Category: Taxes

As students head to campuses to begin their fall semesters, now is the time to educate the whole family on tax planning strategies for the next four-plus years. Whether you need education-related tax credits or tips to maximize your students’ financial aid eligibility, Neely’s Accounting Services can help both students and families ace this financial test.

Getting Started: The FAFSA

You’ll hear a lot about the Free Application for Federal Student Aid — commonly called the FAFSA. This is what colleges and universities use to determine if a student qualifies for federal financial aid or any of the school’s scholarships and aid programs. Families must fill out the FAFSA each year, but it’s the first year that really sets the foundation for a student’s financial aid package.

Here are a few tips to maximize your eligibility for financial aid:

• Even if you think your family won’t qualify, file a FAFSA. In reality, most families do qualify for some financial aid, and you’ll be eligible for school-specific, need- and merit-based scholarships and grants as well. Plus, you’ll be prepared in the event your financial situation unexpectedly changes before the start of the academic year.
• Submit your FAFSA as soon as possible after it’s available Oct. 1 to give your student the best shot at federal aid and grant programs that are award funds on a first-come, first-served basis. 
• Keep your family’s taxable income as low as possible the first year you file without doing the family financial harm. Small, thoughtful tweaks can make a difference, such as delaying the sale of stocks or bonds, avoiding early withdrawals from retirement savings and asking employers to defer a bonus to another tax year.

Is Your Student Still a Dependent?

Families should figure out whether their student will be considered a dependent during college. Parents can claim a full-time college student as a dependent until age 24 if they are proving more than half of the student’s support. Most college students fall into this category. If a parent does claim a student as a dependent, the student likewise will need to answer “yes” when asked on tax documents if someone else can claim him or her as a dependent. 

Take Advantage of Tax Credits

Several federal tax credits are available to help offset the cost of education. Pick the best one that fits your circumstances because they cannot be used in combination.

• The American Opportunity Credit: Qualifying students or their parents may claim up to $2,500 of college expenses — including tuition, fees, books and other requirements — for the first four years of schooling while working toward a degree or certificate. 
• The Lifetime Learning Credit: Qualifying students or their parents may claim up $2,000 in education expenses for an unlimited number of years. This would be helpful to a non-degree-seeking student or a graduate student.
• Tuition and Fees Deduction: Qualifying students or their parents can deduct up to $4,000 in education expenses paid directly to the student’s school. Expenses include tuition and related expenses required to be enrolled.
• Student Loan Interest Deduction: After graduation, a student can deduct the interest paid on student loans in the past year. The lender will provide the required interest statement each January.

Military Students and Veterans

Military students or students using a military benefit to pay for schooling should understand that their tax planning will look a little different. 

• For students received ROTC stipends for education and living expenses, these payments are not taxable and do not need to be included on your federal tax return.
• Cadets at the federal service academies, however, are considered on “active duty” while at school, so any payments made generally are taxable and should be reported as income on your federal return.
• Funds received from the VA for education, training, or subsistence are not taxable. 

Contact Neely’s Accounting for Expert Help

Neely’s Accounting Services can offer some time-tested lessons in tax planning. We’ve supported Roanoke-area individuals and business since 2007 with our big-city services and a hometown feel. Contact us today and let us set yourself up for tax success for your students’ college years.

February is the month of love, but most people don’t immediately associate taxes with fuzzy feelings. In fact, the mention of tax season fills them with dread. If this sounds like you, then we have great news! When you work with Neely’s Accounting, your taxes don’t have to be daunting. We’ve been Roanoke’s go-to tax expert since 2007 because our team makes filing taxes so easy. 

Let’s take the stress out of tax season. Below are three reasons to love tax season with Neely’s Accounting Services on your side.

1. Big City Tax Service with Hometown Values

Don’t struggle through tax preparation software or outsource your taxes to an impersonal big box company. Instead, work with a local tax expert who understands your needs. At Neely’s we combine modern, streamlined services with deep community knowledge to offer affordable tax solutions that work. You’ll love working with a tax expert you can trust, and you may even recognize our CPAs from the local grocery, workout class, or event!

2. Customized Tax Support 

If you’ve ever had your taxes prepared by a stranger, you may have wondered if they truly understood the details of your financial situation. We understand that your tax needs are as unique as you are. Our local CPAs meet with you one-on-one to get to know you and your finances, so no detail is left behind. Plus, they’re available to answer any questions all year long so you can banish tax anxiety once and for all. 

3. Maximum Tax Returns

Customized tax services do more than just give you peace of mind. They also give you the maximum return possible. We pride ourselves on getting to know you, which means we can find every deduction you’re eligible for. When you work with us, you’ll love feeling sure that you received the maximum possible tax refund (and your bank account will love it too!). 

Contact Us to Get Started on Your Taxes

We’re proud to offer a full range of professional products at a fair price without sacrificing the individual attention you deserve. Our friendly, dedicated advisors are always ready to help you with personalized solutions that meet your needs.

Let us take the stress out of running your business and filing income taxes. Contact us or visit today.

What comes to mind when you think about tax season? Maybe you’re one of those people who gets excited about doing taxes. On the other hand, you might feel a sense of dread or confusion when you think about filing your taxes. If you’re the latter, you’re not alone. A recent study showed that one-third of taxpayers wait until the filing deadline to do their taxes and 56% don’t even know when the deadline is!

Whether you relish taxes or feel a bit nervous, having a trustworthy expert on your side can makes all the difference between complicated and stress-free. As Roanoke’s trusted tax experts, Neely’s wants you to have all the info you need. To help, we’ve compiled all the season’s tax deadlines so you can face the 2023 tax season with confidence. 

Personal Income Tax & Self-Employed Deadlines

• January 31, 2023 – Due date for employers to send W-2 forms. To ensure you’re able to complete your tax return on time, the IRS requires all employers to send you a W-2 no later than January 31 following the close of the tax year. Generally, this means W-2s get sent by January 31, but you won’t necessarily receive your form by this date.
• January 31, 2023 – Certain 1099 forms are sent. Various 1099 forms, and forms 1099-NEC,1099-MISC, and 1099-K are used to report payments that typically don’t come from an employer, such as if you work as an independent contractor, gig worker, or self-employed person or if you receive income such as interest, dividends, prize winnings, rents, royalties, or brokerage account transactions. If January 31 falls on a weekend or holiday, these forms are due to be sent the following business day.
• April 18, 2023 – Tax day (unless extended due to local state holiday). The tax deadline typically falls on April 15 each year, but can be delayed if it falls on a weekend or holiday. Missing the tax deadline can have consequences like penalties and interest.
• April 18, 2023 – Deadline to File Form 4868 and request an extension. The tax day deadline is also the last day to file Form 4868 requesting an extension to file your individual income tax return. If you won’t be ready to file your tax return by tax day, make sure you instead complete an extension request, granting you the ability to delay filing a completed return until October 16, 2023. But remember, even if you choose to file an extension, you are still required to pay any taxes you may owe by the April deadline.
• April 18, 2023 – Deadline to make IRA and HSA contributions for 2022 tax year. For individual income tax return filers, this also marks the final day to make contributions to your IRA or HSA for the 2022 tax year. After this date, you generally can’t make contributions for the previous tax year.
• April 18, 2023 – First quarter 2023 estimated tax payment due. Making estimated tax payments means that you need to estimate how much income you’re likely to make for the year and determine how much you will owe to the IRS for income taxes. You can use IRS Form 1040-ES to calculate how much tax liability you’ll have for the year. IRS Publication 505 contains all the rules and details you might need to know about how to calculate this amount. If you overestimated how much tax liability you’d owe for a year and are due a refund, you can choose to receive that money now or apply the overage to the following year’s quarterly tax payments.
• June 15, 2023 – Second quarter 2023 estimated tax payment due. Despite the IRS referring to these payments as quarterly estimated taxes, the due dates don’t necessarily fall within “quarters” nor do they each represent three months of tax payments. They represent an equal quarterly share of your estimated income tax liability paid at uneven intervals. The first payment occurs 3 and a half months into the year. The second payment is five and a half months; the third payment is eight and a half months, and the fourth payment is due 12 and a half months after the year starts.
• September 15, 2023 – Third quarter 2023 estimated tax payment due.
• October 16, 2023 – Deadline to file your extended 2022 tax return. If you chose to file an extension request on your tax return, this is the due date for filing your tax return.
• January 15, 2024 – Fourth quarter 2023 estimated tax payment due. This represents the final quarterly estimated tax payment due for 2023. If you choose the option to pay 100% of your previous year’s tax liability, any unpaid taxes will be due when you file your 2023 individual tax return by the April 2024 deadline.

Businesses – Partnerships (including LLCs), C Corps (Form 1120), and S Corps (Form 1120S)

• January 31, 2023 – Employers send W-2s forms to employees
• January 31, 2023 – Send certain 1099 forms
• March 15, 2023 – Taxes are due for some business types (partnerships, multi-member LLCs, and S-Corporations). Businesses organized as partnerships, including multi-member LLCs, and S-Corporations need to file Form 1065, or 1120S by March 15, 2023, if they are a calendar year business. If your business uses a fiscal year, you need to file your tax return by the 15th day of the third month following the close of your tax year. For example, if your business uses an April 1 – March 31 tax year, your business tax return would be due June 15 instead of March 15.
• April 18, 2023 – Taxes for C-Corporations are due. Businesses organized as C-Corporations need to file form 1120 by April 18, 2023, if they are a calendar year business. If your business uses a fiscal year, you need to file your tax return by the 15th day of the third month following the close of your tax year. For example, if your business uses an April 1 – March 31 tax year, your business tax return would be due June 15 instead of in April.
• September 15, 2023 – Deadline for extended partnership and S-corporation returns
• October 16, 2023 – Deadline for extended C-corporation returns
• January 15, 2024 – Fourth quarter 2023 estimated tax payment due

Contact Neely’s Accounting Services for Expert Tax Support in Roanoke. 

Since 2007, Neely’s Accounting Services has provided expert tax preparation and accounting in Roanoke, VA. We help small and service-based businesses, restaurants, nonprofits & churches, and families and individuals. We pride ourselves on delivering big-city service with hometown values. Our friendly, dedicated advisors are always ready to help you with personalized solutions that meet your needs.

Let us take the stress out of running your business and filing income taxes. Contact us or visit today.

During the autumn season, taxes may be the furthest thing from your mind. October is a great time to enjoy the changing leaves, cozy sweaters, and all things pumpkin. But it’s also a great time to begin taking stock of your financial health to prepare for tax season.

Einstein once famously said, “the hardest thing in the world to understand is the income tax.” While that might not be exactly true (theory of relativity, anyone?) taxes can be complicated. Here are some things you can do in advance that will make tax season feel as easy as learning your ABCs. 

• Make tax-deductible donations before your financial year ends

If you’re planning to do any charitable giving and haven’t yet, then make your donations before the year ends. Not only will it boost the finances of an organization or cause that you care about, but it will also count toward your total deductions for the year.  Win-win!

• Max out your tax-advantage accounts

If you have the extra cash, make the maximum amount of contributions to your retirement accounts or health savings accounts. For traditional IRAs, you can contribute up to $6,000. If you have an HSA, you can save $3,600 for single coverage or $7,200 for family. These contributions reduce your taxable income and sets aside income for the future.

• Schedule regular tax planning all-year round

You don’t have to wait until April 15^th to deal with taxes. It’s possible to set up quarterly payments so you can review your cash flow more regularly and avoid big, unpleasant surprises. This strategy is especially effective for freelancers and small businesses who often face large fluctuations in income and expenses.

• Maintain sufficient records

Keep a file of important financial information, records, receipts, and payments to the IRS. That way, you have everything you need in one place. Having easy access to your records will allow you prove your expenses, income, and most importantly that you’ve paid everything you owe.

• Get your paperwork organized

If you’ve paid taxes before, then you know it involves extensive paperwork. When it comes to tax preparation, it’s important to have all your critical documents ready before you file so you can avoid mistakes and find all eligible deductions.

• Make a tax payment plan

If you think you might owe money to the IRS, prepping for tax season early gives you time to plan and save. Putting away money to pay your tax bill is the best option, but if your bill drains your savings, you can also set up a payment plan with the IRS, use a credit card, or take out a loan.

• Consider how you’ll use your refund

If you’re looking forward to a tax refund, be smart about your extra windfall. Consider using your refund to further your financial goals like boosting emergency savings, paying down debt, or growing your nest egg.

• Hire a good financial professional

If you feel confused about your taxes, you’re in good company. Almost 90% of Americans hire a professional or use software to help them file. The American tax system is notoriously complex, so if you want to feel confident about your tax preparation, then work with a trusted professional for expert tax services.

Neely’s can help with your tax preparation

Neely’s is Roanoke’s trusted source for tax services and tax preparation. For over 30 years, we’ve helped individuals, freelancers, and small businesses in Roanoke face tax season with confidence. Contact us today to learn more about how we can make this tax season your smoothest yet.