Prescott Tax & Paralegal talks about what you can do when your custody arrangement isn’t working out in Prescott

Creating a parenting plan is a difficult task and must be well thought out to accomplish what’s in the best interest for a family. Sometimes situations arise where the plan is no longer working. In a case where one parent won’t cooperate, you may need to petition for enforcement or for a modification of prior orders. Prescott Tax & Paralegal understands this may be overwhelming, and offers assistance in preparing these legal documents in Prescott.

While there are many suggested parenting plans available through the court system, the goal is to make sure your children feel safe and secure, and they are properly cared for.

Here are some situations that could indicate your custody arrangement needs to be modified:

• You feel you should have more time with your children.
• Your responsibilities for caring for your children are causing you to feel overwhelmed.
• Your children are stressed or no longer happy with the arrangement.
• You suspect the other parent is abusing or neglecting the children.
• The other parent has an addiction and may put your children in danger.

In a case where you feel the children may be in danger, you need to take swift action to ensure their safety. In other cases, you will need to petition the court for a modification. If parents can come to an agreement, the modification should be granted without difficulty. The process becomes more difficult if the parents can’t agree to the changes.

If you are going through the challenging process of modifying a prior custody arrangement, and you need assistance in preparing the necessary documents in Prescott, contact the experts at Prescott Tax & Paralegal at 928-778-3113. We can prepare documents, assist you with filing them with the correct agency, and help you to have them served. Learn more about us and our services at http://www.PrescottTax.com.

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Prescott Tax and Paralegal identifies signs that you need to hire a bookkeeper for your Prescott business

As many small businesses start out, they choose to handle their own bookkeeping and accounting rather than hiring a bookkeeper. Even with all the user-friendly bookkeeping software that is available, handling records takes time away from running the business, and there is the question of whether everything is being done right. Prescott Tax and Paralegal wants to help you recognize when you should hire a professional bookkeeper for your Prescott business.

Consider hiring a bookkeeper:

• To review your books to see if your records have been handled accurately
• To free your time to build your business
• To give you the ability to focus on business decisions
• To make sure paperwork is being done timely
• To help you be more strategic with tax planning and investing
• To handle payroll, billing, and paying bills

Depending upon the size of your business and number of employees, you may only need a part-time bookkeeper at first. Some companies may only require a bookkeeper one day a month. As your business grows, your need for a bookkeeper may increase to weekly or even daily.

The cost of hiring a bookkeeper can certainly be offset by the amount of savings you realize when payments are made timely and late fees are avoided.

When considering whether or not to hire a bookkeeper, remember that tax laws are constantly changing and a professional accountant and bookkeeping service stays informed about all the changes. This can also save you money.

If you’re struggling with the decision of whether it’s time to hire a bookkeeper for your Prescott business, consider scheduling a consultation with Prescott Tax and Paralegal. We customize our service to meet your business needs and we want help solve your business challenges. If you have questions about our services, contact us at 928-778-3113. Learn more at http://www.PrescottTax.com.

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Does your Prescott service business need bookkeeping/accounting services? Prescott Tax & Paralegal can help!

Prescott Tax & Paralegal is now offering bookkeeping/accounting services, specializing in service businesses in Prescott. We tailor our services to meet the needs of your business. You can enjoy the same level of expertise and knowledge that you have always experienced with us. Our clients spoke and we listened.

Maybe you just need partial help with filing taxes, or you need a full outsourced bookkeeping service, we can help. Or maybe you know you need help, but are just not sure what and where. Prescott Tax & Paralegal can help by looking at your current systems and talent and matching with our expertise to fill in the gaps.

If you think you need help with taxes and/or bookkeeping for your Prescott business, look no further than Prescott Tax & Paralegal. We learn the specific needs of your service business and can do all the work or just help your current staff get the job done. Our goal is customer satisfaction. Don’t hesitate in reaching out today to discuss your needs at 928-778-3113. Learn more about our experienced professionals and services at http://www.PrescottTax.com.

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Prescott Tax & Paralegal explains what tax services they provide in Prescott.

Prescott Tax & Paralegal loves to assist clients with their tax preparation needs.  It is never too early to start receiving counseling on your particular tax situation.  They offer options that can help you minimize tax liabilities and boost your cash flow.  Prescott Tax & Paralegal explain the different tax services they can provide you:
   

•    Personal Tax Preparation

•    Additional Schedules

•    Business Tax Preparation

•    IRS Representation

•    File prior returns

•    Help you avoid Health Insurance penalties.


Arlene Rheinfelder, with Prescott Tax & Paralegal is an “Enrolled Agent.” (EA) This is the highest credential the IRS awards.  An EA is more advanced than a Registered Tax Return Preparer.  She can represent taxpayers before the Internal Revenue Service.  Enrolled Agents are often considered America’s “Tax Experts!”

We would love to discuss your tax situation with you further.  Have a question?  Prescott Tax & Paralegal is ready to help.  Call us at 928-778-3313 or visit us online at http://www.PrescottTax.com. 

This article is for informational purposes and not intended as legal advice.  If you need legal advice, you should contact an attorney.

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The Hidden Gambling Tax on Retirees brought to you by Prescott Tax and Paralegal.

By Arlene Rheinfelder, Prescott Tax & Paralegal
Enrolled Agent and Certified Legal Document Preparer


You’ve reached your golden years, retired from your job, and now it’s time to relax and enjoy life. Many retirees living in the Prescott area enjoy visiting the casinos and taking their chances with Lady Luck.  Sometimes Lady Luck beams her elusive smile, the slot machine lights start flashing, and the machine makes noises like coins are pouring out.  Prescott Tax and Paralegal brings you the following to think about:

These days, coins don’t actually pour out of the machine, darn it. Casinos must report jackpots to the IRS as gambling winnings on form W2-G, and mail the winner a copy by January 31 of the following year. 

If you have registered with one of the casino clubs, they will often provide you with a Cash In - Cash Out Statement.  Usually these statements show an overall loss for the year, despite the jackpot winnings.  No problem, you can deduct the losses up to the amount of your winnings on your Schedule A as an itemized deduction, but only if you have enough expenses to itemize.

So, where is the hidden tax? Gambling winnings increase income, which then increases the amount of social security which is taxable. Here’s an example for a married couple filing together. Albert & Betty, who are retired, have $28,000 in social security income and an IRA distribution of $20,000. They do not have enough expenses to itemize deductions. Currently, $1000 of their social security benefits are taxable and their combined federal and state tax is $180.

They decide to play the slots, and win a $6000 jackpot.  Now, $4000 of their social security benefits are taxable.  This means their income increased by $10,000: the jackpot plus the increase in taxable social security. Their combined federal and state tax owed increases to $1367. Yikes!  Their overall gambling loss for the year is $3,000 which they cannot deduct because they don’t have enough expenses to itemize deductions.

Compare this to Albert & Betty “gambling” in the stock market.  They buy Snake Oil stock and sell it at a $6000 profit. They also buy Gump Shrimp Co. stock and sell it at a $6000 loss.  The two sales offset each other and there is $0 income to report.  There is no increase to taxable social security, and no increase in the tax owed.

Why doesn’t it work this way with gambling income?  Under the current IRS laws, even though you have a net gambling loss, or $0 total gambling income when you total all your wins and losses, you must report the winnings as income.  You may only deduct losses up to the total amount of winnings, and only if you have enough deductions to itemize.  The net result is a hidden tax increase caused by gambling winnings, particularly for retirees because of the increase in taxable social security.

For those of you who gamble, you can’t win if you don’t play.  But, if you win, you might pay more taxes even if you have a net loss for the year because of this hidden tax.

Have a question? Prescott Tax & Paralegal is ready to help.  Call us at 928-778-3113 or visit us at http://www.PrescottTax.com.

Prescott Tax & Paralegal, the office of Arlene Rheinfelder, AZCLDP is at 141 South McCormick, Suite 206, Prescott, AZ.

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This article is for informational purposes and not intended as legal advice.  If you need legal advice, you should contact an attorney.

Parenting Rights for Unmarried Parents.

By Arlene Rheinfelder, Prescott Tax & Paralegal
Certified Legal Document Preparer and Enrolled Agent

June, a month often chosen for weddings, is just around the corner. For those who choose to skip the formal ceremony, did you know that Arizona does not recognize “common law” marriage? In some states, if a couple has been living together and presenting themselves as a married couple, they are treated as if they were married. In Arizona this is not true.

To be legally married in Arizona, a couple must 1) purchase a marriage license, 2) an authorized person must perform the wedding ceremony, and 3) the signed marriage license must be returned to the court clerk for recording.  If a couple does not complete each step, then they are not legally married under Arizona law. One exception to these requirements are Native American couples who marry according to tribal custom.  Still, establishing the validity of such marriages may require court intervention.

When an unmarried couple with children separates, fathers are often surprised to learn that if there is a dispute over parenting time, or decision making, the father must first establish paternity through the court.  Even though the father may be on the birth certificate, paternity and parenting rights usually must be established by the court.

Now, suppose the unmarried couple separates. To establish which parent will make decisions about the children, and how the children will spend time with each parent, the parents will need to establish paternity though the court and file a parenting plan. If the parents agree, then matters proceed simply. If the parents disagree, the court will usually send the parents to mediation to determine how decisions will be made and establish a plan to share the children.  The court mediators work with the parents to create a plan that will be best for the children.  This agreed upon plan is signed by the parents, and sent to the judge for approval.

Have a question?  Prescott Tax & Paralegal is ready to help.  Call us at 928-778-3313 or visit at http://www.PrescottTax.com.

Prescott Tax & Paralegal, the office of Arlene Rheinfelder, EA AZCLDP is at 141 South McCormick, Suite 206, Prescott, AZ  (928) 778-3113.

This article is for informational purposes and not intended as legal advice.  If you need legal advice, you should contact an attorney.

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What is a Living Trust?

By Arlene Rheinfelder, Prescott Tax & Paralegal
Certified Legal Document Preparer and Enrolled Agent

Think of a Living Trust as a refrigerator.  The “Trustor” is the person who creates the Trust and originally stocks the “refrigerator” by transferring ownership of property to the Trust. The Trust owns the property.

The “Trustee” manages the Trust.  Think of this as “refrigerator privileges” because depending on the terms of the Trust, the Trustee can put items into the fridge, take them out of the fridge, or give them to people named in the Trust.  Often, the Trustor and the Trustee are the same person.

A Trust has one or more “beneficiaries.”  In the refrigerator scenario, the beneficiary may have the right to receive some or all of the stuff (“assets”) in the fridge.  The Trust document states when the beneficiary can receive the assets.  It may be when the Trustor dies, when the beneficiary turns a certain age, or when the beneficiary has specific needs.

Why would a person want a Trust?  The most common reason is to avoid probate and estate taxes.  Assets held by a Trust do not need to pass through probate.  For 2017, you will pay no Federal estate tax on the first $5.49 million of your estate.  Currently, Arizona does not have an estate tax.

Since most of us don’t have $5.49 million in assets, why would we form a Trust? A few other reasons people create a Trust are to provide for a family member who has special needs, to allow a family member, who has debt problems, to become the beneficiary (but not allow creditors to take the assets), and to hold assets for minors. 

A Trust can be quite complex, but that does not mean that it needs to be lengthy.  A top New York estate planning attorney wrote a complex Trust that dealt with assets of greater than $5 million dollars, but the document was only 24 pages long. Longer is not necessarily better, and an excessively lengthy or poorly written document can make Trust administration an expensive nightmare.

Does a Trust take the place of a Will? No.  It can perform many of the same functions, but a Trust is usually combined with a “pour-over” Will.  Going back to the refrigerator example, if you bought groceries on the way home and died before you put them in the fridge, the pour over Will takes the groceries (property) and puts them in the fridge (Trust).  This makes sure that anything that may have been forgotten, or purchased after the Trust was formed, is transferred to the Trust and distributed according to the directions in the Trust.

Have a question? Prescott Tax & Paralegal is ready to help.  Call us at 928-778-3313 or visit us online at http://www.PrescottTax.com.

Prescott Tax & Paralegal, the office of Arlene Rheinfelder, AZCLDP is at 141 South McCormick, Suite 206, Prescott, AZ.

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This article is for informational purposes and not intended as legal advice.  If you need legal advice, you should contact an attorney.