1What is the earned income tax credit and how do I claim it?
This question is also a frequent question for hard times, but many low- and middle-income filers are not familiar with this credit. Some families believe they don't make enough to file their taxes, but taxes must be filed to get this credit, which may help a family with three dependents receive a credit worth up to $5,891.
2Are unemployment benefits taxable?
Yes, unemployment income is taxable income, TurboTax says.
3What are the tax implications of withdrawing money early from a retirement account?
TurboTax says withdrawing money early from a retirement account comes with a 10 percent tax penalty plus regular income tax on the amount withdrawn. Watch out if that additional retirement money bumps you into the next tax bracket, which could affect Social Security taxes and other considerations.
4What is the cost of sales?
Cost of sales is the caption commonly used on a manufacturer's or retailer's income statement instead of the caption cost of goods sold or cost of products sold.
The cost of sales for a manufacturer is the cost of finished goods in its beginning inventory plus the cost of goods manufactured minus the cost of finished goods in ending inventory.
The cost of sales for a retailer is the cost of merchandise in its beginning inventory plus the net cost of merchandise purchased minus the cost of merchandise in its ending inventory.
The cost of sales does not include selling expenses or general and administrative expenses, which are commonly referred to as SG&A.
5How can I transition from in-house to outsourced accounting?
Transitions are tricky, but preparing your business to switch to an outsourced accountant doesn’t have to be hard. Make your new financial partner is a good fit, plan ahead and be sure to budget enough time, set goals, and be mindful of potential obstacles. Read more tips here.
6Why should I choose a monthly accountant vs. less frequent methods of accounting?
Monthly accounting services provide substantially more value than only an annual service. If an accountant only sees your numbers once a year, it is too late to offer advice that would have helped to make that year more profitable. And definitely too late to lower your tax liability for a year that is already over with. This blog post explains five ways monthly accounting pays for itself: 1) It saves you time, 2) You get regular business profitability advice, 3)You have peace of mind that your finances are handled, 4) Your tax liability is reduced, 5) You can make more proactive financial decisions. Read more here.