Wednesday, October 16, 2013

Top 4 Android Apps for Tax Planning

Shelley Elmblad  for about.com writes: Now is a great time to take a look at your income tax liability, as in have you been having enough federal tax deducted from your pay check to cover what you will owe at the end of the year? It's better to find out now rather than when you or a tax professional starts working on your return, possibly to discover that you'll owe a penalty for underpayment. My tax planning app picks for Android can help you with this, and with calculations related to deductions, retirement accounts, self employment taxes, and many other items. These apps are also great to have on hand as a reference to get quick answers to tax questions, and some do a what-if analysis to help with tax reduction strategies. You'll find apps for keeping track of tax-related receipts, too.


Bloomberg BNA Quick Tax Reference
BNA Quick Tax Reference app for Android helps with income tax planning.
This Android tax planning app is full of references that help with income tax planning, with 2014 tax projections and U.S. tax rates from 2011 through 2013. Use a slider or enter numbers in the BNA Quick Tax Reference app to figure your income tax rate and capital gains taxes, find tax rates for estates, view retirement plan limits and corporate and individual tax rate schedules.
Other references include:
  • Trusts/Estate and Gift Taxes
  • ERISA
  • Tax Code Pension
  • Standard Mileage Rates
  • Capital Gains and Dividends Taxed as Net Capital Gain
Cost: Free
Download from Google Play: BNA Quick Tax Reference



TaxMode Pro
TaxMode Pro app for Android has tools and features to help you pay less income tax.
TaxMode Pro for Android mobile devices promises to help you make more informed tax decisions by not only making income tax calculations but also providing a better understanding of all possible income tax implications. This app does what if analyses with an automated comparison option for looking over how different financial scenarios affect taxes, year to year.
TaxMode Pro has been updated for the 2013 tax year. Tax computations for 2010 through 2012 can be completed with this app as well.
Here are some of the features in TaxMode Pro for Android:
  • Estimated taxes
  • Analyze tax return scenarios in advance of preparing a return
  • Regular income tax and estimated tax payment calculations
  • Taxes on qualified dividends and capital gains
  • Self employment taxes
  • Alternative Minimum Tax (AMT) analysis
  • Tax on lump sum distributions
  • Earned Income Credit computation
  • Tax deductions analysis
TaxMode automatically limits the maximum amount you can enter for deductions for medical expenses, donations to charity, education-related expenses and other deductions.
Cost: $2.99 (free version available)
Download from Google Play: Tax Mode Pro
2013 Tax Guide
Free 2013 Tax Guide App for Android
Unlike my other tax planning picks, 2013 Tax Guide is bright and colorful with a very simpleinterface. It's not a detailed tax guide but is good for quick calculations and for looking up information and tables. You'll see ads for Columbus Life products and services, but they don't disrupt using the app.
This app has a tool for making a quick check of personal income taxes, but you will need to know your AGI less exemptions to get the total tax you owe for the year and to figure your marginal tax bracket.
Tax Calculators included in the 2013 Tax Guide app:
  • Estate tax
  • Roth IRA Eligibility
  • 2013 income tax owed by the end of the year
  • Required minimum distributions from retirement investments
  • Inherited IRAs
  • Social Security benefits subject to tax and reduction of benefits due to compensation
Click on Reference Guide at the bottom of computations to get a break down of how the app arrived at calculations.
Tax reference guides are tables with tax information divided into these sections:
  • Tax Rates, Deductions and Exemptions (tax brackets, standard and itemized deductions, personal exemption amount, alternative minimum tax, capital gains and qualified dividend rates)
  • Retirement contributions (IRA, SEP, 401k and other plan limits, retirement tax credits)
  • Gift and Estate Taxes
  • Education benefits (Coverdell education savings, student loan interest, lifetime learning credits, tax-free savings bonds)
  • Social Security Benefits (single and married)
  • Retirement savings distributions requirements
Cost: Free
Download from Google Play: 2013 Tax Guide


Tracking Tax Deductible Receipts
You need to save receipts to document tax deductions for expenses and charitable contributions.
If you're going to itemize deductions, you need to keep proof of purchase for tax deductible expenses all year around, then hold on to them with a copy of your tax return for three years after you file. Use the camera on your Android mobile device with one of these apps to make tracking receipts easier with copies that are automatically uploaded to secure online storage.
Shoeboxed instantly archives your receipts into categories you set up. You can also track tax-deductible mileage and generate email reports with this app. You'll need a free Shoeboxed DIY account to store your images. The Android app can be downloaded from the Google Play Store.
Evernote is a popular app for storing images, and a lot more, like notes and lists. You'll need a free Evernote online account, and you can download the app from the Google Play Store.
Google Keep also store images, notes and lists, plus it adds reminders to notes. This app requires a Google (or Gmail) account, and if your Android doesn't already have it, you candownload Google Keep from the Play Store.
Posted on 8:31 AM | Categories:

7 FreshBooks Alternatives

Krati Dubey for TechShout writes: Here we have some FreshBooks alternatives that will help you with the task of accounting, invoicing and making payments. You can trust the software in question when dealing withfinances and as a time tracking system has been integrated within the cloud-based service, it allows you to pull the tracked time into the invoice as well. Another advantage is that it saves you the hassles of entering receipts because the program can directly be synched to a horde of banks and credit cards in the US and Canada. And if you are looking for services with similar features, then you have landed at the right place. Scroll right down to know more about the contenders that have managed to get a mention on our roster.
1 – Expensify:
Expensify
This program claims to make expenses easy and lets you quickly add in details pertaining to them. All your card transactions can be imported automatically if you choose to link your bank account to Expensify. Capturing billable costs and tracking time is possible and so is uploading and storing receipts without having to type the details out.
The service which is said to have been built for administrators can process multiple reports on a single click and as all controls are automated, there’s absolutely no need to worry about duplicate expense logs. Its mobile applications are available for platforms such as Android, iOS, Windows Phone as well as BlackBerry.
2 – Zoho Invoice:
Zoho Invoice
As the name suggests, this service from our compilation of program like FreshBooks can be used for sending invoices to customers over the internet. You can create invoices and manage them via the online account. Tracking payments become all the more easy and it gives your clients the option of paying you through Zoho itself. Creating elegant invoices is possible with a little assistance from built-in templates.
You can customize these templates as well. In case your clients prefer the traditional way of receiving bills, you can opt for its snail mail services. You can track cash inflow, schedule automated reminders and even accept online payments through select gateways.
3 – Invoicera:
Invoicera
Invoicera has been designed for all those professionals who work for people around the world and are required to generate invoices in the languages and currencies of their clients. It understands as many as 11 tongues and converts amounts into differentcurrencies without your intervention. Here also you will find customizable templates and the option to remove or add fields.
You can send the bills to multiple contacts and even set up recurring invoices if they need to be sent periodically. The time tracking function is present and so is support for gateways to accept online payments.
4 – Nutcache:
Nutcache
And now we have a contender in our lineup of software similar to FreshBooks that will not charge you a single penny for helping you maintain accounts and send invoices to customers. The simple and user-friendly software even claims to be safe as all precautions for keeping the sensitive data safe is taken, while back up folders are created on secured servers.
Apart from creating and sending invoices in 6 different formats, the program comes in handy for tracking time and even keeps tabs on late or partial payments. You can create personalized invoices and send them to multiple clients at the same time too.
5 – Ronin:
Ronin
Ronin is said to have been designed for those of you who handle small businesses or work as freelancers and just like all the other programs mentioned here, handles invoices and tracks time. You can trust the service to take care of clients, projects, bills, estimates and save up on precious time. It permits you to customize invoices and send them in different currencies.
For expenses that recur at regular intervals, it is possible to schedule invoices that are automatically forwarded at the pre-determined time. You get to track expenses, send estimates and get them approved and even collaborate with team members through the software.
6 – CurdBee:
CurdBee
Another web application that has found a place on this catalog listing out programs like FreshBooks is CurdBee that gives you a break from all the paperwork. It is pretty similar to the programs we have added to our roster as it allows creating estimates and getting them approved, creating invoices and getting online payments from various clients.
The recurring bill function is available here and so are time and expenses tracking. All yourfinances are displayed on the screen as and when you want to take a look, so you can make sure you received all the payments and keep tabs on your earnings.
7 – Xero:
Xero
Xero is the service you should opt for if you want a rundown of your cash flow at a glance whenever you log in. There’s an option for foreign currencies accounts that calculates your profits and losses in the currency you prefer and create invoices to send them to clients on the move.
Apart from accepting payments through multiple gateways, it is also possible to pay bills and handle all sorts of personal expenses. And what’s more, an inventory has been tossed into the mix for simplifying invoicing and tracking stock movements.
Conclusion:
So this was a comprehensive list of some of the multiple FreshBooks alternatives that we think should be given a try. Most of them can carry out all of the functions that you expect the said program to do and even more. You can check out the pricing for each of them and select the contender that suits your budget the best. When you are done trying them out, get back to us with your views and opinions.
Posted on 5:13 AM | Categories:

Grab These 8 Individual Tax Breaks Expiring Year End 2013

Ashlea Ebelingfor Forbes writes: It may be your last chance to snag a tax credit for making green home renovations or buying an electric vehicle, or to partake in other popular tax breaks that are expiring at year-end 2013 if Congress doesn’t act to extend them. Sound familiar? It’s a story played out over and over as Congress dithers on tax reform and leaves taxpayers and their tax advisers hanging.
In its 2013 Year-End Tax Planning Special Report, tax publisher CCH, a Wolters Kluwer business, lists these sunsetting “ tax extenders” and says that taxpayers should consider acting now, before year-end 2013, whenever possible, to take advantage of these breaks. “Whether Congress will extend them again is questionable,” the report says. “While all have their supporters, Congress appears likely to take an extremely budget-conscious approach toward any tax provision it may consider.”
At least there’s certainty for 2013. When Congress passed the American Taxpayer Relief Act in January, it included renewing these extenders through year-end 2013–and retroactively for 2012. Let’s hope we don’t have to wait until 2015 for clarity on their fate for next year.
That said, here’s a rundown for your consideration before the New Year.
Remodeling your home for energy-efficiency. There’s a $500 tax credit (that’s a dollar for dollar savings) for making certain energy-efficient improvements to your home like putting in a new front door, added insulation or a corn stove. The credit is 10% of the cost of building materials, so if the cost is $5,000 you get $500 back courtesy of Uncle Sam. One big caveat: The $500 credit applies to cumulative claims for the credit dating back to 2006. For details, see Fiscal Cliff Deal Helps Pay For Green Home Remodels.
Get an electric vehicle. A tax credit for certain 2 or 3 wheeled electric vehicles expires at year-end. A separate tax credit of $7,500 is available for 4-wheeled electric vehicles including the 2012-2014 Ford Focus Electric, the 2013 Ford Fusion Energi, the 2013 Ford C Max Energi and the 2011-2012 Nissan Leaf and will be phased out once a manufacturer’s has sold 200,000 vehicles.
Commuter benefits. The transit parity tax break—putting train commuters on the same footing as car commuters who park so they can defer $245 a month of pretax salary to use for commuting expenses—is in danger yet again. If you commute and your employer offers the benefit, make sure you’re taking advantage of it for the rest of the year. And then for 2014, sign up through your employer, and if Congress extends the break retroactively, you’ll be more likely to be able to get money back. For how employers dealt with the 2012, see Collecting Retroactive Break Befuddles Commuters Burdens Employers.
Donate conservation property. Through year-end conservationists who donate property or easements on their property to conservation organizations like the Nature Conservancy or a local land trust get an enhanced tax break that’s helped modest-income landowners; these enhancements are good through year-end. For more details, see Good And Bad News For Conservationists In The New Tax Law.
Charitable contributions from your IRA. If you’re 70 and a half or older, you can transfer up to $100,000 out of your Individual Retirement Account to charity. For some taxpayers, this is more tax-efficient than taking the required IRA distributions, paying income tax on those distributions and then giving to charity and getting an income tax deduction for the charitable gift. I described how the math works in the Forbes story Charity Strategy  when the technique first became available in 2006.
State and local sales tax. CCH pegs this one as “the most politically-backed extender” so you probably don’t have to worry about it going away. But to be safe, if you’re a taxpayer who deducts state and local sales tax (in lieu of state and local income tax) and you’re contemplating big purchases in the near term you might want to make them in 2013.
Teacher’s classroom expense deductions. For school teachers who buy school supplies out of pocket, they get an above-the-line deduction of up to $250 for unreimbursed expenses. So it might pay to stock up on classroom supplies for the whole school year before year-end.
Exclusion of cancellation of indebtedness on principal residence.Taxpayers who are seeking debt modification or facing a short sale or foreclosure can exclude from income cancellation of mortgage debt of up to $2 million on their home.  Forbes contributor Tony Nitti describes how this works here.
Posted on 5:13 AM | Categories:

Death Of The S Corp As A Tax Election?

Steve Parrish for Forbes writes: A reader recently asked me if I would do an article on the death of the S Corporation (S Corp). At first, I wondered what he was referring to, but upon further consideration I realized he had a point. The S Corp as a business tax election is far from dead, however it is being threatened. The threats come from three sources: the government, creditors and benefit designers.
The Government
S Corps continue to be the most prevalent type of corporation. According to the IRS’s most recent data, about 70% percent of all corporations filed as an S Corp. Some are regular corporations electing S Corp status and some are LLCs, checking the box for corporate taxation and then electing S Corp status. Over the years, the government has both liberalized the rules for S Corps and cleaned up various abuses. They’ve limited how much passive income can be received; they’ve allowed but then tightened the rules for ownership by an ESOP; and, they’ve simplified some rules while complicating others. One topic, however, is a persistent concern for the government in terms of lost revenue from S Corps – employment tax.  The concern is that S Corp owners can lowball their own wages, and thereby avoid paying FICA and Medicare taxes on their incomes. Some politicians have gone so far as to call S Corp status a “tax shelter.”
Despite all the clamor going on in Congress, there have been indications that the Ways and Means Committee is looking at changing how small, flow-through companies are taxed. One plan is to subject S Corp owners to employment tax on all of their profits. The theory is that this is more equitable, since both guaranteed payments and distribution of profits from an LLC are subject to employment tax. If Congress ever does adopt tax reform, this plan could become reality and S Corp status would lose much of its appeal. Why would an LLC elect S Corp status if the owners don’t get a break on their personal taxes? Would a new business simply start as an LLC?
Creditors
I’m astonished at how much competition there is among revenue-hungry states for the assets of high net worth individuals and their companies. Some states have courted these assets by making their creditor/debtor laws favorable to the debtor. The LLC seems to be the favored business entity for these laws. In many states, the creditor who successfully obtains a judgment against an LLC ends up with nothing more than a charging order. And more and more, these charging orders leave the creditor empty-handed because the debtor can delay or even eliminate collection.
What I’m finding is that businesses concerned about company liability issues are often being advised to form as an LLC, not as a regular corporation (otherwise known as C Corp). It’s suggested that this business form offers superior asset protection. In many cases, this also means owners gravitate towards “check the box” status as a partnership or sole proprietor for federal income tax purposes. This movement towards LLC legal status may portend a decrease in creation of regular corporations electing as an S Corp.
Benefit Designers
Many small business owners are in for a shock this year — thanks to the American Taxpayer Relief Act and Patient Protection & Affordable Care Act, income taxes on the affluent went up in 2013. Because of this increase, we are returning to the days when there is, once again, a difference between the top marginal tax brackets of corporations and individuals. The top tax bracket for a C Corporation is 35%; the top tax bracket for an individual taxpayer is 39.6% plus the 3.8% Medicare Surtax. I’m hearing rumblings in the tax planning community that perhaps C Corp status should be more actively considered for small businesses. While the tax arbitrage between corporate and individual tax brackets alone might not justify the double taxation of C Corp status, the superior benefits planning opportunities may.
With a C Corp, employees/owners can participate in nonqualified deferred compensation plans without having the deferred income come back to them as currently-taxed company profits. Although the owner is ultimately responsible for the corporate tax, in some cases this can still be an effective tax planning tool. They can also participate in group term life and disability income plans with the same favorable tax benefits that non-owner employees enjoy.  The personal income taxes owners saved or deferred may be enough to offset the fact that they will be subject to tax at both the corporate and individual level.
I’m in no way promoting the idea that S Corp status should be avoided. There’s a reason more than two thirds of corporations elect this tax regime. Plus, it is a particularly flexible status for owners contemplating the eventual sale of their stake in the business. I do, however, think S Corp should not be considered the automatic status for a small, closely-held business. There are other approaches; and, planning in advance may save taxes in the future. 
Posted on 5:13 AM | Categories: