A checklist to ensure you have a successful tax-day?

If you are confused on what documents are necessary to help you have  a successful tax-day, we have put together a short list of items that may make it a little easier on you and your accountant.

Income-related documents: Bring any & all W-2, 1098, 1099 & schedule K-1 forms. 

Expense-related documents: 

• Childcare expenses
• Moving expenses
• Work-related expenses such as uniforms, tools, or education
• Student loan interest
• IRA contributions
• Medical expenses
• Charity contributions 
• Real estate and property taxes paid
• Alimony paid or received

 The key to having a good tax season is by keeping good records. 
"To be prepared is half the victory." - Miguel de Cervantess

Last years tax return: Bring last year’s tax return for reference, as you may qualify for some of the same deductions and this will make it easier to calculate this years return.

Goals: You may not realize that your accountant is also available to discuss your financial goals and will assist you in reaching those goals by making short and long-term goals.

To meet our team and for guidance on how to navigate through this tax season - please contact Ken Anaya at: (844) KAA-4TAX or (844) 522-4829

Is it possible to run a successful business?

Thinking about ways to get your new business off the ground can seem daunting. There are a few tips that I think may help you on your journey. A few questions I would ask myself:

• Do I even believe in the service or product that I am offering? People can sense if you are truly passionate about your brand. It is so important to educate your clients on why your services standout and why you truly believe it will enrich their lives.
• Are you offering something that your client cannot live without? It is easy to come up with a business idea but it is entirely different to offer a service that will actually benefit someone. Being clear on why, how and when your role in someones life will equate to making their life easier and give them something they will not find anywhere else is vital to your success.
• Do I have the ability to follow through? Are you driven enough to work long hours, go the extra mile, answer mundane questions and requests? As someone who believes in offering an amazing customer experience, I understand that owning a business is not always convenient. There are random phone calls, emails with last minute changes and these are all part of the package.
• Do I have the drive to continually grow? When you come up with a genius idea and finally put all the pieces of the puzzle together, there will be someone waiting in the background ready to jump on the bandwagon. Do you have the ability to be innovative, to constantly challenge yourself and your product? If you want to continue to stay on top, change is necessary. 
• What if I fail? Oh, you will! Sorry to burst your bubble but you will fail and fail hard at that sometimes. A good planner will have invested a cushion - a small amount of 'mistake money' for those moments you're in a "what the hell was I thinking' sort of situation. But, you got this! The best companies have lost and won and lost again, its all part of the process. The companies that last are the ones with good planning and the will to survive.

My last two cents: Do not ever forget your key values and stick with them, yes, you can be flexible with the services and products you provide but who you are and the values you hold should never waiver.

Listen to your clients: If you are unwilling to listen to your clients needs, then why are you in the service industry? Listen, take note and make changes when necessary. People appreciate a company that listens to their feedback.

To meet our team and see why we are so passionate about what we do - please contact Ken Anaya at: (844) KAA-4TAX or (844) 522-4829

Lifetime Learning Credit

The following information was taken  directly from the IRS.gov website. Hopefully this gives you a better understanding of what the LLC is and who qualifies.

"The Lifetime Learning Credit is for qualified tuition and related expenses paid for eligible students enrolled in an eligible educational institution. This credit can help pay for undergraduate, graduate and professional degree courses--including courses to acquire or improve job skills. There is no limit on the number of years you can claim the credit. It is worth up to $2,000 per tax return."

Who can claim the LLC?

To claim a LLC, you must meet all three of the following:

1. You, your dependent or a third party pay qualified education expenses for higher education
2. You, your dependent or a third party pay the education expenses for an eligible student enrolled at an eligible educational institution
3. The eligible student is yourself, your spouse or a dependent you listed on your tax return  

See "Who Cannot claim an Education Credit" on our Education Credits—AOTC and LLC page

Who is an eligible student for LLC?

1. To be eligible for LLC, the student must:
2. Be enrolled or taking courses at an eligible educational institution
3. Be taking higher education courses to acquire a degree or improve job skills
4. Be enrolled for at least one academic period

^*Academic Period can be semesters, trimesters, quarters or any other period of study such as a summer school session. Academic periods are determined by the school. For schools that use clock or credit hours and do not have academic terms, the payment period may be treated as an academic period

Claiming the credit

Generally, students receive a Form 1098-T, Tuition Statement, from their school by January 31. This statement helps you figure your credit. The form will have an amount in either box 1 or 2 to show the amounts received or billed during the year. But, this amount may not be the amount you can claim. See qualified education expenses for more information on what amount to claim.
Check the Form 1098-T to make sure it is correct. If it isn't correct or you do not receive the form, contact your school.

To claim the LLC, you must complete the Form 8863. Attach the completed form to your Form 1040 or Form 1040A.

Need more clarification about the Lifetime Learning Credit? contact Ken A. Anaya at www.KAA4Tax.com or call toll FREE (844) KAA-4TAX.