by Karla Dennis | Jul 22, 2013 | Blog
You have three years from the date of filing a return for the tax year in question to submit an amendment to your return. In order to analyze how this is relevant to businesses, we look at some of the overlooked deductions that may need to be corrected with a tax amendment. For example, if a tax return for the 2003 fiscal year was submitted on 1 March 2009, the tax payer has until 1st March 2012 to file the amended returns. The same rule applies if the taxpayer is deemed to have made errors resulting in a balance. read...
by Karla Dennis | Jul 20, 2013 | Blog
The government believe it or not, actually has a desire to help men and women settle their First-Time Homebuyers Credit. Reminder letters will not be mailed to taxpayers who’ve yet to repay the credit; however you are now able to use an online lookup guide available on the IRS web site to take a look at repayment obligations and options. The following tips will help you pull up facts about your First-Time Homebuyers Credit: The method to repay the credit: To repay the First-Time Homebuyers Credit, add the total amount you must repay to any other tax you owe on your federal tax return. This could result in a lot more tax owed or perhaps a reduced refund. To spend back the credit, you report the repayment on line 59b on Form 1040, U.S. Individual Taxes Return. In the event you make an installment payment, you don’t want to attach Form 5405, First-Time Homebuyers Credit and Repayment with all the Credit, for the tax return. If you are repaying the credit because the home was no longer your principal home, you have to attach Form 5405. read...
by Karla Dennis | Jul 20, 2013 | Blog
If you happen to be a high-income earner, you are probably quite conscious that some regulations are phased out (either decreased or eliminated) as your adjusted revenue, or AGI, increases. While somewhat unfortunate this really is the cost of success. Thankfully there are some tax breaks up for grabs to nearly any person — irrespective of earnings. Below are several that may work for your situation. In you’re self-employed, you might be in a position to contribute and deduct as much as $49,000 for 2011 or up to $50,000 for 2012 by producing a simplified employee pension, or SEP. Adding to a SEP could significantly lower your taxable revenue and help you save for retirement. If you feel like you may have missed out on several tax opportunities there may still be some hope. Unless you currently have a retirement strategy set up, you are still able to set up a SEP and make a deductible contribution for 2011. Understand of course that it may be carried out as late as Oct. 15 of the year should you extend your 2011 return for that automatic six-month period. read...
by Karla Dennis | Jul 20, 2013 | Blog
What is a second look tax review? In the long history of taxes there exists a need to complete the process with the least amount of headaches and stress. However, in the race to complete our civic duty and file our taxes, we can overlook potential tax savings or make an error when reporting our income. Because of changing tax code and in fairness to the taxpayer a second look tax review is something worth pursuing. With all that goes in to your taxes there can be several reasons why a tax return might need to be reviewed. And the biggest reason is simply that errors happen from time to time. And it is important to be able to rectify such an oversight in order to pay the appropriate taxes. But what if there are in fact some other reasons for wanting to take a second look at your taxes? What then are the resources available? read...
by Karla Dennis | Jul 20, 2013 | Blog
Tax lawyers are warning taxpayers with severe disabilities and their compilers to be careful with how to report lump Social Security disability benefits for income tax returns this season. It can take months and sometimes years to get social benefits for disability. So many people get a single, total amount, including reimbursement. One of the most common questions we have received from the applicant this time of year is if SSDI benefits are taxed and about how to report a lump sum on their tax returns. read...
