Start Getting Ready for Tax Season Today

Tax Time Ahead

With Christmas comes a brand new year, and with that brand new year comes another cycle of preparing one’s taxes.  Thankfully, there are numerous steps one can take -starting today- to make the new tax year smoother than ever before. Below are a few steps you can take to make your life easier this tax season.

  • Come up with a plan! It’s not wise or recommended to wait until the very last day to do all of your taxes at once. An easy way to motivate yourself to start your taxes early is to set a calendar reminder that you’ll start them in early February, and try to stick to the reminder. This will help you plan other things around this one task.
  • Meet with a CPA. At Michael J. Yuda, CPA, LLC, we take pride in developing long-term relationships with our clients.
  • Keep your tax documents in one central location. It might be a desk drawer, or a simple folder. However, it’s important that you keep your tax documents that you’ll receive in January and February in one location to ensure they are easy to find.
  • Do a rough estimate. Of course a CPA in Hawaii can help you come up with a closer estimate, but why not do a calculation to see whether or not you’re actually going to owe taxes this year. Try and keep your estimate high, so you don’t have any big surprises when you do get your taxes done.

End of the Year Tips to Maximize your Tax Refund

iStock_000045491268_LargeIt seems that tax season ended just yesterday, but a new season is upon us. Like most Americans, we’re sure that you’re looking for ways to pay no more than what you owe, and even boost your tax refund. Below are a few tips at maximizing your taxes this upcoming season:

  • Travel for work? See the doctor often? Don’t shy away from tax deductions. Believe it or not, but a lot of things add up without you knowing it. Keep a log of tax deductible activities and see if it’s worth writing them off. The same holds true for charitable deductions, and even moving fees if you relocate to a new home.
  • You have until April 15 to open a traditional IRA for the previous tax year.  Typically, traditional IRA contributions reduce taxable income.
  • Consider scheduling health-related exams during the last quarter of the year to boost medical expense deduction potential.  It’s actually been proven that taxpayers who pay particular attention to the calendar improve their chances of receiving a larger refund than those who don’t. Paying property taxes or things like your mortgage before the end of the current year can actually yield a larger refund. Make the calendar your best friend!

Don’t forget that when you’re looking to truly maximize your tax refund to seek out the premier CPA in Hawaii! Visit Michael J. Yuda CPA, LLC today!

Money School – Teaching Kids to Manage Finances

Father training the son to the financeMoney management skills are vital to success in life. The best time to cultivate these skills is during childhood and adolescence, but (unremarkably so) public schools are virtually void of personal finance classes. This means that it is up to parents and guardians to instill this knowledge in future generations.

 

As your CPA in Hawaii, we suggest you take charge of your child’s knowledge by making continued efforts that support the principles of money management. To start, think of ways you can demonstrate and allow your little savers to experience:

 

  1. Waiting for things they want
  2. Making decisions on what they can have
  3. Saving for the things they want
  4. Spending based on the funds they have

 

Learning to wait for what we want and how to choose what is most important are the foundation of savings. The child who learns these lessons early, perhaps picking out a toy and saving for it, is better equipped to handle more difficult financial decisions in the future.

 

Piggy banks are a classic tool for teaching money management. Today, these tools have plugs in the bottom, so you don’t have to break them to get money out. That sounds like a lesson credit card companies want kids to learn—just taking it when you want it.

 

Don’t let your children lose sight of what is most important. Instead of one, set up two banks. Label the first savings and the second one spending. When your little financier or adolescent investor earns income, help them divide it into the two banks. Then, let them manage both, making decisions, learning to wait, and effectively manage their hard money.

Is Saving for Retirement Important?

Jar of coinsWhile skimming through financial articles, we ran across the Fifth Annual Wells Fargo Middle-Class Retirement Study. Most of the statistics this study shows are more or less expected. It reports that, of those surveyed:

 

  1. 34% are not saving for retirement
  2. 19% have no retirement savings
  3. 68% find saving for retirement harder than expected
  4. 61% say they are not making sacrifices to save for retirement

 

Though we advise and want people to retire securely, we understand the difficulties. What really caught our eyes though was this statistic: 22% would prefer to die early than run out of money. As your dedicated CPA in Hawaii, this hit us hard. Traveling through retirement comfortably is important, but it isn’t as important as living. Moreover, you can do both.

 

If you have yet to start your retirement plan, start it. You can start small and work your way up. The important thing is that you start a plan. The earlier you begin, the easier it will be. If you are worried, rest assured you are not alone. According to the study, 48% of non-retirees surveyed are not confident their savings are enough to retire.

 

Do what you can now to remove or further remove yourself from the negative portion of these statistics. Call an expert when you need help. If you would like to discuss this issue any further, please let us know.

Unique Facts About Hawaii

Coconuts, lei and sandalsAs a CPA in Hawaii, the team here at Michael J. Yuda, CPC, LLC, wants to extend our knowledge and love for this beautiful state to each of you! Whether you are looking to visit The Rainbow State, or just looking to learn more, here are some quick facts about Hawaii that set us apart from the other 49 states!

  • From east to west, Hawaii is the widest state in the United States.
  • Hawaii is the only state to grow vanilla beans.
  • The state capital, Honolulu, is the 11th largest metropolitan area in the country.
  • Honolulu is also the second most expensive city in the United States. (The first being Anchorage, Alaska.)
  • Hawaii is home to the world’s largest volcano, Mauna Loa.
  • Hawaii has the highest life expectancy in the United States. For males, the life expectancy is 75, and for females it is 80 years.
  • Hawaii is a worldwide leader in harvesting macadamia nuts and orchids.
  • Park rangers at Hawaii National Park receive packages every year from tourists who took volcanic rocks from Kilauea. The tourists send them back claiming the rocks were bad luck from Pele, the goddess of fire, lightening, dance, volcanoes, and violence.

These are just a few of the unique reasons why we love the state we get to call home! Most of all, they are what makes everyday a great day to be a CPA in Hawaii!

Saving Money for Children

family savingsCreating a financial base for children at a young age is a great investment for their future! Putting money away for the child will help them greatly as they embark on their college career and further along into adulthood. As the child grows older, getting them involved in the saving process will educate them on the importance of good spending habits and savings practices. It teaches them valuable lessons about money and how money works. Here are some simple ways to kick-start a child’s finances:

  • Open a savings account with a bank or other financial institution on behalf of the child. If possible, start the account when the child is just a baby. As time goes on, and the child is old enough to understand the concept, encourage them to deposit birthday or holiday money, such as checks, into the account for safekeeping.
  • Implement a college savings plan. A 529 college savings plan allows parents to put money away tax-free for their children’s education. Savings in this type of account can be used at any accredited college in the United States for undergraduate or graduate studies.
  • Create a jar or piggy bank for storing any money the child wishes to save in their presence. Sometimes the child will want to watch the money accumulate or feel how heavy a piggy bank will become over time, driving them to want to save more and more.

If you want to help make a difference in a child’s life and are looking for the guidance of a professional, don’t forget about the best CPA in Hawaii.  Visit Michael J. Yuda CPA, LLC today!

Benefits of Filing Taxes Early

Tax Form with Fountain PenWe know tax season just ended, but the reality of tax season being here again is right around the corner. Did you know that there are numerous benefits that come with filing your taxes early? Here are a few reasons you should considering filing early this upcoming year:

  • Taxpayers who have children in college should get tax information early as it will impact the amount of financial aid the student may receive.
  • Filing taxes early can lessen the odds of becoming a victim of identity theft. The sooner a return is filed, the less likely someone else can file a return in your name.
  • When filing early, you have plenty of time to catch potential mistakes. Early planning prevents poor performance, and when you decide to file taxes early you’re not forced to stress out over missing paperwork or trying to meet a tight deadline.
  • Filing earlier gets you your refund much earlier!
  • This one might be a no-brainer, but filing early avoids one to have to file for an extension. People who wait to the last minute often have to go through the process of filing for an extension, which can lead to unneeded and preventable stress plus additional costs.

When tax season is here, seek out the tax consulting professionals in Hawaii at Michael J. Yuda, CPA, LLC.

Money Saving Tips for College Students

Cost of education student loan and financial aidYoung adults around the world are all gearing up or already back to school! If you’re a student or sending your students off to college, it’s important to emphasize healthy spending habits to ensure a more stable financial future after they graduate. College can easily put students in a financial hole post-graduation, but developing smart spending habits early in college can help your student or yourself be smarter with money. Here are 5 tips for saving money in college:

  1. Make “Used” a big part of your vocabulary. Used books cost less than brand new books, and in the long run will save you a fortune. Don’t forget to check in with fellow classmates to see if they may have taken the class previously and might be able to loan you the book.
  2. Even if you have a car on campus, consider using public transportation to save a load of money on gas and car maintenance. Many colleges offer free or discounted travel accommodations.
  3. Set up a student checking account. Banks often offer a free checking and savings account to students that allow you to avoid fees on withdrawals and often have no minimum amount allowed in the account. If the bank also offers online banking, use it!
  4. We know how busy it gets being in college, but if you have free time, get a job. Waiting tables or even delivering goods can bring you in some money that you can save for when you’re finished with school. Between a meal plan, dorm room, and public transportation, you can easily save money without worrying about many expenses.
  5. Use your free time wisely! Instead of going out on the town, considering joining a club or filling up your free time with activities that don’t require additional money out of your pocket.

When it comes to saving money and being more financially stable, Michael J. Yuda, a CPA in Hawaii cares! At Michael J. Yuda, CPA, LLC, we take pride in helping you reach financial health.

4 Easy Steps to Develop Good Spending and Saving Habits

medical costNot everyone can easily save money and create a personal budget; this is of course why some seek out a CPA in Hawaii. However, there are 4 easy tricks that can help you start developing better spending and saving habits.

  1. Know your expenses! It’s important to spend time to assess where the bulk of your savings go. Expenses such as rent/mortgage, utilities, and other important payments should be factored into your budget first.  Things like entertainment should be a second thought.
  2. Save until it’s safe to splurge. The more cash you have stowed away, the quicker it is for you to recover once you succumb to a splurge. Never live beyond your means! It’s important to have a good savings foundation built before spending money on things that don’t exactly fit into your budget.
  3. Resist upgrades! This is not only reserved for the newest gadgets and gizmos, but for everything! Essentially, what we mean is, don’t spend money on any new version of something that you have that works fine.
  4. Calculate nominal costs! Get into the habit of calculating nominal costs of reoccurring expenses. Before you sign up for a subscription service, figure out how much that will actually cost over the year, maybe over the next 5 years, and so on. Not committing to these can actually save you a load of cash in the long-run.

Summer Special

92001457_scaled_154x210Here at Michael J. Yuda, CPA, LLC, we’re extremely excited to announce our Summer Special. What exactly does it all mean? For a limited time, we will be offering a FREE 30 minute consultation for new clients. This exciting special is just another way to heat up your summer and get yourself down the path to better financial health. Michael J. Yuda is a premier CPA in Hawaii and offers a slew of services to help you make wise financial decisions. Yuda is here to help you manage your tax, accounting, QuickBooks, and other bookkeeping matters.

If you’re interested in benefiting from a free 30 minute consultation, please contact us today to schedule an appointment. Our firm can help manage your business or personal finances with the necessary technical experience and expertise to succeed. When you choose Michael J. Yuda, CPA, LLC, you’re getting personal, reliable, professional and trustworthy service–guaranteed. Take advantage of our amazing summer special today, and get 30 minutes of free consulting from the premier CPA in Hawaii. We firmly believe that your success is our success, and are committed to helping you.

To learn more about our services and to schedule your free consultation visit our website today! We’re looking forward to help you handle your finances.