Health Insurance Penalty

With the press conference this morning from President Obama about the millions who received cancellation notices, President Obama has given the authority to the State Insurance Commissioners to extend coverage for another year.  Now, my family was one that got such letter, and I am hoping that they do extend our insurance, if not we will go uninsured and face the penalty.

So, I thought I would write about the Penalty that is supposed to be in effect on your 2014 Tax Return.

As a Tax Preparer I get a lot of question about the new "Obama Care" penalty and how it is going to effect them.

Here are two of the questions that I have gotten:

1.  What will be my penalty if I don't get Insurance?

2.  I have a child that is 23 and they don't live with me, do I have to provide Insurance for them?

After researching these two questions here are my interpretation of what I read:

1.  According to the Affordable Care Act Chapter 48 "Sec. 5000A. the penalty is $95 per person that does not have insurance over the age of 18.  If you have a dependent under the age of 18 the penalty is one-half of the penalty.  Now the fun part: The other part of the penalty is OR 1% of  the "Household Income" "Modified Gross Income".  Which ever is larger.

Household Income - This is the income of You and your spouse, plus the income of any dependent that is required to file a tax return.

Modified Gross Income - You take the your Adjusted Gross Income (which is the last number on page 1 of your tax return) subtract your Standard or Itemized Deduction add any tax exempt interest.

Adjusted Gross Income - Standard/Itemized Deduction + Tax Exempt Interest = Modified Gross Income

Still with me?

2.  According to "Section 2714 Extension of dependent coverage" -  Group health plan and a health insurance company has to allow you to continue to coverage your adult child (who is not married) until the child turns 26 years of age.

Going back to Chapter 48 "Sec. 5000A. - Family Size is equal to the allowed personal exemptions for that calendar year.

So, the way that I read the Act - if you can't claim them on your Tax Return there is no requirement for you to put them on your plan.

We will see what happens between now and January 2015 if this will change or stay the same.

Sincerely,

Gabe The Taxguy

Importance of staying on top of your Bookkeeping

Are you Self Employed or are you an Independent Contractor?

First, let's answer what an Independent Contractor is....this is anyone who gets paid and their employer doesn't take any taxes out of their check.  Someone who will receive a 1099 at the end of the year.  

If you answered yes to either one, you need to stay on top of your bookkeeping. You may be saying, “What bookkeeping?”  You may be saying, “I don’t have a lot of invoices or bills” or “I am just a small business owner not a large corporation”.  "I'm not a business owner!!"  

You have no idea how often I have heard these words. Well, if you are self employed or get paid without taxes being taken out, then I suggest you do something, so you don't have a big tax liability when it is time to do your tax return. 

By meeting with me on a regular basis, this can help you save money and stay on top of your business. This will allow me to look at your information and see what kind of self employment taxes you may owe, or see how to reinvest back into your business, or yourself to lower that self employment tax. 

Give us a call 619-726-1158 for a free consultation on how we can give you some peace of mind.

Having Peace of Mind is an important piece to your puzzle. Come and talk with me and I can help you find that piece.  

We appreciate your feedback, let us know what you want to read about, or what your favorite blog as been so far.

Deductions and Credits that you may qualify for.

There are different deductions and credits that are out there that not everyone knows about. If you qualify for these deductions or credits, this could help you get more of a tax refund or it could help cut down your tax liability.

One thing that I enjoy doing during tax season:  Sitting down with my clients talking with my them and hearing about their life.  As we all know, life events happen. 

I listen to key words like: I now have a college student, I finally retired, we sold our house, we bought a house, we have a new rental, or we have a new baby. This helps me to hear key words to match up different deductions and credits that you qualify for.   This will also help me to give you advise to prepare for next year.  My goal is to get you all the deductions and credits you qualify for.

Finding the right puzzle pieces can sometimes be difficult. I am here to listen and am able to help find the right piece for you. 

Do you think you paid too much in 2012?  Do you feel that there was something missing?  Give us a call 619-726-1158 and we can look over last year's taxes and see if there was anything that was overlooked.

We appreciate your feedback, let us know what you want to read about, or what your favorite blog as been so far.

The Cloud

Why you want to use The Cloud?

I have a number of clients who have shared their folders from their “Dropbox” or “Google Drive” with me.  Let me tell you, I love it!

It is one of the best ways to share Documents, Excel Spreadsheets, PDF’s, and Word Documents.  It helps streamline the process without resending documents when you update them.  It helps to cut out on the confusion of duplicate documents: Excel Spreadsheets, PDF’s, and Word Documents.  With the cloud, you can update the document and it saves it in the cloud.  It also notifies the other person who has access to the Documents, Excel Spreadsheets, PDF’s, and Word Documents.

If you don't have a Dropbox, click on the link, sign up and get an additional 500MB of space.  Dropbox Sign up here

You will need to have a Google Account username in order to get a Google Drive account.  Click here to Google Drive Sign up here 

Both clouds have a free start-up space, if you want to expand and grow your space you can purchase some for a small fee.  Check out both sites and see what works for you.

Just another way to be organized and streamline your business with another helpful piece to the puzzle.  

It is a great way to share documents in a safe, eco friendly and easy system.

We value your busy schedule and we aim to help save you time and money.

Give us a call 619-726-1158 to set up an appointment for a free consultation.

Check out our other blog articles, and we would love for you to connect with us on our other social media sites to your right.  Be social friendly and share our blog with your friends.  

Thanks for checking us out

Gabe The Taxguy

The Right Tools

When you are trying to get organized, the first thing is to find what works best for you. Find what fits your needs, not your Bookkeepers needs. The second thing is to make it a habit.

It could be tools like an app (see our blog from yesterday The Perfect App) from your app store on your smart phone or tablet. You can also purchase file organizers, large for invoices, bills or receipts, or small file organizers for just receipts from your local office supply store. You can also purchase millage log books.  

 

Once you pick up the tools try it out for a while and see if it fits your needs.  If it doesn't seem to fit your needs give me a call (619) 726-1158. We can meet you at your local office supply store (we love office supply shopping) and help you out. The goal is to streamline and make things easier for you. 

Using Excel Spreadsheets and Word programs are another way to get organized and we will talk about that in the next blog.....stay tune.

With only 9 weeks left in 2013, start looking now so when 2014 comes you will have the system that works for you.

Having the right tools for the right job is another piece to the puzzle.  We are here to help guide you int he right direction for you and your business.

Give us a call 619-726-1158 to set up an appointment for a free consultation.

Check out our other blog articles, and we would love for you to connect with us on our other social media sites to your right.  Be social friendly and share with your friends.  

Thanks for checking us out

Gabe The Taxguy

The Perfect App

As I start my 10th tax season, the #1 Most Common Problem I have seen over the years.....

Not Being Organized. 

I have been given shoe boxes filled with receipts and invoices, paper bags filled with receipts and invoices and many other creative ways during a Bookkeeping or Tax appointment.  

www.expensify.com

With the Smart phones, there are apps that can help you get organized.  My favorite app that I use is called “Expensify” . It allows you to scan your receipts, keep track of your mileage and keep track of your time you spend on a project.  It will also allow you to run reports and share them with your Bookkeeper and Tax Preparer.

That’s what I call a Win-Win situation.

Go on to the app store on your phone or tablet and try out "Expensify", which is a "free" app and  give it a couple of weeks and see if it works for you.  Or check out the many other apps that could fit your needs and help you get organized. 

With only 9 weeks till 2014, it is a good idea to find out what works best for you now, so when January 1, 2014 comes along you are ready to start the new year organized.

It can be a puzzle to find that method that is tailored to your needs, we are here to help guide you in the right direction.

Give us a call 619-726-1158 to set up an appointment for a free consultation.

Check out our other blog articles, and we would love for you to connect with us on our other social media sites to your right.  Be social friendly and share with your friends.  

Thanks for checking us out

Gabe The Taxguy

How to have your taxes benefit your pocket

Are you living paycheck to paycheck, and yet every tax season you get this big refund?  

There are many credits, deductions, and write-offs that are there for our benefit. Knowing how to use these credits, deductions and write-offs, can give you more money in your pocket throughout the year, instead of using the government as your savings account.

Talking to your tax professional (Like Myself) about adjusting your withholdings is something you should be doing about 1 or 2 times a year. We need to make sure we are not over paying and learn how to add more money in your paycheck.

Knowing all the credits, deductions and write-offs are important, but communicating with your tax preparer is where you need to start.

It can be puzzling but, we are here to help put all the pieces together. 

To set up an appointment to have us look over your taxes and see how to put more money in your paycheck, call 619-726-1158

Feel free to ask questions or comment below.  Also, we appreciate any shares or likes on Social Media, all the links are below.

Why you want to outsource your Bookkeeping instead of using your family friend.

Paying someone to do your Bookkeeping vs. having a friend do it CAN save you money. 

The key elements that you want to look for are:

• Communication
• Financial Reports
• Financial Advice
• Up to Date on New Laws

Are you looking for someone who can just data entry your expenses and your income or are you looking for someone to evaluate the health of the business and give you advice on your next steps? 

Outsourcing a Local Bookkeeper (Like Myself) who can guide you through a budget, your Financial Reports and your taxes can really help you and save you money in the long run.

Having a Local Bookkeeper (Like Myself) who belongs to a Bookkeeping and Payroll organization, who will get the up to date changes to the laws can really help look out for you and the health of your business.

 

Bookkeeping is not just producing a Profit and Loss Statement, it’s another piece of the puzzle that helps show your tax refund or balance due.  If done right, it will be a refund or break even.  


Give us a call 619-726-1158 for a free consultation.

If you haven't seen our video blog about our services, here it is: http://www.youtube.com/user/pinabiz?feature=c4-feed-u

Going to college and taxes

Do you have kids going to college?  Or, are you a College Student?

You are lucking to have a double whammy this time of year, not only do you have to get your taxes done by April 15th, but you also have to file your FAFSA by March 2nd.  Oh but wait, you need to have your taxes completed and filed before you finish up with your FAFSA paperwork.

If you don’t know what FAFSA is it is Free Application for Federal Student Aid.  FAFSA website Every college student or High School senior should be filling this free application out just to see if they qualify for any free government money.  The application is quite simple; you just need to have your current tax return available when you are ready to file the free application. 

Things you will need besides your tax return for you, your spouse and your college student:

            1.   Social Security Numbers

            2.   Driver License Numbers

            3.   High School Information

            4.   Name of College (if you have the college code it will be better) that you want to attend (up to 10 colleges)

If you need any help, give us a call to set up an appointment.  619-726-1158 or 619-726-1716

Thank you for reading my blog, and when you get a chance check us out on Facebook – Pina Business Services, Twitter - Gabe the Taxguy and of course our website - Pina Business Services Webpage

Why do I need to Hire a Bookkeeper?

A Bookkeeper will be able to produce a Profit and Loss Statement, create and maintain a Budget, project your financial situation, keep your records current and prepare you for your taxes.

I want you to ask yourself these questions:

1.     Do you have a current Profit and Loss Statement?

2.     Is your bank account reconciliation current?

3.     Do you have a Budget?

4.     Can you compare last year’s numbers to this year’s numbers?

5.     Do you know how your Profit and Loss Statement is going to affect your 2012 Taxes?

If you have answered No to any of the above questions, you need to give us a call (619-726-1158) to set up a free consultation.

Here is another question for you…for those who have a Bookkeeper…. Is your Bookkeeper a family member, or a family friend?  Although is it nice to help out a family member or a friend of the family, can they properly answer all 5 of the above questions?

Question #5 is the most important question above.  If you or your Bookkeeper cannot answer that question, then you need to give us a call (619-726-1158) for a free consultation.

At Piña Business Services, “Where Bookkeeping is like a Puzzle” we can answer that question for you.  We understand the dynamics of your Profit and Loss Statement, and how it will affect your 2012 Taxes.

We provide Weekly, Bi-Weekly, Monthly and Quarterly Bookkeeping Services for Small or Medium Size Business, and those who are Self-Employed.

Here is a sample of services you will receive from Piña Business Services:

·        We will keep you up to date with New Tax Laws, and how it will affect your business. 

·        Create and analyze a budget for your company to help guide you down the right track.

·        Giving you real time numbers for quarterly tax payments, instead of the estimated numbers from last years numbers. 

·        An Up to Date Profit and Loss Statement

·        And many more services based on your business needs.

If you own a Small or Medium Size Business, or are Self-Employed, you really need to examine your situation and hire a Bookkeeper. 

Please share this blog with your Business Owner Network; you don’t want to let them go unprepared.

Thank you for reading my blog, and when you get a chance check us out on Facebook – Pina Business Services, Twitter - Gabe the Taxguy and of course our website - Pina Business Services Webpage

Give us a call at (619) 726-1158 to make an appointment for a free consultation. 

Have a great day!!!!

What is Piña Business Services?

Hello and Welcome to Piña Business Services Bookkeeping and Tax Blog!

My name is Gabriel J. Piña and I started a Bookkeeping and Tax business in 2007 to provide a service for small to medium size businesses.  Providing Bookkeeping and Tax Services to Self Employed, Corporations and Non-Profits alike over the last 5 years have been a great joy.

My company slogan “Bookkeeping is like a Puzzle, do you know where to put all the pieces?” this is how I look at your company: A puzzle.  Every puzzle is unique in its own way.  My goal is to show you how your company is doing on a weekly, monthly or quarterly basis, and to show you how it will impact your yearly tax return.

There are many facets to provide a Bookkeeping service, and a lot of it depends on you the client.  The basic of Bookkeeping is creating a Profit and Loss statement based on your receipts and Bank Statements.  This will tell you if you are profitable or not, as well as where you spent your money.  To take it to the next level we look at a yearly budget, and categorizing your income and expense to specific categories (as you can see in the example below, the Job Workshop had a net income of $1,850, while the business as a whole had a net income of $21,150), and we look at your budget on a monthly basis to see if you are spending more or less then you budgeted. 

           

                        Income

                                    Sales                                      $25,000

                                    Job Workshop                       $  2,000

                        Total Income                                      $27,000

                        Expenses

                                    Advertising                             $     500

                                    Office Supplies                      $     200

                                        Job Workshop Supplies   $     150

Rent                                        $  5,000

                                    Total Expenses                                 $  5,850

                                    Net Profit                                            $21,150

                                               

Other facets of Bookkeeping Services are but not limited to: Bank and Credit Card Reconciliation, Financial Statements, Accounts Payable and Accounts Receivable, and Sales Tax Reporting. 

On a quarterly basis, I analyze your Profit and Loss Statement and your Balance Sheet and come up with a report of your self employment taxes and income tax for the following year.  If you pay quarterly estimated taxes, you are more than likely paying off of your last year tax return, instead of paying off of actual numbers.  Which means you can still be underpaying or overpaying, either way, wouldn’t you rather pay off of actual numbers?

 

I have an office in Santee and am mobile throughout the San Diego County. 

Piña Business Services was named Santee’s Favorite Tax Preparer by the Santee Patch in April of 2012.

Thanks for reading my blog, and when you get a chance check us out on Facebook – www.facebook.com/pinabiz , Twitter - www.twitter.com/gabe_the_taxguy and of course our website www.pinabiz.com

Give us a call at (619) 726-1158 to make an appointment for a free consultation. 

Have a great day!!!!