by Karla Dennis | Mar 9, 2015 | Blog
Tax season opened with a bang and April 15th will be here before you know it. The Internal Revenue Service expects to process nearly 150 million individual 2015 tax returns by the time tax season comes to a close . Are you still wondering if you be filing one of those returns? And more important, do you need to? For the 2015 tax season tax return, you should report the income that you received in 2014. That includes pay received in 2014 but not pay you receive in 2015 for services performed in 2014 (you’ll report that income next year). Not every body who received income in 2014 has to file a federal income tax return. There are a number of factors that affect whether you have to file including how much you earned – and the source of that income – as well as your filing status and your age. For most folks, this is pretty straightforward. Using the chart below, choose your filing status, your age and your gross income for the year. If your gross income is above the threshold for your age and filing status, you should file a federal income tax return. These rules apply if no other person claims you on their federal 2015 tax return. read...
by Karla Dennis | Mar 3, 2015 | Blog
ARE YOU SMARTER THAN A 5TH GRADER? Every year, the Internal Revenue Service puts out a list of tax scams. These are scams that taxpayers try to pull on the IRS or scams other people try to pull on taxpayers. Either way, it is important that you don’t fall victim to these scams. I provide this information for two reasons: 1) I still receive calls from taxpayers regarding these scams and 2) I still get taxpayers wanting to try to pull these scams on IRS. The IRS is smarter than a 5th grader! Taxpayers pay attention. These things are actually happening. For the first time, here is a recap of actual scams that have occurred since January 1, 2015: read...
by Karla Dennis | Feb 23, 2015 | Blog
I get this questions a lot from my clients asking me if home ownership and having a mortgage is still worth it for income tax purposes. My answer for the most part is yes. Now for purposes of this article, we are not going to address those of you – not me – who are heading toward retirement and winding down your earning years. Many of you are thinking about paying off your homes. Depending on your income tax bracket that may or may not be such a great idea. Mortgage interest and home ownership is by far the best tax write off or tax deduction available. Last week, I told you about strategic tax planning being by far the best way to lower your income taxes. Even if you make the silly mistake of not tax planning, home ownership and having a mortgage is a great way to lower your income taxes. read...
by Karla Dennis | Feb 16, 2015 | Blog
Have you ever wondered why do some people save money and other people have no money saved? Of course you do. Being a tax professional, I get to see how people are able to save money and how much people save. What I find interesting is people’s savings are not based on how much money they make. It is almost quite the opposite. People who make the most have a tendency to have the least amount saved relative to their income. Of course there are exceptions. Those who make less money have more money saved. read...
by Karla Dennis | Feb 9, 2015 | Blog
ARE YOU PLANNING? One of the biggest questions I get every year is how you can save money on your income taxes. The answer is simple: The best ways to save is to do Strategic Tax Planning. An STP, which is what I like to call it, really gives you and I an opportunity to work on restructuring your finances based on your history, income, goals and tax laws. If you have not engaged with me or my team in the last 365 days to do strategic tax planning, you are over paying your income taxes and losing money in other areas of your financial life. read...
