We specialize in bookkeeping, payroll, income tax return preparation, and retirement planning, and serve a nationwide clientele consisting of individuals and businesses of all types and sizes (LLC, partnerships, C & S Corporations), as well as trusts and estates. As financial problem solvers, we provide practical advice and proactive solutions with personalized service. We are affordable, experienced, and friendly, and we tirelessly study and research the ever-changing world of tax law and regulation so that we can help every client realize the greatest possible savings and return on investments. Our office is conveniently located in Dover, Delaware. Please contact us today to find out more about how we can make YOUR life less taxing!Tax
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๐๐ผ๐ ๐บ๐๐ฐ๐ต ๐ฐ๐ฎ๐๐ต ๐๐ต๐ผ๐๐น๐ฑ ๐ ๐ธ๐ฒ๐ฒ๐ฝ ๐ถ๐ป ๐บ๐ ๐ฏ๐๐๐ถ๐ป๐ฒ๐๐ ๐ฏ๐ฎ๐ป๐ธ ๐ฎ๐ฐ๐ฐ๐ผ๐๐ป๐?
A good starting point is enough cash to cover three to six months of essential operating expenses. You'll also want to set aside money for taxes, based on what you expect to owe.
But the exact amount depends on how your business brings in money.
If you have predictable, recurring revenue (like monthly retainers or subscriptions), three months of expenses may be enough.
If you carry inventory, work on large projects, or experience big seasonal swings, you'll likely need closer to six months.
As for taxes, for most pass-through entities (LLCs, sole props), a good starting point is transferring ๐ฎ๐ฑ%โ๐ฏ๐ฌ% ๐ผ๐ณ ๐๐ผ๐๐ฟ ๐ป๐ฒ๐ ๐บ๐ผ๐ป๐๐ต๐น๐ ๐ฝ๐ฟ๐ผ๐ณ๐ถ๐ into a dedicated tax account to cover both income and self-employment taxes.
Remember, the IRS expects quarterly estimated payments, so you'll be emptying that reserve four times a year. (We can help you dial in your exact percentage.)
๐๐ฐ๐ธ ๐ฎ๐ข๐ฏ๐บ ๐ฎ๐ฐ๐ฏ๐ต๐ฉ๐ด ๐ฐ๐ง ๐ฆ๐ด๐ด๐ฆ๐ฏ๐ต๐ช๐ข๐ญ ๐ฆ๐น๐ฑ๐ฆ๐ฏ๐ด๐ฆ๐ด ๐ค๐ฐ๐ถ๐ญ๐ฅ ๐บ๐ฐ๐ถ๐ณ ๐ฃ๐ถ๐ด๐ช๐ฏ๐ฆ๐ด๐ด ๐ค๐ฐ๐ท๐ฆ๐ณ ๐ณ๐ช๐จ๐ฉ๐ต ๐ฏ๐ฐ๐ธ ๐ธ๐ช๐ต๐ฉ ๐ต๐ฉ๐ฆ ๐ค๐ข๐ด๐ฉ ๐บ๐ฐ๐ถ ๐ฉ๐ข๐ท๐ฆ ๐ด๐ฆ๐ต ๐ข๐ด๐ช๐ฅ๐ฆ?
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๐๐ถ๐ฑ ๐๐ผ๐ ๐ธ๐ป๐ผ๐ ๐๐ฒ ๐ฐ๐ฎ๐ป ๐ฟ๐ฒ๐๐ถ๐ฒ๐ ๐๐ผ๐๐ฟ ๐๐ฎ๐
๐ฟ๐ฒ๐๐๐ฟ๐ป, ๐ฒ๐๐ฒ๐ป ๐ถ๐ณ ๐๐ผ๐บ๐ฒ๐ผ๐ป๐ฒ ๐ฒ๐น๐๐ฒ ๐ฝ๐ฟ๐ฒ๐ฝ๐ฎ๐ฟ๐ฒ๐ฑ ๐ถ๐?
Mistakes happen, whether a return was prepared by tax software or another preparer. We can take a second look, identify errors or missed opportunities, and amend the return when a correction is needed.
Comment ๐ฅ๐๐ฉ๐๐๐ช so we can set up a time to talk.
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๐๐ฎ๐ป ๐ฑ๐ฒ๐น๐ฎ๐๐ถ๐ป๐ด ๐บ๐ ๐ณ๐ถ๐ฟ๐๐ ๐ฅ๐ฒ๐พ๐๐ถ๐ฟ๐ฒ๐ฑ ๐ ๐ถ๐ป๐ถ๐บ๐๐บ ๐๐ถ๐๐๐ฟ๐ถ๐ฏ๐๐๐ถ๐ผ๐ป ๐๐ฎ๐๐ฒ ๐บ๐ฒ ๐บ๐ผ๐ป๐ฒ๐ ๐ผ๐ป ๐๐ฎ๐
๐ฒ๐?
It can lower your taxable income for one year, but delaying that first RMD can leave you taking two required distributions the following year.
When you reach RMD age, you get a one-time option to delay your first distribution until April 1 of the following year.
But your second RMD still has to be taken by December 31 of that same year.
That means you could have two RMDs reported on one tax return.
That extra income could push some of your income into a higher tax bracket. It could also increase your income enough to trigger higher Medicare Part B and Part D premiums two years later.
Before choosing the April 1 delay, take time to estimate your income both ways: ๐ต๐ข๐ฌ๐ช๐ฏ๐จ ๐บ๐ฐ๐ถ๐ณ ๐ง๐ช๐ณ๐ด๐ต ๐๐๐ ๐ฃ๐บ ๐๐ฆ๐ค๐ฆ๐ฎ๐ฃ๐ฆ๐ณ 31 ๐ฐ๐ณ ๐ต๐ข๐ฌ๐ช๐ฏ๐จ ๐ต๐ธ๐ฐ ๐๐๐๐ด ๐ต๐ฉ๐ฆ ๐ง๐ฐ๐ญ๐ญ๐ฐ๐ธ๐ช๐ฏ๐จ ๐บ๐ฆ๐ข๐ณ.
If you want help running those numbers before you make the decision, donโt hesitate to contact us. We can look at both years and see how each option affects your tax bracket and Medicare income thresholds.
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First State CPAs & Associates |
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18 S. State St, Dover, DE 19901 |
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| (302) 736-6657 | |
| Business Hours | |
| January 1st January 31st | |
| MondayโFriday: | 8amโ5pm |
| Saturday & Sunday: | closed |
| February 1st April 15th | |
| MondayโThursday: | 8amโ6pm |
| Friday: | 8amโ5pm |
| Saturday: | By appointment |
| Sunday: | closed |
| April 16th December 31st | |
| MondayโThursday: | 8amโ5pm |
| Friday, Saturday & Sunday: | closed |