tag:blogger.com,1999:blog-24528580946245167372024-03-06T12:01:49.729-08:00Ask Your BookkeeperAnswers to your bookkeeping and Quickbooks questions.Theresahttp://www.blogger.com/profile/04752960278920919195noreply@blogger.comBlogger55125tag:blogger.com,1999:blog-2452858094624516737.post-34055765037492570082012-04-19T20:50:00.000-07:002012-04-19T20:50:30.854-07:00Managing Your Tax Records After You Have Filed<div style="text-align: center;">
<span style="font-size: small;"><strong><br /></strong></span></div>
<div style="text-align: left;">
Keeping good records after you file your
taxes is a good idea, as they will help you with documentation and
substantiation if the IRS selects your return for an audit. Here are
five tips from the IRS about keeping good records.</div>
<div style="padding-left: 30px;">
1. Normally, tax records should be kept for three years.</div>
<div style="padding-left: 30px;">
2. Some documents — such as records
relating to a home purchase or sale, stock transactions, IRA and
business or rental property — should be kept longer.</div>
<div style="padding-left: 30px;">
3. n most cases, the IRS does not
require you to keep records in any special manner. Generally speaking,
however, you should keep any and all documents that may have an impact
on your federal tax return.</div>
<div style="padding-left: 30px;">
4. Records you should keep include
bills, credit card and other receipts, invoices, mileage logs, canceled,
imaged or substitute checks, proofs of payment, and any other records
to support deductions or credits you claim on your return.</div>
<div style="padding-left: 30px;">
5. or more information on what kinds of
records to keep, see IRS Publication 552, Recordkeeping for Individuals,
which is available on the IRS website at <a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTIwNDEyLjY3OTI5MjEmbWVzc2FnZWlkPU1EQi1QUkQtQlVMLTIwMTIwNDEyLjY3OTI5MjEmZGF0YWJhc2VpZD0xMDAxJnNlcmlhbD0xNjk0ODQ0NiZlbWFpbGlkPXRoaWdieTdAY294Lm5ldCZ1c2VyaWQ9dGhpZ2J5N0Bjb3gubmV0JmZsPSZleHRyYT1NdWx0aXZhcmlhdGVJZD0mJiY=&&&130&&&http://www.irs.gov/" target="_blank">www.irs.gov</a> or by calling 800-TAX-FORM (800-829-3676).</div>
<br /><strong>Link:</strong><br />
Publication 552, Recordkeeping for Individuals (<a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTIwNDEyLjY3OTI5MjEmbWVzc2FnZWlkPU1EQi1QUkQtQlVMLTIwMTIwNDEyLjY3OTI5MjEmZGF0YWJhc2VpZD0xMDAxJnNlcmlhbD0xNjk0ODQ0NiZlbWFpbGlkPXRoaWdieTdAY294Lm5ldCZ1c2VyaWQ9dGhpZ2J5N0Bjb3gubmV0JmZsPSZleHRyYT1NdWx0aXZhcmlhdGVJZD0mJiY=&&&131&&&http://www.irs.gov/pub/irs-pdf/p552.pdf" target="_blank">PDF 61K</a>)Theresahttp://www.blogger.com/profile/04752960278920919195noreply@blogger.com0tag:blogger.com,1999:blog-2452858094624516737.post-11749903520432918162012-03-14T10:32:00.000-07:002012-03-14T10:32:20.090-07:00How to show a customer pre-payment on an invoice.<div class="separator" style="clear: both; text-align: center;">
</div>
<div class="separator" style="clear: both; text-align: center;">
</div>
If you accept deposits or prepayment from your customers and wish to reflect those payments and show only the outstanding balance due on your invoices, a simple customized invoice will do the trick. Read <a href="http://askyourbookkeeper.blogspot.com/2010/03/how-do-i-record-pre-payment-from-my.html">here</a> to find out how you can record these prepayments.<br />
<br />
Once the invoice has been created you can choose the Apply Credits button at the bottom of the invoice screen.<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjdCgxyfghjd9nPKpPk9ahHiIbGUEoJ8pYmvpfS8WI_jH00-3UW6ruygiOs-nLmkIR8qYvAJ8UZm7wZupI5DVKb4Pk4-TRKen_aeYp06RnsM5ft6sPzmJA2yYLWq2vTf17_qP-SQkUQ_to/s1600/apply+credits.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="263" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjdCgxyfghjd9nPKpPk9ahHiIbGUEoJ8pYmvpfS8WI_jH00-3UW6ruygiOs-nLmkIR8qYvAJ8UZm7wZupI5DVKb4Pk4-TRKen_aeYp06RnsM5ft6sPzmJA2yYLWq2vTf17_qP-SQkUQ_to/s400/apply+credits.png" width="400" /></a></div>
<br />
Any available credits for this customer will appear in a pop-up. Choose the pre-payment that you recorded for this invoice. Select Done. In the lower right portion of your invoice screen you will see the payment amount that has been applied and the balance due on the invoice. <br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjqyVRh8ArWRnI9A9NMWK9bflv7nSTIOIorEGG8c1wlSTQQpmSuqa51OF-oDgsvsTruPdKe2Yvk3DDAqFFIHB0tW0HzBovFkXaYfupOkwoSPw_JAcL2dZZWtg0yl06CRKf1tQ8aQ7hunws/s1600/prepayment+popup.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="245" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjqyVRh8ArWRnI9A9NMWK9bflv7nSTIOIorEGG8c1wlSTQQpmSuqa51OF-oDgsvsTruPdKe2Yvk3DDAqFFIHB0tW0HzBovFkXaYfupOkwoSPw_JAcL2dZZWtg0yl06CRKf1tQ8aQ7hunws/s400/prepayment+popup.png" width="400" /></a></div>
<br />
Your next step will be to create a customized invoice form to show this same information on your printed or e-mailed invoice. From the invoice screen choose Customize from the invoice menu bar. If you have a newer version of Quickbooks a pop-up window will appear asking if you want to create your own form or customize an existing form. Choose the Customize Data Layout option.<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj2jg7hbCEMFc9uvRG_InblZnPvQZvuDzBA1uhPUhRdXpCLhGP9p4yr_MRUoeMFOZkGT9yLCSqPIOAlD0nrCwm-3sABBamWuq1SxYp54JVKS40GuDDkv5Nz2CmfolrjJ2ewDboOFVeXoNs/s1600/customize+data+layout.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="270" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj2jg7hbCEMFc9uvRG_InblZnPvQZvuDzBA1uhPUhRdXpCLhGP9p4yr_MRUoeMFOZkGT9yLCSqPIOAlD0nrCwm-3sABBamWuq1SxYp54JVKS40GuDDkv5Nz2CmfolrjJ2ewDboOFVeXoNs/s400/customize+data+layout.png" width="400" /></a></div>
<br />
<div class="separator" style="clear: both; text-align: center;">
</div>
In the customization screen choose the Footer Tab, and click the Print box for Payments/Credits and for Balance Due.<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhNqdlHR6HWVVVp-as-Yrk2s5DaGpAwAnTNpmCCgs8WGcHiJ_6BnjZjKddpCj9RFYXEopL_H_ZQpu5PiVrAZLQfHy-U5RfSuEWpky7aTGtt6Oy7893TdDDYJzLM1dpOKCxHJv_T18rTuMM/s1600/Add+Footer.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="260" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhNqdlHR6HWVVVp-as-Yrk2s5DaGpAwAnTNpmCCgs8WGcHiJ_6BnjZjKddpCj9RFYXEopL_H_ZQpu5PiVrAZLQfHy-U5RfSuEWpky7aTGtt6Oy7893TdDDYJzLM1dpOKCxHJv_T18rTuMM/s400/Add+Footer.png" width="400" /></a></div>
<br />
New versions of Quickbooks will automatically adjust the layout to fit these extra fields at the bottom of the invoice. If you have an older version of Quickbooks you will need to manually adjust the layout so that your lines and boxes do not overlap. To make the manual adjustments click on the Layout Designer button at the bottom of the customization window.<br />
<br />
In the Layout Designer window you can click on various boxes and drag the field indicator buttons to make the box smaller. You can also click and drag various boxes to relocate them on the invoice. When you click on a box there will be a message in the lower left corner of the Layout Designer screen telling you what box you have clicked on...whether it is a text box, a data box, etc. Adjust the main body of the invoice to allow room for your new footers at the bottom of the invoice.<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgn6o1HYqXiIP6vFxtPLNr2ThXQAi9k2EBHBovwiM7aX-z_ZXq8dmReO6eHDNzAzfHCUaSGTEPIZ0epUmFToxw7a7uE5VobNc7beV2isiGjfjOJTojFP4SJZDdI8AfTMzEUiwufnf29h4s/s1600/layout+grids.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="237" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgn6o1HYqXiIP6vFxtPLNr2ThXQAi9k2EBHBovwiM7aX-z_ZXq8dmReO6eHDNzAzfHCUaSGTEPIZ0epUmFToxw7a7uE5VobNc7beV2isiGjfjOJTojFP4SJZDdI8AfTMzEUiwufnf29h4s/s400/layout+grids.png" width="400" /></a></div>
<br />
<br />
When you are done click OK and you will see a preview window of what your invoice will look like when printed. You can hop right back into the Layout Designer if you need to make further adjustments. This is what your customized invoice will look like...<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj92_HxvQPfA2GvhhzT6faUi6enTKGly52h2qwqaCJ-2tVsyv7vf9-AnavTKA2xLPTRaC0Wdnl8YZDCW8i-WUZvHOvj5D9olX0yPJdjrcc8Gb8BQjbDoYwHSunlRTjbJtvUotnxxhZeOBU/s1600/invoice+preview+with+applied+payments.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="400" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEj92_HxvQPfA2GvhhzT6faUi6enTKGly52h2qwqaCJ-2tVsyv7vf9-AnavTKA2xLPTRaC0Wdnl8YZDCW8i-WUZvHOvj5D9olX0yPJdjrcc8Gb8BQjbDoYwHSunlRTjbJtvUotnxxhZeOBU/s400/invoice+preview+with+applied+payments.png" width="302" /></a></div>
<div class="separator" style="clear: both; text-align: center;">
</div>
<br />
<br />
Another great feature is that once you customize this invoice you don't have to repeat the process. It remains stored in your Quickbooks. You can even rename it so it's easier to use later. From the Additional Customization window choose the Basic Customization tab,<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhJ6So0nUFVZ8hVMcp5cdgJp8Bt9nrImNgflZNFtTwicNSr8TRqQJwwyL56q1E73hnG6Uv1-SgYeREJeKKWZPY9_cv6fTmYloj4ZICO9MKLxYTLCgM1-zd8CWBgHs18WkDDtAtQV6n_gbs/s1600/basic+customization.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="253" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhJ6So0nUFVZ8hVMcp5cdgJp8Bt9nrImNgflZNFtTwicNSr8TRqQJwwyL56q1E73hnG6Uv1-SgYeREJeKKWZPY9_cv6fTmYloj4ZICO9MKLxYTLCgM1-zd8CWBgHs18WkDDtAtQV6n_gbs/s400/basic+customization.png" width="400" /></a></div>
<br />
...then select Manage Templates,<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg-BWBzvtEeLWYm1VxrdtRHaSIsXJNhEfmCyuMhVavSaHTpfrZqEmYB9YEdpKg8ieowg6zMpeedj0sjlL9md1lv-4xr1r3UCPHXDNiCwADBolMyg5w8nSs6FgFYaKSkJgp1jhG6ARXloNQ/s1600/manage+templates.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="250" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg-BWBzvtEeLWYm1VxrdtRHaSIsXJNhEfmCyuMhVavSaHTpfrZqEmYB9YEdpKg8ieowg6zMpeedj0sjlL9md1lv-4xr1r3UCPHXDNiCwADBolMyg5w8nSs6FgFYaKSkJgp1jhG6ARXloNQ/s400/manage+templates.png" width="400" /> </a></div>
<div class="separator" style="clear: both; text-align: center;">
<br /></div>
<div class="separator" style="clear: both; text-align: left;">
The invoice you are customizing will appear highlighted in the Manage Templates window. Click on the Template name in the upper right and change the name as desired. The next time you create an invoice you simply click the Template drop down in the upper right corner and choose the invoice you wish to use. </div>
<div class="separator" style="clear: both; text-align: left;">
<br /></div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh2zDIyv58sACjQ5qNfnv6EJuAVonZYTscv7iZmAjs0EAB2HqSxM-nu28SO0-JWI8jRtpRJfBnvn55RzefaLH4uVKUVGyiYTbtAHKpiPcTDxXGYpLcta-4PD8eUvlLFZCEEE09dheNqb94/s1600/invoice+name+dropdown.png" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="233" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh2zDIyv58sACjQ5qNfnv6EJuAVonZYTscv7iZmAjs0EAB2HqSxM-nu28SO0-JWI8jRtpRJfBnvn55RzefaLH4uVKUVGyiYTbtAHKpiPcTDxXGYpLcta-4PD8eUvlLFZCEEE09dheNqb94/s400/invoice+name+dropdown.png" width="400" /></a></div>
<div class="separator" style="clear: both; text-align: left;">
<br /></div>
<br />
Again, please post comments so that answers to your questions can be addressed on the blog. Happy Bookkeeping!<br />
<br />
<div style="text-align: center;">
<span style="font-style: italic;">This
material is for informational
purposes only and not intended and financial, legal or tax advice.
Please consult your finance, legal or tax professional to confirm the
accuracy of all information. Quickbooks is a registered product of
Intuit.</span></div>
<br />
<div style="text-align: left;">
<a href="mailto:askyourbookkeeper@cox.net">Email</a> your question <span style="font-style: italic;"><br /></span></div>
<br />
<div style="text-align: center;">
<br /></div>Theresahttp://www.blogger.com/profile/04752960278920919195noreply@blogger.com0tag:blogger.com,1999:blog-2452858094624516737.post-3759790512214107072012-03-13T09:03:00.000-07:002012-03-13T09:03:28.463-07:00Work at Home? You May Qualify for the Home Office Deduction<br />
<br />If you use part of your home for business, you may be able to deduct
expenses for the business use of your home. The IRS has the following
six requirements to help you determine if you qualify for the home
office deduction.<br />
<div style="padding-left: 30px;">
1. Generally, in order to claim a business deduction for your home, you must use part of your home exclusively and regularly:</div>
<div style="padding-left: 60px;">
• as your principal place of business, or</div>
<div style="padding-left: 60px;">
• as a place to meet or deal with patients, clients or customers in the normal course of your business, or</div>
<div style="padding-left: 60px;">
• in any connection with your trade or
business where the business portion of your home is a separate structure
not attached to your home.</div>
<div style="padding-left: 30px;">
2. For certain storage use, rental use
or daycare-facility use, you are required to use the property regularly
but not exclusively.</div>
<div style="padding-left: 30px;">
3. Generally, the amount you can deduct
depends on the percentage of your home used for business. Your deduction
for certain expenses will be limited if your gross income from your
business is less than your total business expenses.</div>
<div style="padding-left: 30px;">
4. There are special rules for qualified daycare providers and for persons storing business inventory or product samples.</div>
<div style="padding-left: 30px;">
5. If you are self-employed, use Form
8829, Expenses for Business Use of Your Home to figure your home office
deduction and report those deductions on Form 1040 Schedule C, Profit or
Loss From Business.</div>
<div style="padding-left: 30px;">
6. If you are an employee, additional
rules apply for claiming the home office deduction. For example, the
regular and exclusive business use must be for the convenience of your
employer.</div>
For more information see IRS Publication 587, Business Use of Your Home, available at <a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTIwMzEzLjYxMzgyNTEmbWVzc2FnZWlkPU1EQi1QUkQtQlVMLTIwMTIwMzEzLjYxMzgyNTEmZGF0YWJhc2VpZD0xMDAxJnNlcmlhbD0xNjkxMDgyOCZlbWFpbGlkPXRoaWdieTdAY294Lm5ldCZ1c2VyaWQ9dGhpZ2J5N0Bjb3gubmV0JmZsPSZleHRyYT1NdWx0aXZhcmlhdGVJZD0mJiY=&&&130&&&http://www.IRS.gov" target="_blank">www.IRS.gov</a> or by calling 800-TAX-FORM (800-829-3676).<br />
<br /><strong>Links:</strong><br />
<ul>
<li><a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTIwMzEzLjYxMzgyNTEmbWVzc2FnZWlkPU1EQi1QUkQtQlVMLTIwMTIwMzEzLjYxMzgyNTEmZGF0YWJhc2VpZD0xMDAxJnNlcmlhbD0xNjkxMDgyOCZlbWFpbGlkPXRoaWdieTdAY294Lm5ldCZ1c2VyaWQ9dGhpZ2J5N0Bjb3gubmV0JmZsPSZleHRyYT1NdWx0aXZhcmlhdGVJZD0mJiY=&&&131&&&http://www.irs.gov/publications/p587/index.html" target="_blank">Publication 587</a>, Business Use of Your Home </li>
<li><a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTIwMzEzLjYxMzgyNTEmbWVzc2FnZWlkPU1EQi1QUkQtQlVMLTIwMTIwMzEzLjYxMzgyNTEmZGF0YWJhc2VpZD0xMDAxJnNlcmlhbD0xNjkxMDgyOCZlbWFpbGlkPXRoaWdieTdAY294Lm5ldCZ1c2VyaWQ9dGhpZ2J5N0Bjb3gubmV0JmZsPSZleHRyYT1NdWx0aXZhcmlhdGVJZD0mJiY=&&&132&&&http://www.irs.gov/pub/irs-pdf/i8829.pdf" target="_blank">Instructions: Form 8829</a>, Expenses for Business Use of Your Home </li>
</ul>
<br /><strong>YouTube Videos:</strong><br />
<em>Home Office Deduction - <a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTIwMzEzLjYxMzgyNTEmbWVzc2FnZWlkPU1EQi1QUkQtQlVMLTIwMTIwMzEzLjYxMzgyNTEmZGF0YWJhc2VpZD0xMDAxJnNlcmlhbD0xNjkxMDgyOCZlbWFpbGlkPXRoaWdieTdAY294Lm5ldCZ1c2VyaWQ9dGhpZ2J5N0Bjb3gubmV0JmZsPSZleHRyYT1NdWx0aXZhcmlhdGVJZD0mJiY=&&&133&&&http://www.youtube.com/watch?v=0NoSAFqxK7s" target="_blank">English</a>| <a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTIwMzEzLjYxMzgyNTEmbWVzc2FnZWlkPU1EQi1QUkQtQlVMLTIwMTIwMzEzLjYxMzgyNTEmZGF0YWJhc2VpZD0xMDAxJnNlcmlhbD0xNjkxMDgyOCZlbWFpbGlkPXRoaWdieTdAY294Lm5ldCZ1c2VyaWQ9dGhpZ2J5N0Bjb3gubmV0JmZsPSZleHRyYT1NdWx0aXZhcmlhdGVJZD0mJiY=&&&134&&&http://www.youtube.com/watch?v=1Aoc_d4BfeE&feature=youtu.be" target="_blank">Spanish</a>| <a href="http://links.govdelivery.com/track?type=click&enid=ZWFzPTEmbWFpbGluZ2lkPTIwMTIwMzEzLjYxMzgyNTEmbWVzc2FnZWlkPU1EQi1QUkQtQlVMLTIwMTIwMzEzLjYxMzgyNTEmZGF0YWJhc2VpZD0xMDAxJnNlcmlhbD0xNjkxMDgyOCZlbWFpbGlkPXRoaWdieTdAY294Lm5ldCZ1c2VyaWQ9dGhpZ2J5N0Bjb3gubmV0JmZsPSZleHRyYT1NdWx0aXZhcmlhdGVJZD0mJiY=&&&135&&&http://www.youtube.com/watch?v=PvfRiCkzv8c&feature=channel_video_title" target="_blank">ASL</a></em><br />
<a href="https://webtop.west.cox.net/dev/messageview.html#Fifteenth" target="_blank">Back to Top</a>Theresahttp://www.blogger.com/profile/04752960278920919195noreply@blogger.com0tag:blogger.com,1999:blog-2452858094624516737.post-85063621194546869742011-09-22T09:05:00.000-07:002011-09-22T09:05:07.207-07:00The Most Common Mistake I See With New Quickbooks UsersIt's a cute little commercial...<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<object width="320" height="266" class="BLOGGER-youtube-video" classid="clsid:D27CDB6E-AE6D-11cf-96B8-444553540000" codebase="http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=6,0,40,0" data-thumbnail-src="http://3.gvt0.com/vi/_EQguLOPmm8/0.jpg"><param name="movie" value="http://www.youtube.com/v/_EQguLOPmm8&fs=1&source=uds" />
<param name="bgcolor" value="#FFFFFF" />
<embed width="320" height="266" src="http://www.youtube.com/v/_EQguLOPmm8&fs=1&source=uds" type="application/x-shockwave-flash"></embed></object></div>
<br />
<br />
<br />
One thing I try to explain to new Quickbooks users is that the software IS user friendly but you still need basic knowledge of the software to avoid making mistakes, and basic bookkeeping knowledge to be sure your recording entries correctly.<br />
<br />
The most common mistake I have seen in my freelance bookkeeping practice is with Customer payments & Bank deposits. Quite often a new user will use Quickbooks to create an invoice to a customer and then enter a customer's payment to them as a bank deposit without applying the payment to the outstanding invoice. This will result in an ever-growing Accounts Receivable balance on the customers Balance Sheet as well as over-stated income on the Profit & Loss Statement.<br />
<br />
On the other hand, they may properly record the customers' payment using the "Receive Payment" feature, but again, they record the deposit as income rather than linking the deposit entry to the received payment. The clear indicator of this will be a balance in the Undeposited Funds account on the Balance Sheet, that continues to grow, and a duplication of Income reflected on the Profit and Loss statement.<br />
<br />
A simple way to be sure that you are not double posting income is to use the Sales by Customer Summary report and compare the total on this report to the income on the Profit & Loss Statement for the sale time period. These numbers should be the same.<br />
<br />
This assumes that all revenues are posted to customers in the company file either by invoice or sales receipt.. If you "deposit" a portion of your sales (for example small dollar cash sales at an event) directly to an income account without using the invoice or sales receipt option, this double-check will not work.<br />
<br />
For basics on how to use Quickbooks software, the classes offered by Intuit are a good investment. A local Quickbooks Proadvisor can offer individualized training that allows for questions specific to your situation and business.<br />
<br />
If you think you have made these errors, DON'T PANIC!. Quickbooks can be easy to mess-up but it is just as easy to fix. Your Proadvisor can show you how.<br />
<br />Theresahttp://www.blogger.com/profile/04752960278920919195noreply@blogger.com1tag:blogger.com,1999:blog-2452858094624516737.post-76158390846601342932011-07-06T07:56:00.001-07:002011-07-06T07:56:56.215-07:00Summer Day Camp Expenses May Qualify for a Tax Credit<div style="text-align: center;">
<span style="font-size: small;"><strong><br /></strong></span></div>
<div style="text-align: left;">
Along with the lazy, hazy days of summer
come some extra expenses, including summer day camp. But, the IRS has
some good news for parents: those added expenses may help you qualify
for a tax credit.</div>
Many parents who work or are looking for work must arrange for care
of their children under 13 years of age during the school vacation.<br />
Here are five facts the IRS wants you to know about a tax credit
available for child care expenses. The Child and Dependent Care Credit
is available for expenses incurred during the summer and throughout the
rest of the year.<br />
<ol>
<li>The cost of day camp may count as an expense towards the child and dependent care credit.</li>
<li>Expenses for overnight camps do not qualify.</li>
<li>Whether your childcare provider is a sitter at your home or a
daycare facility outside the home, you'll get some tax benefit if you
qualify for the credit.</li>
<li>The credit can be up to 35 percent of your qualifying expenses, depending on your income.</li>
<li>You may use up to $3,000 of the unreimbursed expenses paid in a
year for one qualifying individual or $6,000 for two or more qualifying
individuals to figure the credit.</li>
</ol>
For more information check out IRS Publication 503, Child and Dependent Care Expenses. This publication is available at <a href="http://www.irs.gov/" target="_blank">www.irs.gov</a> or by calling 800-TAX-FORM (800-829-3676).<br />
<br /><strong>Links:</strong><br />
<a href="http://www.irs.gov/pub/irs-pdf/p503.pdf" target="_blank">IRS Publication 503</a>, Child and Dependent Care ExpensesTheresahttp://www.blogger.com/profile/04752960278920919195noreply@blogger.com1tag:blogger.com,1999:blog-2452858094624516737.post-25940220448332084732011-06-01T18:39:00.000-07:002011-06-01T18:39:35.389-07:00I need to convert a Peachtree PC file on a remote service to a Quickbooks file on my Mac...Wow! One of the more complicated conversions I have done for a client came my way the other day. Not only was my client switching from Peachtree to Quickbooks, not only were they switching from PC to Mac, but they also had their Peachtree files located on a remote server out-of-state.<br />
<br />
Intuit offers a free conversion tool that can easily be downloaded onto your pc to convert a Peachtree file into a Quickbooks file. The client had already purchased Quickbooks for MAC. (You must have
Quickbooks for MAC 2007 or newer) In addition he had to purchase the
Quickbooks PC license and installed it on the Windows 7 platform that
was already installed on his MAC.<br />
<br />
The big complication in this particular conversion was that the Peachtree and Quickbooks software as well as the conversion tool have to be installed on the same computer and that computer has to be a local computer. Because his Peachtree files were located out of state on another computer we had to send the file to Intuit tech-support for conversion. The conversion was completed quickly and we had our new file back in less then 48 business hours. And, because my client went through a ProAdvisor his conversion was free.<br />
<br />
<br />
We restored this converted file to Quickbooks using the PC version of the software. The next step was to open this company file and use the feature in Quickbooks to prepare the file for a MAC conversion. (This is found under the "File" drop down menu on the top menu bar, and the "Utilties" feature. Select "Copy company file for Quickbooks MAC". Save the prepared file to your Desktop if your are already working on your MAC or to a flash drive if you are moving it to another computer.) Once complete we were able to open the company file in the MAC version and the training commenced.<br />
<br />
<br />
<i>One thing to NOTE if you are considering using Quickbooks for MAC and you have a Proadvisor or Accountant that regularly accesses you Quickbooks file. The remote access feature built-in to Quickbooks does not work with the MAC platform. Therefore, you can either allow access through Remote Desktop Connection, or run your Quickbooks on the Windows 7 parallel platform with your MAC.</i><br />
<br />
The client I worked with in this incident actually used the PC version to create a file for his personal bookkeeping. He wanted to have a handle on his personal spending and was able to download several years worth of transactions from his bank. This gave him the opportunity to become more familiar with Quickbooks software before tackling his multiple company files in the Mac version. I have a feeling he may end up sticking with the PC version now that he has experience with all of the extra features, and consequently the increased ease, that the PC version provides. <br />
<br />
<br />With the outside services provided intuit this project took several visits. Now that everything is complete this client should be making great progress with minimal follow-ups.Theresahttp://www.blogger.com/profile/04752960278920919195noreply@blogger.com2tag:blogger.com,1999:blog-2452858094624516737.post-72751838473816559392011-03-22T18:37:00.000-07:002011-03-22T18:37:52.048-07:00Eight Tips for Deducting Charitable ContributionsCharitable
contributions made to qualified organizations may help lower your tax
bill. The IRS has put together the following eight tips to help ensure
your contributions pay off on your tax return. <br />
<ol>
<li>If your goal is a legitimate tax deduction, then you must
be giving to a qualified organization. Also, you cannot deduct
contributions made to specific individuals, political organizations and
candidates. See IRS Publication 526, Charitable Contributions, for rules
on what constitutes a qualified organization. </li>
<li>To deduct a charitable contribution, you must file Form 1040 and itemize deductions on Schedule A. </li>
<li>If you receive a benefit because of your contribution such
as merchandise, tickets to a ball game or other goods and services, then
you can deduct only the amount that exceeds the fair market value of
the benefit received. </li>
<li>Donations of stock or other non-cash property are usually
valued at the fair market value of the property. Clothing and household
items must generally be in good used condition or better to be
deductible. Special rules apply to vehicle donations. </li>
<li>Fair market value is generally the price at which property
would change hands between a willing buyer and a willing seller, neither
having to buy or sell, and both having reasonable knowledge of all the
relevant facts. </li>
<li>Regardless of the amount, to deduct a contribution of cash,
check, or other monetary gift, you must maintain a bank record, payroll
deduction records or a written communication from the organization
containing the name of the organization, the date of the contribution
and amount of the contribution. For text message donations, a telephone
bill will meet the record-keeping requirement if it shows the name of
the receiving organization, the date of the contribution, and the amount
given. </li>
<li>To claim a deduction for contributions of cash or property
equaling $250 or more you must have a bank record, payroll deduction
records or a written acknowledgment from the qualified organization
showing the amount of the cash and a description of any property
contributed, and whether the organization provided any goods or services
in exchange for the gift. One document may satisfy both the written
communication requirement for monetary gifts and the written
acknowledgement requirement for all contributions of $250 or more. If
your total deduction for all noncash contributions for the year is over
$500, you must complete and attach IRS Form 8283, Noncash Charitable
Contributions, to your return. </li>
<li>Taxpayers donating an item or a group of similar items
valued at more than $5,000 must also complete Section B of Form 8283,
which generally requires an appraisal by a qualified appraiser. </li>
</ol>
For more information on charitable contributions,
refer to Form 8283 and its instructions, as well as Publication 526,
Charitable Contributions. For information on determining value, refer to
Publication 561, Determining the Value of Donated Property. These forms
and publications are available at <a href="http://links.govdelivery.com/track?type=click&enid=bWFpbGluZ2lkPTEyNzU4ODYmbWVzc2FnZWlkPVBSRC1CVUwtMTI3NTg4NiZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTEyNzY1OTQ0MzkmZW1haWxpZD10aGlnYnk3QGNveC5uZXQmdXNlcmlkPXRoaWdieTdAY294Lm5ldCZmbD0mZXh0cmE9TXVsdGl2YXJpYXRlSWQ9JiYm&&&129&&&http://www.irs.gov" target="_blank">http://www.irs.gov</a> or by calling 800-TAX-FORM (800-829-3676). <br />
<br />
<b>Links:</b>
<br />
<ul>
<li><a href="http://links.govdelivery.com/track?type=click&enid=bWFpbGluZ2lkPTEyNzU4ODYmbWVzc2FnZWlkPVBSRC1CVUwtMTI3NTg4NiZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTEyNzY1OTQ0MzkmZW1haWxpZD10aGlnYnk3QGNveC5uZXQmdXNlcmlkPXRoaWdieTdAY294Lm5ldCZmbD0mZXh0cmE9TXVsdGl2YXJpYXRlSWQ9JiYm&&&130&&&http://www.irs.gov/charities/article/0,,id=96136,00.html" target="_blank">Search for Charities or download Publication 78</a>, Cumulative List of Organizations </li>
<li>Publication 526, Charitable Contributions (<a href="http://links.govdelivery.com/track?type=click&enid=bWFpbGluZ2lkPTEyNzU4ODYmbWVzc2FnZWlkPVBSRC1CVUwtMTI3NTg4NiZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTEyNzY1OTQ0MzkmZW1haWxpZD10aGlnYnk3QGNveC5uZXQmdXNlcmlkPXRoaWdieTdAY294Lm5ldCZmbD0mZXh0cmE9TXVsdGl2YXJpYXRlSWQ9JiYm&&&131&&&http://www.irs.gov/pub/irs-pdf/p526.pdf" target="_blank">PDF 178K</a>) </li>
<li>Publication 561, Determining the Value of Donated Property (<a href="http://links.govdelivery.com/track?type=click&enid=bWFpbGluZ2lkPTEyNzU4ODYmbWVzc2FnZWlkPVBSRC1CVUwtMTI3NTg4NiZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTEyNzY1OTQ0MzkmZW1haWxpZD10aGlnYnk3QGNveC5uZXQmdXNlcmlkPXRoaWdieTdAY294Lm5ldCZmbD0mZXh0cmE9TXVsdGl2YXJpYXRlSWQ9JiYm&&&132&&&http://www.irs.gov/pub/irs-pdf/p561.pdf" target="_blank">PDF 101K</a>) </li>
<li>Form 1040, U.S. Individual Income Tax Return (<a href="http://links.govdelivery.com/track?type=click&enid=bWFpbGluZ2lkPTEyNzU4ODYmbWVzc2FnZWlkPVBSRC1CVUwtMTI3NTg4NiZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTEyNzY1OTQ0MzkmZW1haWxpZD10aGlnYnk3QGNveC5uZXQmdXNlcmlkPXRoaWdieTdAY294Lm5ldCZmbD0mZXh0cmE9TXVsdGl2YXJpYXRlSWQ9JiYm&&&133&&&http://www.irs.gov/pub/irs-pdf/f1040.pdf" target="_blank">PDF 176K</a>) </li>
<li>Schedule A, Itemized Deductions (<a href="http://links.govdelivery.com/track?type=click&enid=bWFpbGluZ2lkPTEyNzU4ODYmbWVzc2FnZWlkPVBSRC1CVUwtMTI3NTg4NiZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTEyNzY1OTQ0MzkmZW1haWxpZD10aGlnYnk3QGNveC5uZXQmdXNlcmlkPXRoaWdieTdAY294Lm5ldCZmbD0mZXh0cmE9TXVsdGl2YXJpYXRlSWQ9JiYm&&&134&&&http://www.irs.gov/pub/irs-pdf/f1040sa.pdf" target="_blank">PDF</a>) </li>
<li>Form 8283, Noncash Charitable Contributions (<a href="http://links.govdelivery.com/track?type=click&enid=bWFpbGluZ2lkPTEyNzU4ODYmbWVzc2FnZWlkPVBSRC1CVUwtMTI3NTg4NiZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTEyNzY1OTQ0MzkmZW1haWxpZD10aGlnYnk3QGNveC5uZXQmdXNlcmlkPXRoaWdieTdAY294Lm5ldCZmbD0mZXh0cmE9TXVsdGl2YXJpYXRlSWQ9JiYm&&&135&&&http://www.irs.gov/pub/irs-pdf/f8283.pdf" target="_blank">PDF</a>) </li>
<li>Instructions for Form 8283, Noncash Charitable Contributions (<a href="http://links.govdelivery.com/track?type=click&enid=bWFpbGluZ2lkPTEyNzU4ODYmbWVzc2FnZWlkPVBSRC1CVUwtMTI3NTg4NiZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTEyNzY1OTQ0MzkmZW1haWxpZD10aGlnYnk3QGNveC5uZXQmdXNlcmlkPXRoaWdieTdAY294Lm5ldCZmbD0mZXh0cmE9TXVsdGl2YXJpYXRlSWQ9JiYm&&&136&&&http://www.irs.gov/pub/irs-pdf/i8283.pdf" target="_blank">PDF</a>) </li>
</ul>Theresahttp://www.blogger.com/profile/04752960278920919195noreply@blogger.com0tag:blogger.com,1999:blog-2452858094624516737.post-2229622004593347052011-01-27T08:02:00.000-08:002011-01-27T08:03:47.289-08:00Open Purchase Order Report Shows PO's That Are Received In FullIn Quickbooks Pro Manufacturing Edition are you seeing Purchase Orders on your Open PO report in Quickbooks that have been received in full. Are you seeing the "Received In Full" stamp on these PO's when you open them to try to determine the cause of the error.<br />
<br />
Here is a little trick that I have found works well for me. Open the purchase order that is in question (be sure to keep track of the PO number), change the date of the PO to the year 2030 and save and close it. Use the "Find" feature with the PO number or locate it in the Customer center if you no longer see it on the report. Re-open the PO and change the date back to the correct year and save and close it.<br />
<br />
Give this a try and please comment on whether or not it has fixed your problem. It has worked well for me and I am curious to find out if others have the same result. Yes, I admit, it's just a treatment and doesn't really diagnose why this is happening.<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />Theresahttp://www.blogger.com/profile/04752960278920919195noreply@blogger.com2tag:blogger.com,1999:blog-2452858094624516737.post-36411476974411655632011-01-24T18:57:00.000-08:002011-01-24T18:57:05.842-08:00Tax Tips for Self-employed Individuals<br /><div align="left">
If you are in business for yourself,
or carry on a trade or business as a sole proprietor or an independent
contractor, you generally would consider yourself self-employed and you
would file IRS Schedule C, Profit or Loss From Business or Schedule
C-EZ, Net Profit From Business with your Form 1040. </div>
Here are six things the IRS wants you to know about self-employment: <br />
<ol>
<li>Self-employment can include work in addition to your
regular full-time business activities, such as part-time work you do at
home or in addition to your regular job. </li>
<li>If you are self-employed you generally have to pay
Self-employment Tax. Self-employment tax is a social security and
Medicare tax primarily for individuals who work for themselves. It is
similar to the social security and Medicare taxes withheld from the pay
of most wage earners. You figure SE tax yourself using a Form 1040
Schedule SE. Also, you can deduct half of your self-employment tax in
figuring your adjusted gross income. </li>
<li>If you are self-employed you generally have to make
estimated tax payments. This applies even if you also have a full-time
or part-time job and your employer withholds taxes from your wages.
Estimated tax is the method used to pay tax on income that is not
subject to withholding. If you don’t make quarterly payments you may be
penalized for underpayment at the end of the tax year. </li>
<li>You can deduct the costs of running your business. These
costs are known as business expenses. These are costs you do not have to
capitalize or include in the cost of goods sold but can deduct in the
current year. </li>
<li>To be deductible, a business expense must be both ordinary
and necessary. An ordinary expense is one that is common and accepted in
your field of business. A necessary expense is one that is helpful and
appropriate for your business. An expense does not have to be
indispensable to be considered necessary. </li>
<li>For more information see IRS Publication 334, Tax Guide for
Small Business, IRS Publication 535, Business Expenses and Publication
505, Tax Withholding and Estimated Tax, available at <a href="http://links.govdelivery.com/track?type=click&enid=bWFpbGluZ2lkPTExODQxMTUmbWVzc2FnZWlkPVBSRC1CVUwtMTE4NDExNSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTEyNzY3MzgzOTcmZW1haWxpZD10aGlnYnk3QGNveC5uZXQmdXNlcmlkPXRoaWdieTdAY294Lm5ldCZmbD0mZXh0cmE9TXVsdGl2YXJpYXRlSWQ9JiYm&&&129&&&http://www.irs.gov" target="_blank">http://www.irs.gov</a> or by calling the IRS forms and publications order line at 800-TAX-FORM (800-829-3676). </li>
</ol>
<br /><strong>Links:</strong>
<br />
<ul>
<li>Publication 334, Tax Guide for Small Business (<a href="http://links.govdelivery.com/track?type=click&enid=bWFpbGluZ2lkPTExODQxMTUmbWVzc2FnZWlkPVBSRC1CVUwtMTE4NDExNSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTEyNzY3MzgzOTcmZW1haWxpZD10aGlnYnk3QGNveC5uZXQmdXNlcmlkPXRoaWdieTdAY294Lm5ldCZmbD0mZXh0cmE9TXVsdGl2YXJpYXRlSWQ9JiYm&&&130&&&http://www.irs.gov/pub/irs-prior/p334--2009.pdf" target="_blank">PDF</a>) </li>
<li>Publication 535, Business Expenses (<a href="http://links.govdelivery.com/track?type=click&enid=bWFpbGluZ2lkPTExODQxMTUmbWVzc2FnZWlkPVBSRC1CVUwtMTE4NDExNSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTEyNzY3MzgzOTcmZW1haWxpZD10aGlnYnk3QGNveC5uZXQmdXNlcmlkPXRoaWdieTdAY294Lm5ldCZmbD0mZXh0cmE9TXVsdGl2YXJpYXRlSWQ9JiYm&&&131&&&http://www.irs.gov/pub/irs-dft/p535--dft.pdf" target="_blank">PDF</a>) </li>
<li>Publication 505, Tax Withholding and Estimated Tax (<a href="http://links.govdelivery.com/track?type=click&enid=bWFpbGluZ2lkPTExODQxMTUmbWVzc2FnZWlkPVBSRC1CVUwtMTE4NDExNSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTEyNzY3MzgzOTcmZW1haWxpZD10aGlnYnk3QGNveC5uZXQmdXNlcmlkPXRoaWdieTdAY294Lm5ldCZmbD0mZXh0cmE9TXVsdGl2YXJpYXRlSWQ9JiYm&&&132&&&http://www.irs.gov/pub/irs-prior/p505--2009.pdf" target="_blank">PDF</a>) </li>
</ul>
<div style="font-size: 10pt;">
<a href="https://webtop.west.cox.net/dev/messageview.html#Fifteenth" target="_blank">Back to Top</a> </div>Theresahttp://www.blogger.com/profile/04752960278920919195noreply@blogger.com0tag:blogger.com,1999:blog-2452858094624516737.post-58219742986160430532011-01-13T18:33:00.000-08:002011-01-13T18:33:23.714-08:00Eight Facts About Filing Status<div align="left">
The
first step to filing your federal income tax return is to determine
which filing status to use. Your filing status is used to determine your
filing requirements, standard deduction, eligibility for certain
credits and deductions, and your correct tax. There are five filing
statuses: Single, Married Filing Jointly, Married Filing Separately,
Head of Household and Qualifying Widow(er) with Dependent Child. </div>
Here
are eight facts about the five filing status options the IRS wants you
to know so that you can choose the best option for your situation.
<br />
<ol>
<li>Your marital status on the last day of the year determines your marital status for the entire year. </li>
<li>If more than one filing status applies to you, choose the one that gives you the lowest tax obligation. </li>
<li>Single filing status generally applies to anyone who is
unmarried, divorced or legally separated according to state law.
</li>
<li>A married couple may file a joint return together. The couple’s filing status would be Married Filing Jointly. </li>
<li>If your spouse died during the year and you did not remarry
during 2010, usually you may still file a joint return with that spouse
for the year of death. </li>
<li>A married couple may elect to file their returns
separately. Each person’s filing status would generally be Married
Filing Separately. </li>
<li>Head of Household generally applies to taxpayers who are
unmarried. You must also have paid more than half the cost of
maintaining a home for you and a qualifying person to qualify for this
filing status. </li>
<li>You may be able to choose Qualifying Widow(er) with
Dependent Child as your filing status if your spouse died during 2008 or
2009, you have a dependent child and you meet certain other conditions.
</li>
</ol>
There’s much more information about determining
your filing status in IRS Publication 501, Exemptions, Standard
Deduction, and Filing Information. Publication 501 is available at <a href="http://links.govdelivery.com/track?type=click&enid=bWFpbGluZ2lkPTExNjc4NDkmbWVzc2FnZWlkPVBSRC1CVUwtMTE2Nzg0OSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTEyNzY3MjYzNDgmZW1haWxpZD10aGlnYnk3QGNveC5uZXQmdXNlcmlkPXRoaWdieTdAY294Lm5ldCZmbD0mZXh0cmE9TXVsdGl2YXJpYXRlSWQ9JiYm&&&129&&&http://www.irs.gov" target="_blank">http://www.irs.gov</a>
or by calling 800-TAX-FORM (800-829-3676). You can also use the
Interactive Tax Assistant on the IRS website to determine your filing
status. The ITA tool is a tax law resource on the IRS website that takes
you through a series of questions and provides you with responses to
tax law questions.<br />
<br />
<a href="mailto:askyourbookkeeper@cox.net" style="color: black;">Email</a><span style="color: black;"> your question </span><br />Theresahttp://www.blogger.com/profile/04752960278920919195noreply@blogger.com0tag:blogger.com,1999:blog-2452858094624516737.post-90668171880679783172011-01-12T08:31:00.000-08:002011-01-12T08:31:42.406-08:00Reconciling Your Credit Card - How To Post The Finance ChargeI worked with a client recently who contacted me because they were having issues in Quickbooks for Mac. After a brief online conversation I quickly determined that they obviously knew the basics of what they were doing and that we probably just needed to do a little bit of detective work to solve the problem.<br />
<br />
The problem resolved around the fact that every time they entered the finance charge amount from their credit card statement into the reconciliation page, that same amount was showing up as a payment made on the account. Not only were these "payment" entries continuing to pile up without being reconciled, but the book balance of the account grew more and more inaccurate. <br />
<br />
The process, in both the Mac and PC version of Quickbooks, involves entering the finance charge amount in the appropriate box of the reconciliation screen, and choosing the correct expense account to assess this charge to. <br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi1XYLIXtdgVFudVEoGrsNLeUwTwt4ioqvkIiTyvSiQRNVYo3MkyrBIu7g-6dAUIXu4S-eT6VFPUGabgUiy9GVjmjbz5Peba2pqvcAjvMOeKuWKToMJwOr-mT9jSZBz-5t5bNyDkUDl_5g/s1600/credit+card+recon.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="252" n4="true" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEi1XYLIXtdgVFudVEoGrsNLeUwTwt4ioqvkIiTyvSiQRNVYo3MkyrBIu7g-6dAUIXu4S-eT6VFPUGabgUiy9GVjmjbz5Peba2pqvcAjvMOeKuWKToMJwOr-mT9jSZBz-5t5bNyDkUDl_5g/s400/credit+card+recon.jpg" width="400" /></a></div>
<br />
So the simplest questions to ask were, are you choosing the correct expense account and is it properly set-up as an Expense account "Type". The answer to both was yes.<br />
<br />
Everything the client was doing was correct, so I asked them to send me a copy of the screen shot from their reconciliation screen. Quickbooks retains the expense account information applied to the previous reconciliation so this screen shot would confirm the proper entry (or not). The screen shot gave us the answer to the clients dilemma. Even though they knew where the finance charge should have been expensed to, the screen shot revealed that they were actually posting this charge right back to the credit card. And since the finance charge journal is a debit to the expense account it was appearing as a payment, as a credit card payment is also a debit posting.<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjp0G0F1xfcyJ-yZ65L6GF-ry7ZZEOoV_jIqB0vyYCbCvxNFv5QMuapHNitJ-KqpT42PQ1Scoo46Z9GbCTRtJ9FIaF91elj4tdN9VCzXWPSUNp7wI5ZPGNdR9RBaOCKtc-BD9-Ww01L14k/s1600/finance+charge+error.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="237" n4="true" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjp0G0F1xfcyJ-yZ65L6GF-ry7ZZEOoV_jIqB0vyYCbCvxNFv5QMuapHNitJ-KqpT42PQ1Scoo46Z9GbCTRtJ9FIaF91elj4tdN9VCzXWPSUNp7wI5ZPGNdR9RBaOCKtc-BD9-Ww01L14k/s400/finance+charge+error.jpg" width="400" /></a></div>
<br />
New versions of Quickbooks will catch this error and not allow you to post the finance charge to the same account you are reconciling. This clients version did not have that protection.<br />
<br />
I would strongly recommend that you consider upgrading your software if your version is at least 4 years old. There are many great features that each new version brings on board and you may be missing out on changes that can make your bookkeeping easier and more accurate.<br />
<br />
<br />
<br />
<a href="mailto:askyourbookkeeper@cox.net" style="color: black;">Email</a><span style="color: black;"> your question </span>Theresahttp://www.blogger.com/profile/04752960278920919195noreply@blogger.com0tag:blogger.com,1999:blog-2452858094624516737.post-87522392673747719772010-07-16T17:14:00.000-07:002010-07-16T17:14:04.367-07:00The advantage of downloading from your bank regularly - Fraud PreventionMany of my clients download their bank transactions directly from their banks online system. Some, however, only do this once a month when they are ready to reconcile all of their accounts. There is one very strong reason I recommend completing the bank download feature in Quickbooks at least once a week.<br />
<br />
Fraud!<br />
<br />
I have experienced this personally, and I have seen it happen to my clients. <br />
<br />
You could be in for a very rude awaking as you trod along during the month keeping track of your account register as you enter each transaction that you complete. Then one day you get a phone call from the bank saying you are overdrawn. Or, perhaps you are out in the field and attempt to use your credit or debit card only to have the charge declined.<br />
<br />
Downloading regularly can bring fraudulent charges to your attention immediately and allow you to dispute those charges before overdraft and/or over limit charges start to pile up on your account. It's much easier to get credit for these charges with your bank as soon as the fraud is detected then it might be a few weeks or even months later.<br />
<br />
You may think that you have nothing to worry about. You take every possible precaution you can think of to prevent identity theft. You shred every paper, pay monthly fees to a credit monitoring service, and more. But a stolen debit card number can wipe out your cash on hand in one day!<br />
<br />
Consider keeping your personal records on Quickbooks (in a separate "company file") so that you can use the bank download feature for these accounts as well. Being diligent, and monitoring for yourself is your best defense.<br />
<br />
<br />
<br />Theresahttp://www.blogger.com/profile/04752960278920919195noreply@blogger.com0tag:blogger.com,1999:blog-2452858094624516737.post-22592667109285337952010-04-02T08:39:00.000-07:002010-04-02T08:39:43.044-07:00Can I use Quickbooks to do this?<span style="color: red;">Q.)</span> Im working in a Multinational Pharmaceutical company that operate in the
Gulf
as in many other countries, and my Region role is to market the products
we don't keep inventory ,we don't sell, we don't collect payments, even we
don't prepare balance sheets. We forward our expenses (allocated by account) to HQ's and they do the
rest. Our expenses are as follows<br />
<br />
1 payroll<br />
2 office related ( rent, courier,telephone,etc)<br />
3 marketing related (meetings,gifts,,, etc)<br />
<br />
My role is to prepare expenses formats, make payment to suppliers,
control expenditures and prepare a lot of reports shows how much we
spend and on which products are alike
and prepare expense formats to be sent to HQ's as well.<br />
<br />
I dont have a tool to manage all of these , so i use excel which in fact
very poor tool to manages all of these tasks. Can Quickbooks help me to prepare monthly statements per account to
be sent to HQ's and also help me to prepare internal reports that can
help the team to wisly spend on marketing actvites and give me control
over spendings against budgets?<br />
<br />
<span style="color: red;">
A)</span> Even though you don't generate any financial statements you can use
Quickbooks to create a budget for your spending, track how your spending
compares with your budget, create spending reports by sales rep,
location, etc.<br />
<br />
Since you are paying vendors you can use Quickbooks to track what you
expense and owe. In addition, it sounds like you have a checking
account that Quickbooks can assist you in balancing. <br />
<br />
I agree, Excel is probably a very time consuming way to track all of
this. Even so, Quickbooks allows you to export just about every
transaction and report into Excel so you can easily manipulate it, while
having accurate numbers. Most of the reports can be modified
extensively and run in many different ways to include a lot of different
information.<br />
<br />
I think with some time, and experimentation you would find it very
useful. <br />
<br />
<b style="color: red;">Q)
</b>Can I set up cost centers , like for Every Product a seprate cost center
where i can charge them for any marketing actvities
and generate the reports to show how much each product (cost center) is
spending against budgets for its own?<br />
<br />
In case this is possible, which edition of QB's i should use,
Non profit ,pro?<br />
<br />
<b style="color: red;">A)</b> Use the "Class" feature in Quickbooks to create your Cost Centers.
Quickbooks Pro should work for you. I don't think the non-profit
edition applies but you <i>can</i> use it and make changes to suit your
reporting needs.<br />
<br />
With the class feature you can create a separate budget and track all of
your expenses. Each transaction you enter will give you a "class"
column. Remember this one important thing...you have to enter the
information correctly to get it reported back to your correctly. You
can turn on a "reminder" in Quickbooks that will let you know if you
forgot to enter the Class(Cost Center) in a transaction.<br />
<br />
<div style="color: blue;">
Response) <span style="color: black;">Thank you So Much You were Very hepful.</span> <span style="color: black;">I really appreciate it.</span><br />
<div style="color: black;">
<br /></div>
<div style="color: black; text-align: center;">
<span style="font-style: italic;">This
material is for informational
purposes only and not intended and financial, legal or tax advice.
Please consult your finance, legal or tax professional to confirm the
accuracy of all information. Quickbooks is a registered product of
Intuit.</span></div>
<div style="color: black;">
<br /></div>
<div style="text-align: left;">
<a href="mailto:askyourbookkeeper@cox.net" style="color: black;">Email</a><span style="color: black;"> your question </span><span style="font-style: italic;"><br /></span></div>
</div>
<div style="color: blue;">
<br /></div>
<div style="color: blue;">
<span style="color: black;">
</span></div>
<div id="post_message_114360">
</div>Theresahttp://www.blogger.com/profile/04752960278920919195noreply@blogger.com0tag:blogger.com,1999:blog-2452858094624516737.post-36774372650306446402010-03-31T19:19:00.000-07:002010-03-31T19:19:23.438-07:00Help with setting up accounts for a non-profit. (follow up)Q. Currently, our donations from individuals are going into the main
"Undesignated Funds" account, and the donations from churches are going
into separate sub-accounts for each church. Sometimes individuals will
request that their donation go towards the building fund, scholarships,
etc, and those are put into their own separate income accounts. Churches
rarely designate where the funds should go, they just go into the
general funds.<br />
<br />
Should all the donations go in the same "Donations" income account? Or
should we do "Individual Donations" and "Church Donations" accounts?
Should we do a sub account for designated funds, or leave those funds in
their separate accounts as they are currently? Or should we set up the
building fund, scholarships, etc, as classes within the individual
donations account? We would be needing the easiest way to see the total
amount of funds received. <br />
<br />
<br />
A. Your un-designated funds would be the General Fund Account. Each donor does not need their own income account, nor does the donor type need
it's own account because you will be able to generate future reports for
any income account, and limit them to a Donor (Church, individual, etc)
name and or/ by Donor type, which you have already created.<br />
<br />
Your income accounts might look like this...<br />
<br />
Camp Income<br />
General Donations<br />
<br />
I recommend creating the restricted funds income accounts using the "Other
Income" account type. Such as...<br />
<br />
Building Donations<br />
Scholarship Donations<br />
<br />
This way they will still appear on your annual P&L but will appear
separately from general income & expenses at the bottom of the report.<br />
<br />
Create expense accounts for the restricted funds as well. You can also
create sub accounts for more detail. For example, you might create
Architect, Permits & Plans, Build-out, etc. as sub accounts under a
Building Project expense account. Create these using the "Other
Expense" account type so that these expenses will appear at the lower
part of the report along with the restricted income.<br />
<br />
You also want to create liability accounts for items like the Building
Fund and Scholarship Fund, etc. <br />
<br />
At the end of the fiscal year the income total for the year will need to be moved out of
Retained Earnings and into these restricted liability accounts with a
single journal entry. Create these accounts as "Equity" type accounts.<br />
<br />
Under these Equity accounts create sub-accounts called "Funds
Distributed".
This is where you will move the expense total for the year out of retained earnings, again using a journal entry. <br />
<br />
This will allow the balance of the restricted funds to appear on your balance sheet in the equity section.
Recording transactions in the income and expense accounts first will also allow you to pull detailed
reports of the income and expenses at any given point later on.<br />
<br />
<div style="text-align: center;">
<span style="font-style: italic;">This
material is for informational
purposes only and not intended and financial, legal or tax advice.
Please consult your finance, legal or tax professional to confirm the
accuracy of all information. Quickbooks is a registered product of
Intuit.</span></div>
<br />
<div style="text-align: left;">
<a href="mailto:askyourbookkeeper@cox.net">Email</a> your question <span style="font-style: italic;"><br /></span></div>
<div style="text-align: left;">
<br /></div>
<br />
<br />Theresahttp://www.blogger.com/profile/04752960278920919195noreply@blogger.com0tag:blogger.com,1999:blog-2452858094624516737.post-71424727595690276362010-03-26T09:54:00.000-07:002010-03-26T09:54:49.348-07:00Ten Tips for Deducting Charitable ContributionsWhen preparing to file your federal tax return,
don’t forget your contributions to charitable organizations. If you made
qualified donations last year, you may be able to take a tax deduction
if you itemize on IRS Form 1040, Schedule A. <br />
The
IRS has put together the following 10 tips to help ensure your
contributions pay off on your tax return. <br />
<ol>
<li>Contributions must be made to qualified organizations to be
deductible. You cannot deduct contributions made to specific
individuals, political organizations and candidates. </li>
<li>You cannot deduct the value of your time or services. Nor
can you deduct the cost of raffles, bingo or other games of chance.
</li>
<li>If your contributions entitle you to merchandise, goods or
services, including admission to a charity ball, banquet, theatrical
performance or sporting event, you can deduct only the amount that
exceeds the fair market value of the benefit received. </li>
<li>Donations of stock or other property are usually valued at
the fair market value of the property. Special rules apply to donation
of vehicles. </li>
<li>Clothing and household items donated must generally be in
good used condition or better to be deductible. </li>
<li>Regardless of the amount, to deduct a contribution of cash,
check, or other monetary gift, you must maintain a bank record, payroll
deduction records or a written communication from the organization
containing the name of the organization, the date of the contribution
and amount of the contribution. For donations by text message, a
telephone bill will meet the record-keeping requirement if it shows the
name of the organization receiving your donation, the date of the
contribution, and the amount given. </li>
<li>To claim a deduction for contributions of cash or property
equaling $250 or more you must have a bank record, payroll deduction
records or a written acknowledgment from the qualified organization
showing the amount of the cash and a description of any property
contributed, and whether the organization provided any goods or services
in exchange for the gift. One document may satisfy both the written
communication requirement for monetary gifts and the written
acknowledgement requirement for all contributions of $250 or more.
</li>
<li>If your total deduction for all noncash contributions for
the year is over $500, you must complete and attach IRS Form 8283,
Noncash Charitable Contributions, to your return. </li>
<li>Taxpayers donating an item or a group of similar items
valued at more than $5,000 must also complete Section B of Form 8283,
which requires an appraisal by a qualified appraiser. </li>
<li>To deduct a charitable contribution, you must file Form
1040 and itemize deductions on Schedule A. </li>
</ol>
For more information on charitable contributions,
refer to Form 8283 and its instructions, as well as Publication 526, <i>Charitable
Contributions</i>. For information on determining value, refer to
Publication 561, <i>Determining the Value of Donated Property</i>.
These forms and publications are available at IRS.gov or by calling
800-TAX-FORM (800-829-3676). <br />
<br />
<b>Links:</b>
<br />
<ul>
<li><a href="http://www.irs.gov/charities/article/0,,id=96136,00.html" target="_blank">Search for Charities</a> or download Publication 78,
Cumulative List of Organizations </li>
<li>Publication 526, Charitable Contributions (<a href="http://www.irs.gov/pub/irs-pdf/p526.pdf" target="_blank">PDF 178K</a>)
</li>
<li>Publication 561, Determining the Value of Donated Property (<a href="http://www.irs.gov/pub/irs-pdf/p561.pdf" target="_blank">PDF 101K</a>)
</li>
<li>Form 1040, U.S. Individual Income Tax Return (<a href="http://www.irs.gov/pub/irs-pdf/f1040.pdf" target="_blank">PDF 176K</a>)
</li>
<li>Schedule A, Itemized Deductions (<a href="http://www.irs.gov/pub/irs-pdf/f1040sa.pdf" target="_blank">PDF</a>)
</li>
<li>Form 8283, Noncash Charitable Contributions (<a href="http://www.irs.gov/pub/irs-pdf/f8283.pdf" target="_blank">PDF</a>)
</li>
<li>Instructions for Form 8283, Noncash Charitable
Contributions (<a href="http://www.irs.gov/pub/irs-pdf/i8283.pdf" target="_blank">PDF</a>) </li>
</ul>
<br />
<b>YouTube Videos:</b>
<br />
Charitable Contributions: <a href="http://www.youtube.com/watch?v=wuqX7vec_u4&feature=channel_page" target="_blank">English</a> | <a href="http://www.youtube.com/watch?v=R_k7OjjkIyE" target="_blank">Spanish</a>
| <a href="http://www.youtube.com/watch?v=l9d4o6kHEnk&feature=channel_page" target="_blank">ASL</a>
<br />
Haiti Earthquake Donations: <a href="http://www.youtube.com/watch?v=ZLPzcJcKKEE" target="_blank">English</a>
| <a href="http://www.youtube.com/user/IRSvideosmultilingua#p/a/u/1/k18kPgET9rg" target="_blank">Spanish</a> | <a href="http://www.youtube.com/IRSvideosASL#p/u/12/tOUConp5ELk" target="_blank">ASL</a> <br />
<div style="font-size: 10pt;">
<br /> <br />
<div style="text-align: center;">
<span style="font-style: italic;">This
material is for informational
purposes only and not intended and financial, legal or tax advice.
Please consult your finance, legal or tax professional to confirm the
accuracy of all information. </span></div>
<br />
<div style="text-align: left;">
<a href="mailto:askyourbookkeeper@cox.net">Email</a>
your question <span style="font-style: italic;"><br /></span></div>
</div>Theresahttp://www.blogger.com/profile/04752960278920919195noreply@blogger.com0tag:blogger.com,1999:blog-2452858094624516737.post-27042077053829553042010-03-25T10:03:00.000-07:002010-03-25T10:03:40.646-07:00How Do I Record A Pre-Payment From My Customer In QuickbooksYou have two options depending on how you wish to have the information appear on your balance sheet.<br />
<br />
<b>Method #1</b><br />
<br />
The simplest way is to enter the payment in the Customer menu under "Receive Payments". If there are invoices already entered for this customer and you do not want to apply this prepayment to those invoices, just un-check the invoice that Quickbooks auto-applied the payment to.<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgI6oowh4O8-6L2f3S62El4hbw5ahPXnUz6j2L5TVJRCsW_CRxn9pENgB60JhsrBt9Nb-hX6ZqA2LpOv51atRs2gjqll_QfW6YDqU_25FRTXL5RXMV2Am_qx3eyz_8GG0YxY8aC3LoLebY/s1600/uncheck+payment+selection.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="514" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgI6oowh4O8-6L2f3S62El4hbw5ahPXnUz6j2L5TVJRCsW_CRxn9pENgB60JhsrBt9Nb-hX6ZqA2LpOv51atRs2gjqll_QfW6YDqU_25FRTXL5RXMV2Am_qx3eyz_8GG0YxY8aC3LoLebY/s640/uncheck+payment+selection.jpg" width="640" /></a></div>
<br />
After you uncheck this option the Overpayment note at the bottom of the screen will disappear. Click Save & Close and an option box will pop up on the screen. Since this is a prepayment will want to the select OK which will save the payment to the Customers account as an un-applied payment.<br />
<br />
Entering the pre-payment using this method will have the effect of reducing the accounts receivable balance in the Assets portion of your balance sheet.<br />
<br />
If you need to see which customers have un-applied payments posted to their accounts you can run the A/R Aging Detail report under the Customers & Receivables section of the Reports menu. Any un-applied payments will appear as credits (minus) on the report.<br />
<br />
In addition, by using this method you can apply the prepayment to any Job associated with this customer by double clicking on the payment in the Customer Center and selecting the invoice(s) to apply it to. All Jobs for a Customer will appear for a payment posted just to the Customer and not to a specific job. <br />
<br />
<b>Method #2</b><br />
<br />
If you wish to post your Customer's prepayments to a liability account that will appear in the liabilities sections of your Balance Sheet you can do this using a Sales Receipt to record this transaction.<br />
<br />
Step one is to create an account on your chart of accounts for the liability such as Customer Deposits. Use the Other Current Liability account type when setting this up. Next you will need to create an Item in the Item list to direct to pre-payment to this liability.<br />
<br />
From the Item button on the Item list select New. Choose the "Other Charge" Item type.<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjjj1niw2NYh_9Lsk_gDHqPfsSNaU94U06JGXXX92dvw5WLRwZ4863jEjOrZNBdoJVGDGOR1fPXPDwMtuaRZr8ho_nHCdVzbRdC6nafQckMS9YNVRTNx3-uqt66oyH7_LAessiGkQ3CXw0/s1600/Other+charge+item.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="556" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjjj1niw2NYh_9Lsk_gDHqPfsSNaU94U06JGXXX92dvw5WLRwZ4863jEjOrZNBdoJVGDGOR1fPXPDwMtuaRZr8ho_nHCdVzbRdC6nafQckMS9YNVRTNx3-uqt66oyH7_LAessiGkQ3CXw0/s640/Other+charge+item.jpg" width="640" /></a></div>
<br />
Enter the appropriate name and description for the item, choose the non-taxable tax code and select the account the you created in the chart of accounts for this liability.<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgBji1bkc9O47crKtfSj_Ii7j73epPzxhaPFvXDj1dqkXNObZXSce0bcq6c3R86peq3Odvr5EtRv1TMC-yqBfvAO8X-AQYr1AAlGPmk3gFekuVbW_znBG-zXobkUDmOEqVyKiz4wNJwR5Q/s1600/customer+prepay+item.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="470" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgBji1bkc9O47crKtfSj_Ii7j73epPzxhaPFvXDj1dqkXNObZXSce0bcq6c3R86peq3Odvr5EtRv1TMC-yqBfvAO8X-AQYr1AAlGPmk3gFekuVbW_znBG-zXobkUDmOEqVyKiz4wNJwR5Q/s640/customer+prepay+item.jpg" width="640" /></a></div>
<br />
<div class="separator" style="clear: both; text-align: center;">
</div>
Create a sales receipt for the customer using the Sales Receipt form. Use the Item that you created in the item list and enter the amount of the payment.<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgCYRvT-ylBpciKvlTKaqQs67YayEPytQJmIzgzmGAujRQ44Knd4ez8duye0wIspxdSFqZpIxNHFTwEQcIdqwgyXU8nDdAkJSLpdxThKArySVUA21zDSzZrymeMiBTCHajzoCARaH2tVm0/s1600/prepayment+sales+receipt.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="484" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgCYRvT-ylBpciKvlTKaqQs67YayEPytQJmIzgzmGAujRQ44Knd4ez8duye0wIspxdSFqZpIxNHFTwEQcIdqwgyXU8nDdAkJSLpdxThKArySVUA21zDSzZrymeMiBTCHajzoCARaH2tVm0/s640/prepayment+sales+receipt.jpg" width="640" /></a></div>
<br />
In this way you can record the payment number the payment method, and because you are using a Sales Receipt and not an invoice the funds appear as a balance in the liabilities section of the balance sheet rather than reducing the Accounts Receivable balance on the balance sheet. Once this Sales Receipt is created you can see the transaction on various Customer reports. However, it will not appear in any Accounts Receivable reports.<br />
<br />
When you are ready to apply this prepayment to a customer invoice you will need to do a journal entry to move this amount into accounts receivable. Simply debit the Customer Deposits account and credit Accounts Receivable. Include this Customer name in the Customer/Job column of the journal entry. If you use Jobs under your Customer register, the journal entry to
credit accounts receivable must be attached to the "Job" (in the
Customer/Job column) that is being invoiced. <br />
<br />
<div class="separator" style="clear: both; text-align: center;">
</div>
<div class="separator" style="clear: both; text-align: center;">
</div>
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjeDuDactdUJCgHl23qWqQdR-YAwtHXvuXb-dypPjojHDQp178z-je15OJ3xCpaF7L8LaQ14v3GVM4kSO5kUKRrHkzt5aBZ-df8AhqMy0RccP7mYGQyu1lkHQxVw2d6H_Ovv1btO_qGp8E/s1600/journal+entry+cust+prepay.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="330" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjeDuDactdUJCgHl23qWqQdR-YAwtHXvuXb-dypPjojHDQp178z-je15OJ3xCpaF7L8LaQ14v3GVM4kSO5kUKRrHkzt5aBZ-df8AhqMy0RccP7mYGQyu1lkHQxVw2d6H_Ovv1btO_qGp8E/s640/journal+entry+cust+prepay.jpg" width="640" /></a></div>
<br />
To apply this prepayment to an invoice, open the invoice by double clicking on it in the Customer Center and click the Apply Credits button. Once the available credit has been selected choose Done.<br />
<br />
<div style="text-align: center;">
<span style="font-style: italic;">This
material is for informational
purposes only and not intended and financial, legal or tax advice.
Please consult your finance, legal or tax professional to confirm the
accuracy of all information. Quickbooks is a registered product of
Intuit.</span></div>
<br />
<div style="text-align: left;">
<a href="mailto:askyourbookkeeper@cox.net">Email</a> your question <span style="font-style: italic;"><br /></span></div>
<div style="text-align: left;">
<br /></div>
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />Theresahttp://www.blogger.com/profile/04752960278920919195noreply@blogger.com0tag:blogger.com,1999:blog-2452858094624516737.post-70350618845915797842010-03-23T08:30:00.000-07:002010-03-23T08:30:35.695-07:00Paying A Bill UsingTwo Separate Forms of Payment<i>"I have entered a bill that now needs to be paid. The bill however is
made up of two payments. One being petty cash and the other from the
business bank account. On the pay bills screen I can't seem to see a way
to enter the two amounts seperatly, it only has the option to pay the
whole bill as one payment. Which will cause problems when I come to
reconile."</i><br />
<br />
In Quickbooks you'll have to enter each payment separately. First create the payment
from the Pay Bills screen for the check. After you select the bill you
are paying you can change the Amount To Pay column to reflect how much
the check is for. Either print the check, or assign the check number if
you have already written it. Then repeat the process if your Petty
Cash is set up in the Chart of Accounts as a "Bank" account, and choose
the the PC bank account for your payment method.<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjLKWYNbohsoAePfn8m9JCK1H-hmp53m4HO-hYcZvK3uSpzjOERUSFrkaY4cpgvlXqgVnrf0_Ar2X_RYcB9e0h1BMQBa-4Z0z1q6qjRhorxxubm9-k-siLy-kGnEoHguouJ24p5HZD2fLA/s1600-h/change+bill+pay+amount.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="523" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjLKWYNbohsoAePfn8m9JCK1H-hmp53m4HO-hYcZvK3uSpzjOERUSFrkaY4cpgvlXqgVnrf0_Ar2X_RYcB9e0h1BMQBa-4Z0z1q6qjRhorxxubm9-k-siLy-kGnEoHguouJ24p5HZD2fLA/s640/change+bill+pay+amount.jpg" width="640" /></a></div>
<br />
<br />
Or use a journal entry to debit Accounts Payable (attach this debit to
the Vendor name) and credit Petty Cash for the amount of the payment.
Once you do this journal entry you will have an available credit to
apply to the bill in the Pay Bills window.<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEibHHk_7P6j0OEv8IaM1Vk612YQ2aBae8MUHNHK_PRviLMOgxoHZ4WQsDS_6O-yKQHXZ4W8GZn8gnZ7PV_6HRuYEY8oJEiuXvpimb4ZGe97qoUQUxYCT5RDle5j5IE2Z_6EUqXniS-L3VA/s1600-h/petty+cash+pay+je.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="302" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEibHHk_7P6j0OEv8IaM1Vk612YQ2aBae8MUHNHK_PRviLMOgxoHZ4WQsDS_6O-yKQHXZ4W8GZn8gnZ7PV_6HRuYEY8oJEiuXvpimb4ZGe97qoUQUxYCT5RDle5j5IE2Z_6EUqXniS-L3VA/s640/petty+cash+pay+je.jpg" width="640" /></a></div>
<br />
<br />
Return to the Pay bills window, select the bill you are applying the payment to and you will see an amount equal to the Petty Cash payment in the Available Credit section of the Pay Bills window. You will not the this amount until you have actually marked the Bill to pay.<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh2oWF2fiabRtFNHMHV96rH-qfGZegu0Vt6fS-BiaomDp0wwMyfImpOSmWf7ZoK7h81nv9qV-tIospD0wi5T8KwXjUMvboR7QKrdDGd_XByZ5gzruav13LAFS3gngaY4jKhSEtFWTIPgw8/s1600-h/available+credits.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="580" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEh2oWF2fiabRtFNHMHV96rH-qfGZegu0Vt6fS-BiaomDp0wwMyfImpOSmWf7ZoK7h81nv9qV-tIospD0wi5T8KwXjUMvboR7QKrdDGd_XByZ5gzruav13LAFS3gngaY4jKhSEtFWTIPgw8/s640/available+credits.jpg" width="640" /></a></div>
<br />
Then simply select the Set Credits button and you can apply the payment in the Apply Credits window. If there is only one credit available to use, Quickbooks will select it automatically, then check Done.<br />
<br />
<div class="separator" style="clear: both; text-align: center;">
<a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjwFRMG_UI8wcG2YyTRVAs9TXcW3-yb40WqXHBjSGZ4PqFr426BnEFlQiTDp-ClZ2vl2FasDZPLbLBr15Om2kmD5bMWHsRByRbHjAH6pKBEchSndJwjBpkwyfDxP6j6C1EuBH4VftKxusk/s1600-h/apply+available+credits.jpg" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" height="578" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjwFRMG_UI8wcG2YyTRVAs9TXcW3-yb40WqXHBjSGZ4PqFr426BnEFlQiTDp-ClZ2vl2FasDZPLbLBr15Om2kmD5bMWHsRByRbHjAH6pKBEchSndJwjBpkwyfDxP6j6C1EuBH4VftKxusk/s640/apply+available+credits.jpg" width="640" /></a></div>
<br />
<br />
You will be returned to the Pay Bills window. Choose Pay Selected Bills then Done in the Payment Summary window.<br />
<br />
<div style="text-align: center;">
<span style="font-style: italic;">This material is for informational
purposes only and not intended and financial, legal or tax advice.
Please consult your finance, legal or tax professional to confirm the
accuracy of all information. Quickbooks is a registered product of
Intuit.</span></div>
<br />
<div style="text-align: left;">
<a href="mailto:askyourbookkeeper@cox.net">Email</a> your question <span style="font-style: italic;"><br /></span></div>
<div style="text-align: left;">
<br /></div>
<br />
<br />
<br />
<br />Theresahttp://www.blogger.com/profile/04752960278920919195noreply@blogger.com1tag:blogger.com,1999:blog-2452858094624516737.post-60612886926925343682010-03-12T11:42:00.000-08:002010-03-12T11:42:19.070-08:00Five Tips to Avoid Tax Time Stress<div align="center">
<b><span style="font-size: medium;"></span></b></div>
Filing your tax return
doesn’t have to be stressful. The IRS has put together five
stress-relieving tips to help you. <br />
1. <b>Don’t
Procrastinate</b> Resist the temptation to put off your taxes
until the very last minute. Rushing to meet the filing deadline may
cause you to overlook potential sources of tax savings and will likely
increase your risk of making an error. <br />
2,. <b>Visit
the IRS Website</b> In 2009, more than 296 million visits were
made to IRS.gov. Make 1040 Central your first stop to learn the latest
news and find answers to your questions. <br />
3. <b>File
Your Return Electronically</b> Last year, two out of three tax
returns were filed electronically. More than 800 million tax returns
have been processed safely and securely over the past 20 years. Use
e-file and direct deposit to get your refund in as few as10 days.
E-filed returns have a much lower error rate. Taxpayers receive a fast
acknowledgement that the IRS received the return, a service not
available to paper filers. You can e-file through your tax preparer or
commercial software. Or, you can use Free File, a service offered by the
IRS and private sector partners to prepare and e-file your federal
return for free. Again, see IRS.gov for more information. <br />
4. <b>Don’t Panic if You Can’t Pay </b>If you cannot
pay the full amount of taxes you owe by the April 15th deadline, you
should still file your return by the deadline and pay as much as you can
to avoid penalties and interest. You should also contact the IRS to
discuss your payment options at 1-800-829-1040. The agency may be able
to provide some relief such as a short-term extension to pay, an
installment agreement or an offer in compromise. <br />
More
than 75 percent of taxpayers eligible for an Installment Agreement can
apply using the Web-based Online Payment Agreement application available
on IRS.gov. To find out more about this simple and convenient process
type “Online Payment Agreement” in the search box on the IRS.gov
homepage. <br />
5. <b>Request an Extension of Time
to File – But Pay on Time</b> If the April 15 clock runs out, you
can get an automatic six-month extension of time to file until October
15. However, this extension of time to file does not give you more time
to pay any taxes due. If you have not paid at least 90 percent of the
total tax due by the April deadline you may also be subject to an
Estimated Tax Penalty. To obtain an extension, just file Form 4868,
Application for Automatic Extension of Time to File U.S. Individual
Income Tax Return. The easiest way to file a Form 4868 is through Free
File at <a href="http://www.irs.gov/freefile" target="_blank">www.irs.gov/freefile</a>.
Form 4868 is also available at IRS.gov or you can call 800-TAX-FORM
(800-829-3676) and have a paper form mailed to you. <br />
<br />
<b>Links:</b>
<br />
<ul>
<li><a href="https://webtop.west.cox.net/cloud-lzmail/www.officialpayments.com/fed" target="_blank">Official Payments Corporation</a> </li>
<li><a href="https://webtop.west.cox.net/cloud-lzmail/www.pay1040.com" target="_blank">Link2Gov Corporation</a>
</li>
<li><a href="http://www.irs.gov/efile/article/0,,id=118508,00.html" target="_blank">Electronic filing</a>
</li>
<li><a href="http://www.irs.gov/efile/article/0,,id=118986,00.html" target="_blank">Free File</a>
</li>
<li><a href="http://www.irs.gov/efile/article/0,,id=97400,00.html" target="_blank">Electronic payment options</a>
</li>
<li><a href="http://www.irs.gov/pub/irs-pdf/f4868.pdf" target="_blank">Form 4868</a>, Application for Automatic Extension of
Time to File U.S. Individual Income Tax Return (PDF) </li>
</ul>
<div style="text-align: center;">
<span style="font-style: italic;">This
material is for informational
purposes only and not intended and financial, legal or tax advice.
Please consult your finance, legal or tax professional to confirm the
accuracy of all information. </span></div>
<br />
<div style="text-align: left;">
<a href="mailto:askyourbookkeeper@cox.net">Email</a>
your question <span style="font-style: italic;"><br /></span></div>
<br />
<ul>
</ul>Theresahttp://www.blogger.com/profile/04752960278920919195noreply@blogger.com0tag:blogger.com,1999:blog-2452858094624516737.post-14531669226174400832010-03-04T13:24:00.000-08:002010-03-04T13:24:20.845-08:00TITLE MATTERS: Who Owns the Car?If your company is paying for a car, make sure you title the car in the company's name. I the company makes the payment but the title is in your own name, the IRS may deny the business depreciation deduction. Your company may also lose deductions for other auto expenses such as insurance, gas & maintenance.<br />
<br />
If you are a sole proprietor this does not apply. You and your business
aren't separate entities.<br />
<br />
Even if the car is in the company's name, if you use it for personal driving of any kind you still have to keep track of your mileage to determine what portion of the vehicles expenses will be deductible on your taxes. Keep accurate records that can be physically presented if you are audited.<br />
<br />
Take the first step with your vehicle title, as well as other business assets, or or you may have an uphill battle.<br />
<br />
<div style="text-align: center;">
<span style="font-style: italic;">This
material is for informational
purposes only and not intended and financial, legal or tax advice.
Please consult your finance, legal or tax professional to confirm the
accuracy of all information. </span></div>
<br />
<div style="text-align: left;">
<a href="mailto:askyourbookkeeper@cox.net">Email</a>
your question <span style="font-style: italic;"><br /></span></div>
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />
<br />Theresahttp://www.blogger.com/profile/04752960278920919195noreply@blogger.com0tag:blogger.com,1999:blog-2452858094624516737.post-10616656810333458092010-03-04T07:56:00.000-08:002010-03-04T07:56:31.322-08:00Five Important Tax Credits<div align="center">
<b><span style="font-size: medium;"></span></b></div>
You might be eligible for a valuable tax credit. A
tax credit is a dollar-for-dollar reduction of taxes owed. Some credits
are even refundable, which means you might receive a refund rather than
owe any taxes at all. Here are five popular tax credits you should
consider before filing your 2009 Federal Income Tax Return: <br />
<ol>
<li>The Earned Income Tax Credit is a refundable credit for
certain people who work and have earned income from wages,
self-employment or farming. Income, age and the number of qualifying
children determine the amount of the credit. EITC reduces the amount of
tax you owe and may also give you a refund. For more information see IRS
Publication 596, Earned Income Credit. </li>
<li>The Child and Dependent Care Credit is for expenses paid
for the care of your qualifying children under age 13, or for a disabled
spouse or dependent, to enable you to work or look for work. For more
information, see IRS Publication 503, Child and Dependent Care Expenses.
</li>
<li>The Child Tax Credit is for people who have a qualifying
child. The maximum amount of the credit is $1,000 for each qualifying
child. This credit can be claimed in addition to the credit for child
and dependent care expenses. For more information on the Child Tax
Credit, see IRS Publication 972, Child Tax Credit. </li>
<li>The Retirement Savings Contributions Credit, also known as
the Saver’s Credit, is designed to help low-to-moderate income workers
save for retirement. You may qualify if your income is below a certain
limit and you contribute to an IRA or workplace retirement plan, such as
a 401(k) plan. The Saver’s Credit is available in addition to any other
tax savings that apply. For more information, see IRS Publication 590,
Individual Retirement Arrangements (IRAs). </li>
<li>The Health Coverage Tax Credit pays up to 80% of the health
insurance premiums for eligible Trade Adjustment Assistance recipients
and Pension Benefit Guaranty Corporation payees. You can complete IRS
Form 8885, Health Coverage Tax Credit to claim the credit on your tax
return. To determine if you’re qualified, or to find out how to receive
the HCTC each month, visit IRS.gov and search for “HCTC.” </li>
</ol>
There are other credits available to eligible
taxpayers. Since many qualifications and limitations apply to the
various tax credits, taxpayers should carefully check their tax form
instructions, the listed publications and additional information
available at IRS.gov. IRS forms and publications are also available by
calling 800-TAX-FORM (800-829-3676). <br />
<b>Links:</b>
<br />
<ul>
<li><a href="http://www.irs.gov/individuals/article/0,,id=118506,00.html" target="_blank">1040 Central</a>
</li>
<li>Publication 596, Earned Income Credit (EIC) (<a href="http://www.irs.gov/pub/irs-pdf/p596.pdf" target="_blank">PDF 281K</a>)
</li>
<li>Publication 972, Child Tax Credit (<a href="http://www.irs.gov/pub/irs-pdf/p972.pdf" target="_blank">PDF 128K</a>)
</li>
<li>Publication 503, Child and Dependent Care Expenses (<a href="http://www.irs.gov/pub/irs-pdf/p503.pdf" target="_blank">PDF 167K</a>)
</li>
<li><a href="http://www.irs.gov/newsroom/article/0,,id=200742,00.html" target="_blank">Saver's Credit</a>
</li>
<li><a href="http://www.irs.gov/individuals/article/0,,id=109960,00.html" target="_blank">Health Coverage Tax Credit</a>
</li>
<li>Form 1040 Instructions (<a href="http://www.irs.gov/pub/irs-pdf/i1040.pdf" target="_blank">PDF
1,101K</a>) </li>
</ul>
<br />
<b>YouTube Videos:</b>
<br />
Earned Income Tax Credit - <a href="http://www.youtube.com/watch?v=B1Qo9EmTg-g" target="_blank">English</a>
| <a href="http://www.youtube.com/user/IRSvideosmultilingua#p/a/u/0/TsYBmCwK0zc" target="_blank">Spanish</a> | <a href="http://www.youtube.com/watch?v=9vh9JcMXMr0" target="_blank">ASL</a><br />
<br />
<div style="text-align: center;">
<span style="font-style: italic;">This
material is for informational
purposes only and not intended and financial, legal or tax advice.
Please consult your finance, legal or tax professional to confirm the
accuracy of all information. </span></div>
<br />
<div style="text-align: left;">
<a href="mailto:askyourbookkeeper@cox.net">Email</a>
your question <span style="font-style: italic;"><br /></span></div>Theresahttp://www.blogger.com/profile/04752960278920919195noreply@blogger.com0tag:blogger.com,1999:blog-2452858094624516737.post-7438502685091951202010-03-04T07:49:00.000-08:002010-03-04T07:49:06.055-08:00Ten Facts about Mortgage Debt Forgiveness<div align="center">
<b><span style="font-size: medium;"></span></b></div>
If your mortgage debt
is partly or entirely forgiven during tax years 2007 through 2012, you
may be able to claim special tax relief and exclude the debt forgiven
from your income. Here are 10 facts the IRS wants you to know about
Mortgage Debt Forgiveness. <br />
<ol>
<li>Normally, debt forgiveness results in taxable income.
However, under the Mortgage Forgiveness Debt Relief Act of 2007, you may
be able to exclude up to $2 million of debt forgiven on your principal
residence. </li>
<li>The limit is $1 million for a married person filing a
separate return. </li>
<li>You may exclude debt reduced through mortgage
restructuring, as well as mortgage debt forgiven in a foreclosure.
</li>
<li>To qualify, the debt must have been used to buy, build or
substantially improve your principal residence and be secured by that
residence. </li>
<li>Refinanced debt proceeds used for the purpose of
substantially improving your principal residence also qualify for the
exclusion. </li>
<li>Proceeds of refinanced debt used for other purposes – for
example, to pay off credit card debt – do not qualify for the exclusion.
</li>
<li>If you qualify, claim the special exclusion by filling out
Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness,
and attach it to your federal income tax return for the tax year in
which the qualified debt was forgiven. </li>
<li>Debt forgiven on second homes, rental property, business
property, credit cards or car loans does not qualify for the tax relief
provision. In some cases, however, other tax relief provisions – such as
insolvency – may be applicable. IRS Form 982 provides more details
about these provisions. </li>
<li>If your debt is reduced or eliminated you normally will
receive a year-end statement, Form 1099-C, Cancellation of Debt, from
your lender. By law, this form must show the amount of debt forgiven and
the fair market value of any property foreclosed. </li>
<li>Examine the Form 1099-C carefully. Notify the lender
immediately if any of the information shown is incorrect. You should pay
particular attention to the amount of debt forgiven in Box 2 as well as
the value listed for your home in Box 7. </li>
</ol>
For more information about the Mortgage
Forgiveness Debt Relief Act of 2007, visit IRS.gov. A good resource is
IRS Publication 4681, Canceled Debts, Foreclosures, Repossessions and
Abandonments. Taxpayers may obtain a copy of this publication and Form
982 either by downloading them from IRS.gov or by calling 800-TAX-FORM
(800-829-3676). <br />
<br />
<b>Links:</b>
<br />
<ul>
<li><a href="http://www.irs.gov/pub/irs-pdf/f982.pdf" target="_blank">Form 982</a>
</li>
<li><a href="http://www.irs.gov/pub/irs-pdf/i1099ac.pdf" target="_blank">Form 1099-C</a></li>
</ul>
<div style="text-align: center;">
<span style="font-style: italic;">This
material is for informational
purposes only and not intended and financial, legal or tax advice.
Please consult your finance, legal or tax professional to confirm the
accuracy of all information. </span></div>
<br />
<div style="text-align: left;">
<a href="mailto:askyourbookkeeper@cox.net">Email</a>
your question <span style="font-style: italic;"><br /></span></div>Theresahttp://www.blogger.com/profile/04752960278920919195noreply@blogger.com0tag:blogger.com,1999:blog-2452858094624516737.post-26691700050279615172010-02-08T14:17:00.000-08:002010-02-08T14:18:38.162-08:00Eight Facts about the New Vehicle Sales and Excise Tax DeductionIf
you bought a new vehicle in 2009, you may be entitled to a special tax
deduction for the sales and excise taxes on your purchase. <br />
Here are eight important facts the Internal Revenue Service wants you to know about this deduction: <br />
<ol>
<li>State
and local sales and excise taxes paid on up to $49,500 of the purchase
price of each qualifying vehicle are deductible. </li>
<li>Qualified motor vehicles generally include new cars, light trucks, motor homes and motorcycles. </li>
<li>To
qualify for the deduction, the new cars, light trucks and motorcycles
must weigh 8,500 pounds or less. New motor homes are not subject to the
weight limit. </li>
<li>Purchases must occur after Feb. 16, 2009, and before Jan. 1, 2010. </li>
<li>Purchases
made in states without a sales tax — such as Alaska, Delaware, Hawaii,
Montana, New Hampshire and Oregon — may also qualify for the deduction.
Taxpayers in these states may be entitled to deduct other qualifying
fees or taxes imposed by the state or local government. The fees or
taxes that qualify must be assessed on the purchase of the vehicle and
must be based on the vehicle’s sales price or as a per unit fee. </li>
<li>This
deduction can be taken regardless of whether the buyers itemize their
deductions or choose the standard deduction. Taxpayers who do not
itemize will add this additional amount to the standard deduction on
their 2009 tax return. </li>
<li>The amount of the deduction
is phased out for taxpayers whose modified adjusted gross income is
between $125,000 and $135,000 for individual filers and between
$250,000 and $260,000 for joint filers. </li>
<li>Taxpayers who do not itemize must complete Schedule L, Standard Deduction for Certain Filers to claim the deduction. </li>
</ol>
For more information about these rules and other eligibility requirements visit IRS.gov/recovery. <br />
<br />
<b>Links:</b>
<br />
<ul>
<li>The American Recovery and Reinvestment Act of 2009: <a href="http://www.irs.gov/newsroom/article/0,,id=204335,00.html" target="_blank">Information Center</a> </li>
</ul>
<b>YouTube Video:</b>
<br />
<ul>
<li>Vehicle Tax Deduction-Claim It: <a href="http://www.youtube.com/watch?v=nw8dtXsUTS0" target="_blank">English</a> | <a href="http://www.youtube.com/watch?v=_CwL3XviwXE" target="_blank">Spanish</a> | <a href="http://www.youtube.com/IRSvideosASL#p/a/u/2/T5I-wn2B8Is" target="_blank">ASL</a></li>
</ul>
<div style="text-align: center;">
<span style="font-style: italic;">This material is for informational
purposes only and not intended and financial, legal or tax advice.
Please consult your finance, legal or tax professional to confirm the
accuracy of all information. </span></div>
<br />
<div style="text-align: left;">
<a href="mailto:askyourbookkeeper@cox.net">Email</a> your question <span style="font-style: italic;"><br /></span></div>
<br />
<ul>
</ul>Theresahttp://www.blogger.com/profile/04752960278920919195noreply@blogger.com0tag:blogger.com,1999:blog-2452858094624516737.post-3646905425673548632010-01-22T16:34:00.000-08:002010-01-22T16:34:30.067-08:00Ten Things You Should Know about the Making Work Pay Tax CreditMany
working taxpayers are eligible for the Making Work Pay Tax Credit, a
provision created by the American Recovery and Reinvestment Act in
early 2009. <br />
Here are 10 things the IRS wants you to
know about this tax credit to ensure you receive the entire amount for
which you are eligible. <br />
1. In 2009 and 2010, the Making
Work Pay provision provides a refundable tax credit of up to $400 for
individuals and up to $800 for married taxpayers filing joint returns. <br />
2.
For taxpayers who receive a paycheck and are subject to withholding,
the credit will typically be handled by their employers through
automated withholding changes. <br />
3. Taxpayers receiving
less than the full amount of the allowable credit through reduced
withholding will be entitled to claim any remaining credit when they
file their tax return. <br />
4. The amount of the credit
actually received during 2009 in the form of reduced withholding will
be reported on your 2009 tax return. Taxpayers who do not have taxes
withheld by an employer during the year can claim the credit on their
2009 tax return filed in 2010. <br />
5. Taxpayers who file
Form 1040 or 1040A will use Schedule M, Making Work Pay and Government
Retiree Credits to figure the Making Work Pay Tax Credit. Completing
Schedule M will help taxpayers determine whether they have already
received the full credit in their paycheck or are due more money as a
result of the credit. <br />
6. Taxpayers who file Form
1040-EZ will use the worksheet for Line 8 on the back of the 1040-EZ to
figure their Making Work Pay Tax Credit. <br />
7. In 2010,
you may notice that your paychecks are slightly lower than in 2009. The
slight decrease may be because of the Making Work Pay Credit. Most of
the credit for wage earners is distributed through reduced
withholding. The credit – which was spread out over nine months last
year – is being spread over 12 months this year. A little less credit
in each paycheck means slightly higher withholding. But don’t worry,
in the end it all adds up. <br />
8. Certain taxpayers should
review their tax withholding to ensure enough tax is being withheld in
2010. Those who should pay particular attention to their withholding
include: married couples with two incomes, individuals with multiple
jobs, dependents, pensioners, Social Security recipients who also work,
and workers without valid Social Security numbers. <br />
Having
too little tax withheld could result in potentially smaller refunds or
– in limited instances – small balance due rather than an expected
refund. <br />
9. To ensure your current withholding is
appropriate for your individual situation, you can review Publication
919, How Do I Adjust My Tax Withholding? You can also perform a quick
check of your withholding using the interactive IRS Withholding
Calculator on IRS.gov. <br />
10. If you find you need to
adjust your withholding, submit a revised Form W-4, Employee's
Withholding Allowance Certificate to your employer. <br />
Visit
IRS.gov for more information about the making Work Pay Tax Credit,
Schedule M, Form W-4 or Publication 919. You can also call 800-TAX-FORM
(800-829-3676) to order forms and publications. <br />
<b>Links:</b>
<br />
<ul>
<li><a href="http://www.irs.gov/newsroom/article/0,,id=204335,00.html" target="_blank">The American Recovery and Reinvestment Act of 2009: Information Center</a>
</li>
<li><a href="http://www.irs.gov/pub/irs-pdf/p919.pdf" target="_blank">Publication 919</a>, How Do I Adjust My Withholding?</li>
</ul>
<div style="text-align: center;">
<span style="font-style: italic;">This material is for informational
purposes only and not intended and financial, legal or tax advice.
Please consult your finance, legal or tax professional to confirm the
accuracy of all information. </span><br />
</div>
<br />
<div style="text-align: left;">
<a href="mailto:askyourbookkeeper@cox.net">Email</a> your question <span style="font-style: italic;"><br /></span><br />
</div>
<br />
<br />
<ul>
</ul>
<input id="gwProxy" type="hidden" /><input id="jsProxy" onclick="jsCall();" type="hidden" /><br />
<div id="refHTML">
</div>
<input id="gwProxy" type="hidden" /><!--Session data--><input id="jsProxy" onclick="jsCall();" type="hidden" /><div id="refHTML">
</div>Theresahttp://www.blogger.com/profile/04752960278920919195noreply@blogger.com0tag:blogger.com,1999:blog-2452858094624516737.post-40213432661936300862010-01-22T07:41:00.000-08:002010-01-22T07:41:23.456-08:00Five Ways to Obtain IRS Forms and Publications<div align="center">
<b><span style="font-size: medium;"></span></b><br />
</div>
The
Internal Revenue Service has free tax forms and publications on a wide
variety of topics. If you need IRS forms, here are five easy methods
for getting the information you need. <br />
<ol>
<li>On
the Internet You can access forms and publications on the IRS Web site
24 hours a day, seven days a week, at IRS.gov. </li>
<li>By
Phone You can call 1-800-TAX-FORM (800-829-3676) Monday through Friday
7:00 am to 10:00 pm local time – except Alaska and Hawaii which are
Pacific time – to order current year forms, instructions and
publications as well as prior year forms and instructions. You should
receive your order within 10 days. </li>
<li>At Convenient
Locations in Your Community During the tax filing season, many
libraries and post offices offer free tax forms to taxpayers. Some
libraries also have copies of commonly requested publications. Many
large grocery stores, copy centers and office supply stores have forms
you can photocopy or print from a CD. </li>
<li>By Mail
Order your tax forms and publications from the IRS National
Distribution Center at 1201 N. Mitsubishi Motorway, Bloomington, IL,
61705-6613. You should receive your products 10 days after receipt of
your order. </li>
<li>Taxpayer Assistance Centers There are
401 TACs across the country where IRS offers face-to-face assistance to
taxpayers, and where taxpayers can pick up many IRS forms and
publications. Visit IRS.gov and go to Contact My Local Office on the
Individuals page to find a list of TAC locations by state. On the
Contact My Local Office page, you can also select TAC Site Search and
enter your zip code to find the IRS walk-in office nearest you as well
as a list of the services available at specific offices. </li>
</ol>
<b>Links:</b>
<br />
<ul>
<li>Publication 910, Guide to Free Tax Services (<a href="http://www.irs.gov/pub/irs-pdf/p910.pdf" target="_blank">PDF 636K</a>) </li>
<li>Publication 2053A, Quick and Easy Access to IRS Tax Help and Forms (<a href="http://www.irs.gov/pub/irs-pdf/p2053a.pdf" target="_blank">PDF 40K</a>) </li>
<li>Order <a href="http://www.irs.gov/app/scripts/exit.jsp?dest=http%3A%2F%2Fwww.ntis.gov%2Fproducts%2Fbestsellers%2Firscd_2002.asp%3Floc%3D4-2-0" target="_blank">Publication 1796</a>, Federal Tax Products on CD-ROM, from NTIS — the National Technical Information Service. </li>
<li><a href="http://www.irs.gov/app/scripts/exit.jsp?dest=http%3A%2F%2Fwww.taxadmin.org%2Ffta%2Flink%2Fforms.html" target="_blank">State tax forms</a></li>
</ul>
<div style="text-align: center;">
<span style="font-style: italic;">This material is for informational
purposes only and not intended and financial, legal or tax advice.
Please consult your finance, legal or tax professional to confirm the
accuracy of all information. </span><br />
</div>
<br />
<div style="text-align: left;">
<a href="mailto:askyourbookkeeper@cox.net">Email</a> your question <span style="font-style: italic;"><br /></span><br />
</div>
<br />
<ul>
</ul>
<input id="gwProxy" type="hidden" /><input id="jsProxy" onclick="jsCall();" type="hidden" /><br />
<div id="refHTML">
</div>
<input id="gwProxy" type="hidden" /><!--Session data--><input id="jsProxy" onclick="jsCall();" type="hidden" /><div id="refHTML">
</div>Theresahttp://www.blogger.com/profile/04752960278920919195noreply@blogger.com0tag:blogger.com,1999:blog-2452858094624516737.post-56113949248444708912010-01-19T14:39:00.000-08:002010-01-19T14:39:16.130-08:00Tax Credit Helps Pay for Higher Education Expenses<div align="center">
<b></b><i>From the IRS</i><br />
</div>
<div align="left">
The
American Recovery and Reinvestment Act was passed in early 2009 and
created the American Opportunity Credit. This educational tax credit –
which expanded the existing Hope credit – helps parents and students
pay for college and college-related expenses. <br />
</div>
Here are
the top nine things the Internal Revenue Service wants you to know
about this valuable credit and how you can benefit from it when you
file your 2009 taxes. <br />
<ol>
<li>The credit can be claimed for tuition and certain fees paid for higher education in 2009 and 2010. </li>
<li>The
American Opportunity Credit can be claimed for expenses paid for any of
the first four years of post-secondary education. </li>
<li>The
credit is worth up to $2,500 and is based on a percentage of the cost
of qualified tuition and related expenses paid during the taxable year
for each eligible student. This is a $700 increase from the Hope
Credit. </li>
<li>The term "qualified tuition and related
expenses" has been expanded to include expenditures for required course
materials. For this purpose, the term "course materials" means books,
supplies and equipment required for a course of study. </li>
<li>Taxpayers
will receive a tax credit based on 100 percent of the first $2,000 of
tuition, fees and course materials paid during the taxable year, plus
25 percent of the next $2,000 of tuition, fees and course materials
paid during the taxable year. </li>
<li>Forty percent of the
credit is refundable, so even those who owe no tax can get up to $1,000
of the credit for each eligible student as cash back. </li>
<li>To
be eligible for the full credit, your modified adjusted gross income
must be $80,000 or less -- $160,000 or less for joint filers. </li>
<li>The
credit begins to decrease for individuals with incomes above $80,000 or
$160,000 for joint filers and is not available for individuals who make
more than $90,000 or $180,000 for joint filers. </li>
<li>The
credit is claimed using Form 8863, Education Credits, (American
Opportunity, Hope, and Lifetime Learning Credits), and is attached to
Form 1040 or 1040A. </li>
</ol>
For more information about the American Opportunity Tax Credit visit the IRS Web site at IRS.gov/recovery. <br />
<br />
<b>Links</b>
<br />
<ul>
<li><a href="http://www.irs.gov/newsroom/article/0,,id=204335,00.html" target="_blank">The American Recovery and Reinvestment Act of 2009: Information Center</a> </li>
<li><a href="http://www.irs.gov/newsroom/article/0,,id=205674,00.html" target="_blank">American Opportunity Credit</a> </li>
<li><a href="http://www.irs.gov/pub/irs-pdf/f8863.pdf" target="_blank">Form 8863</a>, Education Credits </li>
</ul>
<div style="text-align: center;">
<span style="font-style: italic;">This material is for informational
purposes only and not intended and financial, legal or tax advice.
Please consult your finance, legal or tax professional to confirm the
accuracy of all information. </span><br />
</div>
<br />
<div style="text-align: left;">
<a href="mailto:askyourbookkeeper@cox.net">Email</a> your question <span style="font-style: italic;"><br /></span><br />
</div>
<br />
<ul>
</ul>
<input id="gwProxy" type="hidden" /><input id="jsProxy" onclick="jsCall();" type="hidden" /><br />
<div id="refHTML">
</div>
<input id="gwProxy" type="hidden" /><!--Session data--><input id="jsProxy" onclick="jsCall();" type="hidden" /><div id="refHTML">
</div>Theresahttp://www.blogger.com/profile/04752960278920919195noreply@blogger.com0