Tag Archives: georgia tax refund

Overpaid Taxes

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A whopping 97% of business owners overpay their taxes. Most business owners do not realize there are many tax strategies that would reduce their taxes…legally! Wonder where you would be if you had all the money you paid the IRS & the state in income taxes for the last 10 years? And check this out….

The IRS says there are hundreds of millionaires who pay $0 taxes every year! If they aren’t paying taxes…why should you? What’s the difference between millionaires who pay $0 tax and you? The millionaires have a tax plan. They know exactly how to handle their finances to maximize deductions and drop their taxes to $0! It’s time to stop letting that money leak out of your pockets. Do you think tax planning means “raising red flags”? Taking advantage of “gray areas”?

Being “aggressive” and hoping not to get audited? In fact, it means nothing of the sort. True tax planning means proactively scouring your business and finances for tax-saving opportunities. Asking questions before you make financial decisions to avoid unpleasant surprises. And taking advantage of every legal deduction, credit, and loophole the law allows. Our tax-planning strategies are all court-tested and IRS-approved. You’ll find that with true tax planning on your side, you don’t need to raise red flags, shade into gray areas, or be aggressive to keep more of what you earn.

Tax Planning

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The first mistake is failing to plan. Planning is the key to beating the IRS, legally. I don’t care how good your accountant is with a stack of receipts on April 15. If you didn’t know you could set up a Section 105 plan and write off your kid’s braces as a business expense, there’s nothing you can do on April 15.

You lose that deduction forever! True tax planning gives you concepts and strategies you need to minimize your taxes. In plain English, not legalese. Without intimidating spreadsheets or endless “projections” that change every time Congress decides to change the law. What should you do? When should you do it? How should you do it? And tax planning gives you two more valuable benefits. First, it’s the key to your financial defenses. As a business owner, you have two ways to put cash in your pocket.

Financial offense is making more. Financial defense is spending less. Taxes are probably your biggest single expense. So it makes sense to focus your financial defense where you spend the most. And second, tax planning guarantees results. You can spend all sorts of time, effort, and money promoting your business. But that can’t guarantee results. Or you can set up a medical expense reimbursement plan, deduct your daughter’s braces, and guarantee savings. We like to start new client relationships with a comprehensive tax plan that lets us start saving you money right away, long before we prepare your first tax return.

Mistake Business Owners Make

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Not Paying Yourself is the biggest Mistake Business Owners Make.

When you run a business, you must deposit ALL business income into your business bank account. (Please don’t stuff it under your mattress!) You should use this money to pay your business expenses. You should not take money out of the business account to use it as you please. You should not pay personal expenses with your business checks, debit cards, or ATM cash withdrawals. You must use the business income for paying business expenses. Since you work in the business, your salary is a valid business expense.

You must pay yourself a salary.

This doesn’t mean just transferring money from your business account to your personal account. Nor does it mean writing a company check to yourself and putting “salary” or “payroll” on the memo line. Doing this will subject you to the same “Self Employment Tax” contractors pay. This is an additional 15.3% tax on the money you paid yourself.

Technically, you do not “own” the business, it is an entity unto itself (like an artificial person). You are an employee of the business and must be paid as such.

The business should hire a payroll service that will issue you a W-2 at the end of the year and make all the Payroll Tax deposits that are required by law.

This is the best way to make sure you are compliant with IRS guidelines.

Delayed Refund

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If your federal refund doesn’t arrive in your account on the anticipated date, you will need to contact the IRS to find out what happened.

If you filed your return electronically, your should expect your refund in 10-21 days and you must wait at least

72 hours to contact the IRS for information. If you mailed your return, it takes 4 weeks to receive information about the status. There could have been a number of reasons for the IRS to delay your refund. It’s important for you to contact the IRS to find out why.

You have two options: Internet or Phone

1. Go to http://www.irs.gov and click on “Where’s My Refund?”
or
2. Call 1-800-829-1040, Choose Option 1

For both methods you will need to know three (3) key pieces of information.

(a) Your Social Security Number

(b) Your Filing Status (1. .single, 2. married filing joint, 3. married filing separate, 4. head of household or 5. Qualifying Widow

(c) The amount of Your Refund

If you do not get any information on the whereabouts of your refund, you will need to speak personally with an IRS Representative.

Call 1-800-829-1040 and Choose Option 2.

Creating a Mileage Log

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Protecting Your Mileage Deduction

If you are going to claim a deduction for mileage, you must keep track of the number of miles you drive for business. Most people don’t do this and try to figure it out at the end of the year. This is not a good idea. It’s inaccurate and ineffective. Please keep track of your mileage on a regular basis. Daily is best, but you will probably be okay if you do it weekly.

EASIEST WAY: Get a phone app that records the miles you drive and gives you a report at the end of the year. (There are many available.)

I recommend “Track My Trip”. All you do is tap at the start of your trip & tap when you return. You will also need to type in your business purpose.

OLD FASHIONED WAY: Either use pen & paper, or an Excel spreadsheet is ideal because it will calculate your results for you.

Record the following information about each of your trips:

  1. Date
  2. Where You Went
  3. Who You met With, If anyone or business purpose of the trip
  4. Number of miles traveled

Abundant Returns Increased My Refund From $3.00 to $5,256!

“For the last 2 years, including this one, I had been going to an H & R Block that was across the street from my place of employment. Last year I started a business and went to have my taxes done. After a 3-hour wait, I was told I would have a refund of $3.00! Full of disappointment, I decided to call Abundant Returns and made an appointment to come in. After my taxes were done, I received a refund of $5,256!!! I was overjoyed and told Larisa, “I will never go anywhere else ever again.”

~Elizabeth St. John, Sandy Springs, GA

#1 Mistake Business Owners Make

Not Paying Yourself is the biggest Mistake Business Owners Make.

When you run a business, you must deposit ALL business income into your business bank account. (Please don’t stuff it under your mattress!) You should use this money to pay your business expenses. You should not take money out of the business account to use it as you please. You should not pay personal expenses with your business checks, debit cards, or ATM cash withdrawals. You must use the business income for paying business expenses. Since you work in the business, your salary is a valid business expense.

You must pay yourself a salary.

This doesn’t mean just transferring money from your business account to your personal account. Nor does it mean writing a company check to yourself and putting “salary” or “payroll” on the memo line. Doing this will subject you to the same “Self Employment Tax” contractors pay. This is an additional 15.3% tax on the money you paid yourself.

Technically, you do not “own” the business, it is an entity unto itself (like an artificial person). You are an employee of the business and must be paid as such.

The business should hire a payroll service that will issue you a W-2 at the end of the year and make all the Payroll Tax deposits that are required by law.

This is the best way to make sure you are compliant with IRS guidelines.