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Are Interest on Payday Loans Or Cash Advance Loans tax Deductible

Pay day loans which are also referred to as check advance loans, post dated check loans or deferred deposit loans are a common option for those needing quick cash.

Individual Tax Return

Although almost all interest income are subject to tax most interest payments are not tax deductible. Unlike students loans or mortgage loans, the interest on Payday loans or cash advance loan falls in the category of loans that are not deductible.

Despite an interest rate between 10 and 25 percent, sometimes better, they do not qualify for tax deduction. U.S. tax payers in need of  quick, convenient cash can used payday loan enterprise to get the cash they need to cover up immediate bills.

However, it is advisable that those seeking a quick loan should ensure that they are dealing with a reputable payday loan company. The lender should indicate the amount of interest and the terms of the loan. Borrowers should shop around for the lowest interest rate possible.

These loans are not meant to be long term loans and should be paid of quickly. If you are anticipating a tax refund, the loan should be paid off immediately after receipt of a refund to avoid extra interest on the loan.

Business Tax Return

All expenses for the express purpose of maintaining a business are tax deductible, but you will have to prove to the IRS that these expense were used for tax purposes.

The interest on a payday loan, if the loan was used to finance the business, is tax deductible.

However, ( a big however) the business owner will have to show the IRS how he / she used that payday loan for business purposes. Owing to the fact that most business owners have a credit union or bank account for their business, using a payday loan to temporarily fund a business is not that frequent, although not uncommon.

The wise tax payer should consult a tax advisor on whether interest rates on particular loans are deductible.

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What Documents You Will Need To File Your Tax Return

This is the time of the year when US tax payers are preparing to get their tax return process with hopes of getting back some money or to reduce the amount of money owed to the IRS.

Many of the documents that you will need will depend on the number of tax credits and deductions that the tax payer qualifies to receive.

Your tax preparer should provide a list of tax credits and deductibles that are available in 2011. It is important to get all your tax returns papers in a box or envelop. Double check to see if you have all your documents to avoid going back and forth with your tax preparer.

Including in your documents should be the previous year state and federal W-2 forms and tax return. First, get you Social Security number and that of your spouse and dependents.

These are crucial as the IRS will not process a tax return without the right SSN.

You will also need the Driver licenses ID for both you and your spouse if filing jointly. In addition, if you and your spouse a filing jointly both of you will need to sign the tax return for the IRS to process it.

Get copies of form 1099 for other income such as retirement, social security, unemployment, dividends / capital gains and self employment.

If you are self employed you may have to file a Schedule C as well.

Letters from the IRS regarding garnishment of wages, documents in regard to alimony, mortgage taxes, medical and non profit mileage logs, receipts for repair on your home, receipts for purchase of new car, receipts for gas and business meals (if you have a business), receipt for child day care, tuition expense or statement (1098T) or document indicating interest paid on student loan (1098E), bills paid in regard to vehicle tag fees, charitable contribution, property tax and other documents that are vital to filing your tax return.

If you invest in the stock market you will get a Consolidated Form 1099 from your brokerage or investment banker. You will have to pay roughly a 15% tax rate on dividends and other gains.

Good luck. If you are prepared you are half way there to a good tax return

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Free Tax Workshop For Huntsville Business Owners

The Alabama Department of Revenue will host a free tax workshop for new business owners in the Huntsville area.

The workshop which is scheduled for Monday, January 31, 2011 is designed to help new business owners understand Alabama tax laws dealing with privilege license, tax forms, quarterly reports, tax brackets and other state and IRS issues.

The tax workshop will take place at the conference room of the Alabama Department of Revenue in the Huntsville Taxpayer Service Center, located at 4920-H Corporate Drive.

For more information call: (256) 837-2319

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Tax Advisor Huntsville Al

There are several ways to find a good tax preparer / advisor in Huntsville Alabama. Of course word of mouth, meaning referral from friends and family with good testimonial about the tax preparer / accountant, is a plus. If the tax professional can not help with your particular tax issue, ask for a referral.

Some tax advisors do specialize

Some tax advisors specialize in certain areas of accounting. For instance some tax advisors deal with real estate, other capital gains, while most deal with general tax issues like 1040 filing, Schedule C, small business quarterly tax and the like.

If you are having issues with the IRS, such as garnishment of tax return or IRS audit, locate a tax professional that do understand your unique tax problem.

Find a tax advisor in a networking group

There are many networking groups in Huntsville Alabama with strong checks and balances to ensure that members of the group are professional when dealing with clients.

So if you are a member of the Chamber of Commerce, African American Chamer of Commerce, Women's Business Center, BIN or any of the other business networking groups, ask about  tax and accounting professional that are members.

Get a tax advisor who will empathize  with your tax concerns

There are many tax advisors and preparers in Huntsville that are only concern about making a quick buck. Find one that gives a free hour consultation. After all, before you give someone your money and your business, you should at least get to know them.

Find a professional that is willing to sit and talk with you about the different options available to your unique tax situation.

Opt for a licensed tax and accounting professional

Only sequester the assistance of a Huntsville tax accountant that is licensed and who operates all year round as a full time tax advisor. A full time tax accountant deals with tax issues on a daily basis and is more keenly aware of changes in tax laws.

A professional accountant most likely will have an office where you can meet them at your convenience. Also, they have the knowledge and authority to represent you when dealing with the IRS.

In addition, a professional tax and accounting advisor will explain to you line by line where money from different aspect of your business is allocated and where you can cut cost to improve your business

Find an accountant that is flexible

Find an accountant which is flexible with pay, time and travel. Some accounting firms will charge you a large sum of money even before commencing work on a project. Try to avoid such tax firms.

An accountant that will travel to your business site is a plus. If the accountant office is in Huntsville, and they are willing to travel to Madison, Harvest, Decatur, Meridianville, Toney or any of the surrounding areas to visit clients - they can save you a lot of driving time. This means that they are concerned about your business trajectory and will do anything to get your business

If you are searching for a professional accountant that you can talk to - one-on-one, call us: 256.533.9456

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Snow Reduces Huntsville City Tax Revenue

For the last five days the CIty of Huntsville has been submerged into over 7 inches of snow with temperatures varying from 15 to 35 degrees. Many businesses have closed; all Huntsville City Schools are closed.

Most businesses were closed since Monday and this has a drastic impacted on the city's budget, which encompasses about 54 percent of sales tax revenue.

According to WHNT, Batteries Plus Store Manager, Graham Hester said by the looks of his empty store, business has not yet rebounded. Businesses that were managed to open experience slow sales.

Mayor Battle mentioned that it was difficult to calculate how much the loss of tax revenue will hurt the budget items, but it came down to money management .

"You have to watch your dollars, you have to watch your pennies, you have to be very conservative. We have to be careful with our spending," he stated.

Accountants Alabama

Why Hire A Huntsville Alabama Accounting Firm

An accounting firm provides a host of tax and accounting services that enable business owners to do what they love best, without the headache of thinking of numbers and financial jargons.

Here are some reasons why you should hire a Huntsville Accounting Firm:

• An accounting firm will be more objective and less costly than an in house accountant. If you hire a Huntsville accounting firm you will not have to pay social security tax withholding, Alabama State tax and workman compensation for an accounting employee or employees in an accounting department.
• In addition, you will save BIG TIME from not having to pay for desk, computers and supplies for an accounting office. You will not have to spend huge sums of money on software and software upgrades for quickbooks, peachtree, Pro Series, Drake or any of the other payroll and tax softwares on the market.
• Having an in house accountant means more space is needed. If you are renting, then you will have to think of an increase in rental payment concomitant with the space increase; but with an accounting firm your cost of office space for accounting purposes is zero.
• There will be no cost incurred for sick days, vacation days. All work will be based on a fee per job basis, reducing  cost and unused capacity.
• Some companies do not have the bulk of work to justify hiring an accountant. In some cases businesses can hire a part time accountant, but Social Security Withholding payments and other benefits can eat up profits. With an accounting firm work is done when work is required. For instance, work increases during the tax season, around the time for quarterly reports or on payroll day.
• When mistakes are made the business will not have to incur professional charges to make corrections
  
• There is no hiring process and no cost associated with turnover.
• No cost incurred by having an employee drive to the Huntsville Alabama tax assessor office or the local IRS office

  

If you own a business and you are looking for an inexpensive, reliable accounting firm, call Accent Accounting: 256-533-9456

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How To Renew Alabama Business And Vehicle License Online

With the hustle and bustle of today it is important that we find easier and more productive ways of doing business.

One aspect of effecient business is paying bills on time to avoid late payments and additional fines. There is an easy way to avoid the long lines and hectic traffic when renewing your licensing or paying your property taxes. It is Renew Your Tag dot com.

The website allow you to pay for your vehicle and Boat registration renewals, vehicle decal renewals, Property Taxes, and Business License.

The process of renewing your tag or business license is easy and only cost a $5 transaction fee, a small price to pay to avoid the licking of envelops of standing in long lines at the downtown court house. Alabama residence can pay by check of credit card / debit card.

The process is secure and protected using 256 bit encryption. If you need to renew your license and have questions, please call 1-256-275-4042.

Renewing business licenses should be done with ease as should finding a business directory at DandB.com for your emerging small business.

Accountants Alabama

IRS Mileage Reimbursement Rate 2011

Each year the IRS issues new standard mileage reimbursement rate for vehicles used for business operations (driving to conventions and seminars, attending business meetings, visiting clients, shopping for supplies etc) charitable or non profit organizations and visiting the doctor or traveling to the pharmacy to buy prescription, which is referred to as medical mileage.

The mileage rate usually depends on the price of gasoline and other inflationary variables.

Effect January 1, 2011 the IRS mileage rate will be:

• 51 cents per mile for business miles driven
• 19 cents per mile driven for medical or moving purposes
• 14 cents per mile driven in service of charitable organizations

The IRS standard mileage rate for business mileage as decrease from 55 cents in 2010 to 51 cents.

As compared to 2010 the cents per mile driven for medical or moving purposes has decrease from 24 cents per mile to 21 cents per mile.

The rate for charitable organization has remained unchanged.

In the event that the tax payer opt for the depreciation method (under the Modified Accelerated Cost Recovery System) of calculating vehicle expense deductions he or she can not use the standard mileage rate.

In addition, tax payers should keep a mileage log, record the vehicle mileage at the beginning and end of the year as well as the mileage spent on every business trip.

Moreover, the business standard mileage rate can not be used for more than four vehicles at the same time. In the event the tax payers has more than 4 vehicles the depreciation method, which is calculating the actual costs of using their vehicle should be used

The mileage rate deduction now extends to hired vehicles such as taxicabs and moving companies.