FAQs

Bookkeeping involves recording and organizing financial transactions, while accounting interprets, analyzes, and reports on those financial records to provide insights and prepare for taxes.

We collaborate with a diverse array of industries, including small businesses, nonprofits, retail, construction, professional services, real estate, and beyond. Our team customizes services to address the distinct needs of your specific sector.

We partner with individuals, small businesses, corporations, and nonprofits. Whether you require straightforward tax preparation or extensive financial management, we have the perfect solution for you.

Yes, we offer both in-person and virtual services, providing flexibility and convenience for our clients.

The frequency of bookkeeping depends on your business size and transaction volume. For small businesses, we generally recommend monthly bookkeeping, while larger operations may benefit from more frequent updates.

Absolutely! We specialize in meticulously reviewing and updating past records to ensure accuracy and relevance.

We utilize top accounting tools like QuickBooks Online, Xero, and other cloud-based platforms. Additionally, we can seamlessly integrate with any software you currently use.

Yes, all records belong to you, and we guarantee that you can easily access them at any time.

Certainly! We provide tailored services to enhance your efforts, including account reconciliation and report preparation, allowing you to focus on daily data entry.

Bookkeepers concentrate on daily financial transactions, whereas accountants offer comprehensive analysis, financial reporting, and tax planning. If you require both services, we can tailor a package to meet your needs.

Yes. We create comprehensive reports, including profit and loss statements, balance sheets, and cash flow statements, to provide valuable insights into your business's financial health.

Yes, we can. We collaborate with clients to develop budgets and provide forecasts, enabling them to make informed decisions for their business.

We prioritize data security by utilizing encryption, secure servers, and stringent access controls to safeguard your information.

Common documents include W-2s, 1099s, last year's tax return, receipts for deductions, and financial statements for business owners. We offer a detailed checklist to assist you.

Yes, we have considerable experience managing taxes for clients with income or business operations across multiple states.

The timeframe for processing your return depends on its complexity and the availability of your documents. Simple returns may be completed within a few days, whereas more complex cases could take longer.

Yes, we can offer audit support and represent you before the IRS for the tax returns we prepare, if necessary.

Absolutely! We assist both individuals and businesses in year-round tax planning to minimize liabilities and optimize deductions and credits. We collaborate with third-party professionals, such as financial planners, to provide a comprehensive approach to your tax strategy.

• Single & Married Filing Separately: $15,750
• Married Filing Jointly & Qualifying Widow(er): $31,500
• Head of Household: $23,625

Note: Additional standard deduction amounts are available for taxpayers who are 65 or older or blind.

For 2025, the Earned Income Tax Credit (EITC) has increased:

• No qualifying children: up to $649
• 1 qualifying child: up to $4,328
• 2 qualifying children: up to $7,152
• 3 or more qualifying children: up to $8,046

These amounts reflect inflation adjustments for the 2025 tax year.

As of IRS current inflation adjustments, retirement contribution limits for certain accounts such as 401(k) and IRAs have not yet been officially published for 2025 on IRS.gov.  We will update as soon as the official guidance is published.

2024 contribution limits for retirement accounts were publisjed as:

• 401(k): $23,000 (up from $22,500 in 2023)
• IRA: $7,000 (up from $6,500 in 2023)
• Catch-up Contributions (50+): $7,500 for 401(k), $1,500 for IRA

• Single: $84,800
• Married Filing Jointly: $126,500

Regarding 2025 

The IRS adjusts the AMT exemption and phaseout thresholds for inflation each year, generally raising the amounts so fewer taxpayers are subject to AMT.
As of IRS guidance, specific AMT exemption amounts for 2025 have been increased from 2024 but the official IRS tables should be checked for your filing; they reflect higher exemption levels to account for inflation.

No. The temporary above-the-line charitable contribution deduction that applied in 2020 and 2021 was not reinstated. For the 2025 tax year, charitable contributions are deductible only if you itemize deductions on Schedule A.

Energy-related tax credits continue to be available under the Inflation Reduction Act for the 2025 tax year:

• Residential Clean Energy Credit
  Taxpayers may claim 30% of qualifying costs for eligible clean energy installations, including solar panels, solar water heaters, wind turbines, geothermal heat pumps, and battery storage systems. This credit remains available at 30% through 2032.
  
  
• Energy-Efficient Home Improvement Credit
  This credit remains available for qualifying energy-efficient home improvements, such as heat pumps, insulation, energy-efficient windows and doors, and certain electrical upgrades. Annual and lifetime limits apply, and credits are claimed based on specific improvement categories.

Credit eligibility, income limitations, and documentation requirements apply. Taxpayers should retain records and consult a qualified tax professional to determine eligibility.

Yes. For the 2025 tax year, the Section 179 expensing limits have increased for inflation:

• Maximum Section 179 deduction: $1,220,000
• Phase-out threshold: $3,050,000

The deduction begins to phase out once total qualifying equipment and property purchases exceed the phase-out threshold.

• Business Use: 67 cents per mile
• Medical or moving (qualified active-duty military): 21 cents per mile
• Charitable Use: 14 cents per mile (set by statute and unchanged)

The 20% QBI deduction remains in effect for eligible pass-through businesses.

However, income thresholds for phase-outs have increased:

• Single filers: $191,950
• Married Filing Jointly: $383,900
  
  

Above these thresholds, limitations may apply depending on business type, wages paid, and qualified property.

Several valuable credits remain available for eligible small businesses:

• Work Opportunity Tax Credit (WOTC)
  Available for employers who hire individuals from targeted groups, including veterans and long-term unemployed workers.

• Clean Energy & Energy-Efficiency Credits
  Small businesses investing in qualifying renewable energy systems or energy-efficient improvements may be eligible for enhanced federal tax credits under current clean-energy provisions.

Eligibility requirements, income limitations, and documentation rules apply. Business owners should consult a qualified tax professional to determine applicability.

For the 2025 tax year, education tax credit amounts remain unchanged:

• American Opportunity Tax Credit (AOTC):
  Up to $2,500 per eligible student for qualified education expenses during the first four years of post-secondary education. A portion of the credit may be refundable, subject to income limits.
  
  
• Lifetime Learning Credit (LLC):
  Up to $2,000 per tax return for qualified tuition and education expenses. This credit is nonrefundable and available for undergraduate, graduate, and professional courses.
  
  

Income phase-out thresholds apply to both credits.

Yes. You may deduct up to $2,500 of qualified student loan interest as an above-the-line deduction, even if you do not itemize, provided your income falls within the phase-out ranges:

• Single filers:
  Phase-out begins at $80,000 and ends at $95,000
  
  
• Married Filing Jointly:
  Phase-out begins at $165,000 and ends at $195,000
  
  

Taxpayers with income above the upper limits are not eligible for the deduction.

Yes. For the 2025 tax year, the IRS increased the estate and gift tax limits for inflation:

• Federal estate and lifetime gift tax exclusion: $13.99 million per individual
• Annual gift tax exclusion: $18,000 per recipient
  
  

These amounts apply per individual. Married couples may effectively double these limits through proper planning.

Taxpayers must continue to disclose cryptocurrency activity on their federal tax return by answering the digital asset question, even if no taxable transaction occurred.

In addition:

• Businesses receiving more than $10,000 in cryptocurrency as part of a trade or business are required to report the transaction, similar to cash-reporting rules.

• Cryptocurrency sales, exchanges, and disposals remain taxable events and must be reported when applicable.

Reporting requirements, thresholds, and documentation rules apply. Taxpayers should consult a qualified tax professional regarding estate planning, digital asset reporting, and tax compliance.

Yes. Third-party payment platforms continue to report certain transactions to the IRS using Form 1099-K.

• The IRS has implemented phased-in reporting requirements, and thresholds may differ depending on the year and transaction type.
  
  
• Regardless of reporting thresholds, all taxable income must be reported, including business income received through Venmo, PayPal, Cash App, Zelle, or similar platforms.
  
  

Taxpayers should maintain accurate records distinguishing business income from personal transfers.

Penalties, reporting thresholds, and enforcement practices are subject to IRS guidance and transition rules. Taxpayers should consult a qualified tax professional to ensure proper compliance.

Penalties for late filing and late payment remain unchanged for the 2025 tax year:

• Failure-to-file penalty:
  5% of unpaid taxes per month, capped at 25%
  
  
• Failure-to-pay penalty:
  0.5% per month on unpaid taxes, also capped at 25%
  Interest accrues on unpaid balances until paid in full.

For individual taxpayers, the federal income tax filing deadline for the 2025 tax year is:

• April 15, 2026
• October 15, 2026 if a valid extension is filed
  
  

Extensions apply to filing, not to payment. Taxes owed are still due by the April deadline to avoid penalties and interest.

Yes. Taxpayers affected by federally declared disasters may qualify for automatic IRS filing and payment extensions, depending on the disaster declaration and location.

For example, taxpayers impacted by Hurricanes Helene and Milton in 2024 were granted relief by the IRS. Under the announced relief, Florida taxpayers were given until May 1, 2025 to file certain federal individual and business tax returns and make required tax payments. This relief applied to returns and payments normally due during March and April 2025, including:

• 2024 individual and business income tax returns
• 2023 returns on valid extension
• Quarterly estimated tax payments
• Payroll and excise tax returns
  
  

Disaster relief is issued by the IRS on a case-by-case, event-specific basis, and eligibility depends on FEMA declarations and IRS guidance.

In addition, taxpayers who sustained losses in prior federally declared disasters may be eligible for refunds through amended returns. We have assisted many clients in amending prior-year tax returns to properly claim disaster-related losses and recover refunds that were previously missed or unavailable at the time of original filing.

If you were affected by a natural disaster, whether recently or in prior years, we can help determine eligibility, ensure proper documentation, and evaluate whether amended returns may be appropriate.

Disaster relief eligibility and deadlines are determined by IRS announcements and FEMA declarations. Documentation requirements apply.