This is one of our most popular checklists. It is the one we give our clients when we set up their appointments. If your tax preparer hasn’t provided a checklist, you might find this helpful. Whatever your preference, there are checklists out there for you. If you like the look of this checklist, click HERE to download a PDF version.
Your job starts well before children are present and goes on well after the last child has left your care. Unfortunately, it is exactly for that reason that so much of your time never gets counted, as it should.
Want the checklist? Read the post HERE.
The budget deal that Congress and President Obama struck at the beginning of the year to avoid the fiscal cliff resulted in seven tax increases. If you throw in the six tax hikes that are part of Obamacare, that means there are 13 new taxes that may have hit you in 2013.
1.) The biggest potential taxes for wage earners include: Continue reading
Who Must Issue 1099’s? Businesses. You must report payments to others for services.
Nominees. If you are receiving income – but part of the income belongs to another.
BUSINESSES
If you paid $600.00 or more to a person or business during 2013 and may need to issue a form. This applies to business expenses only. You don’t need to report payment for personal expenses or any payments made to a corporation.
This is true even if you are a one-person office.
The IRS receives copy of all your tax-related forms. They are compared to your return. You can’t miss any of these documents. Watch the mail.
Envelopes will have “IMPORTANT TAX INFORMATION ENCLOSED” clearly printed. You need those.
You’re not alone. 2013 has seen a record number of Americans collecting this year.
This percent is determined by adding up the number of hours you are using your home for business purposes and dividing this number by the total number of hours in the year (8,760). There are two types of hours to include: hours when day care children are present in your home and hours when children are not present but you are engaged in business activities.
For more information, read full post on How To calculate Time-Percentage
For 2013 you get 56.5¢ for each business mile (keep your logs daily) . While employees can’t deduct driving to work, look at visits to clients, extra meetings, errands or shopping for supplies. Business owners – especially child care providers – have the same and more. To learn more, click here.
Source: Tax News & Tips, Year End 2013
According to Publication 587, Cat. No. 15154T : January 5, 2013 – yes it can be, but whether it qualifies as the principal place of business for two or more businesses is evaluated by a set of criteria:
You’ve gotten a letter from the IRS. Don’t panic.
Pat Michael, EA, discusses what you may be facing, and the actions you will need to take. Read the full post here.
Wondering why you got a letter from the IRS? Could it be your mileage log? The IRS Is a stickler for details when it comes to mileage logs. Did you make sure that your mileage log reflected the day-to-day use and associated expenses for your vehicle(s)? Read our blog on “What is the most common trip wire to trigger an audit?”
In our last “tax move” post, we suggested taxpayers look at all the options they have for lowering their tax bill due in 2014. Here are some more possibilities:
January house payment – Prepaying your mortgage will give you 12 months of deductible interest. The same for a vacation home. Continue reading
IF YOU WANT TO GET CREDIT FOR CHILD and DEPENDENT CARE, THE IRS NEEDS TO KNOW… If you paid someone to care for your child, spouse, or dependent last year, you may be able to claim the Child and Dependent Care Credit on your federal income tax return.
Below are 10 things the IRS wants you to know about claiming a credit for child and dependent care expenses. Continue reading
TAX MOVES TO MAKE BEFORE CHRISTMAS.December 31 is approaching quickly – and there are some things you can do to lower your tax bill. We encourage our clients to come in for a review, especially if there are life-situation changes. Did they marry or divorce? Is there are new child? Is there unscheduled income, or benefits. We want to look at that before the close of the year.
As part of our updates on the laws that are changing, we are sharing valuable articles for your convenience.
This article is the first of two we will bring you from one of MarketWatch of the Wall Street Journal.
Now is the time to talk with your tax preparer to understand the other 2013 changes to your itemized deductionsThe rules are changing if you plan to itemize medical deductions on your 2013 federal tax return that you will file in 2014. It does not affect income tax returns for the 2012 taxable year filed in 2013.
Beginning Jan. 1, 2013, you can claim deductions for medical expenses not covered by your health insurance that exceed 10 percent of your adjusted gross income. This change affects your 2013 tax return that you will file in 2014.
There is a temporary exemption from Jan. 1, 2013 to Dec. 31, 2016 for individuals age 65 and older and their spouses. If you or your spouses are 65 years or older or turned 65 during the tax year you are allowed to deduct unreimbursed medical care expenses that exceed 7.5% of your adjusted gross income. The threshold remains at 7.5% of AGI for those taxpayers until Dec. 31, 2016.
Beginning Jan. 1, 2017, all taxpayers may deduct only the amount of the total un reimbursed allowable medical care expenses for the year that exceeds 10% of your adjusted gross income.
Mid Year Tax Questions You Need To Ask YourselfThis is a good time to take a look at your present financial picture. Has your income or withholding changed in a significant way? If you are my client – then I need to know.
√ Most new tax rules affect incomes above $200K. Will these new rules affect you? If you aren’t sure how these new rules will affect your taxes, give me a call.
√ Are you sure you are withholding enough to cover your taxes? Let’s go over your information, and make sure it is where it needs to be. If it isn’t enough, and you need to make estimated tax payments, I can help you.
√ Significant changes in your income? If so, it can have a big impact on your taxes. Don’t get fooled by the “graduated tax rate”. 10% income increase can result in a 20% increase in your taxes. Don’t wait on this, call me ASAP so we can be sure you are covered.
√ Life-Changing Events? Divorce, Marriage? New Child? All these shape how the government looks at you. If there are job changes, home sale, moves, launching a new business, loss of a job or starting a new one, these are all important events that impact your financial profile. Let me know about any of these.
√ Unscheduled Income? Unemployment benefits, social security or pension, sale of an investment property or rental …. all of these can affect your tax rate also. Let me know as early as possible so we can factor them in.
When it comes to taxes, I’m in a “need-to-know” capacity. I need to know about anything that can affect your tax rate so you aren’t caught off-guard.
Have a great Autumn!
IRS Summertime Tax Tip 2013-15, August 5, 2013
If you itemize deductions on your tax return, you may be able to deduct certain miscellaneous expenses. You may benefit from this because a tax deduction normally reduces your federal income tax. Here are some things you should know about miscellaneous deductions:
Deductions Subject to the Two Percent Limit. You can deduct most miscellaneous expenses only if they exceed two percent of your adjusted gross income. These include expenses such as: Continue reading