Category Archives: Tax

Facts about Tax Income Loans

Tax income loans or anticipation loans are offered to taxpayers during the tax season. Anyone who is expecting a refund can take advantage of a tax advance loan. Anyone who is expecting a refund is eligible to apply and get a tax refund loan. Some of the essential factors that you must consider when applying for a loan include processing fees, interest rates, terms of loans, credit score, and loan tenure.

Tax preparation companies have increased their online presence, making it easy for customers who want to apply for loans online or in person. This means that you don’t have to go to your tax preparer to apply for a refund loan. There are many taxi filing companies that offer Income Tax Loans. One can get the best deal by shopping around for companies that provide low interest loans. Most lenders will check your credit score before approving your application for a income tax loan.

How to Apply for Tax Refund

taxation

Anyone who has prepared his/her taxes can play for a tax refund or emergency loan. These loans are processed very fast. In fact, reputable tax preparation companies can lend you money within a day after applying for a tax refund loan. One can use the funds obtained to pay his bills or meet other financial needs. Some tax preparation firms don’t lend money directly to people. Instead, they partner with money lenders that lend people money. The tax preparer deducts the money and then channel it to the bank to repay a person’s loan when the government refunds taxes. It is worth noting that some companies have established maximums and minimums. This means that they might deny the amount of money that you intend to borrow. Therefore, it is important to ask about the company policy before applying for a tax refund loan.

Factors to Consider When Applying for a Tax Refund Loan

Analyze Borrowing Costs

cost analysis

It is important to investigate the fees charged by various tax preparers before applying for a refund loan. Some companies claim to be offering free advances to attract more customers, but their refund advance products are not free. People should avoid taking high-risk, high-cost loans, and carefully read the lender’s terms and conditions. Ideally, you should always consider the fees related to filing and preparing your tax returns.

 

Avoid Tax Scams

You should be aware of tax scams that steal the refunds of taxpayers. One can get a reputable, trustworthy tax preparer by checking the references and credentials before hiring them.…

Corporate Taxes: How to Prepare

As long as you are running a business, you are required to pay corporate tax. It is a direct tax imposed by the government on the income of corporations or any similar legal entities and often taxed at the minimal rate. It’s almost close to impossible to avoid paying taxes. However, with proper planning, a company can reduce its taxes and grow its working capital.

Who Is Required to Pay Corporate Tax?

Corporate taxes are taxed on corporations that are incorporated and operating in a given country, corporation operating on income from that particular country, and foreign corporations that have established permanent residence in a given state. However, not all corporation are taxed equitably. For instance, US Corporations working abroad can quickly shift their profits from the US to tax heavens when compared to wholly domesticated businesses. Again, corporations, which have numerous trademarks and patents, can also move their profits to tax havens.

Some companies (S corporations) are, however, exempted from paying taxes at the corporate level, and these lead to the corporate shareholders paying for individual income tax.

Tax Reduction through Proper Tax Planning

Proper corporate tax planning is essential for any business that wishes to increase their profits while still meeting their obligation to the government. Reduced taxes are achieved by employing various methods that include:

1. Inventory Control and Evaluation Method

Controlling a company’s inventory cost by knowing the appropriate times to make purchases and how to make them can positively impact the corporation’s tax deductions. This is where the skills of a good tax planning accountant come in handy.

A corporate can utilize the LIFO and FIFO inventory evaluation methods to cut down their taxes. LIFO (last in, first out) is best preferred in times of rising cost while FIFO (first in, first out) is useful in times of deflation.

2. Accounting Methods

Accounting methods also affect the taxes you are required to pay and the cash flow into your business. We usually have the accrual and cash methods. Through the cash method, taxes can be reduced by delaying billing, i.e., income is only recorded once received. Accrual method, on the other hand, recognizes debts and profits once they occur.

Corporate Tax Preparation

For corporate tax preparation, especially income tax return for your company, you will first be required to obtain your company’s balance sheet and income sheet. Next, you will need to get the corporate tax forms and schedules. Having troubles finding the forms and schedules? If yes, try checking with your State’s Revenue Agency website.

You will find all the types of schedules and forms with your Revenue agency that you would require for your company’s tax returns. It’s important to learn the basics and uses of each form and schedule.

If you are having troubles filling out the tax returns forms, you can consider outsourcing your tax preparations. Such firms that do tax returns on your behalf not only prepare taxes but also offer a range of services to ensure efficiency throughout the process. This can be attributed to their qualified, experienced and expert staff.

Finally, remember to meet the deadlines set to have your returns filled to avoid additional penalty costs. Also, remember to declare if you have nothing to pay.…