#Braj Aggarwal

[accountantinnewyork]

Choosing Between QuickBooks Online and QuickBooks Desktop

In today's digital world, picking the right accounting software can make a big difference for a business. One common challenge is choosing between QuickBooks Online and QuickBooks Desktop. Each has its strengths depending on what your business needs.

QuickBooks Online lets you work in the cloud, which means you can access your financial info from anywhere with internet. This is great if you work with accountants who aren't in the same place as you, or if you need to work from different locations.

QuickBooks Desktop, on the other hand, is for businesses that prefer to keep their software on their own computers. It's good if you have complex needs, like managing lots of inventory, and you want the stability of having everything stored on your own system.

Understanding these differences can help you decide which one is best for your business, based on what you need to achieve and how you like to work.

Necessity in Different Businesses: QuickBooks Online vs. QuickBooks Desktop

QuickBooks Online: QuickBooks Online lets you access your financial info through the internet, which is great if you need to work with accountants who aren't in the same place as you. It allows you to share data in real-time and you can use it from anywhere with internet. There's also a mobile app for doing things like sending invoices and tracking expenses on the go, which makes it flexible for businesses.

Advantages of QuickBooks Online:

Access Anywhere: You can reach your financial data and collaborate with others in real-time.

Flexible Pricing: Offers different price options and has features for tracking projects and managing inventory.

Automatic Sales Tax: Automatically calculates sales tax rates, making it easier to stay compliant.

QuickBooks Desktop: QuickBooks Desktop is for businesses that prefer to have their software on their own computers rather than in the cloud. It's good for businesses with complex inventory needs because it has advanced features like tracking inventory across multiple locations and using barcodes, which are important for industries that need detailed control over their inventory.

Advantages of QuickBooks Desktop:

Works Offline: You can use it without needing internet, so you always have access to your financial data.

Advanced Inventory Features: Includes tools for tracking inventory in multiple places and using barcodes, which are helpful for managing detailed inventory.

Industry-Specific Tools: Has specialized features for different industries like manufacturing, retail, and professional services.Bottom of Form

Comparing Preferences: QuickBooks Online vs. QuickBooks Desktop

The comparison between QuickBooks Online and QuickBooks Desktop reveals distinct differences across various aspects.

User Interface: QuickBooks Online features a user-friendly interface that simplifies managing customers and vendors, while QuickBooks Desktop employs a traditional interface that may require more training to navigate effectively.

Accessibility: QuickBooks Online is cloud-based, allowing access from anywhere with an internet connection. In contrast, QuickBooks Desktop requires installation on a local computer, limiting accessibility to specific locations.

File Sharing: QuickBooks Online enables effortless sharing with accountants, streamlining bookkeeping tasks. On the other hand, QuickBooks Desktop's file sharing may be less seamless, dependent on local network configurations.

Invoicing: QuickBooks Online offers strong invoicing capabilities, supporting on-the-go invoicing needs. Meanwhile, QuickBooks Desktop provides comprehensive invoicing features suitable for detailed invoicing requirements.

Managing Multiple Companies: QuickBooks Online shows limited effectiveness in managing multiple companies compared to QuickBooks Desktop, which is capable of efficiently handling multiple company accounts.

Project Costing: QuickBooks Online provides basic project costing capabilities, while QuickBooks Desktop offers more advanced tools for detailed project costing needs.

Integration: QuickBooks Online integrates well with various online applications, enhancing flexibility and connectivity. QuickBooks Desktop, however, may face challenges in integrating with other software solutions, potentially complicating interoperability.

Conclusion

Deciding between QuickBooks Online and QuickBooks Desktop depends on what your business really needs. QuickBooks Online is great if you want flexibility—you can access it from anywhere using the internet, and it's good value, especially for smaller businesses.

On the other hand, QuickBooks Desktop is faster and more reliable because it doesn't need the internet to work. It's better for businesses that need advanced features like detailed inventory tracking. However, it costs more per user.

In the end, if you prioritize being able to work from anywhere, teamwork, and getting good value, QuickBooks Online is probably best for you. But if your business needs strong offline capabilities and specific advanced tools, QuickBooks Desktop might be worth the higher cost. Thinking about these things carefully will help you choose the right one for your business

How Braj Aggarwal, CPA, P.C Can Help in Accounting?

Braj Aggarwal, CPA, P.C. provides specialized expertise in offering bookkeeping and accounting services through both QuickBooks Online and QuickBooks Desktop, tailored to meet the unique needs and demands of each client. Our experienced team excels in resolving complexities and technical challenges efficiently. Partnering with us ensures strategic benefits for your company, including cost and time savings, enhanced financial analysis, scalability, and improved data security.

Feel free to reach us and let us be your partner in success – contact Braj Aggarwal, CPA, P.C. today!

[crspconnect]

Join us at this premier accounting event where industry leaders gather to share knowledge and ignite innovation. Visit our booth to meet our CEO - CA Paritosh Sanadhya, CPA Braj Aggarwal, and CMO Ronak Agrawal, as they engage in insightful discussions on the latest trends in the accounting sector. Don't miss this opportunity to network, learn, and explore new possibilities. See you at #NJCPAExpo23!

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[crspconnect]

We are thrilled to announce that, we are exhibiting at the biggest accounting conference of the United States #Engage2023#ariaresortandcasino#lasvegas#nevada

Our CEO CA Paritosh Sanadhya, CPA Braj Aggarwal and CMO Ronak Agrawal will be interacting with participants on #offshorestaffing and #outsourcing in #accounting sector.

[accountantinnewyork]

Braj Aggarwal, CPA, P.C Accounting and Taxation Services are at The Top of the Industry

Braj Aggarwal CPA PC Accounting and Taxation Services are at The Top of the Industry. Financial and accounting services are industries wherein companies can only be successful if they do ordinary things extraordinarily. This is because, at their cores, both of these industries are fairly simple. It’s the people that make them special.

This is why we here at Braj Aggarwal, CPA, P.C are very fortunate to have a team of the best financial experts in the business. Every single one of our accounting professionals have proven themselves not only to us but to our clients under some of the most demanding circumstances imaginable.

Their experience and expertise over the years have made significant contributions to our growth as a company and we wouldn’t be where we are today without them. In fact, it’s recently come to our attention that we were placed among the top accounting services in Staten Island by the independent B2B platform Clutch.

While we are very proud of achieving this unique milestone, we can’t say that we’re that surprised. Our clients have been consistent in showing their support of our work since day one. This is evident from the high-scoring reviews they’ve been writing about us for the last couple of years.

None of these accolades will mean we’ll get complacent though. On the contrary, we’re extremely motivated to see where we can go next. Our team recognizes that the expectations placed on us from now on will be much higher because of our new standing. But we are confident we can meet and exceed any and all challenges we might face in the near future.

Braj Aggarwal, CPA, P.C. is a top-rated CPA and tax accounting firm in New York and provides services like Bookkeeping, Accounting, Taxation, Payroll, Partime CFO, Audit and Assurance, SEC, Incorporation Business, and Wage Parity Audit Services.

We have experienced and dedicated accountant and tax preparation teams who serve a wide range of clients in a variety of specialized industries likes, Startups, nonprofits, middle-market companies, multimillion-dollar corporations, Doctors, Dentists, Medical Professionals, Restaurants, Bars, Nightclubs, eCommerce, IT Companies, Fashion Models, and Realtors and Real Estate Brokers.

When it matters most, they want BAC at the table. Braj Aggarwal, CPA, PC, a leading tax accounting firm in Manhattan New York.

We are located in Queens, New York City, and Long Island. Please visit our website to learn more about our services. We hope to hear from you soon.

[accountantinnewyork]

Does Your Business Need a Part-Time CFO?

Does Your Business Need a Part-Time CFO? Is your company going through some growing pains? Are you unsure of the next measures to take in order to grow and nurture your business? Are you trying to figure out how to make crucial financial decisions based on your cash flow and forecast? If you responded yes to any of these questions, a part-time CFO may be necessary.

A part-time CFO is a cost-effective choice for developing companies. A part-time CFO, unlike a full-time CFO, can give financial analysis and advice at a cost you can afford. Here are a few reasons why employing a part-time CFO is a great approach to expand your company. Most CFOs are in charge of a company's financial growth, but their responsibilities extend far beyond bookkeeping.

Braj Aggarwal, CPA, P.C. is an indian desi CPA and tax accounting firm in New York and provides services like Bookkeeping, Accounting, Taxation, Payroll, Virtual CFO, Audit and Assurance, SEC, and Setting up Business in the USA. We have experienced and dedicated accountant and tax preparation teams who serve a wide range of clients in a variety of specialized industries. Startups, nonprofits, middle-market companies, and multimillion-dollar corporations.

We provide part-time CFO services to businesses in the United States at Braj Aggarwal, CPA, P.C. We are dedicated to offering professional, timely, and cost-effective part-time CFO services to assist your company in growing and prospering. To learn more, contact us today.

[accountantinnewyork]

Braj Aggarwal, CPA, P.C Year In Review on Clutch for 2021

Looking for a trusted CPA and accounting team? Struggling with your bookkeeping and taxation efforts? Fret not because Braj Aggarwal, CPA, P.C is here to help you! Founded in New York back in 2007, we are a team of experienced and dedicated professionals that offer a wide range of services for companies of all sizes.

Throughout the years, we’ve helped clients keep their accounts in check through bookkeeping, accounting, taxation, payroll, auditing and other services. In honor of their outstanding support, we’re going to take a look at our 2021 Clutch Year In Review!

For those of you who don’t know, Clutch is an independent B2B review and market research platform designed to help clients connect with the right solutions providers. In their latest Year In Review, we can see how our team stacks up and the quality of reviews we earned throughout the year.

2021 was a great year for us! We average 5-star ratings and bagged a perfect NPS score. To give you more context, the NPS score on Clutch refers to the overall willingness of a vendor to refer or endorse a vendor to friends, colleagues, and other potential clients. The awesome results we obtained are testaments to the success and appreciation of our clients.

Braj Aggarwal, CPA, P.C is proud to be a five-star service provider! We’re honored to rank on Clutch as one of the best-performing accounting firms!

Thank you so much to each and every one of our beloved clients who chose us! We are excited to start another chapter with you. May 2022 be prosperous and full of possibilities.

At Braj Aggarwal, counting is our passion. Let us help you transform your business through our personalized services. Send us a message today and let’s connect!

Outsource accounting and tax prepartion services. Our team will be glad to help you achieve your financial goals. To learn more, call our accounting firm in New York at (718) 426-4661 today or request for free consultation now.

[accountantinnewyork]

7 Benefits OF Hiring A CPA To Manage Your Bookkeeping

Are you overwhelmed by the bookkeeping process? Do you feel like you're not getting the most out of your accounting software? If so, it may be time to consider hiring a CPA to manage your books. A CPA can help you save time and money, and they can also help you stay compliant with tax laws.

Here are seven benefits of hiring a CPA to manage your bookkeeping.

1. To have a clear picture of your business finances

Bookkeeping services help businesses keep track of their financial information. If you don't know how much money you're making each month, you won't know if you need to hire additional staff or cut back on expenses. A bookkeeper can also help you prepare tax returns and stay compliant with accounting regulations.

2. To make sure you're not overpaying taxes

If you're self-employed, you may not realize that you could be paying too much in taxes. Bookkeepers can help you determine whether you're eligible for certain deductions and credits.

3. To avoid fraud

Fraudsters often target small businesses, so having someone else do your books makes it harder for them to steal your money. Bookkeepers can spot unusual transactions and flag any suspicious activity.

4. To reduce paperwork

A lot of small businesses find themselves buried under piles of paper. Having a professional handle your books means you'll only have to deal with one set of records instead of dozens.

5. To save time

You probably spend hours each week doing basic bookkeeping tasks. Letting a professional take care of these tasks frees you up to focus on running your business.

6. To get accurate results

Most bookkeepers use software programs to enter data, which helps ensure accuracy. If you try to do your own books, you might miss something important.

7. To improve efficiency

When you hire a bookkeeper, you'll have access to detailed reports about your business's performance at any given moment. These reports can help you identify problems before they become big issues.

Questions

Are you searching for professional bookkeeping services in New York City?

If yes, then you have landed at the right place. Braj Aggarwal, CPA, P.C offers professional bookkeeping services in NYC.

Why should you hire us?

We are known for offering high-quality services at affordable prices. We understand the importance of time management and we make sure that we deliver quality work within the stipulated time frame. We ensure timely completion of projects and we always adhere to deadlines. We have been providing bookkeeping services since many years now. You can count on us for any kind of bookkeeping service. We offer customized solutions according to the requirements of our clients.

What makes us different?

Our team of experts are highly experienced and skilled. We have worked with many companies across the globe. We know what works best for them and how they can improve their business processes. We have helped many small businesses to achieve success. We have helped many startups to get off the ground. We have helped many entrepreneurs to start their own businesses.

Conclusion

We are a team of professionals who offer various accounting solutions to a wide range of clients across a variety of specialized industries. We provide services from bookkeeping, accounting, auditing, payroll processing to specialized services which include but are not limited to CFO services, SEC services, Wage Parity auditing, business incorporation services and much more.

If you would like to get a free consultation, please call us at (718) 426-4661 or Email us at baggarwal@aggarwalcpa.com today.

[accountantinnewyork]

Benefits of Outsourcing Payroll Processing to CPA Firm

Benefits of Outsourcing Payroll Processing to CPA Firm. If you are a business owner, you may be wondering if outsourcing your payroll processing to a CPA firm is a good idea. As a business owner, you understand the importance of keeping your finances in order. With so many important tasks to handle on a daily basis, it can be difficult to stay on top of everything. This is where outsourcing payroll processing to a CPA firm can be extremely beneficial.

By working with a professional CPA firm, you can free up your time to focus on other aspects of running your business. In addition, you can rest assured knowing that your payroll is being handled by experts.

There are a number of reasons to consider outsourcing your payroll, and we’ve listed a few of them below.

1. Save Time & Money

Outsourcing payroll processing can save your company time and money. You no longer have to worry about managing employee records, calculating pay checks and paying taxes. Instead, you can focus on running your business. One of the biggest advantages of outsourcing payroll is that it can save you a lot of time. Dealing with payroll can be extremely time-consuming, especially if you have a large staff. By outsourcing this task, you can focus your time and energy on other areas of your business.

2. Cost-Effective

Another great benefit of outsourcing payroll is that it can be cost-effective. When you outsource your payroll, you don’t have to worry about the cost of hiring in-house staff to handle this task. In addition, you can avoid the cost of purchasing payroll software.

3. Reduce Risk

If you outsource payroll processing, you eliminate the risk of human error. If you were to make a mistake while entering data into your own system, you could lose thousands of dollars in tax revenue.

4. Improve Accuracy

By outsourcing payroll processing, you can ensure accuracy. Your employees’ information is entered correctly and consistently, resulting in accurate payments.

5. Increase Employee Morale

When employees know that they are being paid accurately, on time, and without hassle, they feel valued and appreciated. This leads to higher productivity and better work quality.

6. Hassle-Free

Outsourcing payroll can also help to make your life much easier. When you outsource this task, you don’t have to worry about the hassle of dealing with payroll yourself. This can be a huge weight off your shoulders, and it can allow you to focus on other areas of your business.

7. Accurate and Timely Payroll Processing

Hiring a CPA firm to handle your payroll processing can actually save you money in the long run. This is because they can help you take advantage of tax breaks and other savings opportunities

8. Reduce risk and avoid paying IRS penalties

As we know that employers are required to pay many types of taxes like federal, state and local, income taxes, social security and health taxes need to be paid monthly, quarterly and annually.

If you outsource your payroll services to experience CPA firm like Braj Aggarwal CPA, P.C. they can help you to avoid paying IRS penalties and make your payroll process properly.

Why outsource your payroll to Braj Aggarwal CPA, P.C.?

Business and companies who want to outsource their payroll to Braj Aggarwal CPA, P.C. get some of the best comprehensive services and an assurance that their business is protected. As per our recent client feedback 8/10 clients feel Braj Aggarwal CPA, P.C. helps their business and company better comply with payroll taxes and regulations.

Below are the what business and companies can expect with our payroll outsourcing services:

Our payroll processing quick and error-free

Monthly, Quarterly and annual reporting

Employee Time tracking capabilities

Compliance monitoring across all 50 states

Taxes calculated, deducted and paid automatically

Overall, there are many benefits to outsourcing your payroll processing to a CPA firm. If you are looking for ways to save time and money, reduce your stress levels, and focus on other areas of your business, this may be the right solution for you to choose Braj Aggarwal, CPA, P.C.

Get Started Today!

Start saving time and money today by outsourcing payroll processing. Contact us at www.aggarwalcpa.com to learn how we can help your business. 

[accountantinnewyork]

How to Set Up a US Company as a Non-Resident

How to Set Up a US Company as a Non-Resident from India. Setting up a US company as a non-resident is more than just filing legal paperwork. You also have to understand and comply with the many tax and other requirements of doing business in the USA.

If you are a non-resident looking to set up a US company, you have even more hurdles to go through than a US resident. First, there are more income tax issues for non-residents who want to take their income out of the US, such as reporting requirements and filing returns. Second, obtaining an appropriate US work visa and opening a bank account are also problems.

Setting up an American company as a non-resident of the United States is not only complicated but involves making sure that you follow the correct procedures to avoid potential problems. There are many different forms and documents required, as well as tax considerations that need to be made before starting.

As a non-resident, setting up a larger business, such as a corporation or LLC, can be more complicated and expensive than for citizens and green card holders. Most states do not permit non-residents to incorporate, even though there are exceptions in some states and you may have good reason to set up a US company as a non-resident. If you must open bank accounts for your US company in other countries (such as offshore accounts), the US government will consider this creating an offshore account for the purpose of evading US taxes and reporting requirements.

Whether you're an entrepreneur looking to start up a business in the US or an executive looking to do some consulting or contract work in the US, if you are a non-resident of the US, there are several things that you need to take into consideration before establishing yourself in the US.

For non-residents setting up a US company, you are required to obtain an EIN (Employer Identification Number), pay all the taxes and other due tax, file paperwork with the IRS and state authorities. It is possible to do this yourself but it is highly advisable that you have an accountant handling it for you at least in setting up your LLC or corporation.

Creating a US company as a non-resident can be a complex and expensive process. You have to meet strict guidelines and make sure you do everything right. It is fortunate that there are Braj Aggarwal, CPA, P.C. Firm Who know how to set up a US company within the US tax, legal and economic framework.

[accountantinnewyork]

What is the difference between Revenue Account and Capital Account?

Revenue and Capital Account are the two main accounts of the government.

Revenue account is an account that includes all the revenue receipts and expenditures of business and government whereas Capital Account includes all the capital receipts and expenditures of the government and business.

Let us discuss about Revenue Receipts and Capital Receipts first:

Revenue Receipts: Revenue receipts are those receipts that are received in the conduct of day to day business activities or we can say that they are generated from operating activities of a business and are recurring in nature.  The Government can take such receipts in the form of Tax or Non Tax Income. These receipts have a direct impact on the profits and are shown on the Credit side of the Profit and Loss Account. To survive for longer period, such receipts are very useful.

For example: Sales, Interest received , bad debts recovered, Income Tax, Corporate Tax, GST, etc.

Capital Receipts: Receipts other than revenue receipts are called Capital Receipts and these receipts do not affect the profit of any business. Such receipts are non-recurring in nature. They are shown as Liability or Reduction from the Asset in the Balance Sheet.

Capital receipts can be received from Loans and Borrowings, sale of any government asset, issue of shares/debentures, etc.

Now, Let us talk about Revenue Expenditures and Capital Expenditures;

Revenue Expenditures: These are such expenditures which occur in maintaining any asset and after commencement of the business. Such expenditures can take place either in developmental or non-developmental works.

For example : Maintenance of various infrastructures, interest payment, defense, subsidies, grants, salaries, pension, law and order, etc.

This type of expenditure charged fully in the Profit and Loss Account and is recurring in nature.

Capital Expenditure : Such Expenditures occurs when we buy or create any asset. These expenditures increase the earning capacity of the business. It may be incurred before or after the commencement of business and is non-recurring in nature.

For Example : Expenditure on fresh infrastructure, repayment of loan (Principal Amount), Loan to state government, etc.

Capital Expenditure is displayed as asset in Balance Sheet.

In short, we can say that if any expenditure increasing capacity, capability, efficiency and performance of something then it will come under Capital Expenditure and if not then it fall under Revenue Expenditure.

Lets take an example to understand this better:

Suppose you buy any vehicle for your business and after sometime you find out that this vehicle needs to get repaired or maintenance needs to be done so the expenditure that will take place in this process will be considered as revenue expenditure because it did not increase its efficiency or capability. It’s just become normal to use because we have just repaired the damaged item. Similarly if we do some expenditure and that can increase the capacity or capability of any vehicle then that expense would be considered as Capital expenditure.

Want to know more about Revenue Account and Capital Account. Connect with Braj Aggarwal, CPA, P.C team today by filling the below form or you call us on (+1) 718-426-4661 or email us at connect@aggarwalcpa.com

[accountantinnewyork]

How to import a QBO file into QuickBooks Desktop

Once you make a bank rule in QuickBooks desktop then accounting becomes easier and saves a lot of time. The rule means to set the head of the account when you create a bank rule then transactions are automatically categorized you need only approve the transactions then all transactions are automatically uploaded. If you want to change the category then you can easily change.

Steps how to Import QBO File:

1. Go to File Menu. Then select Utilities

2. Select Import then select Web to connect Files

1. Select the QBO file that you downloaded

2. Click on Use an existing QuickBooks account then select your Bank name

3. Click on Continue then all transactions are show in your QuickBooks

4. Now your data is imported

5. Click on ‘Transaction List’ to review transactions.

When the QBO file is uploaded, and the payee column is empty, so you are required to create a rule and the payee column is fulfilled automatically.

Steps on how to make a rule:

1. After importing the QBO file you go to the Rule

2. Select Manage Rules drop-down then choose Add New

3. Then write Rule Name

4. In the Description field write common contains mentioned in the memo

5. Select Rename and then write Payee field then select add

6. Select a category and write the accounting field

7. Select save.

If you need to modify the Rule then you can easily modify it by doing the Following Steps-

1. Select Rule which you want to modify

2. From the Action Column or right click of a mouse, Select Drop Down and choose

a. Edit Rule: if you want to change a detail in Rule

b. Delete Rule: if you want to delete the Rule

When you Import QBO files and make rules that all transactions are ready for upload in QuickBooks then go to batch action and select Add/Approve.

Want to know more about accounting services and bookkeeping services. Connect with our team by filling the below form or call us on (+1) 718-426-4661 or email us on connect@aggarwalcpa.com

[accountantinnewyork]

The Additional Child Tax Credit

The Additional Child Tax Credit (ACTC) was a separate reduction, but it applied only to families with earned income above $3,000. Earned income can come from salaries and wages, self-employment, some, and disability payments. Now, what does not consider earned income if you have income coming from interest, dividends, pensions, social insurance, unemployment, alimony, or support payment. you are not qualified if of those apply to you. Families received a refundable credit capable 15% of their earned income over that threshold, up to $1,000 per child.

Understanding the Additional Child Tax Credit begins with the Child Tax Credit (CTC). Like other tax credits, the Child Tax Credit may be a dollar-for-dollar reduction in your tax. This tax credit is for individuals who get less than the total amount of the Child Tax Credit. The ACTC may offer you a refund if you do not owe any tax. The Child Tax Credit is worth up to $2,000 for every child who meets the subsequent requirements: The dependent must be younger than age 17. You must be related to the dependent. You claim the Child as a depends. The dependent must have lived with you for at least 6 months. The child must have valid social Security. The child could be a U.S. citizen, U.S. national, or U.S. resident alien. The child can’t file income tax return with somebody else except for a refund of taxes withheld.

The maximum Additional Child is $1,400 per child. To find out if you are eligible for the additional child tax credit, you will be able to fill out the Child tax credit Worksheet, which is often included within the instructions for form 1040. If you qualify for the credit, the worksheet can also direct you to use Schedule 8812 to see if you are eligible for the Additional child Tax Credit.

Both the Child Tax Credit and therefore the Additional Child tax credit is not for high-income taxpayers. According to the IRS, Married couples with modified adjusted gross income (MAGI) greater than $400,000 and other filing statuses with modified adjusted gross income greater than $200,000 will have their credit reduced by $50 for every $1,000 or a part of $1,000 that their modified adjusted gross income exceeds those amounts.

While the foundations are different for divorced or separated parents, the parent who claims the qualifying child as a dependent on their return is the parent who may claim CTC and ACTC (if they meet all other qualifications for claiming the credit). These credits can help reduce your federal tax obligation and potentially increase any refund you are owed.

The Child Tax Credit and therefore the Additional Child Tax Credit are meant to assist working parents with low to moderate incomes. To claim the ACTC, taxpayers must have a minimum of $2,500. Earned income can come from salaries and wages, self-employment, and a few disability payments. Individuals with unearned income does not qualify.

Want to know more about Additional child tax credit or accounting and bookkeeping services. Connect with our team by filling the below form or you call us on (+1) 718-426-4661 or email us on connect@aggarwalcpa.com

[accountantinnewyork]

Taxation: Most Common Tax Forms used in Business

For a business, filing tax-return could be a multi-step activity. Basic steps to be considered are

1.Gathering necessary information / inputs / records.

2.Identifying the applicable forms.

3.Filling out the forms.

4.Tracking deadlines.

5.Submitting the forms to the appropriate department / state / agency.

Below is the list of most commonly used US Tax Forms by different business entities to file their returns.

Note: We have collected the below information from IRS. (https://www.irs.gov/)

Want to know more about tax prepartion forms or any other accounting services. Connect with our team by filling the below form or call us on (+1) 718-426-4661 or email us on connect@aggarwalcpa.com

[accountantinnewyork]

Taxation: What is Form 1040 and who must file this form

What is Form 1040?

Form 1040 is the U.S. Individual Income Tax Return used by U.S. taxpayers to file their annual income tax return with IRS. This form along with the schedules, if applicable, is used to file your income as well as claim certain deductions or credits or if you owe additional taxes.

Do you have a business? To know more about the most common forms that are used in business, click here.

Is it mandatory to file your Income Tax Return?

Not everyone is required to file an income tax return each year, however, there are many factors that might require you to file or would make it beneficial for you to file your return.

You need not file a federal tax return if your income for the year does not exceed certain threshold, depending upon the type of gross income, your age and your filing status.

Additionally, you would need to file your return to get a refund of any federal income tax withheld or if you are qualified for any eligible credits.

Which Form 1040 should I use to file my annual income tax return with IRS?

To file their return, an individual must use either one of the three forms as mentioned below-

Form 1040: This is used by most people to file their annual income tax return if they do not fall under the other 1040 form types mentioned below.

Form 1040-SR (U.S. Tax Return for Seniors): This form is used by U.S. citizens or residents of the age 65 and above to file their annual income tax.

Form 1040-NR (U.S. Nonresident Alien Income Tax Return): This form is used by either of the below -

•  When a NR Alien engages in a business or trade in U.S.               •  Represents a deceased who would have been taxed under Form 1040-NR.               •  Represents an estate or trust that had to file Form 1040-NR.

What are the other 1040 Form types?

Form 1040-ES (Estimated Tax): This form is used by U.S. citizens or residents to pay estimated taxes on income that is not subject to withholding. Estimated taxes are paid on quarterly basis.

Form 1040-ES (NR): This form is used by U.S. Nonresident Alien to pay estimated taxes on income that is not subject to withholding. Estimated taxes are paid on quarterly basis.

Form 1040-V (Payment Voucher): If you have any balance due on the “Amount you owe” line of Form 1040 or 1040-NR, then this form is sent along with the check or money order.  ??SR??

Form 1040-X (Amended U.S. Individual Income Tax Return): This form is used to amend the following in a tax return already filed with IRS-        • Make corrections in Forms 1040, 1040-NR.        • Make certain elections after the prescribed deadline.        • Change amounts previously adjusted by the IRS.        • Make a claim for a carryback due to a loss or unused credit.

What are Schedules and when do I need to use Schedules to Form 1040?

A schedule is an additional tax form which is filled and submitted along with your income tax return when you have certain types of income or deductions. Many taxpayers would need to file only Form 1040 (Form 1040-SR or Form 1040-NR) without any schedules. However, taxpayers whose returns are more complicated would need to complete one or more schedules while filing their return.

If you e-file your return, the software uses a building block approach which allows taxpayers to add only those schedules which you need basis the details captured in the main Form 1040.

To know more about the different types of Schedules and when it is to be used, refer the link https://www.irs.gov/forms-pubs/schedules-for-form-1040.

To know more about your tax return and how to save taxes, connect with our tax advisory team at connect@aggarwalcpa.com or call us on (+1) 718-426-4661.