If you own a business, you have probably heard about the Section 199A Deduction. This is also known as a Qualified Business Income Deduction. You may wonder what exactly this is and how does it work? David Mills CPA has put together information in order to help you better understand the 199A Deduction.
The 199A Deduction reduces taxable income, but not adjusted gross income. This deduction does not lower Illinois taxable income or does not lower self-employment tax.
The 199A Deduction is available to sole proprietors, partners, and S corporation shareholders. It is not available to C corporations.
The calculation for the 199A Deduction can be complex. It is partly dependent on the taxpayer’s total taxable income. There are no limits for married filing jointly taxpayers with $315,000 or less of taxable income. There are typically no limits on the deduction regardless of whether the business is a specified service trade or business.
The deduction is the lesser of the Qualified Business Income or 20 percent of taxable income minus long-term capital gains.
Limits exist for married filing joint taxpayers with taxable incomes between $315,000 and $415,000. A limit begins to phase in based on wages and/or qualified property acquisitions.
If you earn an income above $415,000, limits are determined based on W-2 wages and qualified property acquisitions. This deduction is not available to the taxpayer under certain circumstances.
If you are looking for more information or need help with your 199A Deduction, contact David Mills CPA today. Our team of experts will be happy to assist you with all of your financial needs. David Mills offers financial and accounting services to small and medium-sized businesses, as well as individuals in Peoria, IL as well as the surrounding areas. We look forward to hearing from you!
Quickbooks offers a variety of solutions for business owners. It provides features for accounts, payroll, receivables, payables, inventory, and much more. If you feel QuickBooks could be beneficial to your company, read more to learn how it can be beneficial to your business.
QuickBooks provides many benefits for business owners. It allows for a better organization system to help keep all of your business’s information in one spot. It also allows for integration by connecting your bank account to import and categorize transactions. Finally, businesses are able to use templates such as invoices, spreadsheets, charts, and business plans that are customized to their business.
The point of sales system (POS) your business uses is extremely important. Integrating your POS system with QuickBooks is extremely beneficial. QuickBooks Online is able to connect with several POS, making it a great way to increase efficiency. Integrating the two systems can save time. The information entered will be saved in both systems. It also will reduce human error because there are fewer steps to take with an automated process. Finally, integrating the two systems provides all the necessary information at your fingertips!
With all your financial information in one place, make sure to change the password in your account to a unique, strong password. Also, be sure to change the password every so often to continue with a secure environment.
At David Mills CPA, we have QuickBooks Pro Advisers that can help with all your QuickBooks needs. If you are looking for a professional adviser, look no further than David Mills CPA. Here is what our Pro Advisers can help you with:
If your business wants the skills and knowledge from a QuickBooks Pro Adviser, contact the professionals at David Mills CPA today! We will be happy to answer any questions that you have or provide you with more information.
With April right around the corner, warmer days will be here before we know it. While many people associate spring cleaning with cleaning and organizing your home, have you thought about spring cleaning your finances? Spring cleaning your finances is a great way to get back on track with paying off any debt, getting organized, and evaluating your overall financial situation. By following our five spring cleaning tips, you will be on your way down a more stable financial path.
Take a look at how much total debt you owe. To truly understand your debt load, you will need to calculate how much debt you owe compared to the amount that you earn. If your total consumer debt is less than 20% of your net income, you are in fine standings. But, if your total consumer debt is above 20%, it is time to assess your debt load. Don’t let it overwhelm you though as there are many solutions to becoming debt free such as cutting expenses, creating a debt-free plan, setting goals each month, getting a second job and numerous of additional solutions.
Organizing your finances is a vital part of being able to gain control over your financial situation and to make sure that additional wealth is going to be created. A few ways to organize your finances can include consolidating accounts, filing important documents, determining your personal net worth, estate settlement, and shredding documents that you no longer need. All of these tasks will help you be on your way to better-organized finances.
Your budget is one of the most important parts of your financial planning. Without a budget, you could be at risk of overspending on items that could cause you to go into debt, or further into debt. The best way to tweak your budget is to look back at the past couple months and analyze what you spend the most and least money on. From there tweak it accordingly if you see any trouble spending areas or areas that you’re budgeting more than you need to.
It is always a good idea to check up on your insurance policies, whether it be health, property, casualty, or any other insurance policies you may need to evaluate. There are many benefits by doing this such as catching any mistakes, finding better rates, or realizing it may be time to bundle. As your life changes over the years, it is always best to ensure you are not paying for insurance you no longer need or that you are not underinsured.
Evaluating your 401k is important for a number of reasons. Many people make basic mistakes such as overlooking retirement plan fees, getting scared by market volatility or getting overly aggressive. Reasons like these are why it is important to think about retirement sooner than later so that you are able to take on an appropriate level of risk all along.
If you are looking for financial services to help get your finances in order this spring, contact David Mills CPA LLC. David Mills offers financial and accounting services to small and medium-sized businesses, as well as individuals in Peoria, IL as well as the surrounding areas. To learn more about the services we offer, or to learn more about David Mills CPA LLC as a company, contact us here. We look forward to speaking with you!
When it comes to paying your taxes, many people find themselves scrambling in April trying to get their act together. While you may think it would be an annual routine for many, about 20% of people wait until the last week to pay their taxes. Are you in that 20%? Whether you are or are not, understanding the benefits of filing taxes earlier than later is very important and will help taxpayers in the long run.
The most obvious reason to file your taxes early is to receive your tax refund as soon as you can. Last year the IRS made it possible to have your tax refund direct deposited into your account, which will allow you to receive your tax refund even faster rather than waiting weeks for a paper return.
Tax fraud is a major issue that many people end up having to deal with. While tax fraud is more common than you think, there are ways to prevent it. One of these ways is to file your taxes as early as possible. By filing taxes early, it will be more difficult for criminals to pull off. This is because if the IRS receives a duplicate return after you have already filed yours, it will be noted as fraudulent. If you have not filed yours yet, you could be in trouble.
If you discover that you owe a balance to the IRS, filing taxes early will allow you extra time to sort everything out. If you file as soon as you can in January, then you will have until mid-April to come up with the extra money that you owe. The extra time makes it much less stressful for you and your financial situation.
If you wait until the last minute to file your taxes, you may find yourself scrambling in search of receipts, personal information, etc. Thus, leading to the need for a tax extension. This turns into a serious issue when you owe a balance to the IRS and do not pay what you owe. The IRS will charge you interest and penalties until the full amount is paid off. Filing your taxes early will help you avoid all of these potential issues.
Waiting until the last minute to file taxes will do nothing but add additional stress to your life. You will feel the pressure to find your needed information and file as fast as you possibly can, which can lead to errors and other problems down the road. Tax season is stressful enough, there is no need to add even more stress by waiting until the last minute.
If you are in need of additional tax information or need assistance in filing your taxes, contact David Mills CPA LLC today. We provide expert accounting and financial services to small and medium-sized businesses, as well as individuals across Morton, Peoria, & the rest of Central Illinois. We look forward to answering any questions you may have!
No matter the type or size of your business, the tax man will come knocking on your door when tax season comes among us. It is always best to have your books in order and up to date when that time comes. We are aware this may seem like a hassle to keep up with yourself, but by following our tips below you will be on your way to better, more organized accounts this year and a more successful business.
Becoming and remaining organized is incredibly important when it comes to keeping your finances in order. The good news is, this doesn’t have to be a difficult task. Keeping up with basic spreadsheets showing all of your funds received and funds paid out is a simple way to track your finances. At the end of every month, check to make sure your records all align with the money in your bank account to ensure balanced accounts.
We understand that handling your financials is not the easiest task to take on by yourself, which is why we always recommend hiring a professional accountant in your area to take care of the dirty work for you. Through hiring a professional, you can rest assured knowing your accounts are in good hands and you are up to date with all rules, laws, and aren’t missing out on any tax allowances. Through hiring an accountant, you can put all of your attention on growing your business.
There are many benefits when it comes to separating your personal and business finances. Not only will it make your business look more professional, but it will make it much easier to separate personal and business expenses when tax time comes. Depending on how your business is set up, it may be required by law to have separate accounts. Ask a local accountant in your area if you are curious if this is required for your business or not.
Waiting until the last minute to get your finances in order is never a good idea. Procrastinating this task usually leads to additional issues down the road and by then, it is too late to have sorted out. Staying on top of your receipts and invoices will make it easier for you and your accountant to get your accounts sorted out in a timely manner. And not to mention, will help your overall business run more smoothly.
By following the four tips above, you should be on your way to better, more organized accounts. The more you keep track of and have up to date, the easier it will be when tax season comes along. If you are looking for additional help with your finances or have any questions about getting your books in order, contact a professional accountant in your area. David Mills CPA LLC provides expert accounting and financial services to both small and medium businesses, as well as to individuals across Peoria, Morton, and the rest of Central Illinois. If you are looking to get your books in order this year, feel free to contact us here.
Are you a small business owner who is handling payroll processing yourself? Payroll may seem like something that you can operate on your own. However, there are many demands that come along with handling payroll. Some demands include keeping up to date with payroll laws, tax deposit rules, and filing state and federal mandated forms on time so you are not penalized for missing a deadline. Outsourcing payroll not only takes care of all of these functions but allows the business owner to focus on aspects of the business that directly affect its future. Outsourcing payroll provides several benefits.
Operating payroll services requires a lot of time that many small businesses do not have. From entering data to researching new laws or updates, the amount of time that payroll takes up is not desirable to many business owners. Outsourcing the service allows you and your employees to offer their full attention to the direct needs of the business.
Outsourcing payroll prevents your business from having to hire someone that is specialized in this particular service. This reduces the cost of overhead. Second, a company can also save money by saving time. Employees need to be paid for their hours of work. By hiring an affordable full-service provider, this can be avoided.
Payroll is a complex and risky business operation. It can be difficult if you do not have an expert in this field who is handling tasks. Federal, state, and local payroll tax laws are becoming more and more detailed. Without having the time to research, learn and apply these updates, you run the risk of calculating or filing your payroll taxes incorrectly or late. By outsourcing payroll, you never have to worry about these issues again.
Security risks can be a problem. Companies can run the risk of an employee tampering company records, embezzlement of funds, or identity theft. Even with the most trusted employees, business owners should be cautious. In-house payroll software is also something you need to be careful with and do your research to see how secure your payroll data really is. Choosing to outsource payroll with a reputable company can make you feel assured that your confidential payroll data is secure at all times. This is a huge part of the service provided to clients.
Payroll operations can be a difficult subject to learn and understand. Receiving payroll reports tailored to your specific company is a huge benefit when considering outsourcing. An outsourced payroll company can help explain data in a way you will understand. Consider hiring a full-service company who prepares union reports and others as needed.
It is important to make sure you are hiring a company who can also provide online payroll processing. Online payroll processing allows your employees will have 24/7 access to their information such as current payroll stubs or last year’s W-2 forms. Employees are able to request changes to their withholdings, etc., without having to take any time away from running your business.
Outsourcing companies can take care of any reporting issues that come about. Some examples include child support audits, Worker’s Comp audits, 1099 processing, W-2, and Wp3 processing, preparation of federal and state registration forms, or any other issues that may arise, the full-service company will be able to take care of it for you. Also, this will save your business additional time and energy.
Hiring professionals who have expertise in payroll will put your mind at ease. You can feel confident knowing that they will take care of every last detail with payroll processing. Operating payroll can create complexities that only take your time and money. This ultimately hinders the business itself. A professional company will take over payroll tasks.
If you are considering outsourcing payroll, consider all of the benefits that come along with it. Some benefits include saving time and money, securing your data, and allowing you to no longer worry about handling payroll functions and all of the complexities that come along with them. David Mills CPA, LLC provides expert accounting and financial services to both small and medium businesses, as well as to individuals. Our CPAs can assist you with a multitude of accounting services in Peoria, IL, Morton, IL, and the rest of Central Illinois. If you are interested in payroll services or any other financial services, you can contact us here.
Identity Theft (also known as identity fraud) is a type of crime where an individual uses someone else’s personal data to deceive. It is typically used for financial/economic gain. It’s more common than we would like to think. In fact, in a recent story on NBC News, it cites a study that says 1 in 5 Americans identifies themselves as a victim of identity theft or fraud. The researchers of the study estimate that means this crime has hit 44 million people. That number is eye-opening, or it should be. So what can you do to protect yourself from such theft?
1. Know the common types of identity theft: There are multiple ways people can steal your identity. First, they can watch you from a nearby location (also called shoulder surfing). They can listen in on calls where you give out personal information. Another type of identity theft that can occur is stealing your information off of pre-approvals from credit cards that you discard in the mail without shredding, or use email “spam”. They can also use computer technology to steal large amounts of personal information.
2. Take steps to protect personal information: Taking advice from USA.gov, you should protect your information. For example, only give your social security number out when completely necessary. See the complete list on their website located here: https://www.usa.gov/identity-theft
3. Sign up for free credit reports using annualcreditreport.com or creditkarma.com. Also, sign up for alerts to changes in your credit reports through these companies.
First and foremost, stay on top of your credit and bank accounts. Be sure to watch for changes that don’t seem normal. You can get your credit information for free via websites like www.creditkarma.com now. If you notice changes that aren’t normal, take action immediately.
1. Contact your bank and your credit card companies. Check for a fraud department and inform them of the problem. Make sure to close and freeze accounts. Also, change any logins or passwords associated with any of your financial accounts. If there are PIN numbers associated with any of your financial accounts request they be changed as well.
2. Alert all of the major credit report companies to the fraud. Here is the contact information for each of the main credit reporting companies:
3. Report the fraud to the police.
4. File a report with the Federal Trade Commission. You can go to their website IdentityTheft.gov or call 1-877-438-4338.
If you need advice on this topic you can contact the team at David Mills CPA in Morton, IL. We are here to help the Peoria area including Washington, Morton, Germantown Hills, East Peoria and the rest of Central Illinois with all their financial concerns. Identity theft is a growing problem in our country. It’s important to stay on top of your own financial situation to be aware of identity theft the moment it happens.