Monthly Archives June 2016

If you use your home for business, you may be able to deduct expenses for the business use of your home whether you rent or own your home. There are two methods that can be used to claim the home office deduction. If you use the simplified option just multiply the allowable square footage of your office by a rate of $5. The maximum footage allowed is 300 square feet. If you use the regular option, actual expenses must be calculated based on the percentage of your home devoted to business.  These expenses may include mortgage interest, insurance, utilities, repairs, and
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Sometimes tax returns need to be amended due to mistakes or omissions when the return is filed.  Here are some things to remember when amending a return: Tax return amendments must be paper filed using Form 1040X. Amended returns can take up to 16 weeks to process. Amendments should be filed to correct errors in filing status, income, deductions, or credits.  You do not need to file an amendment for math errors or for missing forms or information.  The IRS will correct math errors and send you a request for missing forms or information. Generally, taxpayers have 3 years from the
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If you make quarterly estimated tax payments, don’t forget that the 2nd quarter estimate is due on June 15th. Now is a good time to be thinking about next year’s taxes. There are several ways you can begin preparing for the 2017 tax season: 1) If you have a life change such as marriage, divorce, death of a spouse, birth of a child, a child not being claimed as a dependent anymore, or changes in your income, you should change your withholdings or quarterly estimated tax payment amounts to reflect the change. Life changes could also affect health care tax
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