landraraymond

Are you a prepared?

Sat, 14 Jun 2025 02:40:47 GMT

Are you prepared to submit your Q2 2025 tax payment as a business owner?

Are you prepared to submit your Q2 2025 tax payment as a business owner ?

Check out your deadlines and make sure you're ready.
- June 16, 2025: Q2 2025 estimated tax payment due
- September 15, 2025: Q3 2025 estimated tax payment due
- January 15, 2026: Q4 2025 estimated tax payment due

With decades of experience dealing with accounting, tax, and legal projects, the Landra Raymond & Associates team can help ensure you're ready for deadlines. If you would like our help, give us a call at 281-789-7229 to discuss further.

Key 2025 Business Tax Dates

Tue, 21 Jan 2025 23:49:16 GMT

Are you working with a trusted accounting team to ensure you're ready for key 2025 business tax dates?

Jan 31: Employers Send W-2 and 1099 Forms

Mar 15: Taxes Due For Partnerships, Multi-Member LLCs. and S-Corps*

Apr 15: Taxes Due for C-Corps*

Sept 15: Extended Partnership and S-Corp Returns Due

Oct 15: Extended C-Corp Returns Due

*Can File for Extension

With decades of experience dealing with accounting, tax, and legal projects, the Landra Raymond & Associates team can help ensure you're ready for deadlines. If you would like our help, please give us a call at 281-789-7229 to discuss further.

Q4 2023 Estimated Tax Payments Due 1/15/24

Wed, 13 Dec 2023 16:04:49 GMT

Are you ready for the last quarterly tax payment of 2022 as a business owner?

- January 15: Q4 2023 estimated tax payment due

With decades of experience dealing with accounting, tax, and legal projects, the Landra Raymond & Associates team can help ensure you're ready for deadlines.

The Last Major Business Tax Deadline is October 16

Fri, 22 Sep 2023 15:32:44 GMT

The last major business tax deadline is October 16, when your extended C-corporation returns are due. Are you ready to submit everything to the IRS?

With decades of experience dealing with accounting, tax, and legal projects, the Landra Raymond & Associates team can help ensure you're ready for deadlines.

Extended Partnership and S-Corporation Returns Due September 15

Fri, 25 Aug 2023 12:52:28 GMT

Are you ready to submit your extended partnership and S-corporation returns? The deadline is September 15, and will be here shortly.

With decades of experience dealing with accounting, tax, and legal projects, the Landra Raymond & Associates team can help ensure you're ready for deadlines.

The next deadline is Oct 16: extended C-corporation returns due.

Next Quarterly Tax Payment is September 15

Fri, 25 Aug 2023 12:52:23 GMT

Are you ready for the next quarterly tax payment deadline as a business owner?

- September 15: Q3 2023 estimated tax payment due

- January 15: Q4 2023 estimated tax payment due

With decades of experience dealing with accounting, tax, and legal projects, the Landra Raymond & Associates team can help ensure you're ready for deadlines.

Q2 2023 Estimated Tax Payments Due 6/15

Wed, 17 May 2023 14:51:10 GMT

Are you ready for the next quarterly tax payment deadline as a business owner?

- June 15: Q2 2023 estimated tax payment due

- September 15: Q3 2023 estimated tax payment due

- January 15: Q4 2023 estimated tax payment due

With decades of experience dealing with accounting, tax, and legal projects, the Landra Raymond & Associates team can help ensure you're ready for deadlines.

Are you prepared to send everything to the IRS?

Wed, 22 Mar 2023 14:26:43 GMT

Taxes for C-Corporations are due on April 18. Are you prepared to send everything to the IRS?

With decades of experience dealing with accounting, tax, and legal project s, the Landra Raymond & Associates team can help ensure you're ready for deadlines.

Future deadlines include:
- Sept 15: Deadline for extended partnership and S-corporation returns
- Oct 16: Deadline for extended C-corporation returns

Are You Ready for Quarterly Tax Payment Deadlines?

Wed, 15 Mar 2023 15:57:07 GMT

As a business, are you ready for quarterly tax payment deadlines?

- April 18: Q1 2023 estimated tax payment due

- June 15: Q2 2023 estimated tax payment due

- Septemb er 15: Q3 2023 estimated tax payment due

- January 15: Q4 2023 estimated tax payment due

With decades of experience dealing with accounting, tax, and legal projects, the Landra Raymond & Associates team can help ensure you're ready for deadlines.

Key 2023 Tax Dates for Businesses!

landra@lraymondlaw.com (Landra Raymond) — Wed, 15 Feb 2023 17:12:37 GMT

Are you ready for key 2023 business tax deadlines?

- Mar 15: Taxes due for some business types (partnerships, multi-member LLCs, and S-Corporations) due

- Apr 18: Taxes for C-Corporations due

- Sept 15: Deadline for extended partnership and S-corporation returns

- Oct 16: Deadline for extended C-corporation returns

With decades of experience dealing with accounting, tax, and legal projects, the Landra Raymond & Associates team can help ensure you're ready for deadlines.

As a Small Business, Are You Prepared to File Your 2022 Taxes?

wendy@graymattermktg.com (Wendy Gray) — Wed, 25 Jan 2023 14:00:01 GMT

As a small business owner, you wear many hats, from accounting to sales. Managing all business aspects can be stressful enough, but then tax season comes along. While some people may worry, filing taxes doesn’t have to derail you. By preparing early, you can be confident that you have handled tax season.

Separate Personal from Business

Small business owners' biggest mistake is mixing their personal and business expenses. Not only does this expose your personal assets to unnecessary risk, but it also makes managing your finances more difficult.

If you haven’t done so already, separate your personal and business expenses and open different accounts for the company. Funnel all payments and costs for the business through these accounts. Do not use your personal cards for the business. Instead, take out a separate credit card in the business name.

Gather and Organize Your Records

You can’t begin to file taxes if you don’t have your documents in order. The best solution is to organize everything from the beginning, but not every small business owner does this for various reasons. If you fall into this category, try starting sooner rather than later, or you may encounter delays in filing.

Digitize

Protect your documents by making a digital copy of them. Save PDF files for all your receipts, purchase orders, and accounting-related documents. You can then organize the documents into folders, making it easier to find what you need months or even years later. It also saves you from carting a large box of papers around.

Use Accounting Software

If you haven’t already done so, start using accounting software for the business. This gives you a centralized location where you can manage all your business accounting in one place. Look for software that is designed for small businesses. It should be simple to use, affordable, and scalable to grow with your business.

Review Payroll

If you are the only person who works for your business, you can skip this step unless you are paying yourself a W2. You will need to review your payroll if your small business has employees. Your business should have remitted taxes, which means withholding a percentage of each employee’s paycheck for tax payments. If you or your payroll service didn’t withhold taxes, your business could be on the hook for these, which could inflate your tax liability.

Collect Documents

Whether you file your taxes or have help from an accountant, you will need all your business documents to file taxes correctly. Making sure you have everything organized and ready when you meet with your accountant will make things easier for everyone.

Taxpayer identification number (EIN or SSN)
Income statement
Balance sheet
Receipts
Bank statements
Credit card statements
Payroll records
Previous year’s tax return
Estimated tax payments

Check Your Deadlines

Everyone knows April 15 as Tax Day. However, this isn’t the only deadline that the IRS has. The deadline could be different depending on what you are filing and the entity under which you are filing. For example, if you are self-employed, your final deadline for making an estimated tax owed payment is January 17, 2023.

Your federal tax return filing deadline can differ depending on your small business formation.

Sole proprietorships: Schedule C and personal tax return: April 17, 2023
Partnerships: IRS Form 1065: March 15, 2023
Multimember LLCs: IRS Form 1065: March 15, 2023
S-corporations: IRS Form 1120S: March 15, 2023
C-corporations: IRS Form 1120: April 17, 2023

Similarly, extension deadlines can vary based on your small business filing status. While you may have the best intentions to file your business taxes on time, this doesn’t always happen. Do not rush to file a tax return that isn’t complete and correct.

Instead, filing for an extension can give you extra time.

Sole proprietorships: October 16, 2023
Partnerships: September 15, 2023
Multimember LLCs: September 15, 2023
S-corporations: September 15, 2023
C-corporations: October 16, 2023

Finally, if your small business has employees or works with independent contractors, be aware of the January 31 deadline, which is the day you need to send out W-2s and Form 1099-NECs.

Consider Tax Deductions

Businesses can claim different tax deductions than individuals. These can vary based on your business filing status. Your accountant can help you understand what deductions and credits are available to you. Below are some of the common deductions that are available to small business owners.

Business mileage
Home office deductions
Travel deductions
Disabled access credits
Small business health insurance tax credits
Charitable contribution deductions

Hire a Professional

Tax law can become an overwhelming and consuming web of regulations. Rules can change from year to year, making things even more confusing. Because of this, you shouldn’t assume that everything is the same as in previous years.

Talk with a tax professional who can guide you on the latest tax changes. They make it their job to know the changing IRS laws and how they might affect their clients. As tax deadlines loom closer, tax professionals’ schedules become more hectic and demanding. Scheduling your consultations and meetings early helps you get ahead of the ball and avoid unnecessary stress.

Check Your Business Filings

Before filing your taxes, check your business status to know what forms you’ll need. Additionally, this is an excellent time to confirm your business status. All too often, individuals choose a business status and then never look at it again. This can create problems later. For example, a sole proprietorship may have been the best choice when you first started the business. However, a few years in, this may no longer be the best status for your small business.

Tax season is a good time for this evaluation because you can compare tax liabilities. You may find that your future planned small business growth should also include changing your business status.

Can You Afford Your Tax Liability?

Depending on your situation, you may find yourself owing the IRS. If this happens, you need to have a plan for how you will pay. You'll need to arrange for payments if you can’t afford to pay your tax liability in one lump sum.

There are a few options available.

Arrange for a monthly installment payment to the IRS
Offer a compromise (tax debt settlement)
Request a payment postponement

Get Ready for the Next Tax Season

With the new year starting, there is no better time than the present to start prepping for tax season. Start by gathering your financials and tax documents. Get your business records in order. Confirm your business status and the applicable deadlines. Once you have everything in order, reach out to a professional. They can help you determine what’s missing and prepare your tax documents for the filing season.

Schedule an appointment today and get ready for the next tax season with our team of experienced professionals.

Starting a New Business?

Wed, 11 Jan 2023 16:35:50 GMT

When starting a new business, choosing a name, brand colors, and logo are all creative and exciting tasks. Designing a website can be fun as you select a layout and craf t the right words to give your company legitimacy. But do all these things make your new business real?

Unfortunately, no. You have to do some not-so-fun legal documentation to ensure your new venture is protected and you’re set up to manage tax implications.

The first step in forming your new business is deciding what type of legal entity (or business structure) will work best for you and will dictate the business’s legal rights, tax obligations, ownership liability, and operational implications.

Choosing the correct entity type is crucial because it influences many elements of your business. There are serious consequences that come with your choice. Different entities offer various levels of liability protection, tax liabilities, and ownership responsibilities. Choosing the wrong entity could result in you paying more taxes or exposing your personal assets to more harm than you’re comfortable with.

Check out my blog to determine the advantages and disadvantages of each of the entity types:
- Sole Proprietor
- Partnership
- Limited Liability Company (LLC)
- C Corporation
- S Corporation
- Nonprofit Corporations
- Doing Business As (DBA)

If choosing the entity type seems overwhelming and confusing, speaking with a professional can help clear the waters. Our team of associates can guide you through the process of choosing and forming your legal entity.

Request a meeting and sit down with a member of our team to start the process of forming your new business entity. With decades of experience dealing with accounting, tax, and legal projects, the Landra Raymond & Associates team can help.

Starting a new business? What legal entity works for you?

Tue, 27 Dec 2022 01:20:39 GMT

But do all these things make your new business real? Unfortunately, no. You have to do some not-so-fun legal documentation to ensure your new venture is protected and you’re set up to manage tax implications.

The first step in forming your new business is deciding what type of legal entity (or business structure) will work best for you. The business entity is the legal classification that dictates the businesses' legal rights, tax obligations, ownership liability, and operational implications. You will typically set up your business entity on a state level.

Choosing the correct entity type is crucial because it influences many elements of your business. There are serious consequences that come with your choice. Different entities offer various levels of liability protection, tax liabilities, and ownership responsibilities. Choosing the wrong entity could result in your paying more taxes than necessary or exposing your personal assets to more harm than you’re comfortable with.

Sole Proprietor

For many small business owners, a sole proprietorship is their first choice because the startup costs are low. You can quickly evolve the business into another entity as it grows. In addition, sole proprietorships are unincorporated businesses with no legal distinction between the business and the person owning and running it.

Advantages: Appealing because it is the most affordable and easiest entity to form. As the only owner, you have complete control over your business decisions. You also can save on taxes because you will file through your personal tax filing and don’t need to file separately for the business.
Disadvantages: Because there is no distinction between the owner and business, this can leave you open to liability and puts your personal assets at risk.

Partnership

If you plan to form a business with one or multiple individuals, you can choose this option. This will give both parties equal ownership of the new company. Partners can contribute to the business in several ways, including labor, knowledge, skill, or money. Each partner will share in the profits the business generates.

There are two types of partnerships, general partnership (GP) and limited partnership (LP). A general partnership assumes that all the partners agree in advance to either evenly share or have specific percentages to control and liability. Limited partnerships allow you to limit the control or liability of a particular partner.

Advantages: In this scenario, you will have someone to share the responsibility of resources and liability with. You’ll also find partnerships relatively easy to form and manage. In addition, the taxes are simple, with each partner claiming their portion of the business income on their personal taxes. This is called a pass-through tax model.
Disadvantages: Getting partners to agree on every decision you make. The more partners you have, the more complicated this becomes. There is also the issue of personal liability. There’s no distinct separation between the business and partners’ personal assets, which means you still take on personal risk. You’re also paying personal taxes instead of business taxes, resulting in you paying more than necessary.

Limited Liability Company (LLC)

An LLC is like a hybrid business entity. It’s easy to set up like a partnership but offers more liability protection like a corporation. If you want to be technical, it’s a type of corporation. There are options for how you file your LLC taxes. A single-member LLC would file the taxes. LLCs with two or more members can file as a partnership or corporation.

Advantages: If you are looking for more liability protection for your personal assets, an LLC can provide this to you. They also don’t have as many management requirements as corporations. This makes them a good balance between partnerships and corporations.
Disadvantages: States limit the types of businesses you can form under an LLC entity. Therefore, you must check that your business qualifies before starting your business. More tax forms are required, which can make fulfilling your tax liabilities more of a challenge.

C Corporation

If you are looking for the most significant level of liability protection, then consider forming a C corporation. This is a separate legal entity that operates independently from the owners. Unlike the other entities, the entity issues shares, and the owners of these shares become the company owners. Major brands that have stock traded on the exchange are C corporations. For example, Apple, McDonald’s, and Starbucks. They have shareholders, a named board of directors, and officers.

Not all corporations have to be big like this, though. A single person can fulfill all these roles and control their business entirely.

Advantages: This offers complete personal liability protection. Your personal assets are safe from business liability and debt. It’s also easier to raise more capital for future growth because you can issue stock options. Finally, you have more tax deductions and savings available to you when filing for the business.
Disadvantages: This is the most expensive and complicated type of business to form, often starting at several hundred dollars just for the filing fee. You must also comply with many regulations that affect everything from tax filing requirements to fees and filing forms. Additionally, because they are separate legal entities, you face paying double taxes because you must file for the business and yourself. You can't claim losses on your personal taxes if your company has losses.

S Corporation

An S corporation is like a C corporation because it retains liability protection for its owners. It’s different because it gets treated differently for tax purposes. Profits and losses are reported through the owner’s personal tax filings.

Advantages: As an owner or shareholder, you won’t have personal liability or risk your personal assets. However, there are exceptions for extreme extenuating circumstances. Additionally, the fact that it’s a pass-through entity means you won’t have to pay double taxes.
Disadvantages: This is one of the more expensive entities to form. You have more restrictions imposed on how you issue the stock for your company. You must also comply with all formality requirements like establishing bylaws, holding shareholder meetings, and naming a board of directors.

Nonprofit Corporations

If you are a new business owner who is less concerned about profit and more about helping others, you may want to consider a nonprofit corporation. This type of business exists to help others. For example, the American Red Cross, Salvation Army, and American Heart Association are nonprofit corporations.

Advantages: The most significant advantage is the tax exemption/deduction status. You may also qualify for public and private grants, giving you more capital for growth. In addition, those associated with the entity are not personally liable to its creditors.
Disadvantages: Because there are so many significant benefits to this type of entity, getting one established and maintaining it is not easy. The cost of formation is high, requiring a considerable investment of time, money, and effort. Prepare to do a ton of paperwork. Once your business is formed, your finances are open to inspection. The general public can request your state and federal filings to learn more about your financial statements to ensure you are genuinely the nonprofit and charitable company you claim to be.

Doing Business As (DBA)

Doing business under an unregistered name is illegal, and that’s where a DBA comes in. If you have a sole proprietorship or general partnership, you must do business under your name. If you don’t want to do this, you need to file a DBA with the name you want to use. This doesn’t register your business or create an entity. It puts the world on notice that you’re operating under a chosen name. It doesn’t provide legal protection or a special tax filing status.

Form Your New Business

As you can see, several factors go into choosing the best legal entity for your new business. If it all seems overwhelming and confusing, speaking with a professional can help clear the waters. Our team of associates can guide you through the process of choosing and forming your legal entity.

Request a meeting and sit down with a member of our team to start the process of forming your new business entity.

Merry Christmas and Happy New Year!

Wed, 21 Dec 2022 16:43:01 GMT

What an incredible year of blessings. Thank you to all of our customers.

On behalf of the Landra Raymond & Associates team, have a Very Merry Christmas and Happy New Y ear. Be safe and enjoy your time with your family and friends.

Are You Up to Date on Upcoming Tax Law Changes?

Wed, 14 Dec 2022 14:00:00 GMT

No one wants to file taxes, but it is a necessary thing to do. While paying taxes may seem like an unpleasant part of life, getting audited or paying penalties is much worse. Because of this, you want to ensure you follow the letter of the law and all applicable regulations. This seems like an easy task until you realize that tax laws change every year.

Don’t let upcoming changes in tax law scare you. Thankfully, there is still time to familiarize yourself with the changing laws before the next tax season.

Child Tax Credit

Parents who filed and received the child tax credit for the 2021 tax year enjoyed an increase, but those increases were only temporary. For 2022, the child tax credit will go back to pre-Covid levels. Children that are 17 no longer qualify because the age limit goes back to 16.

The credit is only partially refundable for some tax filers. The total credit amount also drops to $2,000. Many parents appreciated the monthly advance payments that were distributed throughout 2021. That is no longer happening in 2022.

Child and Dependent Care Tax Credit

Like many other tax laws on this list, this tax credit includes significant changes in 2022. Many taxpayers were happy with the overhaul this tax credit got for 2021. In 2021, the credit was worth 20 to 50% of up to $8,000 in eligible expenses for one child/dependent and up to $16,000 for two or more children/dependents. It was also fully refundable.

Unfortunately, it’s no longer refundable in 2022. The maximum credit also drops from 50% to 35%. The list of eligible expenses also got shorter. The total value of costs also decreased to $3,000 for one child and $6,000 for more than one.

The biggest change to this credit is who qualifies. In 2021, families making less than $125,000 per year qualified. In 2022, the full child and dependent care credit will only be allowed for families making less than $15,000 a year.

Earned Income Tax Credit

If you don’t have children, it can feel frustrating as you are disqualified from many other tax credits. However, the 2021 tax year brought something to celebrate, with more than ever qualifying for the earned income tax credit (EITC). Unfortunately, the expanded eligibility requirements go back to their original limits. Many people that were eligible in 2021 will find themselves ineligible in 2022. For example, in 2021, tax filers 19 and older could qualify. In 2022 you need to be between 25 and 65.

However, there is some good news. Those who do qualify will get more than last year. This is because the amounts given have increased to account for inflation.

But there is one more catch. The EITC has phase-out ranges based on your filing status and adjusted gross income (AGI). So, you will need to check your filing status and AGI before assuming you qualify.

Recovery Rebate Credit

During Covid, many Americans received stimulus checks. In 2021, a third one went out that gave people up to $1,400 plus an additional $1,400 for each dependent in the family. Unfortunately, some people did not get the total amount of the third stimulus check or did not get anything at all. If this happened, you could still get the relief through the recovery rebate credit. Since we are not getting any more stimulus checks, this tax credit is no longer in effect.

Premium Tax Credit

If you purchase health insurance through the marketplace (HealthCare.gov), you can get help with your insurance premiums. However, who applies can get tricky because of the changing and complicated laws. For example, enhancements helped unemployed people in 2020 and 2021. Those enhancements do not apply in 2022.

There is an enhancement extension that extends through 2025. But the eligibility requirements that applied in 2021 are no longer in effect. Be aware: just because you qualified in 2020 or 2021 doesn't mean you will automatically be eligible in 2022.

Tax Brackets

The term tax brackets get thrown around, leading to confusion and misunderstandings. Tax rates do not change, but the range for each tax bracket can. For the 2022 tax year, they have gotten wider because of inflation.

Tax rates range from 10% to 37%. There are also three filing statuses: single, head-of-household, and married-filing jointly. For each group, an income range applies to each tax rate percentage.

Long-Term Capital Gains Tax Rates

If you own stocks and investments, you will want to know about the changes to the long-term capital gains tax. These are the profits you make from the sale of capital assets that you’ve owned for at least one year. The tax rate does not change from 2021 to 2022.

However, what does change is the income thresholds to qualify for specific rates. The changes were made to account for inflation. If you are filing as a single individual with income up to $41,675, your rate is 0%. Head-of-household filers can earn up to $55,800, and joint returns can earn up to $83,350 to qualify for 0%.

The tax rate jumps to 20% if your income level reaches certain levels.

● $459,751 for singles

● $488,501 for heads-of-household

● $517,201 for couples filing jointly

Standard Deduction

For most people, the standard deduction is the best option. It will give them a more significant return than opting for itemized deductions. For 2022, the deduction amounts have increased to account for inflation.

● Married couples get $25,900, plus $1,400 for each spouse aged 65 or older

● Singles get a $12,950 standard deduction, plus $14,700 for individuals aged 65 or older

● Head-of-household gets $19,400, plus $1,750 for those aged 65 or older

● Blind people earn an extra $1,400 to their standard deduction

1099-K Forms

Filing taxes as an independent contractor or freelancer just got easier, thanks to the 1099-K form. Third-party payment processors like Venmo and PayPal will send you a Form 1099-K if they process more than $600 in payments for you throughout the year. In the past, you had to receive $20,000 in payments and process more than 200 transactions.

Charitable Gift Deductions

The charitable deduction credit for cash expired in 2021. This deduction was only available to those who opted for the standard deduction, not the itemized one. The 60% limit is also back in place. It was suspended during the 2020 and 2021 tax years. So now, if you take itemized deductions, keep in mind that there is a 60% AGI limit.

Hire An Accounting Professional

If you’d like help understanding the new tax codes or just want to let someone handle everything for you, it may be time to bring in an expert. With decades of experience dealing with accounting, tax, and legal projects, the Landra Raymond & Associates team can help.

Happy Thanksgiving!

Tue, 22 Nov 2022 16:35:09 GMT

On behalf of the Landra Raymond & Associates team, we hope you and your family have a very Happy Thanksgiving. Our offices will be closed Thursday and Friday, but we're available following Monday if you need anything.

Upcoming Tax Deadline November 15th!

Wed, 12 Oct 2022 14:06:50 GMT

As we start to wrap up 2022, don't forget upcoming tax deadlines! Landra Raymond & Associates can help you prepare and file all of the necessary paperwork to ensure you' re in compliance. Set up an appointment for a free consultation.

- Nov 15: extended franchise tax reports & nonprofits tax returns due

Upcoming Tax Deadlines Oct 17 & Nov 15

Wed, 14 Sep 2022 17:41:16 GMT

Don't forget upcoming tax deadlines! Landra Raymond & Associates can help you prepare and file all of the necessary paperwork to ensure you're in compliance. Set up an appointment for a free consultation.

- Oct 17: extended personal and trust returns due
- Nov 15: extended franchise tax reports & nonprofits tax returns due

Happy Labor Day!

Wed, 07 Sep 2022 15:03:36 GMT

As we prepare for the long holiday weekend, Landra Raymond & Associates wants to wish everyone a safe and relaxing Labor Day. From everyone on the team, thank you to the hardworking laborers who have helped build and grow the United States.

Our offices will be closed on Monday, but we'll be available on Tuesday to help with your needs.

What’s a True Tax Deduction?

Wed, 07 Sep 2022 13:00:02 GMT

In 2018, 87.3% of tax returns included a claim for the standard deduction. Most people include this deduction without understanding how it works or why they should take it. Check out the below to further understand what a tax deduction is and what it means for your yearly tax liability.

What Is a Standard Deduction?

A standard deduction reduces the amount of your taxable income and is used if you do not itemize your deductions. Qualified individuals can claim a specific amount for their standard deduction based on certain factors determined by the IRS (filing status, age, are you disabled or claimed as a dependent on someone else’s tax return).

For example, for the 2021 tax year, single and married filing separately individuals could claim a standard deduction of $12,550, joint filers could claim $25,100, and heads of household filers could make a standard deduction of $18,800. In 2022, these amounts increased to $12,950, $25,900, and $19,400, respectively. The IRS regularly adjusts the standard deduction each year for inflation.

What Is an Itemized Deduction?

The alternative to claiming a standard deduction is to itemize your deductions using Schedule A of Form 1040. For the majority of taxpayers, this is not the better option. For many, the standard deduction is larger than the itemized. For others, it is easier to claim the standard deduction than identify and add up individual expenses.

How a Standard Deduction Works

When preparing your taxes, you will start by inputting your income information. Once this is entered, you can decide whether you will take the standard or itemized deduction. If you choose to take the standard deduction, you will make this election, reducing the total amount of income the IRS considers when determining how much you owe in taxes.

When to Claim a Standard Deduction

If your standard deduction is greater than your itemized deduction, then it’s smarter to go with the standard. However, if you have a mortgage or home equity loan, then it’s worth totaling up your itemized deductions because there’s a chance that these will push your itemized deductions to be more than the standard.

Other Types of Deductions

There are other deductions that are available for people to claim. These are deductions that you can claim if you choose to itemize your deductions. If you choose this route, you will need to keep detailed and accurate records. If the IRS ever decides to do an audit, you will need this documentation to prove that you should have rightfully claimed those deductions.

Student loan interest: If you have a qualified student loan, you can claim up to $2,500 in student loan interest that you paid throughout the year. Both students and parents of students are eligible for this tax break. There are filing status and income level eligibility requirements that you need to meet to claim this deduction.
Mortgage interest: This deduction can be tricky because there are several distinctions that define who, what, and how much they can claim. The goal of this deduction is to help homeowners build, purchase, or improve their homes by lowering their tax liability.
Individual retirement account: Both Roth and traditional IRAs are eligible for a tax deduction. While the amount can change, for the 2021 and 2022 tax years, the maximum that you can claim is $6,000. However, if you’re over the age of 50, you can claim up to $7,000.
State and local taxes: Taxpayers can claim up to $10,000 for state and local taxes paid. If you are married and filing separately, then each spouse can claim up to $5,000.
Health savings account: If you have a health savings account, then you can set aside pre-tax income to cover your health insurance costs that your insurance doesn’t pay. Your contributions to this account can be deducted from your taxes. While the amount you can deduct can change from year to year, in 2021, they were $3,600 for individuals and $7,200 for families. Taxpayers over the age of 55 can claim an extra $1,000.
Medical and dental expenses: Many taxpayers aren’t aware they could be eligible to claim medical and dental expenses as a deduction. While you can’t claim all your medical and dental expenses, this deduction can be beneficial if you have especially high care costs. However, you can only deduct out-of-pocket expenses that total more than 7.5% of your adjusted gross income.
Self-employment expenses: With more people working for themselves from home, self-employment deductions have gained much more attention in recent years. Eligible taxpayers can deduct up to 20% of their qualified business income, resulting in a serious tax liability deduction. It’s best to review what is allowed each year with a tax professional because the guidelines continually change.
Charitable contributions: This deduction is unique because, unlike the other special deductions, you can claim it when you claim the standard deduction. If you take the standard deduction, you can claim up to $300 in cash contributions. If you choose to make itemized deductions, you can claim cash contributions that are up to 100% of your adjusted gross income. You can only claim charitable contributions made to qualified organizations.
Investment losses: If you sell an investment at a loss, meaning lower than the amount you paid for it, you could claim this as a deduction on your tax return. This loss could be used to reduce your capital gains tax liability. However, there are limits on the amount you can claim.
Gambling losses: If you keep a record of your winnings and losses, you can deduct your gambling losses on your itemized deductions. However, the amount you claim as a loss cannot be more than the amount you claim as gambling income on your return.

How Is a Tax Deduction Different from a Credit?

A deduction reduces the number that the IRS looks at as your income. A credit reduces the amount you owe. It’s a dollar-for-dollar reduction of your tax bill. Tax credits are typically rewarded for actions that the government wants you to take. For example, child adoption, solar panel installation, or an electric vehicle purchase.

Are Deductions Better Than Credits?

Because a deduction reduces your adjusted gross income, it can only help reduce your tax liability so much. While on the other hand, a credit is a direct dollar-for-dollar reduction of your tax bill. This makes a credit more valuable because it has a more significant impact on your final tax bill.

For example, assume that your adjusted gross income is $100,000. If you have a $10,000 deduction, this will reduce your taxable income to $90,000. With a tax rate of 25%, you would owe $22,500 in taxes.

Now consider a credit. You have the same $100,000 adjusted gross income with a 25% tax rate. Your owed taxes would be $25,000, which is more than the deduction. However, you would then subtract the $10,000 credit, resulting in your owed taxes being $15,000.

Speak With a Tax Professional

While each deduction sounds simple on the surface, there are distinctions and qualifications that complicate each deduction. If you think you qualify for one or more of these deductions, it’s best to speak with a tax professional. They can help you determine which tax deductions you can claim and for how much.

Speak with one of our tax professionals today about maximizing your tax deductions.

Upcoming Tax Deadline Oct 17 & Nov 15!

Wed, 17 Aug 2022 18:12:39 GMT

We're halfway through Q3 but don't forget upcoming tax deadlines! Landra Raymond & Associates can help you prepare and file all of the necessary paperwork to ensure you' re in compliance. Set up an appointment for a free consultation.

- Sept 15: extended business tax returns due
- Oct 17: extended personal and trust returns due
- Nov 15: extended franchise tax reports & nonprofits tax returns due

Eight Signs You Need to Hire an Accounting Professional

Tue, 02 Aug 2022 13:00:01 GMT

One of the most common reasons that businesses fail is financial issues. Many times, it is due to a lack of funding. However, do not get fooled into thinking that you’re fine just because you have a loaded bank account or are making a ton of sales. Large accounting numbers don’t automatically mean you are doing well financially and have nothing to worry about. You could be sabotaging yourself financially and not even know it until it is too late.

Save yourself a lot of frustration and stress by keeping an eye out for these eight signs that it’s time to hire an accounting professional.

1. You Are Doing Everything

You have a new business, and you are doing everything yourself. That’s ok! You aren’t alone in being a one-person show as you get your business up and running. However, there might be a time when you need to let go of the reins and start trusting people to take over certain sectors of your business. If you’re willing to hire sales, marketing, supply chain, and HR managers, why not hire an accountant as well?

You are probably smart and savvy enough to manage your personal finances, and you’ve managed to gather funding and get your business up and rolling. This doesn’t mean you can’t get help managing your business finances once your business grows beyond a certain point. It is not a sign of failure to hire an accountant; it is a sign of wisdom and confidence. With a knowledgeable accountant, you have professional guidance to strategically grow your business.

2. You Are Going Cheap

It is ok to be frugal, but it’s not ok to be penny-wise and dollar stupid. There’s a point when being super cheap will start costing you money. If you’re doing your own accounting, it is time to take a hard and honest look at yourself. If you agree with the saying “you get what you pay for”, then what are you delivering as an accountant? If you don’t have professional accounting training or experience, then being cheap and doing it yourself is doing your business a disservice.

3. Small Expenses Are Falling Through the Cracks

You’re human, so you aren’t perfect, and mistakes happen. The odd missed receipt is one thing; regularly losing receipts or not knowing what expenses are valid is a problem. Small purchases add up quickly, and suddenly you are trying to account for thousands of dollars in unaccounted-for purchases. This will be an even bigger problem should the IRS come asking you for the documentation behind your claimed expenses.

4. You’re Immediately Writing Off Major Purchases

Do you know the difference between a small and a big purchase? Of course, you do! The real dilemma is knowing the different methods for handling these expenses. It’s ok to immediately write off $250 worth of office supplies. These items are regularly and routinely replenished because you’re using them quickly. It’s different if you use that $250 to buy a new fancy office printer. This is an asset that you won’t use up quickly. Instead of immediately writing off the purchase, you’ll account for depreciation over the useful life of the printer.

Knowing the difference isn’t about the amount of money you spend. For example, you could spend $1,000 on office supplies and immediately write it off while spending $200 on a desk that you will depreciate over time. An accountant knows and understands the nuances of writing off purchases.

5. You Don’t Have a Backup

No one thinks about making a backup until they need one. Don’t get yourself and your business hemmed up by not having a backup of your financials. All it takes is one computer glitch or accidentally throwing away your “receipt box”, and everything is long gone. It’s always best to have two separate copies and active backup processes in place.

Professional accountants have your back by utilizing software with fail-safes that automatically back up your data. This gives you an even greater level of security. You have a copy, the accountant has their working copy, and they have their backup system.

6. You Have No Review or Audit Process

There should be a checks-and-balances process in place to hold you and everyone else accountable. It doesn’t matter if you are the one doing the books or someone else is completing this task. When one person is solely responsible for managing the finances of a company, problems can happen. It could be ineptitude and mistakes going uncaught. It could also be ill intentions and fraudulent activity going unchecked. If you had a review or audit process in place, both these situations would get caught early on, preventing major problems later.

Hiring an outside accounting firm can ensure you have an outside third-party performing your reviews and audits. This holds everyone accountable because the firm only has an interest in ensuring your accounting is correct and complete.

7. You’re Falling Behind

IRS deadlines are not a suggestion. The IRS doesn’t have a sense of humor and isn’t interested in excuses as to why you missed their deadline. Additionally, your vendors don’t appreciate you missing their payment deadlines either. How would you like it if your business is owed a large chunk of money and you’re just getting handed excuse after excuse? You’d dump that client pretty quickly, right? So why are you letting your relationships suffer by not keeping up with your financial obligations?

Hire an accountant to manage your cash flow. No more wasting time fielding inquiries from people who want their money. No more wasting money on IRS penalties for missing deadlines. No more suffering relationships from not keeping your word or timely fulfilling your contractual duties.

8. You Don’t Know the Law

Just because you know how to manage your personal finances or file your own taxes, doesn’t mean you know what you are doing when it comes to corporate finances and taxes.

For example, you can include claims for charitable contributions on your personal taxes, but this isn’t a possible claim for your business taxes. Typically, when a business makes a charitable contribution, they get something in return. This return moves the contribution out of the charitable arena and into a mutually beneficial business agreement. Even if all you’re getting is advertising space, recognition, or some other concession. The IRS won’t take kindly to you claiming charitable tax dedication on your business taxes when you’re getting a benefit from your efforts.

This is just one example of the numerous laws and regulations that you need to follow as a business owner. You could spend hours of time and effort learning the law, which also means taking your attention away from the core purpose of your business. The easier and more logical course of action is to hire an expert and leverage their skills and expertise so that you can focus on what you know best.

Hire An Accounting Professional

If you’re seeing one or more of these eight signs, then you probably need to stop being a one-person show and hire an accounting professional to help with your business finances. They can help you set up an auditing and review process, establish a backup system, show you how to take advantage of accounting laws and regulations, and much more.

With decades of experience dealing with accounting, tax, and legal projects, the Landra Raymond & Associates team can help. We’re here to help and would love to hear from you! So, make an appointment, and let’s figure out how to improve your accounting practices.

Happy 4th of July!

Fri, 01 Jul 2022 18:48:32 GMT

On behalf of the Landra Raymond & Associates team, have a safe July 4 weekend and fabulous Monday celebrating our freedoms.

Our offices will be closed on Monday, but we'll be available on Tuesday to help with your needs.

We recently launched our new website

Wed, 08 Jun 2022 16:09:43 GMT

We recently launched our new website and will be adding blog content and important forms to it on a regular basis.

Check it out and let us know what you think and what you'd like to see included in the future.

With decades of experience dealing with accounting, tax, and legal projects, the Landra Raymond & Associates team can help. Contact us today at 281-789-7229 and let our skilled professional assist you with your letter from the IRS (and more).

This Day of Remembrance

Tue, 31 May 2022 15:21:36 GMT

On this day of remembrance, the Landra Raymond & Associates team wishes you a memorable Memorial Day.

Letter From the IRS? 10 Things You Need to Know.

Tue, 10 May 2022 22:02:54 GMT

Letter From the IRS? 10 Things You Need to Know.

You walk out to your mailbox and there it is, a letter from the Internal Revenue Service. You open the letter with dread, because nothing from the IRS could be good, right?

Before you completely stress, it’s time to address some of the widespread misconceptions people have about the IRS. Keep these 10 things in mind the next time you receive something from them.

1. Don’t Panic

First, try not to panic when you receive mail from the IRS. There are several reasons they need to connect with you, and not all of them are negative. Often, the IRS needs to contact a taxpayer in reference to a specific federal tax return or a tax account or there could be changes to the account. The IRS could need more information about a particular part of the return. Sometimes, the IRS is informing you of an owed payment or status of an account. Before you let yourself react to receiving the letter, sit down and read the entire letter from beginning to end. This lets you know what the letter is about and what is required from you.

Here are some common reasons why the IRS might contact you.

You are owed a larger or smaller refund.
You have an outstanding balance due.
You need to verify your identity.
You need to provide additional information or provide documentation.
The IRS changed your return.
The IRS has a question about your tax return.
There is a delay in the processing of your return.
The IRS has updated your account, such as a mailing address.

2. Never Ignore IRS Letters

If the IRS has sent you a letter, there is a good reason for it because letters are not sent out frivolously. Never ignore a letter from the IRS. The majority of IRS letters are about a specific tax return or an account. The IRS will also send you a letter for each specific issue. This means you could get several letters, each outlining a different issue. Never throw away a letter assuming you already know the topic because of a previously received letter.

3. Beware of Scams

The IRS will never contact taxpayers through any method other than by mail or phone. The first point of contact is almost always by mail in the form of a letter. The IRS will not contact taxpayers through text message, email, or social media. Any attempts at contact through these methods that ask for personal information are not from the IRS. If you have any doubt over the legitimacy of the contact, you can look up your tax account information on the IRS.gov website.

4. Check the Information

Do not blindly trust the information included in the IRS letter. The IRS is run by humans, and they can make mistakes. It is always good to double-check the information stated in the letter to verify its accuracy. If you find that the decision or information is incorrect, you need to respond to the IRS with the correct information. This is called a dispute letter, and you should also include any necessary documentation to supplement your dispute.

5. You May Not Need to Reply

Letters are the main method of communication for the IRS. Not every letter requires a response. If the IRS needs to inform you of an action it took, then you will receive a letter. If the IRS sends you a letter informing you of a change or correction to your tax return, then you do not need to reply if you agree with the correction and there are no instructions for further action or payment.

If you do need to reply, this typically involves writing a response letter, filling out a form, or submitting documentation. There will be a tear-off portion on the notice that you will include with the response or payment and send it to the address on the upper left-hand corner of the letter.

6. Pay Attention to Deadlines

If your IRS letter requires a response, do not wait. Your letter will typically outline the deadline that you need to reply by. Waiting and not responding in a timely manner can lead to additional penalties and fines. Additionally, a timely response can help minimize the additional interest that accrues on the amount of taxes you owe.

7. Always Make a Copy

Always make a copy of any letter you receive from the IRS. First, this gives you multiple copies so that you can include one in your response. Or you can submit one to a tax professional that you’ve hired to help you. Keeping two copies of your letter also ensures that you do not lose your documents and have a complete record of your correspondence with the IRS. Should something happen to your first set of documents, you have a backup. Additionally, save the documents for at least seven years. This ensures you have an accurate record should anything arise in the future relating to the current issue at hand.

8. Follow Directions

Carefully read your letter and follow the directions outlined. Not following the included directions can lead to increased penalties and fines owed because it delays the process as the IRS thinks you did not respond in a timely manner. For example, send any responses to the listed address on the letter. The IRS has many offices, and you need to send your correspondence to the correct location.

9. Seek Out Assistance

While you can read and respond to letters from the IRS on your own, you do not have to. There are tax experts that can help you . Seeking assistance from one of these experts can give you insight and guidance into the letter. Despite being told not to panic, it can be hard not to. Working with a professional can assuage these feelings by giving you the confirmation needed to calm your nerves. If your letter references something more serious, your hired professional can provide you with the necessary guidance to handle the situation appropriately.

10. Be Patient

When you send a correspondence letter to the IRS, it can take time for them to process everything. It can take up to 30 days for the IRS to process your response and issue a follow-up letter. Responses can take even longer due to the post-Covid backup. While you do not need to follow up on the status of your response, you can call the IRS toll-free numbers to get a status update. If a particular person from the IRS is handling your issue, then it is possible their direct line is on the letter. It will be in the upper left corner.

Address Your Letter From the IRS

I f you have received a letter from the IRS, then it is time to act. Do not panic but read your letter carefully and determine the purpose of the letter. If it is just a notice and requires no action, then you’re done. If you need to respond, make sure to do so by the stated deadline. If you feel confused, overwhelmed, or just want a second opinion, consulting with a tax professional can provide you with much-needed guidance.

With decades of experience dealing with accounting, tax, and legal projects, the Landra Raymond & Associates team can help. Contact our firm today and let our skilled professional assist you with your letter from the IRS (and more).

10 Things You NEED to Know

Tue, 10 May 2022 16:43:25 GMT

Check ou t my blog for more info:

Letter From the IRS? 10 Things You Need to Know. (lraymondlaw.com)

NEW Tax Deadlines

Thu, 05 May 2022 16:41:23 GMT

Whew! 2022 is flying by but don't forget upcoming tax deadlines! Landra Raymond & Associates can help you prepare and file all of the necessary paperwork to ensure you're in compliance. Set up an appointment for a free consultation.

- May 16: franchise tax & non-profit tax reports due; 6-month extension due
- Sept 15: extended business tax returns due
- Oct 17: extended personal and trust returns due
- Nov 15: extended franchise tax reports & nonprofits tax returns due

Key Deadlines This Month

Mon, 14 Mar 2022 16:58:34 GMT

Don't forget! There's several key deadlines this month if you're a business.

- March 15: Deadline to file your corporate tax returns (Forms 1120, 1120-A, and 1120-S) for tax year 2021, or to request an automatic six-month extension of time to file (Form 7004) for corporations that use the calendar year as their tax year, and for filing partnership tax returns (Form 1065) or to request an automatic six-month extension of time to file (Form 7004).
- March 31, 2022: Deadline for businesses to e-file Forms 1099 and 1098 to the IRS, except Form 1099-NEC.

The Landra Raymond & Associates team is here to help answer your questions and file your business or personal returns. Contact us at 281-789-7229.

Tax Deadline Moved

Tue, 01 Mar 2022 17:56:48 GMT

Have you heard? The tax deadline for the majority of the country has moved to April 18 so you have a few more days to get everything ready and submitted.

This gives filers more time to thoroughly review their return and take advantage of all the tax benefits, like various deductions and credits, that are available to them to help them reduce their liability.

Let us know if you need help filing your business or personal returns.

Be aware of these crucial documents...

Tue, 01 Feb 2022 17:55:06 GMT

It's that time of year of again! As you start to pull together all your documentation so you can file taxes, be on the lookout for some crucial tax documents that you'll need to give your tax preparer (or if you'll do them yourself).

In addition to your regular documents (W2, 1099, etc.), you should receive a few additional ones from the IRS by January 31, 2022. These are new documents so be sure you hold onto them and don't throw them away. If you don't receive, be sure to contact the IRS.

• Letter 6475: Stimulus Payments received in 2021
• Letter 6419: Advance Child Tax Credit payments received in 2021
• Form 1095: if you purchased a qualified health plan through the Health Insurance Marketplace

Need help filing? Contact the team at Landra Raymond & Associates at 281-789-7229.

What's in store for 2022

Sat, 01 Jan 2022 17:53:10 GMT

Welcome to 2022 and the tax deadlines that come with a new year! Landra Raymond & Associates can help you prepare and file all of the necessary paperwork to ensure you're in compliance. Set up an appointment for a free consultation.

- Jan 31: 1099s & W2s due
- Mar 15: business tax returns due; 6-month extension due
- Apr 15: personal & trust returns due; 6-month extension due
- May 16: franchise tax & non-profit tax reports due; 6-month extension due
- Sept 15: extended business tax returns due
- Oct 17: extended personal and trust returns due
- Nov 15: extended franchise tax reports & nonprofits tax returns due

Happy Holidays!

Sat, 25 Dec 2021 17:51:22 GMT

From the Landra Raymond & Associates team, we wish you and your family a very safe holiday season. Merry Christmas and Happy New Year.

Happy Thanksgiving

Thu, 25 Nov 2021 17:49:35 GMT

From the Landra Raymond & Associates team to your family, have a safe and happy Thanksgiving.

We are truly thankful for our customers and for all our blessings.

Franchise & Nonprofit Tax Return Extension

Mon, 01 Nov 2021 16:47:39 GMT

Did you file an extension for your 2020 franchise and/or nonprofit tax returns?

Final returns are due by Nov 15.

If you need assistance preparing/filing your return, contact the Landra Raymond & Associates team.

Don't Miss the Deadline!

Fri, 01 Oct 2021 16:45:29 GMT

Don't forget! October 15 will be here before you know it.

If you filed an extension for your 2020 personal and/or trust tax returns, the deadline to submit everything to the IRS is Oct 15.

If you need assistance preparing/filing your return, contact the Landra Raymond & Associates team.

Tax Extension Due

Wed, 01 Sep 2021 16:42:48 GMT

Did you file an extension for your 2020 business tax return?

Don't forget - they're due by Sept 15.

If you need assistance preparing/filing your return (business or personal), contact the Landra Raymond & Associates team.

Hard at work

Mon, 14 Jun 2021 16:40:25 GMT

The Landra Raymond & Associates team is hard at work finalizing tax returns, which are due tomorrow (June 15).

Let us know if you need help filing an extension for your 2020 personal and/or business tax returns.