Homeowner Tax Deductions - Do You Qualify?

Did You Come Into Your Trust This Past Fiscal Year? Get A Tax Professional

Posted by on Oct 18, 2016 in Uncategorized | Comments Off on Did You Come Into Your Trust This Past Fiscal Year? Get A Tax Professional

If you came into your trust during the past fiscal year and you spent some of the money, getting a tax professional to help prepare your documents is the best option. You don’t want to get penalized and have to pay a lot of money to refile your taxes or to get charged back taxes because you didn’t file your taxes correctly the first time. You are about 20 times more likely to make a mistake trying to do the work on your own, and when your trust is involved it isn’t worth the risk. Here are a few things to take with you to the accountant. Trust Statements Provide all information you have on the trust. You should get tax documents from the financial company that created the trust, but you also want to have the statements and information about it so the tax preparer can go through it if needed. The current balance of the trust when you go in there should also be brought with you. Bank Statements The account information that you use to move money into from the trust and that you use your everyday banking with needs to be brought in. Your accountant will want to see how much money you have moving in and out, what may have been missed being taxed, and what type of payments or purchases are deductible in your favor. Tax Returns Bring your past three years’ tax returns that you filed. These may show errors that your account will want to refile and fix, you could have money hanging out there that you never applied for or got, and you may owe money that you’ll have to pay later on if you don’t address the filing issues now. You don’t want any of these things to happen. Portfolio Information  If you have any other types of investments, like stocks, bonds, mutual funds, and more, then you need to bring these tax documents with you so the accountant can see what you made or lost throughout the year. Without all this information it isn’t possible for the trust tax professional to do all the filing as it needs to be, and you can end up with financial tax problems later on, along with criminal problems if there are major tax errors. Find a tax accountant you can trust and that you want to use to get the process of filing...

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New Tax Rules Requiring ITIN Renewals

Posted by on Oct 11, 2016 in Uncategorized | Comments Off on New Tax Rules Requiring ITIN Renewals

Persons who do not have a Social Security number must obtain an individual taxpayer identification number (ITIN) in order to file a U.S. income tax return. Until passage of legislation late in 2015, ITINs had no automatic expiration date. Now, many ITINs must be renewed in order for the holder of the number to successfully file a tax return. Regardless of immigration status, individuals must report their taxable income if they are required to file a tax return. Tax filers without Social Security numbers include resident aliens and individuals with a student visa. Some ITIN holders reside with family members who also have ITINs, possibly increasing the number of renewals needed before filing a tax return. The ITIN renewal program is on a staggered schedule and began accepting applications on October 1, 2016. The first group required to renew their ITINs must obtain valid renewals in order for their 2016 tax returns to be accepted and processed completely. There are two categories of ITIN holders whose ITINs will expire unless certain actions are taken: ITINs obtained before 2013 All individuals with ITINs issued before 2013 must renew their ITIN in accordance with the staggered schedule. The IRS is mailing notification letters to ITIN holders on a timely basis to coincide with the staggered renewal schedule. Like a Social Security number, an ITIN consists of nine digits. The first group scheduled to renew their ITINs before 2017 consists of ITIN holders with “78” or “79” as the fourth and fifth digits of their ITIN. ITINs not used for three consecutive tax years The main purpose of an ITIN is for filing income tax returns. An ITIN will now automatically expire if it is not used on a federal income tax return at least once during three consecutive years. The expiration date is December 31 of the last of the three consecutive years of nonuse. Renewal process Before the change requiring renewals, the original application for an ITIN was submitted along with a tax return. The renewal process still uses the same application form, IRS Form W-7. However, Form W-7 can now be submitted without an accompanying tax return. In fact, the ITIN renewal process should be completed before actually filing a tax return. The renewal of an ITIN requires essentially the same documentation as the original application. The three methods by which you can submit Form W-7 and the required documents are the following.. Mail all required items to the IRS Visit an IRS Taxpayer Assistance Center Visit an IRS Acceptance Agent If there are other individuals included on your tax return who also have an ITIN, you can renew their number at the same time that your own renewal is submitted. Contact a tax preparer at a company like Rainbow Tax Service Inc for more information about tax preparation...

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Benefits Of Having Your Business Taxes Handled By Professionals

Posted by on Jul 12, 2016 in Uncategorized | Comments Off on Benefits Of Having Your Business Taxes Handled By Professionals

As a business owner, you may want to consider having your business taxes handled by tax professionals. To help you understand why this may be so important, you will need to check out the following points. They Can Find Additional Deductions For You In order to make sure that you are saving as much money as you can, you will want to use as many applicable deductibles as you can. This can be hard to do if you are not well versed in tax laws. You do not want to miss out on some money-saving tax deductions because you did not know they exist. You also do not want to accidentally claim deductions that you do not qualify for, as that could result in you becoming audited by the Internal Revenue Service, otherwise known as the IRS. Therefore, you will want to make use of the professional advice given to you by a skilled tax professional. They Can Represent Your Case If You Are Ever Audited You can still end up being one of the unlucky ones that will have your business tax returns audited, even if there were no errors made in the filing of your taxes This can be a stressful event, especially due to the fear that the IRS may decide that they believe that you owe more taxes than you really do. Therefore, you will want to have a tax professional, like Tax Recruiting Specialists, on your side who can thoroughly explain to the IRS what deductions were taken and why. Having the expertise of professionals on your side can be a relief and a financial security. They Can Save You A Lot Of Time Trying to figure out all of the taxes for your business on your own can be very time consuming. You have to look up a lot of tax laws, read the books that come with the tax forms to make sure that you are filling the forms out properly, and then calculate everything. Instead, you may just want to turn to a tax professional who has both years of experience and computer programs that are designed to have your business taxes in less time than it would take for you to do it on your own. With those three points in mind, you should have no trouble seeing how beneficial it would be to have your business taxes handled by a skilled and reputable tax professional in your...

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Reduce Your Property Tax Burden With These 2 Suggestions

Posted by on Feb 9, 2016 in Uncategorized | Comments Off on Reduce Your Property Tax Burden With These 2 Suggestions

If you have finished paying off your mortgage and now need to pay your property taxes separately, you might be surprised at how much your taxes are. About 60% of properties are overvalued by local tax assessors, which leads to high taxes for you. However, it may be possible for you to lower your tax burden by using the following suggestions. File an Appeal Your property taxes are calculated by multiplying the local tax rate with the tax assessment value of your home divided by a hundred. The tax assessment value is arrived at by the local tax assessor. If you think the assessor overvalued your home in error, giving you a higher tax bill, you need to file an appeal with that office. They will likely give you a date to appear in person to discuss your home assessment. While you wait for this date, you need to do one thing: hire an appraiser. An independent residential appraiser or a general appraiser can investigate the selling prices of homes in your neighborhood and analyze local market information to arrive at an independent opinion of how much your house is worth. If your appraiser finds that your home is in the same value range as the local assessor’s, you may not be successful with your appeal. However, if your appraiser’s report states that your home is not nearly as valuable as the assessor claims, you might have a good chance of getting your tax assessment lowered. When faced with your appraisal from a qualified professional, the local tax assessor will have to explain the discrepancies between their report and your appraisal. Look for Tax Breaks and Tax Credits You may not realize this but many states offer tax breaks for home-owning citizens. Some states, such as Ohio, offer a tax break for senior homeowners, while other states offer a homestead rebate for homeowners in their state. These tax breaks can reduce your overall tax burden. You might also be eligible for tax credits in a number of different cases. For instance, if you work in a home office as part of a business that you own, there are some tax credits that you may benefit from.  To find out what tax credits and tax breaks might be relevant for you, consult a tax services company that can help you with settling your taxes in a way that is beneficial for you. With the information in this article, you should have a good chance of reducing your property tax burden. If you still have problems and need to move forward with a property tax settlement, get in touch with a tax services company like Tax Assessment Xperts Inc that can guide you through the...

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Tax Benefits For Donating A Used Automobile To Charity

Posted by on Jul 29, 2015 in Uncategorized | Comments Off on Tax Benefits For Donating A Used Automobile To Charity

Charitable organizations sometimes advertise that they accept used automobiles as donations. The ads are usually too brief to explain the accompanying tax benefit. Any tax filer planning to donate a used car to charity can utilize the written documentation provided by the organization to possibly claim a tax deduction. A vehicle donation is reported alongside other charitable contributions on a tax return. Contributions are just one category of itemized deductions. Tax filers choose between itemizing allowed deductions or taking a fixed standard deduction. If total itemized deductions exceed your standard deduction, itemizing provides the larger advantage. A donated car or truck does not necessarily have to be in running condition to be accepted by a charity. Organizations are able to generate funds from the sale of vehicles in various states of repair. The tax reporting requirements for a vehicle donation is determined by the amount of the deduction reported on your tax return. Vehicle deduction of $500 or less Your deduction is generally limited to the price that the receiving charity obtains by selling the vehicle. The only documentation needed for a charitable deduction not exceeding $500 is written acknowledgment from the donee organization. No official form is needed to substantiate the donation, and the deduction is simply entered as a routine itemized deduction. Vehicle deduction between $500 and $5,000 Even if the fair market value of your donated car is more than the charity sells it for, your deduction is still generally limited to the net proceeds of the sale. For a deduction over $500, two additional forms are required to support your tax return. The charity must provide you with IRS Form 1098-C. You then use Form 1098-C to complete IRS Form 8283 and claim the deduction on your return. Vehicle deduction over $5,000 Since a donee must provide Form 1098-C for all donations over $500, the requirement is also effective for donations over $5,000. The difference in tax filing is that a deduction over $5,000 is claimed on Form 8283 in a section designated for the higher threshold. There are noteworthy exceptions to consider when determining your deduction. If your vehicle is kept and used by the charity, you are allowed to deduct the fair market value. If the organization provides the vehicle to a deserving individual at a greatly reduced price, you can also deduct the fair market value. Be sure to take photographs of the donated car for your tax records. Other types of motor vehicles also qualify for the deduction. Contact a profesional tax preparer, like those at Tri Check Inc, for more information about the mutual benefits of charitable...

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What If You Can’t Pay The IRS By The Tax Filing Deadline?

Posted by on Jul 12, 2015 in Uncategorized | Comments Off on What If You Can’t Pay The IRS By The Tax Filing Deadline?

If you are unable to pay your taxes to the Internal Revenue Service (IRS) when you file your income tax return, then it is vital that you understand the IRS tax collection process. By working with the IRS, you can save yourself a lot of stress, frustration, and money. Here are your options if you are unable to pay your federal income taxes when you file your tax return: Filing Your Taxes Without Payment Even if you are unable to pay your income taxes by the filing deadline, it is still very important to file your tax return with the IRS. If you do not file by the deadline, then you will be subjected to additional financial penalties by the IRS. If you want to file your federal return electronically without making a payment, then you should select the option to e-file and mail a check for payment. When the IRS does not receive your check, they will send you a bill in the mail demanding that you make an immediate payment. Paying Your Tax Bill When you receive the bill for your taxes, you should pay it in full if it is at all possible. The IRS charges late fees, interest, and penalties at very high rates in order to encourage taxpayers to take care of their bills quickly. You have the option to pay your taxes online or to mail the IRS a check. If you receive your tax bill and are still unable to pay, but you know that you can make payments each month towards the bill, then you can request an installment payment agreement from the IRS. IRS Installment Payment Agreements If you need to make payment arrangements with the IRS, then you are required to fill out IRS form 9465 and mail it to the IRS for approval. The IRS will charge you a hefty fee to set up an installment payment plan, and they will still charge you penalties and interest each month on the unpaid balance. Financial Hardship Situations Finally, if you are suffering from a serious financial hardship, you can request that your payment for the debt be deferred to a future date. In this scenario, the IRS will still charge you penalties and interest, but the deferment will stop all aggressive collection actions. Additional Information If you need additional information about IRS payment plans and deferred payments, you should speak with your income tax preparation professional like one from UniqueTAXx AND...

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Using A Coverdell Education Savings Account To Reduce The Cost Of A Private High School

Posted by on Jul 8, 2015 in Uncategorized | Comments Off on Using A Coverdell Education Savings Account To Reduce The Cost Of A Private High School

Parents planning for the future costs of education for their children don’t usually consider the Coverdell savings account as their first option. Another type of savings plan has gained more popularity, but the other plan only applies to college and university expenses. A Coverdell education savings account is also applicable to younger students, providing tax benefits to offset the cost of a private high school. Qualified tuition plans sponsored by many different states, also known as Section 529 plans, apply only to postsecondary education. A Coverdell account is a different type of plan. A Coverdell account has the additional ability to help pay the costs of elementary and high schools that charge tuition. Tax planning Contributions made up front to a Coverdell education savings account are not tax-deferred, so amounts contributed do not reduce your taxable income. The tax advantage arises as account earnings are allowed to grow tax-free. Over the course of several years, compound interest accumulates. A beneficiary is designated when you open a Coverdell account. The beneficiary must be under age 18 when you open the account. If used for qualified education expenses, earnings are tax-free when distributed. The income tax advantage of a Coverdell plan is maximized by funding the account for several years prior to the eventual distributions. Spending requirements No further contributions are allowed into the account after the beneficiary reaches 18 years of age. Distributions can be used to pay for either public or private schools that charge tuition. Religious schools qualify, and the Coverdell account is also applicable to elementary school and kindergarten. Contribution limits The annual contribution limit for a Coverdell account is $2,000. The limit is the total amount that can be added to the account of a beneficiary by all contributors combined. In fact, there is a 6 percent excise tax on excess contributions over $2,000. Distribution restrictions In addition to tuition and books, account distributions can be used to pay for room and board. At the elementary and secondary school levels, the cost of uniforms and required transportation is also a qualifying expense. Special needs services are qualifying expenses at all educational levels. If the account is not emptied by the time a beneficiary graduates high school, the student is able to use it for college expenses until the age of 30. The age limitations do not apply to special needs beneficiaries. Contact a tax services provider like Capital Accounting And Tax Service Inc, for more practical advice on how to utilize the federal income tax code to offset the cost of...

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Two Reasons Why Your Small Business Needs A Tax Consultant

Posted by on Jul 1, 2015 in Uncategorized | Comments Off on Two Reasons Why Your Small Business Needs A Tax Consultant

If you’re the owner of a small business, it can be very easy for you to believe that you have what it takes to prepare and file your own taxes.  However, you may be mistaken, since there are a number of benefits that your business could be missing out on if you don’t speak with a tax professional.  Learning more about the advantages that you stand to gain when you work with a tax consultant can help you determine if you should solicit their valuable services right away. You May Be Eligible For Tax Credits One of the most compelling reasons why you definitely want to consult with a tax professional is because your business may be eligible for some very important tax credits.  As you may know, the more tax credits you can get, the lower your tax responsibility.  This means that you get to keep more of your hard earned profits in your pocket. An example of a tax credit that you may not even know that you are eligible for involves the people that you hire.  For instance, if you hire an individual who was the recipient of a governmental program such as the Work Opportunity Tax Credit (WOTC,) your company could stand to gain a substantial tax credit.   Even if you hired someone without knowing about the tax credit processing process, it’s still not too late.  A qualified tax professional can help you fill out and get the correct forms processed so that you can retroactively qualify for the tax credits that you deserve. A Consultant Can Help You Develop A Tax Plan Another reason why you definitely want to work with a tax professional is because they will help you develop a tax plan.  A tax plan is essentially a way of setting up your business and affairs so that you owe as little in taxes as possible.  It could involve changing the structure of your company (i.e., from a sole proprietorship to a Limited Liability Corporation (LLC),) or devising new ways for you to increase your deductions so that your tax liability will be minimized. Your tax plan will also include techniques designed to help you avoid incurring a huge tax penalty.  For example, consultants have the knowledge to advise you about the latest employee laws and developments that may help you decide whether you need to transfer the status of one of your workers from freelance, to full-time staffer. Working with a tax professional may prove to be one of the wisest moves that you can make.  Visit with a tax consultant right away so you can enjoy these benefits and many...

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Filing A 2290 For The First Time? 4 Tips To Avoid Problems With The IRS

Posted by on May 30, 2015 in Uncategorized | Comments Off on Filing A 2290 For The First Time? 4 Tips To Avoid Problems With The IRS

When it comes to filing your 2290 with the IRS, what you don’t know can definitely hurt you. If this is your first time filing a 2290 form, it’s crucial that you avoid making costly mistakes. Some common mistakes will cost you valuable time to repair, while other mistakes may cause your tax return to be rejected. Before you file your taxes, be sure you double-check the following information. 1. Confirm the First Month of Use When it comes to heavy trucks, it’s important that you list the proper first month of use on your tax forms. For 2290 purposes, most truck owners will list July as the first month of use because that is when the new tax year begins. However, if you purchase your truck at the end of the tax year, such as January, you’d list the next month as your first month of use. Listing the wrong month won’t jeopardize your tax return but it may cause problems when it comes time to renew your tags. 2. Make Sure the EIN Matches If you drive a heavy truck, you probably have an EIN or employer identification number. When you file your 2290, you’re going to need to list your EIN. Be sure to double-check to ensure you’ve listed the number correctly and that your name matches the EIN you’ve listed. It’s also a good idea to contact the IRS to ensure that your EIN has been registered prior to filing your 2290 for the first time. If you’re EIN hasn’t been registered yet, it can delay your tax return. 3. Double-Check the VIN Number Even if you think you know the VIN–vehicle identification number–on your truck, one small mistake can cause your tax return to be denied. Before you file your 2290, take the time to verify the VIN on your truck. It takes less time to verify your VIN than it does to have the IRS correct the information. 4. Don’t Miss the Filing Deadlines When it comes to your IRS 2290 filing, missing a filing deadline is one of the costliest mistakes you can make. This mistake can end up costing you 4.5% of the total taxes due. You also risk having additional penalties attached if you fail to make timely payments on your tax bill. Protect yourself from costly penalties by knowing when your taxes are due. Now that you’re driving your own heavy truck, it’s crucial that you file your 2290 properly. Follow these simple tips to prevent problems with the...

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Two Pressing Tax Questions You May Need Addressed

Posted by on Apr 9, 2015 in Uncategorized | Comments Off on Two Pressing Tax Questions You May Need Addressed

Tax season is often one of the most stressful times of year for many people. If you are expecting a refund, it is important to ensure you get the most possible, and those owing money want to avoid overpaying the government. Luckily, there are tax services that can help you navigate the confusing tax codes. However, if you have never used these tax services before, there are likely at least a couple of questions that you need addressed. What Type Of Audit Protection Do Tax Services Offer? Being audited by the government can be one of the most frightening experiences you can go through. In addition to saddling you with a substantial amount of tax debts, these audits can also be extremely disruptive and lengthy processes. Fortunately, there are many tax services that offer their clients some form of audit protection. When you have audit protection, your tax service will work with you to ensure that you are well-prepared for this process. In fact, some of these services will even provide you with an attorney to help ensure that your rights are protected during these proceedings. Due to this, you should carefully consider the audit protections offered before you agree to use a particular service. What If You Cannot Pay Your Tax Bill? For those owing taxes, getting the money together to pay this bill can seem like an almost impossible task. This is especially true for those that have experienced sudden hardships or major expenses leading up to the filing deadline. Fortunately, the government will create a payment plan to help you pay back your taxes without unduly burdening you. However, it should be noted that there can be dire consequences for failing to make your payments to the government. In addition to wage garnishment, there is a chance that you could be held in contempt of court, and this can result in jail time. Luckily, these problems can be avoided by making these payments long before the tax deadline arrives. While a payment plan may not be your desired goal, it should be noted that your taxes may be included on your public credit report, and this may make it an excellent way of starting the process of building your credit history. Preparing your taxes can seem like a never-ending chore, and this is especially true if you have a limited understanding about this process. However, knowing these routine questions and answers, should make it easier for you to make it through tax season with minimal problems. Contact a company like RJ. Garner CPA & Associates, PLC for more...

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