Some Refunds will be Delayed

Many are looking forward to having large tax refunds deposited in their bank accounts.  According to the Protecting Americans from Tax Hikes (PATH) Act, the IRS cannot issue these refunds at the time of filing.  If you file early do not to expect your refund until the week of Feb. 27.

Consult your tax prepare if you’re eligible to claim the earned income credit, or feel free to contact me with any questions.

 

2020 NEW W4

The 2020 tax season is here upon us, some things have changed, some things have remained the same.  One of the most important questions I have been asked is when will the IRS start accepting 2019 electronic federal files.  The Internal Revenue Service will start accepting, tax returns on Monday, Jan. 27.

If you’re noticing the amount of your refunds have getting smaller or starting to owe taxes, you may need to check your federal withholding’s.  The Internal Revenue Service has a new W-4 and online withholding estimator to help you get the numbers just right.

If you need additional assistance updating your w4, feel free to reach out to me. 310-283-3767

Unclaimed Money In California

Here’s a link that will direct you to The Secretary of State website. They keep records of millions in unclaimed property, bank accounts, stocks, bonds, uncashed checks, insurance benefits, wages, and safe deposit box contents

http://www.sco.ca.gov/upd_msg.html

Check to see if you have property unclaimed, it’s easy to do.

 

 

 

 

 

IRS Offers Free Tax Filing

 

Anyone whose adjusted gross income in 2016 was $64,000 or less will be eligible for Free File software. The electronic version of IRS paper forms will be available for preparing taxes on January 23.

“You don’t have to be an expert on taxes. Free File software can help walk you through the steps and help you get it right,” said John A. Koskinen, IRS Commissioner. “For 14 years, this partnership between the IRS and the Free File Alliance has helped taxpayers prepare and file their federal taxes for free. The real winner in this partnership has been the nation’s taxpayers.”

Tim Hugo, executive director of the Free File Alliance, said, “We are proud to once again offer the industry’s most innovative and secure tax software at no cost to 70 percent of American taxpayers. Tax time can be stressful, but Free File makes step-by-step help accessible to everyone making $64,000 or less. Free File is the one place where taxpayers can choose from a variety of industry-leading tax software options in order to prepare and e-file their federal tax returns at absolutely no cost.”

For more information on IRS tax law changes and updates feel free to call the offices of Trojan Accounting @ 310-283-3767.

2017 IRS Tax Delays

 

Congress requires the IRS to hold refunds on tax returns claiming the Earned Income Credit until mid February. The IRS must hold the entire refund even the portion not associated with the Earned Income Credit until at least Feb. 15. The change is to help ensure that taxpayers get the refund they are owed by giving the agency more time to help detect and prevent fraud.

For more information about the recent law changes, feel free to contact the offices of Trojan Accounting @ 310-283-3767.

Time Is Getting Close

The final deadline to file is here.

October 15th is the last day that e-file will be available. Not to mention, any 2013 returns filed after this date will be considered late.

In other words, if you requested an extension on your 2013 tax return, you must file your taxes by the October tax filing deadline. If you miss the deadline, you may have to pay penalties and interests.

Avoid Paying Penalties  & Interest

From October 16th, fees start applying to your 2013 return. These fees include the failure-to-file penalty, failure-to-pay penalty and interest.

Each of these fees grows larger with every day that your return goes unfiled or your tax liability unpaid.

Be aware, however, that if you are due a refund, you will never be charged penalties and interest for filing late.

E-file shuts down after October 15, 2014

The other great benefit of filing before the deadline (aside from avoiding penalties and interest) is that you can take advantage of e-file. Most people are probably already aware of how much more convenient e-file is over traditional paper filing. E-file is;

• faster
• safer
• greener
• more accurate.

Plus it saves you some printer ink and a trip to the post office.

Unfortunately, e-file is only available for the tax year until October 15th. After this date the IRS completely shuts down the e-file system in order to prepare for the upcoming tax season.

For more information contact:  Adrian Duncan 310-283-3767

How to Gain Profits While Looking for Bookkeeping Help

Do you find yourself looking for bookkeeping help for your business? What defines a company is how much it profits from its business transactions. The more you earn, the bigger your place in the business world. This is why proper management of your bookkeeping is extremely important.

When a company’s accounting is mismanaged, the business is left in an extremely vulnerable state. So every step that a company takes is critical. Consequently, if incorrect information is stated in its books, it follows that incorrect decisions will be also made while running the business. Bookkeeping is indeed crucial and that is why no company should risk not having a bookkeeper to handle this job.

You need bookkeeping help for tasks such as maintaining your balance sheets, recording all monetary transactions regularly, preparing profit and loss statements, payroll, filing of taxes, inventory of equipment, along with other important tasks.

These responsibilities are very time consuming especially to those not accustomed to doing them. Putting these responsibilities at the mercy of people who are not experienced in these processes, is like taking a gamble where your whole business is at stake. So, it is better to assign these duties to someone who really knows what to do. You need to hire some bookkeeping help.

Profit is the number one advantage of hiring a bookkeeper as he or she will be able to handle your bookkeeping properly and provide you with useful information so that you can make sound decisions for your company. An excellent bookkeeper is someone who knows the ins and outs of the profession and is dedicated, organized, and motivated to helping your company succeed.

This leaves you time to concentrate on the other aspects of your business that require your attention. Also, if your bookkeeper does their job correctly, you can avoid penalty charges due to late filing of federal forms or costly revisions due to errors. In addition, having accurate documentation of your accounting also helps to attract potential investors.

Therefore, it is important that you only hire bookkeepers that can live up to your expectations. To do this, look for a legitimate and experienced freelance bookkeeper.

To get more information on finding a bookkeeper please call 310-283-3767.

Don’t Fall Prey To Fake IRS Emails

It’s common these days that criminals will use email pretending to be the IRS. These scams often use the IRS name and logo or fake websites that look real.

In all my 15yrs. years of preparing taxes the IRS has never sent an email. Be alert that these emails are to lure you to give up your personal and financial information. The crooks then use this information to commit identity theft or steal your money.

If you get email from the IRS please follow these steps:

•Don’t reply to the message.
•Don’t open any attachments or click on any links.
•Don’t give out your personal or financial information.
•Then delete it.

Be alert to scams that use the IRS as a lure. The IRS will not initiate contact with you through social media or text to ask for your personal or financial information.

Here’s an example:

You No Longer Need The IRS

Yeap that’s right you no longer need the IRS.  They have made retrieving your transcripts simple as eating pie.

Before the IRS provided this online tool, obtaining IRS transcripts was a manual process.  Now, taxpayers can set up a personal account with the IRS to view the five types of transcripts right away.

Because IRS transcripts are not made for easy interpretation, many taxpayers accessing their transcripts will have to consult with their income tax preparer.

What are the types of transcripts?  

There are five types of IRS transcripts, which taxpayers can now access online:

1. An account transcript provides an overview of your account.

2. A return transcript shows most lines from the original tax return as it was processed.

3. A record of account transcript is simply a combination of the account and return transcripts.

4. A wage and income transcript provides a listing of information statements (Forms W-2, 1099) that show income reported to the IRS under your Social Security number.

5. A verification of nonfiling letter is a transcript that is automatically produced when the IRS does not have your return on file or has not yet processed your filed return.

For more information regarding transcripts please contact Trojan Accounting @ 310-283-3767

Did You Know Your State Refund Can Be Taxed

Did you know your state refund may have to be claimed as income in the following year.

Yeap that’s right the refund you received from the state may very well need to be added back into your income total. Sounds like double taxation right. Let me explain how it works.

You are probably asking yourself the questions I make money throughout the year, and get taxed on in it and pay federal and state taxes. At the end of the year, you file taxes and HOPEFULLY get a refund for money that you overpaid the state and federal government. So how is it that California can send you a 1099 G form for a refund check that you received.

Well that income if you itemized LAST year and took a deduction for State income taxes paid the state refund must be added back into your taxable income in the following year.

If you didn’t itemize or did but didn’t deduct State income taxes then you can ignore it.

For more information contact Trojan Accounting @ 310-283-3767

Can You Write Off Your Uniform

After speaking with so many of my clients and I’m now convinced that most don’t understand what the IRS considers a uniform write off.  

If you’re required by your employer to wear a specific uniform on the job, you may be able to claim a tax deduction for purchasing and maintaining that uniform.

If your employer doesn’t provide you with your uniform or doesn’t give you money to pay for it, then the uniform is considered an “unreimbursed employee expense” for tax purposes.

According to the IRS, a uniform qualifies if it’s both required by your employer and is “not suitable for everyday wear.” That means, for example, that if your employer requires you to wear coveralls with the company logo on them, you can claim your uniform as an unreimbursed employee expense.

 

You may not deduct costs for “street clothes” that you or your employees wear to work. For example, suits are considered street clothes for both men and women. The “rule of thumb” is that if you can wear it anywhere and everywhere, it is not a business expense

 

Uniform expenses include not just the cost of purchasing the uniform but also of maintaining it. If your uniform needs to be dry-cleaned, that’s a claimable expense. Costs for repairs and alterations also qualify.

 

Uniform costs are included on Schedule A in a category called “Job Expenses and Certain Miscellaneous Deductions

 

For more information contact Trojan Accounting @ 310-283-3767

Tax Help ‘en Español’

The IRS offers many free and easy-to-use products for taxpayers who speak Spanish.   The United States is now recognized as the second-largest Spanish-speaking country in the world, and the IRS knows it.   Here are three helpful tips if English is not your first language and you need assistance in another language.

 

1.  IRS.gov/espanol has a wealth of tax information for individuals and businesses. You can check the status of your tax refund through the online tool.

 

2.  The VITA program generally offers free tax return preparation to people who earn $52,000 or less.  Returns are prepared and e-filed by certified volunteers. Visit ‘Voluntarios proveen ayuda gratuita con la preparación de su declaración de impuestos.’

 

3.  Call the IRS for free tax help in Spanish.  IRS.gov can help most people online with their tax needs. But if you prefer to talk with someone at the IRS, you can call toll-free. Call 800-829-1040 and then press the number 8 to talk with a representative who speaks Spanish, also search the internet for tax preparer offices in your area that can assist.

 

Subscribe to my daily financial blog to receive additional tax tips.  For more information call 310-283-3767.

3 Affordale Ways to Prepare Your Taxes

With tax preparer rates increasing year by year I thought about those that may have trouble paying the preparation fee.  This blog is to help those that are in financial binds and need affordable tax preparation assistance.  There are some great free and much cheaper options available for those who have relatively simple returns and a low enough adjusted gross income (less than $58,000).  Here are the three options that topped my list if your goal is to have affordable tax preparation service.

FreeFile: You can fill out forms online through the IRS website fillable forms website and then e-file. The only problem with this route is that you can’t prepare or submit your state return through the IRS. This can be a bit of a pain if you have to go elsewhere to do your state return (and all the data that you’ve already entered does not transfer with you).

Turbotax: Offers a free e-file edition for those with and adjusted income of $30,000 or less ($58,000 or less for active military), or to those who are eligible for the Earned Income Tax Credit.

VITA: The VITA Program generally offers free tax help to people who make $52,000 or less and need assistance in preparing their own tax returns. IRS-certified volunteers provide free basic income tax return preparation with electronic filing to qualified individuals in local communities. They can inform taxpayers about special tax credits for which they may qualify such as Earned Income Tax Credit, Child Tax Credit, and Credit for the Elderly or the Disabled. VITA sites are generally located at community and neighborhood centers, libraries, schools, shopping malls, and other convenient locations.

There are no vendors that offer free-file to those with adjusted gross income over $52,000. If your income is higher and/or you have a complicated return, I’d recommend going with your tax advisor.

For more information contact Trojan Accounting –  310-283-3767.

Do You Need to File Past Due Tax Returns

If you missed filing taxes in a previous year and the IRS has demanded you to complete the return you should still submit your return information late. If you owe tax money to the IRS, you may be responsible for late fees and interest charges. If, however, you are due a refund, filing a late tax return may still entitle you to the money as long as you file before the end of the statute of limitations. The worst thing to do is nothing. Here are five steps to file past year tax returns.

Instructions
1. Call the IRS at 800-829-1040 and request your tax history. They will inform you of all filed and missing tax returns.

2. Gather all the relevant forms associated with the past due year’s taxes and income. If you cant locate your forms you can request any lost records or ask for a wage an earning transcript by calling the IRS at 866-681-4271.

3. Gather all the necessary forms such as your 1099’s and w2’s. Once that’s done start to gather bank statements and tally up any expenses that would help reduce your tax liability.

4. Contact your tax preparer and have the taxes filed. IRS request that any past year tax return must be signed and mailed they wont allow past years to be electronically filed.

5. Address an envelope to the mailing address on the 1040 Form and put all the information into the envelope to mail to the IRS. Not all IRS centers will process past due returns. Only mail the form to the address given on the form.

For more information on how to file past year returns contact 310-283-3767

Did You Get Audited This Week

Looks like the IRS mailed out several letters this week to those that claimed the Head of Household filing status. Don’t stress this audit is simple to handle and here are four steps to take care of it:

1. Refer to IRS online form 886-H-EIC to browse

2. Gather documentation if you and your spouse were legally separated, divorced or did not live together for more than six months out of the tax year in question.

3. Prove that you held primary care of your child (biological, adopted or foster) for more than six months of the tax year. Obtain a letter from your kid’s school or daycare, or from a doctor who cared for your child that confirms the child lived in your residence and under your care. This letter must be on official letterhead from the establishment.

4. Prove you were the primary payee of household expenses for dependents living in your household, send copies of rent or mortgage receipts, utility bills, property tax bills, grocery costs and other household maintenance bills.

For additional help call @ 310-283-3767

CHECK YOUR REFUND THERE’S AN APP FOR THAT

 

 

Are you on the go but need the latest tax information at your fingertips? There’s an app for that.

• Check the status of your refund.  The new version of IRS2 Go includes an easy-to-use refund status tracker so taxpayers can follow their tax return step-by-step throughout the IRS process. Just enter your Social Security number, filing status and your expected refund amount. You can start checking on the status of your refund 24 hours after the IRS confirms receipt of an e-filed return or four weeks after you mail a paper return. Since the IRS posts refund updates on a daily basis, there’s no need to check the status more than once each day.

Need more information please feel free to contact me @ 310-283-3767.

2014 Tax Season to Open Jan. 31

The government closure meant the IRS had to change the original opening date from Jan. 21 to Jan. 31, 2014.

The IRS states that it will not process any tax returns before Jan. 31, so there is no advantage to filing on paper before the opening date. Taxpayers will receive their tax refunds much faster by using e-file or Free File with the direct deposit option. I will send out a link later in the week if you need assistance with filing your taxes FREE OF CHARGE.

The April 15 tax deadline is set by statute and will remain in place. However, the IRS reminds taxpayers that anyone can request an automatic six-month extension to file their tax return.

If you need help filing your return or have questions please feel free to contact me.

Adrian Duncan
adrian@trojanaccounting.com
310-283-3767

Overlooked Tax Deductions

Here are 5 that are often overlooked:

1. Job hunting expenses
2. Moving costs
3. Noncash charitable gifts (or volunteering at your favorite nonprofit)
4. Weight reduction expenses
5. Energy efficient home improvements

If interested in more, please request my tax write off guide.

Ten Idea’s For Your Tax Refund

 

1.  Pay off Debt – If you are carrying debt then a large tax refund can be your opportunity to put a dent or eliminate your debt.  Pay it off and you save by not paying as much interest charges!

2.  Build of your emergency savings – If you don’t already have 3 – 6 months savings away then now would be a good time to start!

3.  Contribute to an IRA or Retirement Account – Get money into your IRA or Retirement Account now so your money can work for you.

4.  Start a small business – It doesn’t take a lot of money to start up a small side business or even you’ve wanted to startup a nonprofit now would be the perfect time.

5.  Upgrade wardrobe – Replace some of those worn-out threads.  It can make you feel better as well as look better.

6.  Donate to charities – Give money/time to those who need it more!  Keep the receipt for tax time next year.

7.  Fix up your home – Paint, renovate, upgrade appliances, get new furniture – make your home a nicer place to live in.

8.  College Course – Register for a college course or technical course.  This could be for your own interest or as a way to help advance your career

9.  Travel/Vacation – This could be a nice chance to plan out a great vacation with the family!

10.  Take care of the car – Get your car a tune-up and a full detail cleaning.  Taking care of your car will help it last longer and perform better saving you money in possible future repairs.

 

File Your Tax Return For Free

Don’t worry if you can’t afford paying tax prep fee’s this year. I’ve provided you three links that will assist you in filing your 2012 federal tax return FREE

 

I.R.S
http://www.irs.gov/uac/Free-File%3A-Do-Your-Federal-Taxes-for-Free

 

 

HR BLOCK:
https://taxes.hrblock.com/hrblock/login/LoginRegistration.hrbx?TaxType=TCF&TaxYear=2012&campaignid=ps_mcm_9009_0077&omnisource=GGL|CAMP027S-GT-Tax+Free-G-Desktop-BMM|ADGP008Tax+Free|KWRD010+free++tax&KeywordID=506805716&PartnerID=9009&PS=Y&FV=F&HT=F

Turbo Tax:
http://turbotax.intuit.com/personal-taxes/get-started/prepmethod.jsp?priorityCode=3468337910&productid=512&abtest=random%253D30284

Tax Return Delay’s with Child Tax Credit

The IRS noted that it has experienced the following two conditions: (1) The Schedule 8812 Part 1 checkboxes A, B, C, and D are checked when taxpayers list a dependent child with a Social Security Number qualifying for the Child Tax Credit; and (2) the Schedule 8812 Part 1 checkboxes A, B, C, and D not being checked when taxpayers have a child with an Individual Taxpayer Identification Number, or ITIN, on Form 1040 and 1040A line 6c identified as qualifying for the Child Tax Credit in column 4.

Source: AccountingToday

Education Credit Returns on Hold

Taxpayers using Form 8863, Education Credits, can begin filing their tax returns after the IRS updates its processing systems. Form 8863 is used to claim two higher education credits: the American Opportunity Tax Credit and the Lifetime Learning Credit.

The delayed start will have no impact on taxpayers claiming other education-related tax benefits such as the tuition and fees deduction and the student loan interest deduction, the service added

On your mark, get set, go

 

Jan. 30th the IRS begins accepting all 2012 tax returns, whether filed in paper form or electronically.

The tax agency’s popular Free File program also kicks off on the 30th.

If you’re thinking this is a bit later-than-normal filing season start, you are correct. Congress was so late in making changes to laws that affect 2012 returns, so the IRS had to push back the official start of the 2013 tax season to the end of the month. And some filers will have to wait until late February or into March before the IRS will be able to get to their 1040s.

If you have any questions regarding your current tax filing or trouble with past years, please contact me.

Adrian Duncan 310-283-3767 or adrian@trojanaccounting.com

Get A Financial Boost This Tax Season

The Earned Income Tax Credit is a financial boost for people working hard to make ends meet. Millions of workers may qualify for the first time this year due to changes in their marital, parental or financial status.

The EITC is a refundable federal income tax credit targeted to low to moderate income working individuals and families. Refundable means that even if the credit exceeds the tax liability, the taxpayer doesn’t lose the excess and is entitled to receive any overage as a refund.

For tax year 2011, the maximum credit amounts are:

• $464 with no qualifying children
• $3,094 with one qualifying child
• $5,112 with two qualifying children
• $5,751 with three or more qualifying children

California Forgiving Foreclosure and Loan Mods.

If your home was foreclosed or your loan modified you know longer have to worry about claiming the discharged amount due to the Mortgage Forgiveness Debt Relief .  California law has conformed, with the federal mortgage forgiveness debt relief act for discharges occurring on or after January 1, 2009 thru 2012.

If you owe a debt to someone else and they cancel or forgave that debt, the canceled amount may be taxable.

The Mortgage Debt Relief Act of 2007 allows taxpayers to exclude that income from the discharge of debt on their primary residence. Debt reduced through a loan modification in connection with a foreclosure, qualifies for the relief.  Up to $2 million of forgiven debt is eligible.

 More information, including detailed examples can be found in Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments, or contact 310-283-3767

The IRS Is Open For Business

 

The IRS officially begins accepting e-filed returns Jan. 17th.  If you’ve not gathered your tax information just yet, please see my free tax intake sheet to help you get more organized: http://www.adrianbduncan.com/tax-tip-intake-form.html

Tax Return Transmission and IRS Acceptance Dates	Tax Refund Direct Bank Deposit by IRS Deposit Date	Tax Refund Paper Check by IRS Mail Date
Jan 17 and Jan 18, 2012 (by 11am)	Jan 25, 2012	Jan 27, 2012
Jan 19 and Jan 25, 2012 (by 11am)	Feb 1, 2012	Feb 3, 2012
Jan 26 and Feb 1, 2012 (by 11am)	Feb 8, 2012	Feb 10, 2012
Feb 2 and Feb 8, 2012 (by 11am)	Feb 15, 2012	Feb 17, 2012
Feb 9 and Feb 15, 2012 (by 11am)	Feb 22, 2012	Feb 24, 2012
Feb 16 and Feb 22, 2012 (by 11am)	Feb 29, 2012	Mar 2, 2012
Feb 23 and Feb 29, 2012 (by 11am)	Mar 7, 2012	Mar 9, 2012
Mar 1 and Mar 7, 2012 (by 11am)	Mar 14, 2012	Mar 16, 2012
Mar 8 and Mar 14, 2012 (by 11am)	Mar 21, 2012	Mar 23, 2012
Mar 15 and Mar 21, 2012 (by 11am)	Mar 28, 2012	Mar 30, 2012
Mar 22 and Mar 28, 2012 (by 11am)	Apr 4, 2012	Apr 6, 2012
Mar 29 and Apr 4, 2012 (by 11am)	Apr 11, 2012	Apr 13, 2012
Apr 5 and Apr 11, 2012 (by 11am)	Apr 18, 2012	Apr 20, 2012
Apr 12 and Apr 18, 2012 (by 11am)	Apr 25, 2012	Apr 27, 2012
Apr 19 and Apr 25, 2012 (by 11am)	May 2, 2012	May 4, 2012
Apr 26 and May 2, 2012 (by 11am)	May 9, 2012	May 11, 2012
May 3 and May 9, 2012 (by 11am)	May 16, 2012	May 18, 2012
May 10 and May 16, 2012 (by 11am)	May 23, 2012	May 25, 2012
May 17 and May 23, 2012 (by 11am)	May 30, 2012	Jun 1, 2012
May 24 and May 30, 2012 (by 11am)	Jun 6, 2012	Jun 8, 2012
May 31 and Jun 6, 2012 (by 11am)	Jun 13, 2012	Jun 15, 2012
Jun 7 and Jun 13, 2012 (by 11am)	Jun 20, 2012	Jun 22, 2012
Jun 14 and Jun 20, 2012 (by 11am)	Jun 27, 2012	Jun 29, 2012
Jun 21 and Jun 27, 2012 (by 11am)	Jul 4, 2012	Jul 6, 2012
Jun 28 and Jul 4, 2012 (by 11am)	Jul 11, 2012	Jul 13, 2012
Jul 5 and Jul 11, 2012 (by 11am)	Jul 18, 2012	Jul 20, 2012
Jul 12 and Jul 18, 2012 (by 11am)	Jul 25, 2012	Jul 27, 2012
Jul 19 and Jul 25, 2012 (by 11am)	Aug 1, 2012	Aug 3, 2012
Jul 26 and Aug 1, 2012 (by 11am)	Aug 8, 2012	Aug 10, 2012
Aug 2 and Aug 8, 2012 (by 11am)	Aug 15, 2012	Aug 17, 2012
Aug 9 and Aug 15 , 2012 (by 11am)	Aug 22, 2012	Aug 24, 2012
Aug 16 and Aug 22, 2012 (by 11am)	Aug 29, 2012	Aug 31, 2012
Aug 23 and Aug 29, 2012 (by 11am)	Sep 5, 2012	Sep 7, 2012
Aug 30 and Sep 5, 2012 (by 11am)	Sep 12, 2012	Sep 14, 2012
Sep 6 and Sep 12, 2012 (by 11am)	Sep 19, 2012	Sep 21, 2012
Sep 13 and Sep 19, 2012 (by 11am)	Sep 26, 2012	Sep 28, 2012
Sep 20 and Sep 26, 2012 (by 11am)	Oct 3, 2012	Oct 5, 2012
Sep 27 and Oct 3, 2012 (by 11am)	Oct 10, 2012	Oct 12, 2012
Oct 4 and Oct 10, 2012 (by 11am)	Oct 17, 2012	Oct 19, 2012
Oct 11 and Oct 17, 2012 (by 11am)	Oct 24, 2012	Oct 26, 2012
Oct 18 and Oct 24, 2012 (by 11am)	Oct 31, 2012	Nov 2, 2012
Oct 25 and Oct 31, 2012 (by 11am)	Nov 7, 2012	Nov 9, 2012
Nov 1 and Nov 7, 2012 (by 11am)	Nov 14, 2012	Nov 16, 2012
Nov 8 and Nov 14, 2012 (by 11am)	Nov 21, 2012	Nov 23, 2012
Nov 15 and Nov 21, 2012 (by 11am)	Nov 28, 2012	Nov 30, 2012
Nov 22 and Nov 28, 2012 (by 11am)	Dec 5, 2012	Dec 7, 2012
Nov 29 and Dec 5, 2012 (by 11am)	Dec 12, 2012	Dec 14, 2012
Dec 6 and Dec 12, 2012 (by 11am)	Dec 19, 2012	Dec 21, 2012
Dec 13 and Dec 19, 2012 (by 11am)	Dec 27, 2012	Dec 31, 2012
Dec 20 and Dec 26, 2012 (by 11am)	Jan 3, 2013	Jan 7, 2013

January 2012 Tax Moves

 

Jan. 1: Happy New Tax Year! Although it’s a holiday, it’s never too early to get ready for the 2012 tax filing season. Start by getting organized early. This gathering of your tax documents will help you file your 2011 tax return as soon as possible.  I’ve provided a FREE download of our tax intake sheet which will help you get organized:  http://www.adrianbduncan.com/tax-tip-intake-form.html.

Jan. 2: You know you’re getting a refund and you can’t wait. But do! Don’t head to a place offering a tax refund anticipation loan (RAL) or tax refund check. Instead, cool your tax-filing jets for just a bit longer and then take advantage of the Internal Revenue Service’s Free File program. You’ll get your refund almost as quickly and at absolutely no cost to you.

Jan. 10: Does your job include tips? If so and you received $20 in tips in December, use Form 4070 to report them today to your employer. And don’t forget to include the value of atypical tips.

Jan. 13: Avoid tax back luck on this Friday the 13th by filing the 1040 that best fits your tax situation. It’s tempting to file the easiest possible form, but that also could shortchange your tax savings. The differences in the long 1040, slightly longer 1040A and the simplest 1040EZ could cost you if you’re not paying attention. Choose carefully.

Jan. 16: On Martin Luther King Day many people opt for a day of service. The time you volunteer isn’t deductible, but some other costs associated with volunteering could help reduce your tax bill.

Jan. 17: The IRS begins accepting e-filed returns today. Even better, you might be able to e-file at no cost if you qualify for Free File.

Jan. 17: Also today, your final 2011 estimated tax payment (1040-ES voucher number 4) is due today. You can skip this filing if you If you file your Form 1040 and pay any taxes due by Jan. 31.

Jan. 23: The brutal winter winds really underscore the value of the home improvements you made last year. Now don’t forget to claim the $500 tax credit for your home energy efficiency upgrade efforts. Unfortunately, this tax break expired at the end of 2011. Congress will decide to reinstate it or some other energy tax credit version for 2012. Other home energy tax credits, however, are still in the tax code. If you install solar,

2011 August Tax Calender

 

Aug. 1: The Dog Days of Summer are here. That means heat, heat and more heat. If your home’s cooling system isn’t working properly, consider getting a new one. In addition to helping making your house more comfortable, it might even help you cut your tax bill. If your new unit meets the requirements, you can claim it as an energy-efficient home improvement tax credit.

Aug. 5: This weekend, 11 states — Alabama, Arkansas, Iowa, Louisiana, Missouri, New Mexico, North Carolina, Oklahoma, South Carolina, Tennessee, Virginia — hold sales tax holidays, most of them pegged to back to school shopping. You might be able to save some dollars, but don’t waste them by buying products you don’t need or that aren’t tax-exempt. Check out what qualifies as a no-tax purchase; the participating states’ tax websites provide details on the holidays. And don’t forget your use taxes.

Aug. 10: Does your job include tips? If so and you received $20 in tips in June, use Form 4070 to report them today to your employer. And don’t forget to include the value of atypical tips.

Aug. 15: How’s your new air conditioner working? Fine? Good. As you literally chill out, consider helping other folks who are still sweating out the summer blasts. Many charitable groups provide energy assistance to low-income individuals, either by helping them pay their utility bills or by supplying them with fans. And if you itemize, your donation could be tax deductible.

Aug. 19: Instead of renovating your old house, maybe you moved into a new home this summer. If so and the move was for a job, or you found employment soon after you settled into your new locale, you might be able to deduct your relocation expenses on your tax return.

Aug. 23: When you were house hunting, you probably looked closely at your new home’s school district. You also need to make some moves for your child’s higher education. There are many tax-favored ways to pay for , such as 529 plans and Coverdell Education Accounts. Don’t forget about the American Opportunity and Lifetime Learning education tax credits.

Aug. 27: If you found your new job after a diligent search, make sure you have all the receipts for the costs you incurred finding new employment. You might be able to deduct some of your job-hunting costs.

Aug. 31: You have to itemize to claim any job-search costs. Now’s a good time to review all the miscellaneous expenses you’ve accumulated so far. They must exceed 2 percent of your adjusted gross income. To help meet that deduction threshold, set up a bunching strategy.

How to Gain Profits While Looking for Bookkeeping Help

Do you find yourself looking for bookkeeping help for your business?  What defines a company is how much it profits from its business transactions. The more you earn, the bigger your place in the business world. This is why proper management of your bookkeeping is extremely important.

When a company’s accounting is mismanaged, the business is left in an extremely vulnerable state.  So every step that a company takes is critical. Consequently, if incorrect information is stated in its books, it follows that incorrect decisions will be also made while running the business. Bookkeeping is indeed crucial and that is why no company should risk not having a bookkeeper to handle this job.

You need bookkeeping help for tasks such as maintaining your balance sheets, recording all monetary transactions regularly, preparing profit and loss statements, payroll, filing of taxes, inventory of equipment, along with other important tasks.

These responsibilities are very time consuming especially to those not accustomed to doing them. Putting these responsibilities at the mercy of people who are not experienced in these processes, is like taking a gamble where your whole business is at stake. So, it is better to assign these duties to someone who really knows what to do. You need to hire some bookkeeping help.

Profit is the number one advantage of hiring a bookkeeper as he or she will be able to handle your bookkeeping properly and provide you with useful information so that you can make sound decisions for your company. An excellent bookkeeper is someone who knows the ins and outs of the profession and is dedicated, organized, and motivated to helping your company succeed.

This leaves you time to concentrate on the other aspects of your business that require your attention.  Also, if your bookkeeper does their job correctly, you can avoid penalty charges due to late filing of federal forms or costly revisions due to errors. In addition, having accurate documentation of your accounting also helps to attract potential investors.

Therefore, it is important that you only hire bookkeepers that can live up to your expectations.   For more information:  http://bit.ly/khy7CH

Increasing Your Companies Capital

There are several ways to increase your companies capital, one of the most important is to leave your bookkeeping in the hands of your accountant, bookkeeper or CPA.  Most small business owners wear entirely too many hats in their firm, losing the potential of increasing their income by focusing too much time on task that don’t generate money.  I found in my years of book keeping most individuals will cut as much cost as possible to stay in the black,  the one cost that can’t be cut is your accounting cost.  Without financials how will you know how well you are doing.  Without a bookkeeper you will find yourself focusing on an area of expertise that takes you completely away from your business.

Bookkeeping isn’t going to make your sales or earnings; on the other hand it’s the part most important for your business future. Here are some of the reasons why bookkeeping needs to be given top priority in business operation:

1.) A detailed and correct books of accounts are important when your resort to outside financing. This is the instrument for business to determine how much risk they are dealing with. They need this data before releasing the amount.

2.) An exact evaluation of your income is necessary for the settlement of annual taxes. Tax deductions should be supported with proper receipts if not you get audited or you’ll be fined. Only proper and accurate bookkeeping will save you from this.

3.) Financial statements is a must for it shows where the business stands. An accountant takes care of this. He gets his information from the records prepared and submitted by the bookkeeper.

4.) An accurate book of accounts will help you see where your business is and where it is going in the next several years. The financial report aids in keeping in line with the budget, analyzing the gross income, determining the health of the business and anticipating cash flow issues.

Bookkeeping is one part of your business that you should never ignore. Do not stress yourself and risk your enterprise by supervising the bookkeeping by yourself.  For more information regarding bookkeeping services:  http://www.adrianbduncan.com/bookkeeping.html

February Tax Moves

 Feb. 1: Be on the lookout for tax forms and statements that are straggling in this week. Set up a filing system (or at least a box or envelope to collect them) so everything will be handy when you get ready to file your return.

Feb. 4: If you’ve got a little money riding on the Super Bowl, remember that if you win, your bet payoff is taxable income.

Feb. 10: Does your job include tips? If so and you received $20 in tips in December, use Form 4070 to report them today to your employer.

Feb. 14: Happy Valentine’s Day. The IRS has some tax love for you if you’ve had to wait to file your taxes this year. Today the tax agency is now officially accepting those delayed returns!

Feb. 17: You used Free File to send in your taxes. Now you want to know where your refund is. The IRS has a smartphone app for that.

Feb. 24: Still don’t have your tax documents? It is possible to file your Form 1040 without them. You can file using a replacement W-2 and get the financial information you need even if even if you’re missing some 1099 forms. But still bug your employer and account managers. These information documents go the IRS, too, and you want to make sure you’re all on the same earnings reporting page.

Feb. 28: Did you get a big refund this year? If so, you might want to think about adjusting your withholding. I know a forced savings account with Uncle Sam works for a lot of folks, but if you want more control over your money, then submitting a new W-4 will let you have just that. Plus, if you’re benefiting from the 2 percent payroll tax cut this year, that and more appropriate withholding could give you a nice chunk of extra change each payday.

Delayed Return Processing will begin February 14

 

The IRS announced plans for a February 14, 2011 start date to process tax returns that were delayed as a result of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. The IRS will begin the processing of both paper and e-filed returns that contain itemized deductions on Schedule A, tuition and fees deduction on Form 8917, and the educator expenses deduction.

 

Visit http://www.irs.gov/newsroom/article/0,,id=234736,00.html for more information on the legislation and delay.

New Federal Tax Refund Debit Cards

New federal tax refund debit cards for taxpayers without bank accounts

No bank account, no problem. That’s the U.S. Treasury Department’s new mantra.

Treasury officials launched a pilot program offering low-cost, prepaid debit cards to taxpayers who may not have a bank account, just in time to have their 2010 federal tax refunds directly added to the cards.

Around 600,000 low- and moderate-income individuals across the country will soon get a letter from Uncle Sam giving them the change to have a MyAccountCard Visa Prepaid Debit Card.  

This is the latest move by the federal government to go paperless. Last summer, the Obama Administration announced that it wanted all federal payments to be electronic by 2013. At that time, taxes weren’t specifically mentioned.

“This pilot program will provide low- and moderate-income Americans with a low-cost option for faster delivery of their federal tax refund,” said Deputy Secretary of the Treasury Neal Wolin in the official announcement of the program. “This innovative card can be used for everyday financial transactions, such as receiving wages by direct deposit, withdrawing cash, making purchases, paying bills and building savings safely and conveniently, giving users more control over their financial futures.”

Will You Be Subject to the IRS Tax Filing Delay?

 

Do you itemize? If so, you might be subject to the IRS tax filing delay this year.

With the passing of the Social Security tax break, deductions for state and local sales taxes, an AMT patch, and deductions for college tuition and teacher expenses so late in the year (December 17^th, 2010), the IRS has been quite busy.

Tax Delay 2010

The IRS is so busy in fact, that they are expecting delays in processing filed 2010 tax returns as well as a refund delay for those who are eligible in 2011.

You can use the Where’s My Refund? tracker to check the status of your tax refund.

Who the IRS Tax Delay Applies To

The income tax delay will apply to both paper and electronic filers who itemize deductions on Form 1040 Schedule A.

When Can You File Your Tax Return?

The IRS cannot begin to process tax forms until mid-February, and suggest that you do not send your forms in until they are ready to receive them (they have not given out a date yet). We’ll let you know when the delay tax filing date is published.

So if you itemize your taxes, this year it is best to be later rather than to file early on in the tax season, with the tax refund delay.

Tax Refund Direct Deposit versus Mail

If you want to get your refund faster, opt for the direct deposit route. Not only will the IRS send your money a week earlier via direct deposit, but you’ll cut down on the mailing time too.

IRS Tax Refund Schedule

Here is the 2011 IRS refund schedule for both direct deposit and mailed refunds. The IRS doesn’t guarantee that you’ll receive your refund by a certain date, but the schedule they publish does give some guidance.

IRS Tax Delay in Refund

There is a 2010 tax filing delay because the Obama Tax Deal was passed so late last year. The IRS refund cycle chart specifies that these dates are based on “normal processing.” It does not provide dates for the IRS refund delay.

2011 Tax Refund Schedule

Transmitted and accepted (by 11 am) between:	Direct Deposit Sent	Paper Check Mailed
Jan 14 and Jan 20, 2011	Jan 28, 2011	Feb 4, 2011
Jan 20 and Jan 27, 2011	Feb 4, 2011	Feb 11, 2011
Jan 27 and Feb 3, 2011	Feb 11, 2011	Feb 18, 2011
Feb 3 and Feb 10, 2011	Feb 18, 2011	Feb 25, 2011
Feb 10 and Feb 17, 2011	Feb 25, 2011	Mar 4, 2011
Feb 17 and Feb 24, 2011	Mar 4, 2011	Mar 11, 2011
Feb 24 and Mar 3, 2011	Mar 11, 2011	Mar 18, 2011
Mar 3 and Mar 10, 2011	Mar 18, 2011	Mar 25, 2011
Mar 10 and Mar 17, 2011	Mar 25, 2011	Apr 1, 2011
Mar 17 and Mar 24, 2011	Apr 1, 2011	Apr 8, 2011
Mar 24 and Mar 31, 2011	Apr 8, 2011	Apr 15, 2011
Mar 31 and Apr 7, 2011	Apr 15, 2011	Apr 22, 2011
Apr 7 and Apr 14, 2011	Apr 22, 2011	Apr 29, 2011
Apr 14 and Apr 21, 2011	Apr 29, 2011	May 6, 2011
Apr 21 and Apr 28, 2011	May 6, 2011	May 13, 2011
Apr 28 and May 5, 2011	May 13, 2011	May 20, 2011
May 5 and May 12, 2011	May 20, 2011	May 27, 2011
May 12 and May 19, 2011	May 27, 2011	May 27, 2011
May 20 and May 26, 2011	Jun 3, 2011	Jun 10, 2011
May 26 and Jun 2, 2011	Jun 10, 2011	Jun 17, 2011
Jun 2 and Jun 9, 2011	Jun 17, 2011	Jun 24, 2011
Jun 9 and Jun 16, 2011	Jun 24, 2011	Jul 1, 2011
Jun 16 and Jun 23, 2011	Jul 1, 2011	Jul 8, 2011
Jun 23 and Jun 30, 2011	Jul 8, 2011	Jul 15, 2011
Jun 30 and Jul 7, 2011	Jul 15, 2011	Jul 22, 2011
Jul 7 and Jul 14, 2011	Jul 22, 2011	Jul 29, 2011
Jul 14 and Jul 21, 2011	Jul 29, 2011	Aug 5, 2011
Jul 21 and Jul 28, 2011	Aug 5, 2011	Aug 12, 2011
Jul 28 and Aug 4, 2011	Aug 12, 2011	Aug 19, 2011
Aug 4 and Aug 11, 2011	Aug 19, 2011	Aug 26, 2011
Aug 11 and Aug 18, 2011	Aug 26, 2011	Sep 2, 2011
Aug 18 and Aug 25, 2011	Sep 2, 2011	Sep 9, 2011
Aug 25 and Sep 1, 2011	Sep 10, 2011	Sep 16, 2011
Sep 1 and Sep 8, 2011	Sep 16, 2011	Sep 23, 2011
Sep 8 and Sep 15, 2011	Sep 23, 2011	Sep 30, 2011
Sep 15 and Sep 22, 2011	Sep 30, 2011	Oct 7, 2011
Sep 22 and Sep 29, 2011	Oct 7, 2011	Oct 14, 2011
Sep 29 and Oct 6, 2011	Oct 14, 2011	Oct 21, 2011
Oct 6 and Oct 13, 2011	Oct 21, 2011	Oct 28, 2011
Oct 13 and Oct 20, 2011	Oct 28, 2011	Nov 4, 2011

 

HUGE California Traffic Tickets Fines Effective 01/06/2011

Be careful in California, be very careful!!!!!

Please be extremely careful in your driving and car registration & insurance matters.  State of California is broke and they are trying hard to squeeze all of us hard to collect money. 

Effective immediately, if you do not stop at the red light, be ready to pay $436 in fines or if you pass a school bus with flashing red signals, you will be charged $616.  The state of California is going for blood, so be extra careful in driving, You cannot afford messing with them.  I have been hearing that Highway Patrols are under pressure to issue a lot more tickets than last year with at least 30% increase in fines over 2009, so beware of radar guns, highway and traffic cameras installed everywhere and the tougher enforcement of parking rules.
Just for your info, the next time you park in the handicapped zone, even for a minute, you will be looking at almost $ 1000 in parking tickets , so it’d better be worth it.
 
California needs money, so pay close attention to the rules of the road!
 
          Traffic Ticket Fines (Effective 01/06/2011)
 
VC 12814.6    $214           Failure to obey license provisions.
 
VC 14600(A)     $214         Failure to notify DMV of address change within 10 days
Note: The fine may be reduced with valid proof of correction.
VC 16028(A)     $796         Failure to provide evidence of financial responsibility (insurance)
Note: This fine may be reduced with proof of insurance on or after the violation date.
VC 21453(A)     $436         Failure to stop at a red signal.
VC 22349           $214        Unsafe speed,  1 to 15 miles over the limit.
 
VC 22350           $328         Unsafe speed, 16 to 25 miles over the limit.
 
VC 22450           $214         Failure to stop at a stop sign.
 
VC 22454(A)      $616        Passing a school bus with flashing red signals.
 
VC 23123(A)      $148        Driving while using a wireless phone not hands free, first offense .
                                       I know someone who got this and it ending up being $274
 
VC 23123(B)      $256        Driving while using a wireless phone not hands free, each subsequent offense.
 
VC 23123.5        $148        Driving while using a wireless device to send, read or write text.
 
VC 23124            $148       Minor driving while using a wireless phone.
 
VC 22500            $976       Parking in a bus loading area.
 
VC 22507(A)       $976       Violation of disabled parking provisions, first offense.
 
VC 22507(B)     $1876       Violation of disabled parking provisions, second offense.
 
VC 26708            $178        Unlawful material on vehicle windows.
 
VC 27150            $178        Adequate muffler required.
 
VC 27315            $148        Mandatory use of seat belts.
 
VC 27360            $436        Mandatory use of passenger child restraints.
Note: This fine may be reduced by completing a court authorized child seat diversion program .
 
VC 27400            $178        Headsets or Earplugs covering both ears.
 
VC 27803            $178        Violation of motorcycle safety helmet requirements.
 
VC 34506            $616        Commercial Driver – Log book violation.
 
VC 4000              $256        No evidence of current registration.
Note: The fine may be reduced with valid proof of correction.
VC 4159              $178        Notify DMV of change of address within 10 days.
Note: The fine may be reduced with valid proof of correction.
 
VC 5200             $178         Proper display of license plates.
Note: The fine may be reduced with valid proof of correction.
 
VC 9400             $178         Commercial weight fees due.
 
 
 We all know that many tickets require the impounding of the vehicle.  This also, as in the city of Bell,  can be very lucrative.  Cooperating tow companies shared their ill gotten gains with Bell, as do other cities, and Bell even charged a City release fee of $500.00 before allowing retrieval of the vehicle,  pure extortion.   Additional  “school”  cost are involved if one wants to prevent their insurance company from being notified resulting in increased insurance  costs.

January 2011 Tax Moves

 

Jan. 1: Happy New Tax Year! It’s never too early to get ready for the 2011 tax season. You have 31 days to lower your 2010 tax bill. Let’s get to it!

Jan. 3: Welcome back to Tax Year 2011. Now that you’re feeling better, start gathering your 2010 tax material — deduction receipts, income data that you’ll compare to your official W-2 that will arrive shortly, relevant Social Security numbers — so when the IRS starts accepting tax returns, you’ll be ready to rock.
Jan. 10: Does your job include tips? If so and you received $20 in tips in December, use Form 4070 to report them today to your employer.

Jan. 6: You say you can’t wait for your refund.  You have refund loan alternatives that will get you your money almost as quickly and at less or no cost.

Jan. 12: So you’ve already decided that you don’t want to go it alone this filing season. Then start looking now for a tax professional. The good ones are booked early.

Jan. 14: It’s officially filing time!

The IRS begins accepting most electronically filed returns today. Note the word “most;” more on this in a minute.

Jan. 15: You weren’t able to submit your 2010 tax return yesterday if you claim deductions for state and local sales tax, higher education tuition and fees and/or educator expenses or if you itemize all your deductions. Because Congress took its sweet time in passing tax legislation affecting these filing areas, the IRS is still working on getting its computer system up to speed. So if your filing involves one or more of these tax areas, you must wait until mid- to late-February. This delay affects both electronic and paper filers. Sorry!

Jan. 17: Dr. Martin Luther King Day. No tax work on this federal holiday. But your actions today might help reduce your 2011 tax bill. MLK Day is a day of service, and while the time you volunteer to your favorite charity isn’t deductible, you can write off some other costs associated with volunteering.

Jan. 18: If you pay estimated taxes, your fourth and final installment for 2010 (1040-ES voucher number 4) is due today. You can skip this filing if you If you swear you’ll file your Form 1040 and pay any taxes due by Jan. 31.

Jan. 21: Are winter winds making you painfully aware that your home’s windows aren’t airtight? Unfortunately, the very generous home energy efficiency tax credit created in the 2009 stimulus bill expired on Dec. 31, 2010. But the newly-enacted tax legislation still provides a little bit of tax help here: a 10 percent credit, up to a maximum of $500 with $200 of that allowed for Energy Star replacement windows. Sorry again! Hey, why am I apologizing?!

Jan. 24: You’ll still claim the Making Work Pay credit on your 2010 tax return, but it’s no longer around for 2011. Instead, for 2011 (and this year only…so far) there’s a 2 percent payroll tax holiday for workers this year.

Jan. 27: Did you sell some stock in December to rebalance your portfolio and take advantage of tax losses? If you’re thinking of buying more of that stock or a similar one, make sure you don’t violate the wash sale rule.

Jan. 31: If you hired household help last year, you could be facing a tax reporting deadline today. It’s generally called the nanny tax, but the rules apply to all household workers, such as gardeners, in-home care workers and cleaning staff.

How will The New Tax Cuts Affect You

There’s been alot of  information this week about our President fighting for tax cuts, in a compromise announced by President Obama, the Bush tax rates become the Obama tax rates for 2011 and 2012. And for everyone, not just families making less than $250,000.  In six key points I’ve summarized how the tax cuts will affect you.

Payroll tax

If you make $50,000 a year you will pay $1,000 less. If you get paid twice a month, you will have an extra $41.67 in your paycheck starting in January.

 

 Estate tax
For the past 12 months, you didn’t pay any taxes if a family member died. In 2011, the estate tax was supposed to be 55 percent of the value of an estate after the first $1 million. Now it will be 35 percent of an estate’s value after the first $5 million.

Tuition tax credit
Families with kids in college can benefit from a tax credit for tuition and fees. A maximum of $2,500 will remain in place for two years. A credit reduces taxes owed, versus a deduction which reduces taxable income.  
        
Child tax credit

There’s more good news if you’re a parent: The $1,000 child tax credit is being extended for two years. Taxpayers with income of less than $75,000 – or $110,000 for married couples filing jointly – qualify for the full amount.

 

Alternative minimum tax
The AMT was enacted in 1969 to make sure wealthy people couldn’t avoid taxes altogether, but it wasn’t indexed for inflation, this means Congress has to raise the amount of income exempt from the AMT each year to spare millions from tax increases averaging about $3,900.  Had no adjustment been made, taxes would have gone up for individuals making
as little as $33,750, and married couples making $45,000.

Unemployment benefits
Million of job seekers will benefit from an extension of their benefits at current levels through the end of 2011. The extension applies to workers laid off for more than six months, and less than 99 weeks.

December 2010 Tax Moves

Dec. 1: You have 31 days to lower your 2010 tax bill. Let’s get to it!Dec. 7: Do a mock 2010 return.Congress has yet to act on extenders legislation that would reinstate many tax breaks for this full tax year, but tax software companies have issued their first 2010 return prep versions that can help you get some idea of how much you might owe or get back from Uncle Sam.  If your draft tax calculations show you’ll owe the IRS too much or too little, get to your payroll office now and adjust your withholding by turning in a new W-4.  And remember to take the Making Work Pay credit into account when you’re making your withholding changes.

Dec. 10: Does your job include tips? If so and you received $20 in tips in November, use Form 4070 to report them today to your employer.

Dec. 14: How much money do you have in your medical flexible savings account, known as an FSA? If you’re facing an end of the year “use it or lose it” deadline, consider what medical treatments and medications you can pay for with FSA money so you don’t waste your account contributions.

Dec. 17: Analyze your portfolio and roughly calculate your profits and losses.  If some of the assets you’ve held for more than a year have appreciated nicely, take advantage of the current low capital gains tax rates — 15 percent for most investors, 0 percent for those in the 10 percent and 15 percent tax brackets — and sell by Dec. 31.  If, however, you have some holdings that haven’t done so well, harvest those tax losses. You can use them to offset capital gains and, in some cases, ordinary income.

Dec. 20: It’s Christmas week!

During this time of giving, consider putting your favorite charity on your gift list. If you itemize, your donation to an IRS-qualified nonprofit also might provide you a tax deduction.

Dec. 24: Early to bed, kiddies of all ages. Santa’s on his way!

Dec. 25: Merry Christmas!

Dec. 27: Homeowners, you still have time to maximize your residential tax breaks.

Pay your January mortgage payment by Dec. 31 and deduct that extra interest amount on your 2010 return.

Pay your property tax bill now, too, instead of next year and you also can write off that amount on your Schedule A.

Make some energy-efficient home improvements before 2010 ends and you could get a $1,500 tax credit when you file your tax return next year.

Dec. 31: It’s 2010 tax deadline day. Self-employed workers considering a Keogh retirement plan  must establish it by the end of the year to ensure that contributions for the 2010 tax year are deductible.

If you’re looking for a new auto, a few hybrids still qualify for a special tax credit as long as you purchase the vehicle by today.

November 2010 Tax Moves

Nov. 10: Does your job include tips? If so and you received $20 in tips in September, use Form 4070 to report them today to your employer.

Nov. 17: Analyze your stock transactions. This could be the last year of historically low capital gains tax, so you might want to sell some holdings now. What if your portfolio hasn’t done that well? Even losses could help offset a potential tax bill.

Nov. 22: It’s Thanksgiving week, and those of us with much to be grateful for might want to consider giving to those who don’t. And your donation to a nonprofit that helps the needy also might provide you with a tax deduction on your 2010 tax return.

Nov. 26: Happy Black Friday! Retailers look forward to this busiest buying day of the

year. So do state and local governments, which get a share of sales taxes collected on most of the purchases. Make sure you know the full cost, taxes included, of your early holiday shopping trip by checking your state’s tax office website to find your state and local sales tax levies.

Nov. 30: In addition to the expiring Bush tax cuts, Representatives and Senators also promise they’ll renew some other tax breaks that expired at end of 2009.  This includes popular tax deductions like itemized write-offs of sales taxes and tax breaks for educators who buy classroom supplies and students paying tuition and fees.

How Long Have You Gone Exempt?

I hear far too many people each year say, they said I could go exempt for six months and change my exemptions back to normal.  Well my first question, who is they and why would you go exempt without having the proper deductions or credits to offset the tax liability.  This blog is to help those that have filed exempt status this year and have never changed it.  If you find that you have to pay more taxes than you can afford, then your IRS Problems may have just begun. If the reason your taxes are high comes from your withholding taxes, now may be the time to make some changes.  If you find your self receiving additional income back on your pay check but you owe the IRS each year you will want to decrease your withholdings.

When you start a new job you are required to fill out Form W-4 (Employee’s Withholding Allowance Certificate) indicating how many allowances you want to claim. This determines how much federal income tax is withheld from your pay during the year.

Your goal is to have your withholding match your actual tax liability. You will owe more taxes at the end of the year if enough tax is not withheld.

If you have had changes in your personal or financial situation, you may want to adjust your withholding. These changes include:

� Marriage
� Divorce
� Birth or adoption
� New residence
� Retirement
� Change in job or loss of job
� Interest, dividends, capital gains
� IRA distributions or deduction
� Alimony expenses
� Medical expenses
� Gifts to charity

When to Check Your Withholding

You should check your withholding early in the year so if you need to make any changes it will take effect for the rest of the year. It will be especially important to check your withholding if you prepare your tax return and find that you either get a big refund or you have to pay more than you can afford at one time.

How to Adjust Your Withholding

To adjust your withholding you need to give your employer a new Form W-4. To increase your withholding you will either decrease the number of allowances or enter the amount you want withheld from your paycheck. If you want to decrease your withholding, you need to increase the number of allowances. Remember, you can only claim the number of allowances you are entitled to.

If you find a need to adjust your withholding, contact your personnel or payroll office at your employer. If you have IRS Problems I can help you with the process or any other IRS Problems you may have. Call me at 310-283-3767.

October 15th Tax Filing Deadline

If you filed for a tax return extension in April, your tax return must be filed by October 15th. If you do not file by October 15th you will accrue additional fees and make your IRS tax debt significantly worse. A common problem that many taxpayers face is the inability to file their tax return before the deadline as they do not have the money to pay. However failure to file tax returns may be considered a criminal act by the IRS, punishable by one year in jail and $10,000 for each year not filed.

If this is your situation and you are feeling the stress of not being able to pay off your taxes, the worst thing you can do is not file your return before the deadline! You want to save yourself from owing additional back taxes and IRS penalties. You need to seek tax help from an expert tax resolution specialist. Here is a quick checklist of what you need to do before October 15th, if you want to avoid adding onto your tax debt:

• Find out whether you owe the IRS more back taxes or if you’re due for a refund. If you overestimated your back taxes in April, you’ll get a tax refund as soon as you file your full 1040 tax return.
•  A certified tax specialist will have the software you need to calculate both state and federal taxes.
• Get your paperwork in order. An advantage for filing an October 15th tax extension is that you have more time to collect the final paperwork you need.
• Act quickly or the IRS will. If you don’t file a tax return by the October 15th tax extension deadline, the IRS may file one for you.
• If you owe back taxes for more than one year, all your prior tax returns must be filed to be eligible for income tax relief. All back tax returns must be filed before the IRS will entertain any type of tax settlement.
• This is your last chance to file and extension for your current tax return.

To make sure you resolve your back taxes and IRS problems, you need to act now!

• File your tax return on or before October 15th.  This will ensure that the IRS cannot slap on a 25% failure to file penalty and it will create a computerized record that you filed on time and made a good faith and credible effort to pay your taxes.

For a delinquent taxpayer, it’s never too late to resolve your tax debt and avoid IRS penalties.

I’m dedicated to providing affordable expert tax help. For more information on achieving a tax resolution for your tax problems, or a free tax consultation call me today on (310) 283-3767.

February Tax Moves

 

Feb. 1: If you didn’t make your final 2009 estimated tax payment on Jan. 15, you can file your 1040 and pay any due taxes today to ensure you won’t face underpayment penalties.

Feb. 1: also is the deadline for most employers to get workers’ W-2 forms in the mail. It’s usually Jan. 31, but since that date fell this year on the weekend and pushed the deadline to the next business day.

Feb. 8: Be on the lookout for tax forms and statements that are straggling in this week. In addition to your W-2 from work, investment tax statements will be arriving, too.

Set up a system (a filing cabinet drawer or at least a box or envelope to collect them) so everything will be organized and handy when you get ready to file your return.

Feb. 10: Does your job include tips? If so and you received $20 in tips in January, use Form 4070 to report them today to your employer.

Feb. 14: Happy Valentine’s Day! Do you and your better half file a joint return? Most married couples do, but sometimes it’s a good idea, as one presidential nominee learned, to send in separate 1040 forms.

Feb. 15: Today is Presidents Day. Be sure to especially remember Abraham Lincoln, who signed into law an income tax to help pay Civil War costs.

Feb. 15 also is the day you must file a new W-4 with your employer if you claimed exemption from income tax withholding last year and want to continue to do so in 2010.

Feb. 22: Still don’t have your tax documents? It is possible to file your Form 1040 without them. You can file using a replacement W-2 and get the financial information you need even if even if you’re missing some 1099 forms.

Feb. 26: Were you an early filer? You probably did so because you’re getting a refund. You can check the status of you tax cash at Where’s My Refund?

Small Business Tax Calendar — February: Important filing, deposit and record keeping dates your company needs to know.

Schedule M could be worth $400

 

Anybody who earned wages needs to file this form, or risk paying too much in taxes

You’d better use a really good tax preparer. Otherwise, you’re gonna leave a big green bundle on the table.

 There’s a new Schedule M that anybody with wages should file.

 It allows you to claim the “Making Work Pay” credit of up to $400 ($800 on a joint return). That’s another $400 (or $800 for couples) right back in your pocket.

If you don’t claim the credit, your reduced withholding could have you owing the IRS as much as an additional $800.

If you have no earned income but are receiving Social Security, SSI railroad retirement, or veteran disability compensation benefits, your credit is $250. A retired federal employee also qualifies for the $250 credit ($500 on a joint return if both spouses are eligible).  The regular Making Work Pay credit is good for 2009 and 2010.

But you’ve got to file the new Schedule M.

Reduce Your Taxes and Invest In Future

Every year about this time I start thinking about all the things I should have done to reduce my 2009 taxes, or I at least start figuring what I want to do to reduce what I’ll owe at the end of 2010.

There is, however, one thing you can still do (until you file your taxes) that can significantly reduce the amount of taxes you owe for 2009: contribute to a traditional IRA. I’ve done this in years past with great success. The traditional IRA is what got me started with retirement savings. You can still contribute to your 2009 IRA until April 15, 2010, and you can make IRA contributions for the 2010 tax year from January 2, 2010 and April 15, 2011. If you make an IRA contribution between January 2 and April 15th you should designate which tax year your contributions are for.

The traditional IRA, I’ve found, is an excellent way to not only to reduce the amount of taxes you owe now, but also to help you save more for retirement.  For more information regarding opening and IRA or questions how to efficiently reduce your taxable income give me a call.

Funding Could Help Contacting the IRS

We have all dealt with long hold times or attempts to speak with the IRS and never getting anyone on the line. The White House is looking to change that with their recent Executive Order that will make dealing with the IRS better. A revamped IRS customer service is part of the Biden Administration’s broader vision of ensuring that the federal government works for its citizens.

The first step is simply to hire additional employees to answer a taxpayer’s call. Almost 80% of the calls to the IRS never get through to an employee, taxpayers and their preparers often become understandably frustrated and simply make their best guess about the right answer to their inquiry. That guess is sometimes wrong with the result of an underpayment of taxes owed and a resulting penalty payment for the taxpayer.

As 2022 arrived, the IRS still had piles of backlogged tax forms, some from as far back as the 2020 tax year. So the EO will take some time to be fleshed out and implemented.

Last Minute 2021 Tax Deduction

For those that use the standard deduction, charity contributions tax break can help cut your tax bill, but only if you make your donations by Dec. 31.

Taxpayers can deduct cash contributions if : 

1. A bank record that shows the name of the qualified organization, the date of the contribution, and the amount of the contribution. Bank records may include:

1. Canceled check,
2. Bank or credit union statement or 
3. Credit card statement.

2. A receipt (or a letter or other written communication) from the qualified organization showing the name of the organization and the date and amount of the contribution.

3. Payroll deduction records that include a pay stub showing the contribution and a pledge card showing the name of the charitable organization. If the employer withheld $250 or more from a single paycheck, the pledge card or other document must state that the organization does not provide goods or services in return for any contribution made to it by payroll deduction.

To claim a deduction for a contribution of $250 or more, the taxpayer must have a written acknowledgment of the contribution from the qualified organization that includes the following details:

• The amount of cash contributed;
• Whether the qualified organization gave the taxpayer goods or services (other than certain token items and membership benefits) as a result of the contribution and a description and good-faith estimate of the value of any goods or services that were provided (other than intangible religious benefits); and
• A statement that the only benefit received was an intangible religious benefit, if that was the case.

Thus, for example, money dropped in a Christmas Kettle or tacked onto your purchase at a retail store would not be deductible because there is no documentation that the contribution was made.

2021 Child Tax Credit

The payments, officially known as the Advance Child Tax Credit (AdvCTC), could pose a problem at tax filing time next year. You might have to pay back some or all of the early tax credit money.

The Biden Administration as Child Tax Credit Awareness Day, seems the appropriate time to talk about the potential payback complications of getting the credit in advance.

https://www.whitehouse.gov/briefing-room/statements-releases/2021/06/21/statement-by-president-joe-biden-on-child-tax-credit-awareness-day/

The advances are simply that — early distributions of the Child Tax Credit for which you qualify.

2018 Tax Deadlines

March
Form 1065, U.S. Return of Partnership Income, and Form 1120S, U.S. Income Tax Return for an S Corporation, are now due March 15. Extensions are granted until Sept. 15. Previously, these filings were due on April 15.

Schedule K-1 statements also must be provided to owners by March 15.

April
Form 1120, U.S. Corporation Income Tax Return, with extensions until Sept. 15 for tax years through 2025. Beginning in 2026, the extended due date will be Oct. 15.

Form 1041, U.S. Income Tax Return for Estates and Trusts, is due April 15, with extensions until Sept. 30.

May
Form 990, Return of Organization Exempt From Income Tax, is due May 15, with extensions until Nov. 15.

July
Form 5500 for employee benefit plans are due July 31. The Oct. 15 extension for this form remains Oct. 15.

Are You Reporting Your Tips?

Does your job include tips? If so and you received at least $20 in tips in February, use Form 4070.

The tax collector requires that you tell your boss about your tips so your employer then can use the tip amount to figure how much Social Security, Medicare and income taxes to withhold on both your wage and tip income.

• All tips are taxable.
• If you receive more than $20 in tips in a month, then you have to report the amount to your employer. Check out IRS Publication 1244 for details.
• Record keeping is critical, for you and your employer.

Not just for food service: Although the IRS has established special tip reporting programs for the food and beverage industry, the IRS is interested in all folks who regularly receive tips.

This includes such professionals as hairdressers, spa workers, concierges and drivers. The list goes on and on.

If you don’t report your tips and the IRS finds out, it’ll cost you a lot more than that big spender left on the table.

In fact, the IRS has been quite interested in tip income for, well, forever. But the agency really started focusing on tips back in the early 1990s, when it initiated voluntary agreements with restaurateurs in an effort to increase the total amount of reported tips.

How To Not Owe Taxes

 

With the IRS’ updates, it’s time for folks to use the calculator to make any appropriate changes to their W-4 forms and submit them to their employers.

Withholding issues can be complicated, and the calculator is designed to help employees make changes based on their personal financial situation.

If you don’t withhold enough, you’ll end up having to make up the difference when your file your annual tax return. Owing a little isn’t necessarily bad. It means you’ve have use of your money throughout the tax year. And if the tax due is relatively small, it’s not such a burden to pay when you submit your 1040.

https://www.irs.gov/payments/tax-withholding

For assistance understanding how to use the calculator, feel free to reach out to me at 310-283-3767

 

 

Corporate Filing Deadlines March 2017

2017 Corporate Filing deadlines are near for:

• Form 1065, U.S. Return of Partnership Income, and Form 1120S, U.S. Income Tax Return for an S Corporation, are now due March 15.Extensions are granted until Sept. 15.
• Schedule K-1 statements also must be provided to owners by March 15.

For additional information feel free to call 310-283-3767