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Tax Preparation

Pros and Cons of Filing Your Taxes Early

Pros and Cons of Filing Your Taxes Early

By on Mar 15, 2018 in Filing Taxes, Tax Preparation, tax season | 0 comments

As the tax deadline approaches, you may be trying to decide exactly when to file your taxes.  When is the best time to submit your returns to the Internal Revenue Service (IRS)?  One thing to consider is whether you like getting things done ahead of time or find that you are a procrastinator.  Every situation is different so there is not one right answer. It is often important to consider consulting with a tax professional as you think about the best-individualized approach to filing your taxes. Here are some of the general pros and the cons of filing your taxes early this year: Reasons to Consider Filing Your Taxes Early You should ALWAYS consider filing early if you are getting a refund from the IRS. After all, you should keep in mind that your refund is actually an overpayment that you have made to the IRS for the past year, so getting this money back as soon as possible makes good financial sense. In addition, the earlier you file, the faster your processing times will be with your refund, meaning your money will be back in your pocket faster. You should also know that filing electronically is always faster than submitting paper copies of your return. Filing early can also benefit you if you owe money as well. If you file your 1040 Form early, you will have several months (until April 15th) to make plans to pay your tax bill and can think ahead about getting the money together that needs to be sent to the IRS. Finally, if you are anticipating a major life event (moving, sending a child to college, etc.) then it can also be helpful to have filed early.  Your tax return can show proof of your annual income and this information can help you move forward with other important parts of your life. Why You Should Consider Waiting Until the Tax Deadline to File There are also several reasons why waiting to file your taxes may make more sense for you this year. For example, if you are waiting on financial information, paperwork or other documentation, you should not file until you have everything that you need.  Similarly, if you file early and...

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4 Solutions That Will Help You Pay Off Your Tax Debt

4 Solutions That Will Help You Pay Off Your Tax Debt

By on May 25, 2017 in Debt Relief, Tax Preparation | 0 comments

To every problem, there is a solution. Not all of the solutions may be the wisest choice for you, especially when it comes to resolving your tax debt. It takes a certain finesse to handle money and some solutions may not be recommended for everyone, especially the ones who cannot handle money wisely. Nonetheless, they are solutions. It’s essentially up to you to determine which one of these solutions are the best for getting you out of tax debt.    1. Create a savings account.   Creating a savings account might seem impossible for anyone in an exceptional amount of debt. However, the truth is you can’t afford not to create a savings account. Many people think that the best time to create a savings account is to wait until they’re completely out of debt. Unfortunately, that time may not ever come for some people. So, if you can try to put at least $25 away for every weekly or bi-weekly paycheck, that will be $100 that you’ll have to put toward reducing your tax debt.    2. Use low interest credit cards sparingly.   This solution is not for everyone, but it’s an option. Keep in mind when you’re using a credit card, you’re taking out a line of credit—it’s money that you’ll have to pay back. So, you’re really increasing your debt. You’ll also have to pay the amount back with interest. We bring this option to your attention because many credit card companies will issue blank checks to their holders offering zero percent interest. If absolutely necessary, you could write a check for cash to your bank, deposit it into your checking account and pay all your tax debt this way. This would only work well if the amount you took out eliminated ALL of your debt. Otherwise, you’d just be occurring another line of debt.    3. Take out a personal loan.   This option follows the same concept as taking out cash from your credit card to pay your debt. The difference here is that you’ll be able to ask for a larger amount with a personal loan whereas you can only take out as much as your credit card allows. With a personal loan, you’ll also...

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How to Choose the Right Professional Tax Relief Consultant

How to Choose the Right Professional Tax Relief Consultant

By on May 20, 2017 in tax companies, Tax Preparation, Tax relief | 0 comments

1. Find a consultant who has a team. In the tax profession, there are many accountants, tax preparers, CPA’s and lawyers who work independently. As a taxpayer looking for a tax relief consultant, you will most likely get the most out of your money if you hire a consultant who has a team of professional tax experts working alongside him or her. You’ll not only have the confidence in knowing that you have a team of experts on hand to alleviate your tax situation, you can rest assure that all of your information is secure. If you’ve hired an independent contractor, then chances are he or she may have to outsource your case to someone who is more qualified to handle a certain kind of situation that may present itself. This means that your private information will be disclosed to a business that you did not originally hire. This is the risk you take when you don’t hire a team of tax professionals. 2. Make sure that the consultant has proven success. Even if you manage to find a team of tax professionals, make sure that you do your research and find out more about the company. For starters, visit their website and look for any testimonials. If they are a reputable firm, they will proudly post their client’s testimonials. You can also ask around and interview any former clients of theirs. Ask them how they handled their case and were they pleased at their level of professionalism. Nothing speaks louder about a company’s success than satisfied clients. 3. Be sure that your consultant has enough experience. It is possible to find a team of tax consultants who only have a handful of happy clients. This is something you would need to carefully consider because although the firm may have happy clients, you’ll have to ask yourself exactly what kind of cases were resolved, and how complicated were they? A tax firm might have only helped prepared a taxpayer’s tax return. Anything else like handling an audit or an Offer in Compromise may not be in their line of experience or expertise. Choosing this type of tax relief consultant may cost you more money in fees and penalties with the...

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What Is The State Tax Relief Hardship Program?

What Is The State Tax Relief Hardship Program?

By on May 11, 2017 in Tax Preparation, Taxes | 0 comments

You may have heard that your state has a tax relief hardship program and wonder if you may potentially benefit from it as it relates to your back taxes, or even your upcoming tax return.  Each state offers their own hardship relief program, which may mean that the Internal Revenue Service (IRS) will waive penalties for any missed payments during a period of time.  For example, this can occur after a natural disaster like Hurricane Matthew.  In many cases, the IRS was flexible with those who were already making payments toward their tax debt and were unable to make their payments because the infrastructure in their community was destroyed.  The IRS waived the penalties normally associated with missed payments.  The rules around these hardship programs vary from state to state, so it’s important to consult your state tax law for specific details. A Tax Company Can Manage Communication With the IRS for You One important thing to remember is that if you’re working to make payments to the IRS and something out of your control happens that makes it impossible for you to make your payments, the IRS might work with you. In fact, if you have back taxes owed to the IRS, it’s always in your best interest to get ahead of this problem, and work with them on a plan to resolve this debt. Success Tax Relief is a tax firm that’s dedicated to helping Americans solve their tax problems. Our team works directly with the IRS, managing all communication on your behalf, to find a solution to your unique and specific tax problem that works for you.  The IRS offers several programs to all taxpayers that help countless individuals and businesses finally get out of tax debt. Here are two main ways this is done: Offer in compromise: In certain cases, when it’s determined by the IRS that paying the full amount of your tax bill would cause an economic hardship, they will grant what is known as an Offer in Compromise.  This allows a taxpayer to pay a reduced amount to the IRS.  The benefit to the IRS is that they recuperate some of the taxes owed to them, even if it is not the...

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What Would An Obamacare Repeal Mean for Your Taxes?

What Would An Obamacare Repeal Mean for Your Taxes?

By on May 5, 2017 in Tax Preparation, Tax Problems, Taxes | 0 comments

No matter what side of the political aisle you fall on, we all must prepare for some changes in the coming years.  One of the big political questions is whether the Affordable Care Act (also known as Obamacare) will be repealed by the new administration.  Obamacare connected your health care to your annual tax return, and all Americans have been following the current tax guidelines since the Affordable Care Act (Obamacare) was enacted. Current Tax Regulations Related To Healthcare Currently, all Americans must verify on their annual tax return that they have healthcare insurance.  Specifically, this is requested on line 61 of each taxpayer’s 1040.  If you indicate that you do not have insurance and do not have coverage for more than 3 months, you could find yourself paying a tax penalty.  In addition, if you purchase your health insurance from the Exchange, you may also qualify for tax credits. When tax time rolls around, the Internal Revenue Service (IRS) is looking to be sure that you got the correct amount of financial assistance for your health coverage, so you have to answer some additional questions on your return.\ For the majority of Americans (the IRS estimates nearly 80%) the impact of Obamacare on an annual tax return is minimal (simply indicate that you have coverage).  But, as with most things, this can get complicated for those who do not fit in this majority. And, with Obamacare in jeopardy of repeal, you may wonder how your future returns will be impacted.  Right now, it is just simply too early to tell.  A repeal might mean less required information about your health care on your annual tax return and fewer (if any) penalty for not having insurance. A repeal could have other tax implications that we cannot predict. Stay Current With Annual Tax Changes Your best strategy to manage the change that is to come is to be sure that you are up to date on any and all tax changes each year.  One way to make sure that you are current is to partner with a tax firm that can manage this part of the process for you. Success Tax Relief works with many taxpayers all over the country...

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Same-Sex Marriage & Filing Taxes: What You Need To Know

Same-Sex Marriage & Filing Taxes: What You Need To Know

By on Feb 28, 2017 in Consultation, Filing Taxes, Tax Preparation, Tax Tips | 0 comments

It used to be that same-sex couples could only file separate tax returns, and if they had children, only one of them could claim a child, and only one could file Head of Household. In a sense, same-sex couples had to live like they were roommates when it came to filing their annual taxes. They had to do this because they weren’t allowed to get married, because it wasn’t legal. This all changed in 2015 when the Supreme Court ruled on June 26 that same-sex marriage is now legal. After that, a surge of marriages was filed, but what some newlyweds didn’t bother to take into account is how to take care of their annual tax filings. It could be said that there may have been some confusion for the following tax year because depending on when you marry, you may either have to file separately or married filing jointly. The Supreme Court ruling requires that all legally married same sex couples are to file their annual taxes as married filing jointly or married filing separately, just like anyone else. The Good News and the Bad News It can be said that there is a slight disadvantage for some same-sex couples who must now combine their income. A larger annual household income will boost you into a higher tax bracket causing you to pay more in taxes. However, there is the benefit of what’s called the “marriage bonus”. According to Investopedia, the marriage bonus benefits couples who bring in more income than the other, therefore, have the advantage of not paying so much more in taxes. In fact, they might end up paying less depending on what the combined income is for that household. Two Ways to File As aforementioned, same-sex married couples can file two ways: married filing jointly and married filing separately. Married Filing Jointly – This may be the better way to file in order to get a tax break. If either of you are in school, you’ll be able to take advantage of the student loan interest or tuition deduction. If you file married filing separately, you will not be able to do this according to Investopedia. If a couple is adopting a child, then,...

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