2018 will bring lots of changes to the tax code! Below is a summary of all the changes that will take place. Please contact me if you have any questions on how the tax bill may affect you or if you want any clarity for a particular issue.
Taking a deduction for your home office is a scary endeavor for many tax payers. They hear the horror stories about people getting audited because they took the deduction. There’s nothing to fear! As long as you fit the requirements and legitimately have home office expenses, then it’s a deduction that can save you a lot of money every year. Official IRS information can be Found Here.
The task, however, gets a little more complicated when you are a greater than 2% shareholder of an S-Corp. Prior to the IRS making a recommendation to use the Accountable Plan and subsequent reimbursements to the employee (or shareholders), taxpayers […]
Why is it so hard to understand my Form 1040?
It’s a pretty daunting task to read your 1040 and understand what you’re looking at. When you break it down, it’s really not too bad.
Section 1 of the infographic indicates where you find the Income you earned through the year. This includes income such as W-2 wages, Passthrough activity, Social Security, etc.
Deductions For Adjusted Gross Income
Section 2 indicates deductions you can take directly against Income that reduce the amount that determines your Adjusted Gross Income (AGI). It includes such deductions as Self-Employment Taxes paid, Student Loan […]
When tax time comes near, you try to think of every possible deduction you could take. What about you car? One deduction that is often overlooked is the gas mileage deduction. Here are some tips for claiming the tax deduction for vehicle expenses.
Keep track of your miles driven
The IRS has a standard mileage rate that can be deducted. Note that it changes every year. If your actual auto expenses are higher than the gas mileage rate, then you get to deduct the greater amount.
Provide all the required information regarding your car
If you plan on taking a gas mileage tax deduction, the IRS wants basic information about your […]
If you are foreign, self-employed, and your net earnings (income minus expenses) are more than $400, you need to file and pay self-employment tax. Paying in is necessary to receive credit toward Social Security benefits.
If you are a U.S. citizen or a resident alien of the United States and you live outside the U.S., you are taxed on your worldwide income. However, you may qualify to exclude from your income an amount of your foreign earnings that is adjusted annually for inflation ($91,500 for 2010, $92,900 for 2011, $95,100 for 2012, and $97,600 for 2013). In addition, you can exclude or deduct certain foreign housing amounts.
A qualifying […]
What’s the best way to minimize your risk of becoming an identity theft victim?
There’s not a lot you can do to stop or prevent identity theft. However, there are some steps to take which will decrease your risk.
- Don’t give out your Social Security Number unnecessarily.
- Use a cross-cut shredder to dispose of documents with personal information.
- Place outgoing mail in collection boxes or the U.S. Post Office.
- Review bank and credit card statements carefully.
- Be very careful how you password protect you financial accounts online. A strong password should be more than eight characters in length, and contain both capital letters and at least one numeric or other non alphabetical character. […]
There are 4 simple ways in which owning a home can Save you in taxes:
1. Mortgage interest deduction – owning a home allows you to deduct the interest you pay for your mortgage. This is usually the biggest tax break for most people because a large portion of your house payment goes toward interest. This is especially true at the beginning of a mortgage. You can deduct all the mortgage interest you pay given that your loan is for less than $1 million. This includes any interest you pay on a loan to buy your home, the interest on a home equity line of credit, or home […]
How can I pay my taxes online?
If you owe money to the IRS, you can make a secure payment through their new online portal at: www.irs.gov/Payments.
If you’re worried about being able to make all your payments online, you can create an online payment agreement with the IRS at: www.irs.gov/Individuals/Online-Payment-Agreement-Application.
As much as it stinks to have to pay the IRS, at least their making it easier to do so.
Is your charitable contribution eligible as a tax deduction?
Worried whether the organization you are about to contribute to is a qualified organization for tax purposes? Check out the IRS’s website to see if it is eligible to receive tax-deductible charitable contributions. In addition to searching for a particular organization, users may download a complete list of each of the three types of organizations through Exempt Organizations Select Check.
You may deduct a charitable contribution made to, or for the use of, any of the following organizations that otherwise are qualified under section 170(c) of the Internal Revenue Code:
- A state or United States possession
- A community chest, corporation, trust, fund, […]