Archive for the ‘IRS’ Category

Avoid a couple of “Mistakes” which many tax payers commit every year

Tuesday, February 18th, 2014

receipts for income taxt prep
Mistake #1: Just because you are not required to file a tax return due to low income, you may be missing out on a refundable EIC, or Earned Income Credit. It can be substantial and net you a significant refund from IRS.

Mistake #2: Many tax payers do not keep track of their activities which can impact what they owe the government. Often times people opt for the Standard Deduction when, in reality, they have enough medical expenses and charitable contributions which would make itemizing more favorable to them.

The moral is: Get receipts for all of your medical expenses. If the total exceeds 10% of gross income, they are deductible. Also get receipts for charitable contributions, both cash and non-cash from the non-profits you support.

Talk to your tax man or tax woman. A reasonable professional will not charge you for a brief consultation which could save a client money. That’s what we are here to do!

Mistake #1: Just because you are not required to file a tax return due to low income, you may be missing out on a refundable EIC, or Earned Income Credit. It can be substantial and net you a significant refund from IRS.

Mistake #2: Many tax payers do not keep track of their activities which can impact what they owe the government. Often times people opt for the Standard Deduction when, in reality, they have enough medical expenses and charitable contributions which would make itemizing more favorable to them.

The moral is: Get receipts for all of your medical expenses. If the total exceeds 10% of gross income, they are deductible. Also get receipts for charitable contributions, both cash and non-cash from the non-profits you support.

Talk to your tax man or tax woman. A reasonable professional will not charge you for a brief consultation which could save a client money. That’s what we are here to do!

Mistake #1: Just because you are not required to file a tax return due to low income, you may be missing out on a refundable EIC, or Earned Income Credit. It can be substantial and net you a significant refund from IRS.

Mistake #2: Many tax payers do not keep track of their activities which can impact what they owe the government. Often times people opt for the Standard Deduction when, in reality, they have enough medical expenses and charitable contributions which would make itemizing more favorable to them.

The moral is: Get receipts for all of your medical expenses. If the total exceeds 10% of gross income, they are deductible. Also get receipts for charitable contributions, both cash and non-cash from the non-profits you support.

Talk to your tax man or tax woman. A reasonable professional will not charge you for a brief consultation which could save a client money. That’s what we are here to do!

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Still Have Not Filed your 2010 Tax Return?

Thursday, July 21st, 2011

tax return nightmare

Please do not allow fear of owing to make you catatonic!

I am still relatively busy filing 2010 tax returns for clients who failed to file by April 15th.

The reasons for the tardiness are myriad including, not having all of the documents together, having recently moved or undergone a change in marital status. However, the number one reason for the procrastination, in the case of my clients, is the fear that they will owe a significant amount of money to the IRS and to the state.

Two points to take away from this piece are:

First of all, your tax situation will not resolve itself. The IRS will not simply “Go Away”, they really want your 2010 tax return.

Secondly, the longer you wait, the more you will end up owing because of penalties and interest which will continue to accrue.

A solid tax professional knows how to complete correspondence to send along with your return explaining your situation and the payment program into which you are able to enter.

From a real world perspective, I recently filed a return for a client who feared he owed a lot of money, however, he actually is to receive a refund, so in effect, he went through months of sleepless nights needlessly.

So, be proactive and contact your tax guy or gal and get it straightened-out. Get your 2010 tax return filed now. You’ll be glad you did.

Martin Taffe

Taffe Tax & Accounting Service

www.taffetax.com

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“Some“ Internal Revenue Service Tax Law Changes for 2010

Wednesday, January 26th, 2011

irs tax lawIRS Tax Law Changes for 2010

The mileage deduction for business use of vehicles has decreased from $.55 per mile to $.50 per mile.

Filing Date Changes to April 18th because Emancipation Day is on Saturday April 16th. In 1862 Abraham Lincoln freed enslaved persons in the District of Columbia. Because the 16th is a Saturday this year, government workers will celebrate the holiday on Friday, the 15th.

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Millions of Taxpayers Will Have to Wait to File This Year

Monday, January 24th, 2011

internal revenue serviceAt the end of 2010 lawmakers extended tax cuts made available under the Bush Administration (Bush Tax Cut). Due to this last minute update, those who itemize their deductions on Form Schedule A must wait until the IRS updates its systems. It may be well into February before the updates are finalized.

Additionally, educators who paid out-of-pocket for school-related items, as well as, anyone who paid for post-secondary education, that means college-related expenses, will also have to wait to file their tax returns.

The upshot is that it may mean more money back from the government for individuals in the above-listed categories.

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