Common Tax Planning Errors

Many small business owners make mistakes that increase tax liability or create compliance issues. One frequent error is failing to separate personal and business finances. Mixing accounts can complicate record-keeping, make audits more difficult, and reduce the ability to claim legitimate deductions.

Other common errors include neglecting estimated tax payments or failing to track deductible business expenses. Small businesses often overlook deductions for retirement contributions, equipment purchases, or business-related travel. Additionally, changes in tax law or misunderstanding credit eligibility can result in higher taxes and missed opportunities for savings. According to the IRS Small Business & Self-Employed Tax Center, staying aware of potential deductions and tax responsibilities throughout the year is essential to avoid costly mistakes.

Timing Matters

Tax planning is not just a year-end activity. Strategic planning throughout the year enables business owners to manage cash flow effectively, optimize deductions, and prepare for potential audits. Waiting until December to address taxes can lead to rushed decisions, overlooked deductions, and missed opportunities for strategic planning.

Year-round monitoring of income, expenses, and financial transactions also helps prevent surprises at tax time. Adjusting estimated tax payments, reviewing payroll taxes, and updating bookkeeping practices regularly ensures compliance with federal and state tax regulations. Proactive planning reduces the risk of penalties and allows business owners to allocate resources more effectively for growth initiatives.

Working With Professionals

Partnering with experienced attorneys and accountants is one of the most effective ways to avoid tax planning errors. Professionals can provide guidance on entity structure, deductible expenses, retirement contributions, and compliance with changing tax laws. They can also help navigate audits, negotiate with tax authorities as needed, and implement long-term strategies to minimize tax liability.

France Law Firm offers comprehensive guidance for small business owners on business tax planning. Our team works closely with clients to address unique financial circumstances, protect assets, and plan for growth. By consulting professionals early, business owners can focus on running their operations without worrying about legal or financial pitfalls.

Special Considerations for Small Businesses

Certain tax issues are particularly relevant for small businesses. Owners should understand the implications of their business structure, whether it’s a sole proprietorship, LLC, or corporation, as each has different tax responsibilities. Additionally, managing payroll taxes, sales taxes, and state-specific requirements can be complex, but it is essential for avoiding penalties.

Implementing organized financial systems and maintaining accurate records throughout the year can help mitigate risks. Planning for retirement contributions and potential charitable deductions can also provide significant tax advantages for both owners and their employees.

Key Takeaways

Avoiding tax planning mistakes requires awareness, preparation, and professional support. Regular reviews of finances, updated knowledge of tax law, and collaboration with experts help ensure that your business remains financially healthy and compliant. Small business owners who take a proactive approach to tax planning not only reduce liability but also free up resources to invest in growth, employees, and long-term goals.

By addressing tax issues early and integrating them into your overall business strategy, you can protect your assets, optimize financial outcomes, and confidently navigate the complexities of small business ownership. France Law Firm is here to provide expert guidance to help you stay compliant and make informed financial decisions. To learn more, schedule a consultation with our team today.

The post Tax Planning Mistakes Small Businesses Make appeared first on France Law Firm.

An experienced business attorney can help you keep more of your income, protect your assets, and prepare for personal and business growth. At France Law Firm, our tax attorneys and business law attorneys help Florida businesses and families create proactive strategies that deliver lasting financial benefits.

What Early Tax Planning Really Means for Tallahassee Businesses and Families

Everyone knows to gather receipts in February and March and hire a tax accountant in the spring. It’s something you should do year-round so you understand how legal, financial and personal decisions will affect your tax position before it’s too late to make changes. This also means retaining an experienced tax attorney who can advise you on the best tax strategy for your situation.

Tax preparation focuses on compliance, including filing accurate tax returns and meeting deadlines, while early tax planning focuses on strategy. It anticipates how you should legally reduce your tax burden to position yourself for stability and growth.

Working with a business tax attorney ensures your plan integrates with your overall legal structure. It can mean restructuring your entity, deferring income, optimizing asset depreciation or aligning business budgeting with long-term financial goals. When you plan your taxes early, you have time to change factors that could decrease your tax bill.

How Early Tax Planning Benefits Tallahassee Businesses

Business owners face unique tax challenges, including managing operating expenses and meeting federal and state obligations. The earlier you plan, the more flexibility you have in reducing taxable income and maximizing deductions.

Many tax-saving strategies have a deadline of December 31, including purchasing new equipment, pre-paying certain expenses, and contributing to employee retirement plans. A business tax attorney can help you identify industry-specific deductions and credits.

Additional strategies may include:

• Proactive planning to avoid penalties and cash flow issues
• Ensuring you have the correct entity structure, e.g., corporation, LLC, non-profit, S-Corp, as they are taxed differently
• Strategically planning for employee compensation, e.g, coordinating financial and legal strategies for compensation packages

How Early Tax Planning Protects Families

Tax planning isn’t only for business owners. It’s also crucial for families. Without careful planning, your interconnected business and personal finances can create unexpected tax burdens. An experienced business tax attorney can help:

• Coordinate personal and business income
• Reduce estate and inheritance taxes
• Optimize retirement and education savings
• Protect family assets through legal structuring

Common Mistakes to Avoid

Even well-intentioned business owners and families can make preventable errors that could cost thousands of dollars every year. Some of the most costly mistakes include:

• Waiting until filing season, as most savings opportunities have expired
• Ignoring life changes such as marriage, divorce, new children, children going out on their own, real estate purchases, and adding business partners
• Failing to seek professional help, as do-it-yourself tax software often does not identify complex savings related to business ownership, estates, and trust considerations

The best time to start tax planning is before the year’s last quarter, though working with an experienced tax attorney year-round allows you enough time to make strategic investments or change your tax structure and capitalize on credits.

We work with accountants and financial advisors, and we use our attorney’s estate planning experience to deliver the best strategies to reduce your tax liability. Whether you operate a family-run company or a growing enterprise, we can help you navigate Florida’s complex tax landscape.

Don’t Wait Until Tax Season—Secure Your Business and Family’s Financial Future Today!

Instead of letting another tax season catch you by surprise, contact France Law Firm at 850-224-1040 or by filling out our online contact form to implement a proactive tax plan that protects your business and your family’s financial future.

The post Why Early Tax Planning Could Save You Money appeared first on France Law Firm.

While starting a new business is exciting, you have many responsibilities, including legal and tax compliance. Understanding business taxes is one of the most significant challenges for new entrepreneurs. The process can seem overwhelming, but with the proper guidance from experienced business and tax attorneys, you can minimize risk. Avoid costly mistakes by contacting France Law Firm to help with business tax navigation.

Choosing the Right Business Structure

The type of entity you choose for your business, whether it is a sole proprietorship, limited liability company (LLC), non-profit company, partnership, or corporation, directly impacts your tax obligations. For example, a sole proprietorship may be the easiest to set up and handle taxes, but it exposes your personal assets. LLCs and corporations provide liability protection and more options for growth, but have complex tax rules.

For example, the Internal Revenue Service (IRS) taxes corporations as separate entities, so you risk double taxation when you distribute profits as dividends. A business law attorney can help you choose the best entity that aligns with your goals while minimizing risk.

Federal, State, and Local Taxes

Every business owner must comply with federal, state, and local tax requirements, each with its own set of rules. Federal taxes include income tax, payroll tax, and self-employment tax.

State tax laws include sales taxes and business license fees. You may also have alcohol and tobacco taxes or the “hotel tax,” a transient rental tax.

Local governments may also require taxes in the form of licenses, franchise taxes, or permits. Location and business type determine the type and amount of tax local governments impose.

Recording and Documentation

Diligent documentation is the key to successful business tax navigation. Document each transaction, whether it’s a sale, expense, payroll transaction, an asset or a deduction. Accurate records can make tax filings easier and support claims during audits. It can also reveal potential savings.

A business tax attorney helps you implement proper documentation procedures and can educate you and your staff on compliance. The attorney can also prepare documentation during a dispute or audit.

Deductions, Credits, and Incentives

Small businesses can benefit from many tax deductions, such as startup expenses, home office costs, supplies, equipment depreciation, insurance, travel, and professional fees. You may also qualify for credits for certain activities, such as research and development, hiring, implementing energy-efficient upgrades, and participating in local or federal incentive programs.

Not every expense is deductible, and some credits involve strict qualification rules. Overestimating deductible expenses is a standard error. Business tax attorneys can help protect you from red flags and ensure you claim all your legitimate savings while minimizing IRS challenges or audits.

Building a Long-Term Tax Strategy

Tax planning is not just for tax season. It’s something you need to do throughout the year. New entrepreneurs should schedule quarterly reviews with a business tax attorney to reassess business goals and financial structure. Proactively planning for credits, deductions, estimated payments, changes in law, and possible restructuring can significantly reduce tax liabilities.

A strong tax strategy also minimizes cash-flow squeezes and keeps investors, lenders, and others confident in your business’s viability.

When to Call a Business Tax Attorney

You should contact a business tax attorney as quickly as possible in certain circumstances, including:

• Your business faces complex or multi-state tax filings, especially after seeing growth or expansion.
• You received an IRS notice or audit request.
• You have concerns about compliance.
• You are planning a merger or acquisition, or are onboarding investors.
• You are structuring employee compensation, stock options, or deferred benefits.
• Navigating international tax exposures, including potential double taxation.

Contact France Law Firm Today to Take Control of Your Business Taxes

Navigating business taxes is an essential component of entrepreneurship. When you understand legal requirements, maintain accurate records, and work with skilled business law and tax attorneys,  you can significantly increase your chance for success.

Don’t leave your business’s financial health to chance. Contact an experienced business tax attorney to develop compliance strategies and identify saving opportunities.

The post Navigating Business Taxes: What New Entrepreneurs Need to Know appeared first on France Law Firm.

Taxes for 2023 and 2024

You may not think the upcoming changes for 2024 are important right now since you will be filing for 2023. However, those changes may affect your long-term tax plans, whether for your estate or your business. France Law Firm has an estate planning attorney who is also a business tax attorney who can help ensure your estate plan, business plan, and tax plan all work together to benefit you now.

Taxes for 2024 apply to the tax returns you file in 2025, while taxes for 2023 apply to the tax returns you file in 2024 (current year).

Per-Barrel Oil Tax

The Inflation Reduction Act reinstated the Hazardous Substance Superfund, which adds yet another tax to each barrel of oil. This tax affects anyone who itemizes and claims fuel for their businesses, as the oil companies are going to pass that tax onto businesses and individuals. While the tax is new in 2023, it is retroactive to Dec. 31, 2016.

Standard Deduction

The standard deduction is changing for 2024. In 2023, it is $27,700 for a couple married filing jointly. For 2024 (taxes filed in 2025), you will have an increase of $1,500 for a standard deduction of $29,200. Rates for other filing statuses are:

• Single People and Those Married Filing Separately: $13,850 for 2023 and $14,600 for 2024
• Heads of Households: $20,800 for 2023 and $21,900 for 2024

Marginal Rates

The tax brackets are remaining the same as the 2023 tax brackets. For 2023 and 2024, the top rate is 37 percent for individuals making over $609,350 and for married couples filing jointly making over $731,200. The additional brackets are as follows:

• 35 percent for individuals making over $243,725 and married couples filing jointly making $487,450
• 32 percent for individuals making over $191,950 and married couples filing jointly making over 383,900
• 24 percent for individuals making over $100,525 and married couples filing jointly making over $201,050
• 22 percent for individuals making over $47,150 and married couples filing jointly making over 94,300
• 12 percent for individuals making over $11,600 and married couples filing joint making over $23,200
• 10 percent for individuals making $11,600 or less or married couples filing jointly making $23,200 or less

Alternative Minimum Tax

The Alternative Minimum Tax (AMT) limits deductions. If an individual or married couple itemizing has too many deductions, the AMT kicks in, so you can’t lower your tax responsibility too much. In 2023, the AMT exemption is $81,300 and starts to phase out at $578,150 for individuals and 126,500, phasing out at $1,156,300 for couples filing jointly.

For 2024, the AMT kicks in at $85,700 for individuals and starts to phase out at $1,156,300.

Earned Income Tax Credit

Qualifying taxpayers who have at least three qualifying children can receive an Earned Income Tax Credit (EITC) of $7,830 in 2024 and $7,430 in 2023.

Estate and Gift Taxes

The basic exclusion for estate taxes (commonly known as the Federal Death Tax) for those who died in 2023 is $12,920,00, and in 2024, $13,610,000.

The annual gift tax exclusion is $17,000 for 2023 and $18,000 for 2024.

Contact France Law Firm

These are just a few of the taxes that will affect the average person or couple filing jointly. Several other changes include the limitation for the qualified transportation fringe benefit, employee salary deductions for contributions to health flexible spending accounts, self-only coverage in Medicare Savings Accounts, foreign earned income, and the maximum credit allowed for adoptions.

When it’s time to start your taxes for 2023 and if you need to make changes to your estate plan based on tax changes for this year and next year, contact a tax attorney and estate planning attorney at France Law Firm for a consultation.

The post Understanding the New Tax Laws: What You Need to Know for the Upcoming Year appeared first on France Law Firm.

The saying “The only things certain in life are death and taxes” holds true, but individuals can exercise control over their financial destinies by adopting smart financial decisions for optimal tax outcomes. Year-round tax planning offers a proactive approach, allowing individuals to make informed choices that can lead to significant savings during tax season. Seeking guidance from a business attorney with expertise in estate planning is invaluable in navigating factors such as retirement accounts and staying abreast of tax law changes.

Components of Year-Round Tax Planning

To effectively engage in year-round tax planning, continuous analysis of one’s financial situation is imperative. Regular scrutiny enables informed decision-making to minimize tax liability, presenting numerous opportunities throughout the year to achieve this goal. Key components include:

Review Your Financial Situation

Regularly assess investments, income, and expenses. Major life events, such as marriage, childbirth, career changes, and the loss of a loved one, should be carefully considered as they impact tax situations.

Check Withholding and Deductions

Ensure that withholding allowances are appropriately set to prevent overpayment or underpayment. This practice ensures that the IRS doesn’t hold onto your money without interest.

Investing

Understand the tax consequences of investments, particularly distinguishing between short-term and long-term capital gains, with the former usually subject to higher tax rates.

Tax-Advantaged Accounts

Contribute to tax-advantaged accounts like 401(k)s, Health Savings Accounts, and IRAs. Such contributions not only reduce taxable income for the year but also provide long-term financial benefits.

Stay Informed of Tax Law Changes

Tax laws are subject to constant change, impacting tax liability. Collaborating with Florida tax attorneys can help stay informed and make well-informed financial decisions.

Charitable Giving

Seek opportunities for tax-deductible donations to qualified charities and maintain detailed records of charitable contributions.

Retirement Planning

Leverage strategic financial planning for retirement, taking advantage of tax breaks and employing tax-efficient withdrawal strategies from retirement accounts.

Estate Planning

Utilize estate planning to minimize tax burdens, protect assets during incapacitation, and secure financial interests for future generations.

How Estate Planning Eases Current Tax Burden

Contrary to common misconceptions, estate planning is not exclusive to the wealthy. Anyone with assets, including a car and a bank account, benefits from an estate plan. Estate planning serves various purposes, such as:

• Protecting assets during unexpected incapacitation.
• Addressing capital gains, estate taxes, and probate costs.
• Tackling current taxes through gifting, charitable giving, and trusts.
• Reducing the taxable value of the estate.
• Safeguarding assets for future generations.
• Preventing excessive IRS deductions.

Implementing year-round tax planning and crafting an estate plan empowers individuals to minimize tax burdens through strategic donations and wise investment decisions. It facilitates informed decision-making during significant life changes like marriage, parenthood, relocation, or home building.

Consult the Tax Attorneys at France Law Firm

For personalized tax planning and guidance on creating a year-round tax plan, individuals can turn to the tax attorneys at France Law Firm. Schedule a tax planning consultation to embark on the journey of comprehensive year-round tax planning that aligns with your financial goals and minimizes tax liabilities.

The post Year-Round Tax Planning: Making Smart Financial Decisions for Optimal Tax Outcomes appeared first on France Law Firm.

What Is Gift Tax?

A gift tax is a federal charge that is imposed by the Internal Revenue Service (IRS) on property that’s transferred from one person to another person who pays nothing or only a portion of the actual worth in return. Additionally, if a person sells a product at less than its value or offers an interest-free or low-interest loan, it may be considered a gift.

The gift tax is levied on the donor and falls between 18%–40% of the asset’s original worth. Though this may sound cumbersome if you’re considering gifting away assets such as money, real estate, vehicles, art or securities such as stocks and bonds, with the right tax attorney to guide you through the IRS provisions, you may not pay a dime in gift tax.

Gift Tax Exemptions

While gift taxation typically applies to sizable gifts, certain exemptions exist to reduce the tax burden on Americans. These exclusions represent the number of gifts you can make yearly and over your lifetime without incurring taxation. These include:

Annual Exemption

The annual exemption is a provision by the IRS that allows you to make gifts up to a certain amount each year without incurring tax. As of 2023, the annual exemption allows you to make gifts of up to $17,000 yearly to any number of recipients. For example, if you have two children, you can transfer as much as $17,000 per child for a total of $34,000, entirely tax-free.

Lifetime Exemption

The lifetime exemption is another provision by the IRS that allows you to make gifts up to a certain amount over your lifetime. It represents the total amount you can give away throughout your life without incurring gift tax. As of 2023, the IRS set the gift tax lifetime exemption at $12.92 million per individual. This means that, even if you exceed the annual exclusion amount, the excess is simply deducted from your lifetime exemption when you fill out the IRS Form 709. For example, if a father chooses to give a $20,000 car to his grandson on his college graduation, the excess of $3,000 above the annual limit of $17,000 will be subtracted from the lifetime exemption.

Not Every Gift Is Taxed

For certain gifts, you don’t need to pay tax, and you don’t need to apply for exemptions, either. These gifts are entirely tax-free. They include:

• Gifts given to a spouse or dependent (who are U.S. citizens)
• Gift payments for school tuition (made directly to the school account)
• Gift payment for medical care (made directly to the hospital’s account)
• Charitable donations
• Political contributions

Helpful Tips for Gift Tax Planning

Do you want to reduce your estate tax? Gifting your property helps to avoid these unnecessary expenses. Some other tips to help you with gift tax planning include:

• Being married doubles your gift tax exemption amounts, meaning you and your spouse can give $17,000 each for annual exclusion and $12.92 million each for lifetime exemption ($34,000 and $25.84 million, respectively).
• The IRS raised the exclusion amounts from $16,000 and $11.7 million in 2022 to $17,000 and $12.92 in 2023 — the highest ever.
• Consider trusts to maximize exemption.
• Hiring an experienced tax attorney for expert advice and guidance will help to enjoy the full benefits of gift taxation exemptions.

The Experienced Estate Planning Attorneys at France Law Can Help You Navigate Gift Tax Laws

Are you looking to create a will, manage your estate or plan your federal income tax or gift tax? The business law attorneys at the Florida-based France Law know the best strategies to help you have a stress-free journey, accomplishing your objectives with no necessary taxations or complications. Contact us today to book a consultation.

The post Gift Tax Basics appeared first on France Law Firm.

Here are some tips to navigate the complexities of business taxation that can help you reduce your tax burden or even reduce the risk of an audit.

Retain Business Law Attorneys

A Florida business law attorney, like the tax attorney at France Law, has experience in tax laws that affect businesses, including choosing the best entity type and helping you through your years in business. Tax attorneys can do your taxes like an accountant, but they also know the laws and must keep up with all of the new tax laws.

Always Keep Adequate Records

While it’s tempting to throw your receipts in a box and deal with them at the end of the year, doing that could increase the risk of an audit. If you lose a receipt or miscategorize it, it could impact your tax obligation. Keeping receipts in date order and separating them by category makes your federal taxes much easier – and you’re sure not to miss a significant deduction.

Part of keeping adequate records is separating business and personal expenses. If you commingle your expenses, the IRS can start looking through your personal accounts for business expenses.

Claim All Income

Make sure you claim all of the income you earn, even if someone doesn’t give you a 1099. If you don’t keep track of your earnings in an accounting program, keep a spreadsheet of everything you earn. Even though your clients do not send you a 1099, they are still reporting the income you earn to the Internal Revenue Service, as it is an expense for them.

Many clients no longer send 1099 forms if they pay you via PayPal or another online processor. Some processors send you a 1099 based on the amount you ran through the processor and / or the number of payments you received. When that happens, and a client pays you, you end up with two 1099 forms for the same income. Thus, some clients stopped sending 1099 forms.

Know What Gross Income and Net Income Is

Gross income is what you earn before any deductions, including the cost of goods sold. Gross profit is what you have when you subtract the total cost of goods sold.

Net income is gross income minus the cost of goods sold, operating expenses, interest on loans and debts, depreciation, income taxes, overhead, and other government deductions.

When selling goods, you must know what your realized profit is, or you could end up losing money. For example, if you sell Widget A for $100 and your cost of goods is $25, you might think your profit is $75. However, you must also subtract all the other expenses that go into making Widget A. If the listed expenses exceed $75, you will take a loss on that product.

Manage Payroll

If you do not do payroll yourself, be sure to find a reputable company to do it for you. You could find that the company deducts taxes but never sends your payroll taxes in – and then you’re on the hook for anything the payroll company didn’t pay. Always check your accounts.

Contact France Law

Business law attorneys and tax attorneys can reduce the stress of tax time by helping with your taxes and ensuring you set your company up in a way that best benefits you. Contact the tax attorneys at France Law for help with your yearly federal taxes and setting up a company that best benefits you and your business.

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You can minimize your tax bill or maximize your refund by ensuring you take advantage of all the ways to reduce your tax bill. Business tax attorneys can help ensure you take advantage of these ways, whether you use them for personal or business taxes.

Tax Deductions

A tax deduction offsets your income. You receive the discount by applying the percentage of your top marginal tax bracket to the deduction amount. If the tax rate is lower than the percentage, it’s better to take this as a credit, rather than a deduction. However, if the tax rate is higher than the percentage, taking it as a deduction saves you more.

Tax deductions reduce your taxable income. You need to take all of the deductions you are entitled to. For example, if you are self-employed and have a home office, you have many deductions that a W2 employee doesn’t have. Take advantage of the home office deduction to reduce your taxable income.

Tax Credits

A tax credit offsets tax liability dollar for dollar. If it is a refundable tax credit, you receive a refund for part or all of the amount of the credit that is more than your tax liability. For example, if you can take a credit for $5,000 and you owe $4,000 in taxes, you would receive a $1,000 refund.

Travel Expenses

If you travel for your business, you can deduct travel expenses. If you are reimbursed for those expenses, you cannot deduct them unless you are a qualified performing artist, an armed forces reservist, an employee with work expenses that are related to an impairment or a fee-basis state or local government official. Determining deductible expenses is often difficult because of the rules surrounding deductions. The tax attorneys at France Law can help ensure you take all of the expenses you are entitled to.

Select the Correct Filing Status

How you elect to file has a big impact on your taxes. Be sure to select the correct filing status, whether single, filing jointly, head of household, or married filing singly, to get the best standard deduction. Filing the wrong status could cost you thousands of dollars. For example, if you file single instead of head of household, you could lose nearly $3,000.

Day Care Costs

Don’t forget to deduct daycare costs. For 2022, you can still recover a child tax credit, but this is one of those credits that frequently change. If you are unsure as to what counts as daycare costs, contact the tax attorneys at France Law for a consultation.

Make IRA Contributions

While it’s too late for a tax break by contributing to your work’s 401(k), you have until tax day – April 18, 2023 – to fund an IRA. Those who are younger than 50 years old can contribute up to $6,000, and those who are 50 and older can contribute up to $7,000 for 2022. If you are unsure about how to start a new IRA, tax attorneys can help you.

Consult with a Tax Attorney

As the tax laws become more complex, especially for business owners, you should retain a tax attorney at France Law to help ensure you pay in the least amount that you legally can or maximize your tax return.

A tax attorney often delivers a more thorough look into your taxes. They can even review previous tax returns and file amendments if you or your accountant missed something in previous years. Since tax laws are always changing and becoming more complex every year, contact a tax attorney at France Law Firm to ensure you maximize your tax refund.

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After a significant life change, the tax attorneys at France Law Firm can help ensure your taxes are done correctly so that you receive or pay no less or more than you should.

Marriage

After you marry, you may or may not take your spouse’s name. Before you file your taxes for the year, you need to ensure that the name you use to file is the same name on your social security card. If you get married later in the year and don’t change your name until January or February, you’ll want to check to see what the Social Security Administration has as your legal name in the event that there was a delay in changing it.

Additionally, you will need to decide how you will file, whether it is ‘married filing jointly’ or ‘married filing separately.’ Even if you get married on December 31, the Internal Revenue Service considers you married for the entire year, so that is a decision you’ll need to make before you file.

Buying a Home

After buying a home, you have new deductions available to you. However, the tax laws frequently change. One recent change was to increase the personal deduction. It is harder to meet the threshold to itemize and make out better. A Florida tax attorney at France Law Firm can help you determine if you are better off itemizing or claiming the standard deduction.

Having a New Baby

If you have a new baby or if you adopt a child, you should apply for a Social Security number as soon as possible. You will need it to claim the child as a dependent on your tax returns. You can get federal tax credits and additional deductions for qualified childcare expenses for your child.

If you adopt a child, you could receive additional credits and deduct certain costs, such as court costs and adoption fees. An experienced tax attorney at France Law Firm can help ensure your taxes include all of the new credits and deductions you might be entitled to.

The Loss of a Spouse

If your spouse dies, you may qualify as a widow or widower. You can claim this status for up to two years after your spouse dies but not in the year he or she dies. The status is the same as ‘married filing jointly.’

However, if you remarry in the same year, you cannot claim this status. You will have to file ‘married filing jointly’ with your new spouse or ‘married filing separately.’

Divorcing Your Spouse

Once your divorce becomes final, you must file as “single.” Even if your divorce is final on December 31 of that year, you will file as a single person. However, if you have children, you have to determine which spouse will claim them. Both of you cannot claim the children. Some parties claim every other year, but that could get confusing. Others with more than one child split the children – the ex-wife might claim one child, and the ex-husband might claim the other.

If you have an odd number of children, one spouse claims more than the other but can offer an offset to the other spouse, such as lowering spousal support, which is taxable as income to the receiver in Florida. While you determine what your course of action will be during the divorce, you should retain a Florida tax attorney to discuss how a divorce could affect your taxes if you have children or if you pay alimony.

Changing Jobs

When you start a new job, you need to file the appropriate documents (W-4) that state how many deductions you have. Most people file more than they should, which means they get a lot of money back at the end of the year.

However, if you do that, the Internal Revenue Service takes out too much – thus, the refund – but doesn’t pay any interest on that money. It is better to keep that money in your pocket or transfer it to a savings account to gain interest. If you normally withhold more, so you receive a bigger refund, and have questions about changing that, contact a tax attorney at France Law to discuss the pros and cons of both actions.

Contact France Law

Regardless of the changes you make, you might need help on your taxes. An experienced tax law attorney and business law attorney at France Law can help you minimize your tax contributions. Contact France Law today for a consultation.

The post Major Life Changes And Your Taxes appeared first on France Law Firm.

Get Ready for Tax Season

Before you do anything, you should start getting ready to file taxes, especially if you know that you’ll have all of your documentation from income sources by the end of January. The sooner you file, the better it is. To get a good jump on tax season:

• Locate all of your records, including receipts, W2s, 1099s, and other tax documentation.
• If your records are not organized, organize them in an expandable filing folder (redwell) by date. You can even go so far as to use manilla envelopes to keep receipts, pay records, and other documentation in their own sections of the redwell.
• If you attempt to do your taxes yourself, be sure you have all the forms from the Internal Revenue Service (IRS). Be sure to read through the IRS website, as tax laws change every year.
• Take your time doing your taxes. Set aside a couple of hours when you can eliminate distractions. You can also do your taxes over a couple of days.
• Double-check your math.
• Choose direct deposit – you’ll get your refund faster.

If you run into a problem or don’t understand something, don’t guess. It could lead to an audit. Instead, contact the tax attorneys at France Law Firm to help you over the hurdle.

Additional Tax Tips for January

We are not just tax attorneys but business tax attorneys, too. We can help you find every deduction and all of the ways to decrease your tax burden. The government often changes tax laws, which makes personal taxes difficult and small business taxes even more difficult. Whether you decide to do your taxes or retain tax attorneys, you can still take steps to make tax season easier.

• Retirement Accounts. You have until the tax filing deadline to contribute to retirement accounts. If you haven’t contributed in the current tax year yet, you still have time to contribute to a traditional or Roth IRA, even though it’s after December 31. Not only will this help lower your tax obligation, the contributions compound tax-deferred.
• Get Rid of Tax Penalties. If you didn’t pay enough to the IRS throughout the year, you could see interest and penalties. This is for those who are self-employed. W2 employees have contributions every pay period. The IRS will charge you an underpayment penalty if you don’t pay 100 percent of last year’s tax liability before the taxes are due. While you’ll still see penalties and interest for the first three quarters, you can eliminate the tax for the fourth quarter with a payment in January.
• Deductions. While it’s easier to take the standard deduction, itemizing deductions can often wipe out hundreds or thousands of dollars of tax liability. If your deductions add up to more than the standard deduction, then it’s better to itemize. If you have medical expenses that exceed 7.5 percent of your adjusted gross income, you can deduct those in addition to other regular deductions.
• Home Office Deduction. If you work from home or the road and have a home office, you can take a sizable deduction. You must use the space exclusively for the home office. You can write off expenses such as a percentage of the rent, insurance, housekeeping, utilities and more. The percentage is the percentage of the space in your home.

Contact France Law Firm

Filing taxes can be a major headache, especially if you have a small business or invest in stocks. While using a tax attorney doesn’t guarantee you won’t be audited, the risk is lower. If you are unsure about filing taxes, contact the tax attorneys or business tax attorneys at France Law Firm for help.

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