There’s No Such Thing As Too Prepared

WhetLandwehr Tax & Accounting - Be Prepared for Your Tax Returnher you’re making a switch or working with the same provider as last year, your initial meeting will go more smoothly if you bring everything your tax preparer needs to file your complete tax return. These are some of the items people commonly forget.

Your long-term tax advisor should have your last year’s tax return on file. But, if you’re making a switch or you’re a DIYer getting professional tax help for the first time, you’ll need to bring this with you. Here’s why: if you had capital loss carryovers or paid income taxes with your state return during the previous year, you can deduct those items on this year’s return.

TIP: A brand new tax partner can also check to see whether credits or deductions were missed on your previous return. If that’s the case, they may be able to file an amendment and put some of your money back in your pocket—where it belongs.

You’ll need to know the amount of money you paid for the tabs you put on your license plates last year.

TIP: If you don’t remember, you can visit and look up the amount by entering your driver’s license number.

Most people don’t take the time to track and record the items they give away, but these donations can save you money on your taxes. You’ll need to provide item descriptions, dates and relative values, as well as receipts from the charitable organizations.

TIP: Visit for the estimated fair market values of clothing, toys, furniture and more.

Those $10 and $15 donations you made throughout the year may seem insignificant, but they can really add up. Be sure to keep the receipts and bring them with you.

TIP: Create a digital or physical folder where you can place receipts for donations as you make them.

These expenses are easy to overlook and often missed. Some items that qualify include parking, business subscriptions, professional dues, union dues, supplies and business mileage (except your drive to and from work).

TIP: Smartphone applications, like MileIQ and Expensify can help you track business expenses automatically.

In Minnesota, you can deduct a variety of educational costs you pay during the year, like private school tuition, all-day kindergarten tuition, school supplies, tutoring and more.

TIP: Keep receipts from back-to-school shopping in the fall. Also, don’t forget to include educational hardware and software purchases.

If you’ve already completed your tax return for this year, you may want to brush up on these strategies that will make you happier at tax time next year.

If you’re searching for a trustworthy tax partner who can help you navigate the sometimes-complicated maze of taxes, accounting and finances, we’d love to hear from you! We have more than 25 years of experience preparing income tax returns for individuals, corporations, LLCs and partnerships.

Five Year-End Strategies That Will Make You Happier at Tax Time

Although the deadline for tax returns isn’t until April, the month of December is your last opportunity to make decisions that will positively influence your tax deductions and credits. We encourage our clients to consider these high-impact activities as the year comes to an end.

You’ve still got time. Get busy!

Fund your Health Savings Account (HSA).Landwehr Tax & Accounting - Make Tax Time Happier
HSAs offer a great opportunity to get a last-minute tax deduction. Many people are unaware they can add to the amount deposited by their employer or even start their own
account. You can contribute to your HSA by requesting a deduction from your paycheck or making a payment directly to your HSA administrator.

HSAs are beneficial for a few reasons. First, HSA funds are more accessible in a medical emergency than those in a 401k or IRA plan. Second, the earnings are tax-free if used for medical expenses. And lastly, anyone with a high-deductible health insurance policy qualifies—regardless of income. The contribution limits for 2016 are $3,350 for an individual and $6,750 for a family. People 55 or older can contribute $1,000 on top of these amounts.

Clean out your closets.
Most people have a lot of extra stuff cluttering up their homes and spaces. Now is the perfect time to donate it! You are allowed tax deductions for the fair market value of clothing, toys, furniture and other items you give away. Visit for estimated values. Create a list and assign values as you pack your donation boxes, so you don’t forget what you’re donating. Then, attach the dated, signed receipt you receive from your charity to that list and bring both to your tax appointment. A receipt is required; a photo is a good idea but optional.

Max out your employer retirement plan.
If you’re expecting a bonus this year, plan to put all—or a good chunk of it—into your 401k or SIMPLE plan at work. Check with your human resources department for requirements, and make sure you let them know your intentions before they’ve finished processing your bonus check. While individual IRAs can be funded all the way up to the April 15 deadline, employer accounts must be funded through payroll, which means before your last paycheck of the year is calculated.

Donate your required minimum distribution (RMD).
A relatively new tax law allows taxpayers over the age of 70 ½ to donate their RMD directly to a charity to avoid paying taxes on it. Special and specific rules apply, so call your tax advisor for details before initiating this transaction.

Offset some winners with some losers.
The IRS allows a $3,000 maximum capital loss each year that can be used to offset gains. For instance, if you have a stock with a $4,000 gain and another that will generate a $7,000 loss, you can use the loss to completely offset the $4,000 winner and still get a $3,000 loss deduction on your taxes. This applies to stock accounts outside of your retirement accounts, so plan accordingly and schedule a meeting with your financial advisor to get advice before selling.

If you’re searching for a trustworthy tax partner who can help maximize deductions, reduce tax errors and ease tax stress, we’d love to hear from you! We have more than 20 years of experience preparing income tax returns for individuals, corporations, LLCs and partnerships.

Meet Ashley Kerzman, Business Manager

Ashley Kerzman, Business Manager

Dedicated, passionate, friendly and focused—these are just a few of the ways we would describe one of our newest additions to the Landwehr Tax & Accounting team. Ashley Kerzman began her role as business manager in September 2016. Her responsibilities include managing project workflow, communicating with vendors, completing software updates, fostering team growth and much more.

“I really enjoy the variety,” Ashley shares. “From refining work processes to planning events, I coordinate every aspect of operations.”

Ashley’s experience, education and personality make her the perfect fit for this position. An obsessive organizer and extremely hard worker, Ashley possesses nearly six years of experience in operations and finance. She earned her bachelor’s degree in finance from St. Cloud State University while working full-time and starting a family.

Ashley’s passion for learning and willingness to try new things motivate her to push the business towards even greater efficiency and growth—and her colleagues are noticing.

“I am so excited to have Ashley on board,” says owner Cherie Landwehr. “She will make our client service even better by implementing forward-thinking ideas, seeing projects to completion and freeing up my time to spend with our clients.”

Outside of work, Ashley enjoys volleyball, softball, crafting, and nature walks with her husband Scott and children Kason, Brooklyn and Hannah.

5 Tips for Veterans Thinking About Starting a Business

If you or someone you know is a veteran who is thinking about starting a business, you are in good company. It has been shown that military veterans make outstanding entrepreneurs, and studies have shown that vets are 45% more likely to start their own business than those without military experience. Being in the military is an excellent way to build character, develop skills, and gain the confidence needed to succeed in business. Starting a business can seem daunting for anyone. However, there are some excellent resources available for veterans to help them. We’ve compiled a list of 5 tips for veterans thinking about starting a business. (more…)

Small Business Owners: Can You Afford To Be Bad At Bookkeeping?

Running a small business requires the wise use of funds to remain profitable. There is no question that saving money wherever possible needs to be a focus of any small business owner. There are many decisions to make about the money you spend. Hiring an external specialist to handle an aspect of your business may seem a waste. Some believe that they can simply do it themselves, and save a little of their hard-earned profits to dedicate in other needed areas. When you think about it, there are many different areas that a paid outsider could help with or improve. So how do you choose the optimal use of your funds for these types of services? The best way to help make financial decisions is to ask yourself some important, and perhaps even uncomfortable questions. One of the most important is can you honestly afford to attempt managing a particular business aspect yourself. When applied to your financial health you have to ask, can you afford to be bad at bookkeeping? (more…)

October Means It Is Tax Time for Many Businesses – What About Yours?

It may only be October, and your year-end tax duties may be far from your mind. However, failing to consider your taxes, and doing what you need to now is a critical issue for many small businesses. If you have not already considered what you can do this month, it would be a wise choice to do so. We’ve compiled a list of the top reasons October is an important tax month, and what you can do to take advantage and improve your taxes’ state of affairs. (more…)

Ready for the Winter? Top 5 Fall Financial Reminders

As the days grow shorter, the leaves begin to turn, and the temperature starts to drop, we know that winter is right around the corner. Nearing the end of the year can be stressful when considering our finances. Taxes are inevitable and once again will be taking top priority on our to-do lists. Instead of dealing with the mad scramble to have everything in order with your finances, the fall is a fantastic opportunity to get a head start and make the upcoming tax season a little bit brighter. If you are like most people, as the summer winds down, so do the demands on our time. While we still may be extremely busy, often the fall and the reduction of those summer activities open up a little more time for us to use. It may be a wise idea to use that time this year to save you much more time and headache down the road. (more…)

S Corporations: A Brief Overview

What Is An S Corporation?

When you are deciding on the type of corporation for your company, there are many things to consider. The IRS recognizes two types of corporations you can choose from, a C Corporation or an S Corporation. An S Corp is a business structure that allows a business to avoid double-taxation. That is because an S Corp is not required to pay tax on its profits. Instead, all profits and losses are passed directly to the shareholders on their individual tax return. Those individuals will pay tax on their share of the profits only. This differs from a C Corp, which is viewed by the IRS as a legal entity in itself; therefore, it must pay tax on its profits through the company instead of the shareholder. Each business type has its own benefits and disadvantages, so you must decide based on your unique business which model will suit you best. (more…)

Finding the Fun In Budgeting

Budgeting is the most essential step in making any kind of monetary strategy or economic blueprint. In dealing with our clients, this is one of the 1st steps we review, because it’s so crucial to your success. I know– budgeting doesn’t sound like fun at first, however offer this as a thought …

What if you could locate an extra $100/month to save and also cut out of your existing spending plan? This is by doing things such as cutting that extra cable television or satellite box that no one watches anyway, eliminating the pricey flick stations, or removing magazines, papers and also other premium subscriptions that you forgot you were spending your money on! (more…)