Here are the answers to some of the most Frequently
Asked Questions our firm receives.
A. The information found on this website is general in nature and may not apply to the reader's situation. Therefore, the reader should not rely on the information on this website alone. For specific advise, please call us at (516) 932-0216
Q. How do I get to your office?
A. Directions to our office along with a map are located on our "Contact Us" page. Feel free to call for more detailed instructions if necessary
Q. Do I need to visit your office to have my taxes prepared?
A. It is not necessary to visit our office. Many clients utilize the mail or express services to send their information to us. For new clients, we encourage a meeting so that we can discuss your unique tax situation
Q. What services do you provide?
A. We prepare all tax returns including individual, corporation, LLC and LLP, estate and trust, partnership, payroll, sales tax, property tax, and other taxes. We offer bookkeeping, financial statements, accounts payable, and accounts receivable processing.
Q. Can you help me with my investments?
A. Yes. We offer complete financial planning services. We are affiliated with North Ridge Securities, Inc. Members NASD/FINRA 1895 Walt Whitman Road, Melville, NY 11747 (631)420-4242
Q. Can I ever save tax by filing a separate return instead of jointly with my spouse?
A. You sometimes may benefit from filing separately instead of jointly. Consider filing separately if you meet the following criteria: One spouse has large medical expenses, miscellaneous itemized deductions, or casualty losses. The spouses' incomes are about equal. Separate filing may benefit such couples because the adjusted gross income "floors" for taking the listed deductions will be computed separately.
Q. How do you charge for your services and how does your cost compare to other tax preparation firms?
A. We charge by the complexity of the return. We can give you a quotation of our expected costs. When providing our services, if we can help you reduce our time, we will tell you how. Our overhead is kept low to allow us to pass our cost savings onto our clients. Our charges are normally less than other quality firms.
Q. How are Limited Liability Companies (LLC) taxed?
A. A single-owner LLC defaults to being taxed as Sole Proprietorship. Income/loss from the LLC is reported on the owner’s personal income tax return. A multi-member LLC defaults to being taxed as a Partnership. A Partnership tax return must be filed. The profit or loss is then reported on the owner’s personal tax return. Any LLC can elect to be taxed as a corporation. To do so, one must file an election within 75 days of creating the LLC.
Q. Should I keep my old tax returns? If so, for how long?
A. Yes, you should keep your old tax returns for at least 7 years. When a return contains information pertaining to the basis of property owned, it should be kept until that property is sold. One of the benefits of keeping your tax returns from year to year is that you can look at last years return while preparing this years. If you do throw out an old return you may fill out form 4506, Request for Copy or Transcript of Tax Form, and send it to the IRS service center where you filed your return.
Q. How do I know when certain taxes are due?
A. You can give us a call or check out the Due Date Calendar on this website.
Q. What is the Social Security wage base and rate?
A. The wage base is $118,500 for 2016. The Fica rate is 7.65% for employers and 15.3% for self-employed individuals. The Social Security portion is 6.2% of wages up to the wage base. The Medicare portion is 1.45% (2.9% for self-employed) of wages with no ceiling.
Q. I am under full retirement age and collecting social security, How much can I earn before my Social Security benefits are reduced?
A. You can earn up to $15,720 in 2016. For every $2 above the limit you will lose a corresponding $1 in benefits.
Q. How much can I contribute to my Roth IRA?
A. You are entitled to a $5,500 nondeductible contribution for 2016. If you are age 50 or older by the close of 2016, you are entitled to a $6,500 nondeductible contribution. The maximum contribution is phased out for persons with AGI above certain amounts: $ $184,000 to $193,999 for joint filers, and $117,000 to $131,999 for single filers in 2016..
Q. How much can I contribute to my Traditional IRA?
A. Individuals who are not active participants in an employer pension plan may make deductible contributions to an IRA. The deductible contribution limit for 2016 $5,500 and $6,500 if over age 50. Individuals who are active participants in a plan may also make deductible contributions, but limited in amount based on their AGI. For 2016 the AGI phaseout range of deductibility of IRA contributions is between $61,001 and $70,999 of modified AGI for single persons, and between $98,001 and $117,999 of modified AGI for married persons.
Q. What is the standard mileage rate?
A. The standard business rate for 2016 is 57.5 cents/mile.
The standard medical and
moving rate for 2016 is 23
The standard charitable rate for 2016 is 14 cents/mile.
Please keep in mind the standard mileage rate is used in place of actual expenses. Taxpayers who chose the standard mileage rate can not deduct actual expenses.
Q. What is the annual gift tax exclusion?
A. The annual exclusion is $14,000 for 2016. Per donee, with an annual maximum of $28,000 per donee applicable to spouses who utilize gift splitting. Additionally, there is an unlimited exclusion for payments of tuition and medical expenses.