers can now include personal protective equipment as part of their deductibles; For those who claim a $600 deduction for joint filers, you can get an extension of $300 if it’s for cash charitable deductions; If expenses for the Paycheck Protection Program (PPP) loan are paid with forgiven PPP loans, they are considered deductible.   The Bottom Line: The Importance of Keeping Up-to-date withRefundable Tax Credits Laws Tax laws are trying to stay up-to-date with the ever-changing world and society, allowing both individuals and businesses to remain competitive with the constantly changing landscape. The taxation changes we have seen in the last few years are aimed at helping businesses and individuals keep up with the advancements and innovations through tax relief, as well as investment and credit rebates. As a business owner, you might be asking yourself how you can benefit from the tax law changes. One of the things you can do is to find ways to maximize the benefits you get from tax law changes. The best way to do this is to consult the tax experts and professionals who know how to structure your business or company so that your business can enjoy the benefits of the tax laws.   How Can We Help? Dealing with taxes can be challenging for anyone, even as an expert tax preparer. If you’re looking for innovative solutions that can streamline your tax preparation process, our professional tax software for CPAs can help simplify matters for you. Our affordable technology can empower tax preparers and help you start a tax business with no EFIN, so get in touch with us today at 1.800.504.5170 to see how we can ensure your tax business is booming.

The Top Tax Challenges Faced by CPA’s in the Industry Today Being a certified public accountant (CPA) is not an easy task. Besides the fact that you will have to crunch the numbers from time to time, you also have to contend with many external factors that may affect your computation. That being said, there are also tax challenges that CPAs have to contend with when they are doing their job in the industry. If you happen to be a CPA yourself and you want to prepare against these tax challenges, it would only be appropriate for you to be familiar with them from the beginning. The following are just a few examples.   1. Manage the Tax Risk. Every CPA has to manage the tax risk that their client might have to deal with in the future. This is done to avoid invalidating information on the part of their clients.   2. The IRS Audits. The IRS audits CPAs due to the sensitive information they might have to handle. This means that they have to be more careful when they do the tax computations of their clients, as they might be facing penalties if ever they misuse their clients’ information.   3. Competitors. CPAs also have to contend with the challenges of their competitors. As with any other field, the CPA industry is also tainted with one-upmanship. In this way, CPA firms are always competing for the same clients that they are trying to serve.   4. Technology. The technological challenges have to be considered when CPAs are doing their job in the industry. This is because the innovations that they have to use for their work might not be available in a particular state or country. And if this happens, then it might result in the loss of jobs or miscalculations.   5. Timely Preparation of Returns. CPAs also have to face the challenges of the timely preparation of returns. They have to file the returns within a specific period. Otherwise, they may face major penalties that will extend towards their clients.   6. Software Integration. CPAs have to familiarize themselves with the relatively new concept of software integration. This is because CPAs have to use different applications to do their job efficiently. It is possible that one software application might not be compatible with another, and they may end up with wrong tax summaries.   7. Staffing. Basically, there are times when CPAs have to deal with their own employees. There is a call for balance when it comes to their personnel. This is why they have to fire some of them from their job if they fail to perform well. On the other hand, they also have to hire more people if there is a great demand for their services.   Conclusion All in all, these are just a few examples of the common tax challenges that CPAs have to face while they are doing their job in the industry. These challenges are more technical than you can imagine. It is only appropriate for you to learn how to cope with them to be more effective in your line of work. There is no need to be intimidated by them, though. In fact, these tax challenges might also give you an idea of what you have to do to succeed in the CPA industry. The key is to stay ahead of everyone and enjoy being an experienced accountant in the long run. If you are looking for the best professional tax software in the market today to help you with the numbers, look no further than what we have to offer here at Keystone Tax Solutions. We have our own patented professional tax software for all tax preparers who want to make their work easier in the long run. Call us today for more information about our software and services.