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...
by Karla Dennis | Jul 20, 2013 | Blog
7 THINGS YOU MUST NOT DO WHEN YOU FILE YOUR INCOME TAX RETURN Tax season has begun and everyone is scurrying around to get their tax returns filed as quickly as possible. Many are hoping to get a refund which may just be the extra cash they need to help them through the year. However, in this hurry many mistakes are made which can result in an audit down the road. In order to help avoid this problem here are 7 things you must NOT do when you file your income tax returns. Do not use a tax preparer who is not licensed in your state or who does not have a tax license: with IRS’ new program to crack down on unlicensed preparers it is likely your return will be flagged for audit if the person you use does not have a license. Many of us may be using preparers that are licensed but are not licensed to do business in their particular state. Do not file an extension if you owe on your taxes: An extension is an extension of time to file and not an extension of time to pay. If you fail to file your taxes and you owe when you do file you are going to get hit with hefty penalties and interest further causing your return to be scrutinized for an audit. The best thing to do is to file your taxes on time and then set up a payment plan or make some type of financial arrangement with the IRS or your state revenue department. Do not fail to file electronically. Filing electronically is the...
by Karla Dennis | Jul 20, 2013 | Blog
When compared with this past year, you will find very little that’s new when going to file your tax return this time around. Try not to let familiarity lull you into complacency. Every year this leads to small errors or missteps by tax payers that can produce an audit. For instance, the IRS says the most typical mistake is to leave names or Social Security numbers off tax returns — an error that can cause a long-lasting headache, and even added taxes, as you jump through hoops to have issues resolved through the IRS. So besides staying conscious of specifics, utilize this list to ensure that you haven’t forgotten some of the common money-savers that tax preparers and accountants say individuals often neglect. read...
