Showing posts with label IRS. Show all posts
Showing posts with label IRS. Show all posts
Thursday, December 23, 2010
Delayed tax filing for some in 2011!
The IRS wants you to know that taxpayers claiming state and local sales tax deductions, higher education tuition and fees deductions, educator expenses deductions, and those who itemize deductions on Form 1040 Schedule A, will have to wait to file tax returns until tax processing systems are ready. The IRS estimates that will be in mid- to late February.
Thursday, August 5, 2010
IRS Moving Slowly Into The Future
The IRS plans to explore providing an effective mechanism to use a portion of a taxpayer's refund to pay for the services of a tax professional. The IRS plans to engage with the public, consumer advocates, and the tax industry, to determine if this option will be a cost-effective way for taxpayers to pay for services.
Thursday, July 1, 2010
Thursday, June 17, 2010
Swiss Bank Accounts
The Swiss Bank, UBS AG, has agreed to give the names of 4,450 American customers, suspected of tax evasion, to U.S. taxing authorities.
Sunday, June 13, 2010
Snowe Files Amendment to S Corporation Profits Tax Proposal
On Thursday, Sen. Olympia Snowe, (R-Maine) and Sen. Mike Enzi, (R-Wyoming) filed an amendment to HR 4213 to strike the tax provisions regarding professional service S-Corporations. The senators called S-Corporations "the major entrepreneurial form of business ownership that has been the single biggest job generator."
Wednesday, May 26, 2010
New Home Sales in April
Homeowners' Tax Credits pushed up April home sales except in the Northeast where sales were flat. The median price of new homes sold in April was $198,400, down 23% from March, and 10% from a year earlier. (Summarized from CNN Money).
Thursday, April 8, 2010
This Year's Income Tax Refunds
The IRS wants you to know the average income tax refund is up nearly 10% this year because of new tax benefits made possible by the Recovery Act.
Friday, March 12, 2010
Charitable Deductions on Your Tax Return
Claim Donation Values with Confidence: Ameritax Massachusetts has a solution. CharityDeductions.com is a charitable donation website featuring researched values for 100,000+ items from eBay used-item transaction data. Items are researched and backed by thousands of similar item transactions. Go to CharityDeductions.com and use our exclusive promotional code "ameritax" to receive your discounted membership. Track charitable cash and checks also, and print reports for the year.
Friday, February 19, 2010
Gambling winnings and the IRS
The full amount of gambling winnings for the year must be reported to the IRS, regardless of the amount, and regardless of whether OR NOT you receive a Form W-2G or other reporting form.
Friday, January 22, 2010
Charitable Contributions to Haiti Relief
Legislation has been passed allowing itemizing taxpayers to deduct charitable contributions made by March 1st, 2010 to Haiti earthquake relief, on their 2009 returns. The bill also allows use of a taxpayer's phone bill as documentation for text-messaged contributions.
Tuesday, January 12, 2010
Over 60% of taxpayers use a tax professional. Choose a good one!
Preparer licensing starts next year. In the meantime, the IRS wants you to ask the following:
1. Is your preparer taking continuing education courses?
2. Does your preparer subscribe to a Code of Ethics?
3. Does your preparer have a negative history with a state board, or a criminal history?
4. Does your preparer base his fees on a percentage of the refund?
5. Does your preparer claim he can obtain larger refunds than other preparers?
6. Is your preparer in business year round?
A good preparer
A good preparer wants to see records and receipts, and will question you carefully.
Never sign a blank return, or a blank e-file authorization.
Review your return before signing it. You are responsible for its content.
A paid preparer is required by law to sign tax returns. If he doesn’t, ask why. Is he trying to avoid declaring the income on his tax returns? You’re paying taxes, why shouldn’t he? A good preparer is never afraid to sign a properly prepared return. An ethical preparer will declare all his income on his own tax return.
1. Is your preparer taking continuing education courses?
2. Does your preparer subscribe to a Code of Ethics?
3. Does your preparer have a negative history with a state board, or a criminal history?
4. Does your preparer base his fees on a percentage of the refund?
5. Does your preparer claim he can obtain larger refunds than other preparers?
6. Is your preparer in business year round?
A good preparer
- takes continuing education courses
- subscribes to a Code of Ethics
- has no history of complaints with a state board or the BBB, and has no criminal history
- bases fees upon the complexity of the return
- makes no exaggerated claims about getting larger refunds
- is in business year round and available when you get a letter from the IRS or the state.
A good preparer wants to see records and receipts, and will question you carefully.
Never sign a blank return, or a blank e-file authorization.
Review your return before signing it. You are responsible for its content.
A paid preparer is required by law to sign tax returns. If he doesn’t, ask why. Is he trying to avoid declaring the income on his tax returns? You’re paying taxes, why shouldn’t he? A good preparer is never afraid to sign a properly prepared return. An ethical preparer will declare all his income on his own tax return.
Wednesday, January 6, 2010
Misconceptions about filing status
Your marital status on the last day of the year determines your marital status for the entire year.
If you marry on the last day of the year, you are considered married for the entire year. Your filing choices are married filing jointly or married filing separately. If your divorce is final on the last day of the year, you are considered single, or head of household if you pay more than half the cost of maintaining a home for yourself and a qualifying person.
If your spouse died during the year, and you didn’t remarry, you are considered married and can still file jointly with your late spouse for the year of death.
If more than one filing status applies to you, choose the one that gives you the lowest tax obligation.
Tax questions? Call Ameritax at (508) 993-4343, or any of our offices.
If you marry on the last day of the year, you are considered married for the entire year. Your filing choices are married filing jointly or married filing separately. If your divorce is final on the last day of the year, you are considered single, or head of household if you pay more than half the cost of maintaining a home for yourself and a qualifying person.
If your spouse died during the year, and you didn’t remarry, you are considered married and can still file jointly with your late spouse for the year of death.
If more than one filing status applies to you, choose the one that gives you the lowest tax obligation.
Tax questions? Call Ameritax at (508) 993-4343, or any of our offices.
Friday, December 18, 2009
Thinking of buying a new car?
The IRS wants you to know there is a tax advantage to buying a new car, motorcycle, light truck, or motor home, before January 1, 2010, whether you itemize or not. Call your tax accountant for details.
Wednesday, November 25, 2009
Extended Home Buyer Credit for Repeat Buyers
The IRS wants you to know that, if you are thinking about replacing your current home, you may be eligible for a new credit of up to $6,500!
1. You must buy – or enter into a binding contract to buy a principal residence – on or before April 30, 2010. 2. If you enter into a binding contract by April 30, 2010 you must close on the home on or before June 30, 2010. 3. For qualifying purchases in 2010, you will have the option of claiming the credit on either your 2009 or 2010 return. 4. A buyer may qualify for a reduced credit, If the taxpayer lived in the same principal home for any 5 consecutive years during the 8-year period ending on the purchase date of the new home, and the settlement date is after 11/6/09. 5. The maximum credit for this type of buyer is $6,500. Married individuals filing separately are limited to $3,250. 6. People with higher incomes may now qualify. The new law raises income limits for homes purchased after 11/6/09. Full credit is available to singles with modified adjusted gross incomes up to $125,000, or $225,000 for joint filers. 7. The IRS will issue a revised Form 5405 in December, 2009. The new form must be used for homes purchased after 11/6/09 – whether the credit is claimed for 2008 or 2009 – and for all home purchases claimed on 2009 returns. 8. No credit is available if the purchase price of the home exceeds $800,000. 9. The purchaser must be 18 or older on the date of purchase. If married, only one spouse must meet this age requirement. 10. A dependent can't claim the credit.
1. You must buy – or enter into a binding contract to buy a principal residence – on or before April 30, 2010. 2. If you enter into a binding contract by April 30, 2010 you must close on the home on or before June 30, 2010. 3. For qualifying purchases in 2010, you will have the option of claiming the credit on either your 2009 or 2010 return. 4. A buyer may qualify for a reduced credit, If the taxpayer lived in the same principal home for any 5 consecutive years during the 8-year period ending on the purchase date of the new home, and the settlement date is after 11/6/09. 5. The maximum credit for this type of buyer is $6,500. Married individuals filing separately are limited to $3,250. 6. People with higher incomes may now qualify. The new law raises income limits for homes purchased after 11/6/09. Full credit is available to singles with modified adjusted gross incomes up to $125,000, or $225,000 for joint filers. 7. The IRS will issue a revised Form 5405 in December, 2009. The new form must be used for homes purchased after 11/6/09 – whether the credit is claimed for 2008 or 2009 – and for all home purchases claimed on 2009 returns. 8. No credit is available if the purchase price of the home exceeds $800,000. 9. The purchaser must be 18 or older on the date of purchase. If married, only one spouse must meet this age requirement. 10. A dependent can't claim the credit.
Friday, November 13, 2009
Taxable State Tax Refunds
Don't assume your entire state tax refund is taxable just because state/local income taxes were part of your itemized deductions in the previous year. Look up the potential sales tax deduction available to you for the previous year, then complete the worksheet to determine what portion of your state tax refund is taxable.
Prompted by an NATP question.
Thursday, November 5, 2009
New Home Buyer Credit for Military Serving oustide the USA
The new home buyer credit is extended for 1 additional year to June 30th, 2011, if you are in the military and serving outside the USA for at least 90 days.
Friday, October 30, 2009
Extension of 1st Time Home Buyer's Credit
A House and Senate vote is expected next week on an extension of the $8,000 1st Time Home Buyer's Credit. Expect this to be the LAST extension. The only way credits work is if a sense of urgency is created. Contracts would have to be signed by April 30th and the sale closed by June 30th, 2010. There may also be a provision to give a $6,500 tax break to homeowners who have owned a home in 5 consecutive years of the last 8. More later!
Wednesday, October 7, 2009
New Car Sales and Excise Tax Deduction for 2009
The IRS wants you to know:
Taxpayers purchasing new cars, light trucks, motor homes or motorcycles, may qualify for a special sales and excise tax deduction on 2009 tax returns.
New autos must be purchased in 2009 and before January 1, 2010. The deduction is limited to taxes and similar fees paid on up to $49,500 of purchase price. There are income limits to qualify for the deduction.
This deduction is available even if you don't itemize!
Taxpayers purchasing new cars, light trucks, motor homes or motorcycles, may qualify for a special sales and excise tax deduction on 2009 tax returns.
New autos must be purchased in 2009 and before January 1, 2010. The deduction is limited to taxes and similar fees paid on up to $49,500 of purchase price. There are income limits to qualify for the deduction.
This deduction is available even if you don't itemize!
Monday, September 21, 2009
Hidden Off-Shore Accounts
You will be pleased to know that IRS has extended the deadline for disclosing hidden off-shore accounts until October 15, 2009!
Wednesday, September 16, 2009
Sales and Excise Tax Deduction on your 2009 tax return
The IRS wants you to know:
1. State/local sales and excise taxes paid on up to $49,500 of purchase price of each qualifying vehicle are deductible.
2. Qualified motor vehicles include new cars, light trucks, motor homes and motorcycles.
3. To qualify, the new car, light truck and motorcycle must weigh less than 8,501 pounds. Motor homes are not subject to the weight limit.
4. Purchases must occur after between Feb. 17, 2009 and December 31, 2009 inclusive.
5. Taxpayers who buy new motor vehicles in states with no sales tax (AK, DE, HI, MT, NH, OR), may be entitled to deduct other fees or taxes assessed on the purchase. Fees or taxes that qualify must be based on the vehicles’ sales price or as a per unit fee.
6. Taxpayers may claim the deduction when filing 2009 returns in 2010 (not on 2008 returns).
7. The deduction can be taken whether one itemizes, or not. Taxpayers who don't itemize will add the additional amount to the standard deduction.
9. The amount of the deduction is phased out for taxpayers whose modified adjusted gross income is between $125,000 and $135,000 for individuals, between $250,000 and $260,000 for joint filers.
1. State/local sales and excise taxes paid on up to $49,500 of purchase price of each qualifying vehicle are deductible.
2. Qualified motor vehicles include new cars, light trucks, motor homes and motorcycles.
3. To qualify, the new car, light truck and motorcycle must weigh less than 8,501 pounds. Motor homes are not subject to the weight limit.
4. Purchases must occur after between Feb. 17, 2009 and December 31, 2009 inclusive.
5. Taxpayers who buy new motor vehicles in states with no sales tax (AK, DE, HI, MT, NH, OR), may be entitled to deduct other fees or taxes assessed on the purchase. Fees or taxes that qualify must be based on the vehicles’ sales price or as a per unit fee.
6. Taxpayers may claim the deduction when filing 2009 returns in 2010 (not on 2008 returns).
7. The deduction can be taken whether one itemizes, or not. Taxpayers who don't itemize will add the additional amount to the standard deduction.
9. The amount of the deduction is phased out for taxpayers whose modified adjusted gross income is between $125,000 and $135,000 for individuals, between $250,000 and $260,000 for joint filers.
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