The Accountancy

01/20/2019

More families will be able to get more money under the newly‐revised Child Tax Credit. Learn more from to : https://go.usa.gov/xPvRb

01/20/2019

IR-2019-03, January 16, 2019 — The Internal Revenue Service announced today that it is waiving the estimated tax penalty for many taxpayers whose 2018 federal income tax withholding and estimated tax payments fell short of their total tax liability for the year.

01/14/2019

IR-2019-01, January 7, 2019 ― Despite the government shutdown, the Internal Revenue Service today confirmed that it will process tax returns beginning January 28, 2019 and provide refunds to taxpayers as scheduled.

01/14/2019

It's Tax Time!!
File and Pay Nothing Now, Fees will be adjusted from your refund.
File 1040 EZ free before February 15th.
Contact us:
Ph: 817 495 9751
Off: 469 671 9448
Email: [email protected]
Office address:
A & S Financial Services
8035 E.R.L Thornton Fwy, Ste 420,
Dallas, Texas 75228.

Send a message to learn more

12/26/2018

IRS Announces 2019 Tax Rates

12/26/2018

Refunds may be different than prior years following . Some people may even owe an unexpected tax bill when they file their tax return. IRS urges you to do a now before it's too late: www.irs.gov/withholding

02/20/2017

2016 Standard Deduction Amounts

There are two main types of tax deductions: the standard deduction and itemized deductions. You can claim one type of deduction on your tax return, but not both.

For example, if you claim the standard deduction, you cannot itemize deductions – and vice versa (if you itemize deductions, you cannot claim the standard deduction). You are allowed to use whichever type of deduction results in the lowest tax.

The standard deduction is subtracted from your Adjusted Gross Income (AGI), thereby reducing your taxable income. For tax year 2016, the standard deduction amounts are as follows:

Filing Status Standard Deduction
Single $6,300
Married Filing Jointly $12,600
Married Filing Separately $6,300
Head of Household $9,300
Qualifying Widow(er) $12,600

02/20/2017

2016 Income Tax Brackets

The Federal income tax has 7 brackets: 10%, 15%, 25%, 28%, 33%, 35%, and 39.6%. The amount of tax you owe depends on your income level and filing status.

It’s important to understand that moving into a higher tax bracket does not mean that all of your income will be taxed at a higher rate. Instead, only the money that you earn within a particular bracket is subject to that particular tax rate.

02/19/2017

What You Need to Know
•Processing delays are likely for filers with expired Individual Tax Identification Numbers.
Expecting a refund? Some refunds must be held until February 15.
◦According to a new tax law change, the IRS cannot issue refunds before February 15 for tax returns that claim the Earned Income Tax Credit or the Additional Child Tax Credit.
For more details, please click the link below.

02/18/2017

Why do we need Accounting?
So why do we need accounting? Asking that question of an accountant is like asking a farmer why we need rain. We need accounting because it’s the only way for business to grow and flourish. Accounting is the backbone of the business financial world.
The concepts of assets, liabilities, and income and the need to reconcile these areas is still the basis for all accounting functions today,accounting gives us the financial snapshot we need in order to make solid business decisions about the current status or projected future health of our businesses.

02/18/2017

The more I think the more confused I get about Cash Profit vs Book Profit
For a layman, the net profit shown in the financial statements would be the actual profits for the business; however it is necessary to understand the difference between the Book Profit as shown in the financial statements and the Cash Profit.
A Cash Profit is the actual surplus generated by the business. Necessary adjustments are made to this Cash profit which ultimately gives us the Book Profit. A book profit comprises adjustments related to depreciation and other non-cash items. These non-cash items are provisions, prepaid assets, outstanding expenses, outstanding income etc. On the other hand, Cash profit is nothing but a net difference between the Cash receipts and the Cash payments during the year. When depreciation and other adjustments are made to the Book Profit, the result that we get is Cash profit. The financial statements are prepared under the mercantile system, hence many a times the incomes that are yet not received in cash are recognized as incomes and added to the book profit based on the accrual system. Similarly many a times, the expenses which are not still paid are recognized as expense which caused the book profit to change. Accordingly the accrual based accounting is a major reason for the difference between the Cash profit and Book Profit. When the books of accounts are maintained on Cash basis, then the Book profit and Cash profit of a business comes to the same value. In Financial world, the stakeholders not only want that the company must generate Book Profit but they want that a company must generate Cash profits also. Cash profits serve as indicators of the financial health of the Company.

Hence there is a major difference in Cash Profit and Book Profit and it requires understanding on the part of the readers to understand their difference.