Monthly Archives February 2016

If you are a W-2 Employee taking the standard deduction or itemizing with basic deductions, you can typically file your own taxes without any trouble. If you are self-employed, own rental property or other investments, have children in college, have retirement income, or want tax planning for the future, a CPA can offer expert advice to help you maximize your deductions and minimize your taxes. If you have been missing deductions in the past, you have 3 years from the date you filed the original return to amend your prior return.  A CPA can help you with this process as well. If
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If Social Security is your only source of income, your benefits are typically not taxable. If you have other income in addition to Social Security, part of your benefits may be taxable. To find out if you must pay tax on your Social Security benefits, first determine the base amount for your situation.  You can determine your base amount by adding 1/2 of your other income (including tax exempt interest) to your Social Security benefit.  Then, compare your base amount total to the base amounts below. $25,000–base amount for single, head of household, qualifying widow, widow with a dependent child,
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If you are wondering if you should use the standard deduction or itemize, here are some tips that will help you. Standard Deductions for 2015 are as follows: Single $6,300 Married Filing Jointly $12,600 Head of Household $9,250 Married Filing Separately $6,300 Qualifying Widow(er) $12,600 To see if itemizing your deductions is more beneficial than the standard deduction, simply add up your deductible expenses including: Home mortgage interest Real estate and personal property taxes Gifts to charities including non cash donations mileage for volunteer work Casualty or theft losses Sales taxes — if you made a major purchase such as
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Exemptions cut your taxable income.  Taxpayers can claim an exemption for themselves, their spouse (if filing jointly), and their dependents.  There are rules about claiming exemptions and dependents.  If you claim a dependent on your tax return, that person cannot claim an exemption for themselves on their tax return.  Each exemption usually gives taxpayers a $4000 deduction.  The $4000 per exemption is subject to income limits. In addition to claiming children as exemptions, there are other tax savers for parents.  Parents may be able to claim a $1000 Child Tax Credit for children under the age of 17. Working parents or parents who
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The IRS had problems with their E-file system this week but it is operational again as of this afternoon. If you are due a tax refund, the IRS should still get it to you within 21 days of filing your return.  If you are missing a W-2 or 1099, you should contact your employer/client and make sure they have your correct address.  If you aren’t able to get help from your employer/client, you will need to contact the IRS.  More information is available here. The IRS continues to warn about phone scams.  The IRS will never call and demand payment.  If you
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