Accounting

Accounting, Tax Preparation

Medical expenses in pandemic (Covid-19)

/

On the off chance that you itemize your deduction for an available year on Schedule A – Form 1040, Itemized Deductions, you might have the option to deduct costs you paid that year for clinical and dental consideration for yourself, your life partner, and your kids. You might deduct just the measure of your all out clinical costs that surpass 7.5% of your AGI. You figure the sum you’re permitted to deduct on Schedule A (Form 1040). The IRS helps citizens that the expense to remember home testing for COVID-19 is a qualified clinical cost that can be paid or repaid under health flexible spending plans, Health Savings accounts, HRA, or Archer MSA. That is on the grounds that the expense to examine or treatment of COVID-19 is a qualified clinical cost for tax purposes. The expense of any COVID-19 therapy can be tax deductible as an itemize deduction very much like normal unreimbursed clinical costs. Health care coverage organizations, Medicare, or Medicaid should cover your treatment for COVID-19, yet that may be depending on medical plan of taxpayer. In any case, numerous private medical coverage organizations have consented to cover all COVID-19 therapy costs, including any deductibles or copayments. You can discover health care coverage COVID-19 treatment arrangements through. On the off chance that you have any clinical treatment expenses or related travel costs for COVID-19 that hasn’t been repaid, those can be tax deductible on schedule A (Itemize Deduction). How to calculate Medical expenses deduction? This deduction has some limitation which is based on taxpayer’s AGI. Taxpayer will get eligible if their medical expenses are in excess of 7.5% of AGI (Adjusted Gross income). For Example: If AGI of Taxpayer is $25,000. Medical expenses paid in current year are $3,000. Tax deductable medical expenses: $1,125 if itemized. 7.5 % of AGI is $1,875 Excess of 10% of AGI is $3,000-$2,500 = $1,125 Expenses which are new in 2020 and 2021 because of pandemic CRSP Connect is New York based firm providing offshore staffing solutions in auditing, accounting, full admin back office, advisory and consultancy. Team CRSP brings in 100+ man-years of experience in various industries and domains.

Accounting, Tax Preparation, Taxation

How Home Office Deduction can reduce your tax burden?

/

What is Home Office Deduction?  The expression “home” incorporates a house, loft, condo, manufactured home, boat, or comparative property which gives essential living facilities. It likewise remembers structures for the property, like an unattached carport, studio, animal dwelling place, or nursery. In any case, it does exclude any piece of your property utilized solely as an inn, motel, hotel, or comparative foundation. On the off chance that you use part of your home only and routinely for leading business, you might have the option to deduct costs, for example, mortgage interest, insurance, utilities, fixes, and depreciation for that space. You need to sort out the level of your home gave to your business exercises, utilities, fixes, and depreciation. Requirements to Claim the Home Office Deduction Despite the technique picked, there are two fundamental prerequisites for your home to qualify as an allowance: 1. Regular and exclusive use. 2. Principal place of your business. 1. Regular and Exclusive Use. You should routinely utilize part of your home solely for leading business. For instance, on the off chance that you utilize an additional space to maintain your business, you can take a work space allowance for that additional room. 2. Principal Place of Your Business You should show that you utilize your home as your chief business environment. In the event that you direct business at an area outside of your home, yet additionally utilizes your home considerably and consistently to lead business, you might meet all requirements for a work space deduction. For example, on the off chance that you have face to face gatherings with patients, customers, or clients in your home in the typical course of your business, despite the fact that you likewise carry on business at another area, you can deduct your costs for the piece of your home utilized solely and consistently for business. Trade or Business Use To qualify under the exchange or-business-use test, you should utilize part of your home regarding an exchange or business. On the off chance that you utilize your home for a benefit looking for action that isn’t an exchange or business, you can’t take a deduction for its business use. For example: You use part of your home solely and consistently to peruse monetary periodicals and reports, cut bond coupons, and do comparative exercises identified with your own speculations. You don’t make speculations as an intermediary or seller. In this way, your exercises are not piece of an exchange or business and you can’t take an allowance for the business utilization of your home. In the event that the utilization of the work space is simply suitable and accommodating, you can’t deduct costs for the business utilization of your home. Home Office Deduction Method: 1. Simplified Method. 2. Based on actual expenses on form 8829. 1. Simplified Method: The simplified strategy is an option in contrast to the estimation, portion, and validation of genuine costs. As a rule, you will calculate your deduction by multiplying $5, the endorsed rate, by the space of your home utilized for a certified business use. The region you use to calculate your allowance is restricted to 300 square feet. 2. Based on actual expenses on form 8829: If you figure your deduction for business use of the home using actual expenses in a subsequent year, you will have to use the area used for business purpose and total area of home. The deduction is limited to business use of total area. You will have to prepare form 8829 to figure out home office deduction. Comparison of Methods Selecting a Method You might decide to utilize either the improved on strategy or the standard technique for any available year. You pick a technique by utilizing that strategy on your convenient recorded, unique government personal expense form for the available year. Once you have picked a technique for an available year, you can’t later change to the next strategy for that very year. If you utilize the improved on strategy for one year and utilize the standard technique for any resulting year, you should compute the depreciation allowance for the ensuing year utilizing the proper discretionary depreciation table. This is valid whether or not you utilized a discretionary depreciation table for the main year the property was utilized in business. Your work space deduction is restricted if your costs are more than your business pay for the year. The business use of home expense cannot make the Schedule C income goes below zero.”On the off chance that there is unused business usage of home expenses, it will continue to the next year as long as they worked on system is used. On the off chance that the improved on technique is utilized, the remainder is denied.” So if you have business which is using part of your home than don’t forget to claim this deduction to reduce your tax liability on tax return. In the event that I work from home, do I meet all requirements for a work space deduction? In case you’re a worker working distantly as opposed to a business or entrepreneur, you lamentably don’t fit the bill for the work space charge deduction (in any case, kindly note that it is as yet accessible to some as a state charge allowance). Preceding the Tax Cuts and Job Acts (TCJA) charge change passed in 2017, workers could deduct unreimbursed employee costs of doing business, which incorporated the work space deduction. Nonetheless, for charge years 2018 through 2025, the separated allowance for representative operational expense has been dispensed with. To know more about How Home Office Deduction can reduce your tax burden? Connect with our team call us on +1 929 254 6300 or email us on contact@crspconnect.com or planning to outsource your accounting services and tax preparation services.

Accounting, Taxation

Tax Treatment for Aliens (Foreign National)

/

Every year, a huge number of alien (Foreign National) are beneficially utilized in the United States. Thousands more own investment property or procure revenue or profits from US speculations. This article examines the tax filling necessities for alien. In case you are an alien (not a US resident), you are viewed as an alien outsiderexcept if you meet one of two tests: Substantial Presence Test Green Card Test Substantial Presence Test: A person will be seen as a United States resident for tax purposes in case youmeet the SPT for the current year. To qualify for this test, you have to be present in the United States (US), no less than 183 days during the year. OrLook back test if not 183 days in current year. For this some steps to calculatedays for SPT: > 31 days during the current year> Number of days you were present in the current year.> 1 by 3 of the days you were present in the 1 year before the current year.> 1 by 6 of the days you were present in the 2 years before the current year. Example: You were present 183 days in the US then you are considered as a resident for tax purposes. If not then look back rule comes into the picture. You were physically present in the US on 150 days in every one of the years 2019, 2020, and 2021. To decide whether you meet the substantial presence test for 2021, tally the full 225 days of presence in 2021, 150 days in 2021, 50 days in 2020 (1 by 3 of 150), and 25 days in 2019 (1 by 6 of 150). Since the outright for the 3-year time span is 225 days, you are seen as an inhabitant under the considerable presence test: for 2021. Green Card Test: You are a resident, for US government tax purposes, in case you are a legal long-lasting inhabitant of the United States whenever during the scheduled year. This is known as the “green card” test. You keep on having US occupant status, under this test, except if: > You deliberately disavow and forsake this status recorded as a hard copy to the USCIS,>Your foreigner status is officially ended by the USCIS, or> Your foreigner status is judicially ended by a US government court. If you meet the green card test at whatever point during the timetable year, yet don’t meet the SPT for that year, your residency starting date is the primary day on which you are onboard in the United States. Filing Requirements for Nonresident Aliens Alien outsiders are by and large subject to US annual tax just on their US source pay. They are dependent upon two diverse tax rates, one for adequately associated pay, and one for fixed or definite, yearly, or intermittent (FDYI) pay. Effectively connected income is earned in the US from the doing a business in the US or is personal service income received in the US (such as wages or self-employment income). It is burdened for an alien at similar graduated rates with respect to a US individual. FDYI income is unearned income such as interest, dividends, rents or royalties. This pay is charged at a level 30% rate, except if a treaty indicates a lower rate. Alien outsiders should document and pay any tax due utilizing Form 1040NR, US Alien Income Tax Return or Form 1040NR-EZ, US Annual Tax Return for Certain Nonresident Aliens without any Dependents. Filing Requirements for Dual-Status Aliens: Dual status is also the type of residency in the USA. If foreign national reaches in the USA then he/she will be considered as “dual status arrival” and if they return from the USA then they will be considered as “dual status departure”. Dual filing status in on arrival: If you first time became a lawful permanent resident of the US (received a green card) or meet SPT during 2021 and were not a US resident during 2020, your period of US residency begins with the first day in 2021 that you are present in the US with the status of lawful permanent resident or first day of your arrival while meeting SPT. Prior to that date, you are an alien outsider. This means that if you become a lawful permanent resident or meet SPT during 2021 and remain a resident at the end of the year, you have a dual-status tax year. In this case, you attach a separate statement showing the income for the part of the year you are an NR. Structure 1040NR will be utilized as the statement. Write ‘Dual-Status Return’ on the top of Form 1040 and ‘Dual-Status Statement’ on the top of Form 1040NR or 1040NR-EZ. In dual status departure case, Form and statement will get change. Filing Requirements for Resident Aliens: If foreign national is meeting all condition for their residential status to qualify as US resident then tax treatment will be same like a US citizen. Want to know more about Tax Treatment for Aliens or planning to outsource your tax preparation services. Connect with our team call us on +1 929 254 6300 or email us on contact@crspconnect.com

Accounting

5 Compelling Reasons to Outsource Restaurant Accounting

/

If you think that in a Restaurant Business, the delighting diners is the only requisite for revenue, then you are wrong. There is one more crucial aspect, and, i.e., Restaurant Accounting. Well, accounting brings profound acumens into the financial status of your business and its performance in the market and, thus, helps in making key financial decisions for your business. Qualified Bookkeeping and Accounting Management processes are imperative to the smooth functioning of a Restaurant & for that, you need to choose a specialized Restaurant Accountant, who knows the jargon of Restaurant Accounting. But searching for such qualified personnel is a time-consuming & costly affair. In fact, you will be requiring a team for managing your Restaurant Accounting. Instead, outsourcing it to a specialized firm would be a less expensive & more effective alternative. Here are the reasons Why?? Cost Reduction: Outsourcing your Restaurant Accounting to a specialized firm will reduce your administrative expenses like Hiring, Training & Development, Management, Payroll Process, etc. Thus, could reduce your cost immensely. Accuracy: Errors in your Restaurant Accounting could cost your success as it is a crucial part of your business & even a single mistake is deadly. A specialized Restaurant Accounting Firm will ensure high-level accuracy & efficiency. Advanced Technology Access: A specialized Restaurant Accounting Firm will obviously have access to advanced accounting software rather than a Restaurant Business, enabling you to have access to all the advanced features & also the required expertise in utilizing them. Precise Decision Making: For making key decisions in a Restaurant Business, efficient analysis of each aspect is essential. A Professional Restaurant Accounting Firm will help you in providing a detailed analysis of each aspect, which in turn will assist in precise decision making, leading to enhanced profitability.  Specialized Skill Set: Restaurant Accounting requires specialized skills & experience in the domain to achieve the desired results. Thus, a Restaurant Accounting Firm having expertise in the same will boost your profitability drastically. With the advancement of technology, outsourcing is evolving & yielding more profitable results than ever. If we are not evolving with the changing Era, we are losing our battle to success & if we want to be ahead of the pack, we have to adapt ourselves to the changing scenario.

Accounting

Various Scenarios of Outsourcing Grocery Accounting

/

Grocery stores might seem a small business to manage, but the accounting stuff is too large. Nowadays, every small and large grocery store does their accounting and tries to get more benefits and profits. The business owner focuses on both core and non-core business activities. But, it is difficult to manage so business owners try to outsource the non-core activities like Management Accounting and Grocery accounting comes into it. Are you in search of outsourcing your grocery accounts? Do you easily want to manage things? If yes, then CRSP Connect is there to help with its most qualified professionals. Grocery Outsourcing is not only a way of cost-cutting but a way to achieve optimum growth in your grocery business without having to worry about accomplishing core business tasks. Scenarios which Lead you to Outsource Grocery Accounting Scenario 1: I want to concentrate on my Core Business Activity- Want to generate profits  Grocery Accounting is usually done by Business owners who want to focus on their core business functions and expand their business and at the same time recognises the Grocery Accounting as a non-core business activity. They understand the fact that, if their books are in the order, they can make better financial decisions to grow their business. So, they prefer outsourcing their grocery accounting to other professionals. Scenario 2: Having an In house Grocery Accounting Professional – Higher Costs Grocery Accounting, when done in-house has many pros and cons. What if the daily transaction in the business is high and needs more accountants. Also, when the accountant is on leave, the business owner has to find a replacement which takes time and effort during such a period, there are possible chances of getting financial chaos. If the business hires more accountants, the cost is high in comparison to outsourced Grocery Accounting. It includes the cost of hiring and other additional costs like payroll costs, welfare costs etc.  Scenario 3: Leave it to Experts- Professional outlook When you outsource your Grocery Accounting functions, you are dealing with trained and experienced professionals who know their job and are accountable for maintaining the timeliness and quality of the work. Once you outsource, these professionals bring discipline to your Grocery Accounting functions, your books are reconciled and in case of any discrepancy you are kept informed and thus financial discipline is sustained. Scenario 4: Technology and ease of doing Outsourcing  A few years back, technology was not that strong as it is today. Data Security, connectivity to the Internet, Infrastructure was a big issue and was quite expensive and complicated. Today in the cloud age, technological advancements had bridged that gap, and data security is not a complex process. Once decided to outsource Grocery Accounting functions, after due diligence, the business owner must keep a close track of the operations associated with outsourcing and let the system get stable, after periodic review and the business owner should evaluate the results.

Accounting

Key Benefits of Outsourcing Accounting & Bookkeeping

/

With the changing scenario, people are getting acquainted with working remotely & thus, Accounts Outsourcing Services, which used to be rare, are becoming more & more popular. Do you know why? Let me tell you in brief!! Accounts Outsourcing Services assist stakeholders in evaluating the financial condition of the firm & taking wise decisions for business growth. There are numerous benefits: Enhanced Productivity: By Outsourcing Accounting Operations to an Experienced team, you can rest assured about the quality & deadline. Thus, productivity will be enhanced, enabling you to scale your business efficiently. Cost Reduction: Outsourcing Accounting Operations could reduce your Administrative cost drastically which includes Hiring Expenses, Payroll Taxes, Training & Development Expenses, Management Expenses & other Government Liabilities. Thus, improving your profitability. Systematic Reporting: Outsourcing Firms are very particular about Reporting Procedures with their clients. This Reporting System is generally not very well-defined within the in-house team, which increases the chances of errors. Thus, Outsourcing of Accounting Operations will enable flawless work. Data Security: Many Accounts Outsourcing Firms are working on Thin Clients Basis where they directly log in to the client’s server using the credentials provided by the client. This way, the Data Security of the client is assured. Whereas, you cannot restrain the in-house team like they do as they have to be very particular about their client’s Data Security to retain Long-Term Partnership. Compliance Regulation: Accounting Experts are constantly updating themselves with the latest regulatory trends. They monitor all the rules & regulations to keep the processes updated and comply with the regulations. Thus, allowing you to rest assured. Meeting Tax Returns Deadlines: Meeting the tax returns deadline is very important for a firm & outsourcing the Accounting Operations to the best firm would enable you to meet the deadlines on time. Thus, it is very important to outsource Accounting Operations to enhance your profitability immensely. If you want to boost your profitability & scale your business, you have to focus on your core business & outsource your non-core, yet the most important aspect of your business, i.e. Accounting & Tax Preparation.

Accounting

CRSP Connect Launches Website to help our clients worldwide to avail the Services at a Click!!

/

Is your firm facing difficulty in finding qualified accountants to do tax preparation work? Do you feel pressured in doing work during the end days of filing tax? If you agree, then it is time when you should start outsourcing tax preparation. Tax preparation outsourcing allows you to focus on your core activities, and you can get rid of all the problems regarding filing the tax.As the businesses are growing and the competition is increasing, it is time to focus on outsourcing that will allow you to complete your tax returns. There are so many reasons which enable companies to consider outsourcing as a preferable option for tax preparation.  High Quality work with cost-effectivity – Outsourcing companies offer high-quality work and affordable prices for tax preparation. Firms increase the cost up to 60% by expanding in-house staff with highly trained professionals. According to the research, after outsourcing a tax preparation, 90% of people found that outsourcing companies can give them high-quality work. It helps businesses to multiple their growth rate. Risk-free regarding tax laws – Tax laws are always changing, and every accountant or professional is in stress that will it be a challenge or not. So many in-house professionals are not up-to-date with the changing tax laws. But, outsourcing tax preparation can be risk-free for the firm as the outsourcing company has to look into it & they are responsible for the updated tax laws. 47% of the people who outsource tax preparation say that they don’t have a tension of knowing all the laws. Meeting the deadline – Outsourcing tax preparation services help firms to meet their deadlines on time because after this outsourcing firm is liable for all the penalties. Most firms who are not able to file their returns before the due date opt for the outsourcing firms, so that firm would prepare the tax before the extended date and can file the return on time. 72% of the firms who opted to outsource their work are getting the benefit of filing their returns on time before the extended due date.  Security Paradigm – Many in-house accountants save the files on the desktop but the information they have is so important that if it goes in the wrong hands, then anyone can misuse the data. Therefore, outsourcing tax preparation will ensure the safety of your data. Approximately 85% of firms who outsource their services say that their data is safe with the company to whom they outsource. Today the firms have different servers on which they guarantee the security of the data and they stand on it.  Focus on fundamental business matters – Outsourcing your tax preparation helps the firms to focus on their other business matters. Compromising other business matters over tax preparation will charge you a high fine after the extended date. Firms can get rid of the penalty by outsourcing tax preparation. Outsourcing will help directly and indirectly to the firm & the people who have observed this says that ‘Outsourcing tax preparation helped their business to achieve great heights.’ The majority of accountants and professionals are frustrated about their jobs that they do not even perform their job accurately. In a study, it has been found that hiring people full-time or part-time will not increase their income rather than outsourcing the tax preparation service will help in increasing the revenue of the company. Spending on outsourced services had almost doubled in the last two decades, from $45.6 billion in 2000 to $86.6 billion in 2018. It’s not slowing down now also. It means that outsourcing is at its peak that so many companies are using these services. CRSP Connect will help you to finding qualified accountants and decrease your work pressured. Contact us now.  

Scroll to Top