Idaho Falls Taxes

Idaho Falls Taxes For Residents

As a resident of Idaho Falls it’s important to know and understand what type of taxes you pay throughout the year. Do we need to pay estate taxes? What is our income tax rate in Idaho Falls? What credits are you eligible for to get a tax break?You can find out this information and more below. At Poston, Denney, & Killpack we want to make sure that all Idaho Falls residents and business owners are well informed about the taxes they are currently paying. If you live in Idaho Falls or any part of Idaho you are subject to the following Idaho Falls taxes:

Sales Tax

The rate of Idaho Falls sales tax is 6% ( this is the rate for the entire state of Idaho) Individuals pay this Idaho Falls tax when purchasing merchandise, goods, or services, some exemptions may apply. Sales tax in Idaho falls includes the sale, rental or lease of property and services. Prescription drugs are not taxed in Idaho Falls.

Use Tax

This Idaho Falls tax applies to goods that didn’t have sales tax that you use or store in Idaho Falls. Use tax is a tax that is usually meant for business owners. This tax is paid directly to the state and not the business owner. You can find more information about Sales and Use tax, here.

Property Tax

This tax applies to all real estate property owners. The state oversees property tax, but property taxes are collected and assessed by the county. Property taxes help to fund the local government. You can find out a rough estimate of what your property tax will be for 2017 by taking the value of your property and multiplying it by the average tax rate, minus exemptions. The current rates for Property Tax in the Idaho Falls area are:

• Average Urban Rate: 1.275%
• Average Rural Rate: .832%

Property Tax Exemptions

Homeowners Exemption - This exemption applies to owner-occupied primary dwellings. The rate for the Homeowner Exemption is determined by the Housing Price index annually.

Property Tax Reduction - Sometimes called the CIrcuit Breaker, this exemption applies to qualified low-income homeowners. To use this exemption homeowners must apply and qualify for the Property Tax Reduction each and every year.

Individual Income Tax

The rate for individual or personal income for the Idaho Falls resident varies depending on their income for the year this includes money that was made both in and out of the state). The rate for income tax in Idaho Falls is 1.6% to 7.8%. Depending on the individual's income will determine what tax bracket they fall into. The higher the earnings, the higher the tax rate. Idaho tax brackets are adjusted annually. You can find out what tax bracket you fall in for 2017, here.

There are credits that Idaho Falls  individuals can use to offset their income tax. These tax credits include:

• The Grocery Credit - To be eligible you must be an Idaho resident. The average Grocery Credit is about $100 per person.
• Credit for taxes paid to other states.
• Donation Credits - If you made donations to Idaho educational entities, rehabilitation facilities, and some non profit organizations, you are eligible for this credit.

Idaho does not tax benefits from Social Security or the Railroad Retirement Board. However, Idaho does tax all other sources of income, no matter the source.

Some states require additional taxes from their residents. Lucky for Idaho Falls residents, they don’t have to worry about paying a Inheritance, Gift, or Estate Tax.

• Inheritance/Gift Tax- Idaho Falls does not currently have an inheritance tax or gift tax.
• Estate Tax- Idaho Falls did have an Estate tax at one time, but it no longer does. The Idaho Legislature or Congress would have to change the current laws in order for an Estate tax to be reinstated.

If you would like more information on how to calculate your property tax and what exemptions you are eligible for, your Idaho Falls tax experts, Poston, Denney, & Killpack can guide you in the right direction. We also help with bookkeeping, small business tax information, and individual tax filing. Contact us today, to find out more about our tax services in Idaho Falls and how we can save you money.

Common Tax Problems in Idaho Falls

 New software is making it so many people are starting to do their taxes at home. Even with all the updates in this new technology, taxpayers filing their own taxes, without the help of a professional still seem to be running into common tax problems and mistakes. According to bankrate.com there are 10 common tax problems that people run into when filing without consulting a professional or a CPA. Some of the common tax problems are:

• Math Miscalculations and Computation Errors  - One of the most common problems, when filing your own taxes is bad math. Though there is no penalty for “wrong” math, you still might experience a delay or a different amount than you thought you would be receiving in your tax return, if not caught quickly enough. If you underpay on your taxes because of a miscalculation you might also receive a penalty for late and under payment of your taxes. Computation errors are another common mistake.Just like miscalculated math, this common tax problem occurs when a tax filer incorrectly enters the taxable income, withholding and estimated tax payments.
• Direct Deposit Dangers - A wrong account or routing number could cause you to lose your tax return completely. A CPA at Poston, Denney, & Killpack can help you create a plan that will avoid losing your money by filing a form 8888.
• Additional Income, Additional Filing Work - Independent contractors have additional filing work on their taxes. Forgetting the additional filing work could result in a possible late filing penalty if not caught in time.
• Missing the Deadline - Many people hold off until the very end to file their taxes. As long as you press enter or your tax return is postmarked by the deadline in April, you should be OK. If you still are unable to send your forms by the deadline, you then need to file a Form 4868, this will give you a six month extension. If you owe any taxes be sure to send it with your extension request. If you do not, you could face late or non filing penalties.

How To Avoid Common Tax Problems in Idaho Falls

When you consult with a CPA at Poston, Denney, & Killpack we can help you avoid the above problems and avoid any penalties or delays of your tax return. Even if you have the most up to date software for filing your taxes, nothing beats the assistance of an experienced tax preparation CPA. We help you avoid common tax problems by offering the following tax preparation services:

• Checking your tax return for any possible miscalculations, computation errors, and recent name changes that the IRS may look at.
• Filing your return electronically and safely by filling out a Form 8888
• How to adjust your payroll so you can get more money back every week.
• Show you any possible additional deductions that will limit your tax liability for the next year
• Own a business? We offer small business tax preparation services as well. We keep your books organized so you can get back to running your business.

Idaho Falls Property Taxes

Idaho Falls Property Taxes

If you own a home, you are subject to property tax. Property tax is a tax that homeowners must pay every year. This tax can vary all over the state of Idaho since percentages can vary from county to county. Poston, Denney, & Killpack CPA’s can help you put money aside for property taxes and help you assess what your property taxes may include based on the value of your property. So what is property tax? According to Wikipedia,“Under a property-tax system, the government requires or performs an appraisal of the monetary value of each property, and tax is assessed in proportion to that value.” These taxes are what help to fund community services. Towns use the levied taxes to help pay for schools, law enforcement, emergency responder wages, road construction and pay for trash and snow removal and any other services that help the community.

How are Property Taxes in Idaho Falls Levied?

The county assessor, calculates the total property tax levy by projecting the needs of the city or county for the year. Then they will calculate what the total budget is for the cost of all the needs of the community. This projected amount is that put against the amount of total residential properties. This final amount is what creates the percentage for that years property tax levy. Then the county assessor applies the percentage rate to assessed value of the home to determine what the homeowner will pay that year in property taxes. The Bonneville county assessor also defends values or appraisals using current sales information of comparable properties and makes adjustments accordingly. You can get a rough estimate for your house using this property tax calculator.

How Are Idaho Falls Property Taxes Collected?

There are a couple of ways that your Idaho Falls property taxes will be collected.One way that property taxes are collected is through a yearly imposition. Homeowners will be notified of the tax levy in early spring. Homeowners will then have six to nine months to put money aside to pay their property tax. This where you will want to have a consultation from an Idaho Falls CPA to help you choose the best options to save your money for the levy. These taxes are collected at the end of the year. Another way that Idaho Falls property tax is levied, is quarterly. Instead of a large sum due at the end of the year, the county assessor splits the tax into four payments throughout the year. This can help reduce the hardship of trying to save a much larger sum of money all at once. CPA’s can help to manage and possibly even reduce the cost of your property taxes.

CPAs for Idaho Falls Property Taxes

CPA’s can help reduce the risks of incomplete or late filings and help you take advantage of exemptions and other tax-mitigation opportunities. Contact Poston, Denney, & Killpack today for your free consultation for property taxes in Idaho Falls.

Estate Planning for Non-Traditional Circumstances

Nobody is going to live forever. This is undeniable fact of life and often times most of us simply don’t want to think about that will happen after we leave this life behind. But if you own assets such as real estate, a savings account, and other valuable possessions, it is imperative that these things be properly managed should you become incapacitated or deceased.

Idaho Falls estate planning services by a professional CPA will help you craft and implement an effective plan for what will happen with your assets. Good estate planning will help to minimize tax burdens imposed by state and federal agencies and allow your next of kin to enjoy the fruits of your hard labor. Without a properly executed will or power of attorney could end up costing you and your family thousands of dollars in taxes and forfeitures.

While most estate planning involves your spouse or children, there are a few instances when estate planning can be a little more ambiguous. This post is intended to briefly describe 3 non-traditional estate planning circumstances that may be encountered in these modern times. B no means does this post cover every aspect of options available and professional help from a CPA is strongly recommended. If you have any questions about any of these scenarios, please feel free to contact Poston, Denney, & Killpack PLLC in Idaho Falls for more information.

Estate Planning for Unmarried Couples

As law is currently written today, married couples enjoy more protections than unmarried couples do concerning estate planning. But this doesn’t mean that there aren’t options for those who decide not to tie the knot. Having a good plan in place will help you and your partner avoid the headaches that can be caused by the murky waters that is estate planning for unmarried couples.

1. Property - Legal ownership of property can be addressed by utilizing what is called Tenants In Common. This allows property to be legally owned by multiple people based upon a percentage. Another option available are Trusts. Trusts will spell out what should happen with your property should you become incapacitated or die, but your partner must also be a part of the Trust.
2. Retirement Plans and Life Insurance - If you have savings tied up in a 401(k), IRA, or pension plan, you may be able to designate your partner as a beneficiary of these retirement plans. These beneficiary designations will supercede anything written in your will so it is absolutely imperative to make sure your beneficiary designation is up to date. Finally, a life insurance policy with your partner listed as a beneficiary can help if for some reason your partner is not allowed by law to be a beneficiary of your retirement benefits or other assets. Some insurance companies will not allow unmarried partners to become a beneficiary so it is important to shop around before you buy.

Estate Planning for Childless Couples

If you and your spouse do not have any children, you still need estate planning to make sure your assets and property are used in accordance to your final wishes. Many couples without children may opt to leave their estate to a charity of their choice. Some may leave their assets and estate with their surviving extended family members. So, unless you don’t mind the state taking possession of your estate after you pass away, it is important that you and your partner have a will in place. Designating beneficiaries of your life insurance and retirement is also a great idea that will help lessen the stress on your surviving extended family members. A professional CPA will help guide you and your spouse when you decide who to leave your estate with.

Estate Planning for Digital Assets

Living in the 21st century comes with a litany of assets you may not even realize you have. If you were to pass away tomorrow, what would happen to your Gmail account? How about your Facebook and Pinterest accounts? Your extensive iTunes library? Or what about your gardening blog that earns you $5,000 per month in ad revenue? Many people only think about what will happen to their homes and bank accounts when they die. But in today’s age we often forget that we own much more than just money and land.

Most of these online accounts are managed by the legaleze found in the Terms of Service Agreement listed when you clicked “I Agree” (probably without even reading them!). As federal and state law catches up with technology, it is becoming easier for next of kin to get control of these digital assets. But, like with anything else dealing with estate planning, planning now will help your next of kin avoid headaches once you leave this life behind.

Some tech companies are implementing features and tools that will help mitigate issues that can arise when somebody dies, For instance, Google has released what is called “Inactive Account Manager.” This allows a Google account owner to designate another Google user as an account manager should the former not be able to log into their Google account after a set amount of time (which would happen if you died and didn’t leave a password behind - I have mine set up to allow my wife access after three months of inactivity). Another option is to keep a spreadsheet with all of your usernames and passwords recorded down. Then, your will should spell out in clear terms who should be allowed possession of this credential spreadsheet.

When it comes to estate planning for digital assets, it is important for you to detail exactly what you wish to happen with your accounts, profiles, and online presence. Without these things clearly spelled out in your will, it can become next to impossible for your next of kin to take control of your digital assets.

Idaho Falls Estate Planning - Additional Information 

The above mentioned scenarios are just a few of the estate planning issues that people may face when it comes time to figure out what needs to be done with their assets. The very best information you can get will be provided by a licensed and professional CPA or estate lawyer. It is our recommendation that you contact and hire a professional so that you can be sure your estate planning is in good hands, and according to your final wishes, after you leave this life behind. Contact Poston, Denney, & Killpack PLLC in Idaho Falls for estate planning services. We can help you and your spouse navigate all of your options regarding what will happen with your assets by helping you write and execute a will. We also help with personal financial planning and elder care financial planning.

Idaho Falls Tax Preparation with Poston, Denney, & Killpack, PLLC

Idaho Falls tax preparation season is just around the corner. At Poston, Denney, & Killpack, PLLC we want to help you get the most from your refund and make the most of your hard earned dollars. Often the first step to making the most of your finances is having a professional help you figure out the ins and outs of your accounts and taxes. Read on to find out what a certified public accountant (CPA) can do to help your finances both personally and professional.

What is a certified public account responsible for?

A certified public accountant or, CPA, is responsible for analyzation and preparation of financial reports for individuals and companies. A CPA will audit financial reports for compliance with tax laws and review financial information to make sure there are no inconsistencies. Some of the primary responsibilities of a CPA include:

• Maintaining financial records
• Auditing financial information
• Overseeing budget and financial management
• Bookkeeping
• Preparing government audits
• Tax preparation
• Financial planning
• Advising advantageous methods for money saving
• Ensure taxes are paid on time and late without fees
• Auditing accounts for errors, fraud and overspending
• Create reports for financial information
• Create and analyze budgets
• Advise businesses on tax ramifications
• Act as a consultant
• Oversee accounts
• Forecast financials
• Investigate discrepancies
• Provide strategic planning
• Fraud prevention

As you can see, the list of services a CPA can provide is impressive. The services you will need will depend on your financial goals and your individual situation. Not all certified public accountants provide all the services listed. For your Idaho Falls tax preparation you may only need help with a few tax items and accounting advice. If you own a business, your Idaho Falls tax preparation and financial planning may be more involved and require more services from a CPA.

A certified public accountant is held to a very high professional standard by their state boards of accountancy. They are also required to follow a strict Code of Professional Conduct requiring them to act with integrity, due diligence, utmost competence and fully disclose any conflicts of interests at any time. You can have complete ease of mind when you have a CPA looking into your financial situation and helping you with tax preparation.

Poston, Denney, & Killpack, PLLC understands that taxes and finances can be like trying to read a different language. Look at a CPA as your translator. Not only will a CPA help you understand your taxes and finances, but they will make you the master of your money. Idaho Falls tax preparation season does not need to be a stressful experience! A CPA can give you the peace of mind and guidance that your personal or professional finances need.  Want to learn more about the services available from a CPA at Poston, Denney, & Killpack, PLLC? Stop in or give us a call today and we can help you on the path to financial peace of mind.

Can a CPA help with your taxes?

Are you considering hiring a CPA but wondering if it is really worth it? Maybe you are accustomed to dropping numbers into software and letting a computer do your tax calculations.  Have you ever wondered if you are missing something as you click submit? While a good CPA may cost you more than popular software, it is an investment that will pay off in the long run. A CPA will do more than just fill out your forms for you; they will analyze the situation to look for tax savings opportunities. Not only that, but they will help you plan for next years Idaho Falls tax preparation. A great certified public accountant will become one of your most trusted financial advisers.

For the most part, people tend to have a base level understanding of how to do their taxes. With most simple tax returns people have enough knowledge to fill out the tax documents with online software and turn in their tax return with relative ease at a click of the button. On the other hand, there are individuals that have more complicated returns that make Idaho Falls tax preparation somewhat of a living nightmare.

Keep in mind that there is a big difference between a Certified Public Accountant and a Tax Preparer. During tax season there are plenty of advertisements for tax preparation services. If you chose one of these services you are not going to get the a full benefits of  an accountant or CPA. A tax preparer will do little more than ask you the same basic questions as the most popular software available.

Individuals and businesses can take advantage of the knowledge of a certified public accountant to help turn around their money management tactics and receive crucial insight for tax preparation, personal financial planning, and advice for developing effective accounting systems.

If you have ever wondered if you are getting the most from your tax refund or if you think you may owe taxes for the year and want to save as much as possible and avoid owing the following tax year, you may want to consider hiring a Certified Public Accountant for your Idaho Falls tax preparation needs.

Not everyone will see a substantial enough benefit from hiring a certified public accountant for their Idaho Falls tax preparation to make it worth the cost. There are some scenarios that would likely make the investment of a Certified Public accountant worthwhile.  Some of these include:

• Business owners
• Marriage
• Divorce
• Having children
• Buying a house
• Changing jobs
• Receiving an inheritance
• Retirement preparation
• Rental property ownership
• And other taxable investments

These, and other unique circumstances or life changes, can make Idaho Falls tax preparation a major headache and lead to unwanted surprises, such as owing thousands of dollars to the IRS. A Certified Public Accountant can really help you navigate the tax documents and help you find every tax break you can.

Why should you use a certified public accountant for Idaho Falls tax preparation?

Let’s face it. No one likes to do their taxes. It’s stressful, especially when the numbers are not going your way and what you hoped would be a refund turns into a check YOU have to send the IRS.  Although not everyone will see a large enough benefit to justify the investment of hiring a Certified Public Accountant, for many people having a CPA help with your financial planning and tax preparation can provide a large return over the years as your dollars start working for you.

A certified public accountant will take a lot of stress out of Idaho Falls tax preparation season because they do this for a living! You know your taxes and financials are in good hands, which gives you peace of mind on April 15th.

All Certified public accountants have passed the arduous CPA exam and carries a license that must be renewed to keep them up to date with continuing educational credits. When you have a CPA scanning your tax documents looking for deductions and ways to save you money, you can be sure that they are in the know of the latest tax laws that will give you the best refund. They will be able to analyze your finances and spot problems that may cost you down the road.

If you are a business owner, you will likely see the greatest return on hiring a CPA to help with your Idaho Falls tax preparation. As a business owner there are so many available deductions and facets to financial planning that are nearly impossible to keep up with you are already busy running your business! A CPA can really be a valuable advisor for business owners by helping them get the most from their taxes, avoid penalties, and other accounting needs.

Making the Most of a CPAs Services

Everyone is on a budget. Here are some ways to get the most from working with a CPA for your Idaho Falls tax preparation. This may sound like a no brainer, but don’t lie to your CPA. According to The American Institute of Certified Public Accountants (AICPA), “It’s like lying to your doctor, it only hurts you.  Sometimes clients can be embarrassed to share information like gambling earnings or certain medical expenses.  Your information is private and helps your CPA determine the best way to claim that expense or report those earnings.” Most CPAs Charge by the hour, if you have decided that your taxes are complicated enough that you a CPA would be advantageous, get organized before you go! AICPA recommends “If you have a lot of contributions to deduct, consider providing a simple spreadsheet with the donations listed along with documentation.  This could lower your bill considerably.”  Once you have decided to hire a CPA find someone that you are comfortable with and stick with them! When you work with the same CPA year after year and check in with them through the year with questions they will be more likely to catch errors and know what changes to ask about to help you get the most deductions possible.

If you are ready to take the next step to find about more about what a CPA can do your Idaho falls tax preparation give us a call today at Poston, Denney, & Killpack, PLLC to schedule an appointment.

2016 Idaho Falls Tax Preparation Services

2016 Tax Preparation Services in Idaho Falls

Start your year off right by understanding how and when to file your 2016 tax returns and by learning more about Idaho Falls 2016 tax preparation services. With the ACA mandate, penalties for late filing, and small business tax procedures, having correct information will allow you to put your best foot forward this year. Even though this year we will be getting 3 extra days to have our taxes filed, being prepared with the best information that will get you the most money back is in your best interest. This year the deadline for taxes falls on April 18th instead of April 15th. April 15th falls on the weekend and that following Monday is an observed holiday, so taxes will need to be filed at the latest on the Tuesday. But there is no need to wait until then, January 23rd is the date that the IRS will start taking electronically filed taxes (e files). Some other important dates to mark on the calendar for your 2016 tax preparation services in Idaho Falls are:

• January 31st - By this date, you should have received a W-2 from your employer. If you have not received a W-2 by this time, contact their Human Resources department or Head of Payroll to have your tax documents resent.
• February 1st - This is the deadline for 1099 statements. This is the last day for any self employed peoples to file their 1099 statements and pay their estimated fourth quarter tax. This also includes 1099 statements in regards to bank interest, non employee compensation, and retirement dividends and distributions.
• February 16th -  Financial Institutions need to have mailed out 1099-B, 1099-S, and 1099 MISC forms.
• March 15th - S Corporations and Partnership filings are due at this time.

Extension Requests for 2016 Tax Preparation Services in Idaho Falls

For people that are planning to request extensions on filing their taxes, there are some later dates that you will want to be aware of. If you know that you will not be able to file your taxes by April 18th, you can request an automatic 6 month extension on your taxes. However, even with this six month extension on filing your taxes, you will still be expected to pay the amount owed by April 18th. If you do not pay what you owe by this date, an interest incurred will be paid and you may be subjected to penalty fees.  An extension request will have need to be filed no later than April 18th. Dates for extensions on taxes included:

• June 15th - The last day for U.S. citizens or residents who are living abroad to file their taxes. If not filed this day, they can request a four month extension.
• October 15th - This is the last day to file taxes if a six month or four month extension was approved. These must be filed before tax day on, April 17th.

To file extension requests, you will need to file a Form 4868 before tax day. It is important to note when getting ready to prepare an extension request, that you do not need to request it just because you cannot pay the amount you owe by April 18th. Filing taxes late can result in two different penalties:

• Failure to File Penalty - normally this penalty will cost you 5% of your unpaid taxes for every month you do not pay what you owe. The maximum amount this will reach is 25%. If you decide to wait until after 60 days to file your taxes, it will cost you the smaller of the two amounts, either $135 or 100% of your taxes.
• Failure to Pay Penalty - This penalty is ½ of one percent of your unpaid taxes for each month they are not paid. If by the time you do file your taxes and you have paid 90% or more of the amount you owe, you may not face this penalty at all.

Filing your return on time and paying as much as you can, will help you to avoid extra interest costs and any penalties you could face. That is why it is important to file your taxes as soon as you can using your 2016 tax preparation services in Idaho Falls. If you have any questions concerning your taxes, an experienced tax preparation CPA at Poston, Denney & Killpack can help you with your tax concerns.

Understanding the ACA for Idaho Falls 2016 Tax Preparation Services

The Affordable Care Act (ACA) has been around since 2014 but some of us are still unsure how we need to file for it for our 2016 tax preparation services in Idaho Falls. Basically, it is important for everyone - dependents included, to have health coverage that meets the minimum requirements for health coverages as mandated by the ACA. For individuals that do not meet the minimum requirements for the Affordable Care Act, they could potentially need to pay a penalty for non compliance. Here are some of the minimum requirements needed for ACA:

• Self insured plans, including COBRA coverage and retiree coverage

• Insurance that has been purchased by the individual
• Medicare Part A, Medicare and Advantage Plans, and most Medicaid plans
• Children’s Health Insurance Program (CHIP)

For information for other types of insurance that meet the requirements of ACA you can go here, to see if you are complying with the mandate for your 2016 Idaho Falls tax preparation services.

2016 Idaho Falls Tax Preparation Services for Small Businesses

Depending on what type of business entity you own, will determine what type of form you need to file your taxes. Regardless of your business type, whether it is an LLC company, you are self employed or a sole proprietorship, you will file your taxes using a very similar formula. First you will want to get all your records in order and know what type of business credits you can apply for you 2016 Idaho Falls Tax preparation services. When you own your own business you will also deal with business expenses, for this reason you are able to deduct certain expenses from your business that are deemed necessary. Some of those deductions can include:

• Storage
• Gas mileage
• Factory Overhead
• Storage
• The cost of raw materials and supplies

There are more things that you can deduct from your business expenses, to find what those are you can visit here. Owning a business is not the only way to deduct expenses from your taxes, for your personal taxes there are also deductions that can be made these can include, student loan deductions, homeowners deductions, and tax credits for healthcare.

We Want to Help With Your 2016 Tax Preparation Services in Idaho Falls

Poston, Denney & Killpack want to help you stay organized and we are able to handle the task of getting you the most money from your taxes. Even with all the information out there it helps to have a qualified tax preparer answering your quest you along the way. If you would like information about our Idaho Falls 2016 tax preparation services call us at (208) 522-0886 for your free consultation today.