First State CPAs and Associates

21 hours ago

𝗛𝗼𝘄 𝗰𝗼𝘂𝗹𝗱 𝗜 𝗵𝗮𝘃𝗲 𝗽𝗮𝗶𝗱 𝗹𝗲𝘀𝘀 𝗶𝗻 𝘁𝗮𝘅𝗲𝘀 𝗹𝗮𝘀𝘁 𝘆𝗲𝗮𝗿?

To answer that, you have to look at the return you just filed. It’s the primary place where you can see exactly how your financial decisions translated into your tax bill.

Here are the two areas you should audit immediately:

1. Your Effective Tax Rate -- This is the actual percentage you paid after credits and deductions were applied. If this number is higher than you expected, you likely aren't utilizing the right tax-shifting strategies or accounts to protect your income.

2. Your Refund Amount -- If you received a large check, you essentially gave the IRS an interest-free loan for up to twelve months. That is capital you could have been deploying into your own investments or savings every single month.

If you want us to review your 2024 or 2025 return and identify exactly where you can keep more of what you earn in 2026, comment 𝗥𝗘𝗩𝗜𝗘𝗪 below. ... See MoreSee Less

First State CPAs and Associates

2 days ago

𝙒𝙝𝙖𝙩 𝙞𝙛 𝙄 𝙘𝙖𝙣’𝙩 𝙥𝙖𝙮 𝙢𝙮 𝙩𝙖𝙭 𝙗𝙞𝙡𝙡 𝙞𝙣 𝙛𝙪𝙡𝙡?

First, and most important, don’t ignore it. It’s easy to put off a tax bill when you know you can’t pay it. But that usually makes the problem more expensive.

Here’s what we generally recommend to our clients:
1. Pay as much as you can right now. Even a partial payment helps reduce the interest and penalties that continue to accrue.
2. Look at short-term IRS payment relief. In some cases, the IRS may allow additional time to pay in full.
3. Set up an installment agreement.
4. If paying would keep you from covering basic living expenses, see if you qualify for Currently Not Collectible status.
5. See if an Offer in Compromise is an option for you.
6. Avoid using credit cards, private loans, or home equity to pay the IRS, as this can put you in a much more difficult (and higher interest) position.
7. If necessary, consider selling assets you no longer need.

If you want help sorting through the options, comment 𝗣𝗔𝗬 below. ... See MoreSee Less