FORMS ARE NOW AVAIL UNDER CHECKLISTS
Don't forget, we are on FACEBOOK, there is a public storefront as well as a private group blog, please contact/friend Sandy Yerk to get added to the private side if you're not there already!!
We are unable to handle amended returns now until after 4/15/14 at which time years 2011, 2012 and 2013 can be completed.
Pet owners warned – expenses not deductible
an increase recently in the number of clients asking him about deducting their pet expenses such as veterinary bills, on the basis that the animals are dependents. CPA Bob Grossman warns that these are generally not allowed, outside of service dogs for the visually-impaired, though arguments can be made if the animal is used in business, or as a doctor-prescribed therapy companion.
Take care when making business travel deductions
Because of the potential for abuse, small businesses making deductions for business travel expenses are “a fertile area for the IRS to pursue”, according to small firm tax specialist Barbara Weltman.
Tips for Self-Employed Taxpayers
If you are an independent contractor or run your own business, there are a few basic things to know when it comes to your federal tax return. Here are six tips you should know about income from self-employment:
Early Retirement Plan Withdrawals and Your Taxes
Taking money out early from your retirement plan may trigger an additional tax. Here are seven things from the IRS that you should know about early withdrawals from retirement plans:
1. An early withdrawal normally means taking money from your plan before you reach age 59½.
2. If you made a withdrawal from a plan last year, you must report the amount you withdrew to the IRS. You may have to pay income tax as well as an additional 10 percent tax on the amount you withdrew.
3. The additional 10 percent tax does not apply to nontaxable withdrawals. Nontaxable withdrawals include withdrawals of your cost to participate in the plan. Your cost includes contributions that you paid tax on before you put them into the plan.
4. A rollover is a type of nontaxable withdrawal. Generally, a rollover is a distribution to you of cash or other assets from one retirement plan that you contribute to another retirement plan. You usually have 60 days to complete a rollover to make it tax-free.
5. There are many exceptions to the additional 10 percent tax. Some of the exceptions for retirement plans are different from the rules for IRAs.
IF THE SCHEDULE IS FULL ON DATES THAT YOU WANT YOU CAN ALWAYS SCAN/FAX OR MAIL YOUR DOCS TO US!!!!
Beat the madness!!! schedule your 2015 tax appt now! Sandy Yerk will be traveling on Mondays next Spring with Thursdays being the late day (i.e. noon-8p), so if you need an opening not currently visible, let me know.... Contact Elsa Marte or Cody Yerk if you need to verify their schedule, but I believe they will be staying at roughly the same days/hours.
DON'T FORGET IF YOU ARE FILING AND YOUR SPOUSE IS NOT WITH YOU, YOU WILL NEED A Power-of-Attorney signed! (we can provide one upon request beforehand)
We are now offering BOOKKEEPING SERVICES for businesses, if you are interesting please let us know and we can advise on rates, etc.
W-2 Reporting of Employer Coverage: The value of health care coverage reported by your employer in box 12 and identified by Code DD on your Form W-2 is not taxable.
THIS BOX IS IMPERATIVE TO HAVE COMPLETED BY YOUR EMPLOYER IF THEY PROVIDE INSURANCE AS IT SHOWS YOU HAVE INSURANCE AND WILL NOT BE ADDITIONALLY TAXED ON YOUR 2014 INCOME TAXES FOR LACK OF INSURANCE. YOU MUST HAVE PROOF OF INSURANCE TO RECEIVE MONETARY CREDIT I.E. NO TAX ON HEALTHCARE FOR 2014
Figure Your Withholding. The IRS Withholding Calculator tool can help you avoid having too much or too little income tax withheld from your pay. You can use it anytime throughout the year to stay on target.
Fidelity has received a 30-day mailing extension for the 1099 series tax reporting statements (1099-DIV, 1099-INT, 1099-OID, 1099-B, 1099-MISC). The nonretirement brokerage account statements will not be mailed out until closer to March 17 (the extended mailing deadline).
Facts about Capital Gains and Losses
When you sell a ’capital asset,’ the sale usually results in a capital gain or loss. A ‘capital asset’ includes most property you own and use for personal or investment purposes. Here are 10 facts from the IRS on capital gains and losses:
1. Capital assets include property such as your home or car. They also include investment property such as stocks and bonds.
2. A capital gain or loss is the difference between your basis and the amount you get when you sell an asset. Your basis is usually what you paid for the asset.
3. You must include all capital gains in your income. Beginning in 2013, you may be subject to the Net Investment Income Tax. The NIIT applies at a rate of 3.8% to certain net investment income of individuals, estates, and trusts that have income above statutory threshold amounts.
4. Capital gains and losses are either long-term or short-term, depending on how long you held the property. If you held the property for more than one year, your gain or loss is long-term. If you held it one year or less, the gain or loss is short-term.
5. If your long-term gains are more than your long-term losses, the difference between the two is a net long-term capital gain. If your net long-term capital gain is more than your net short-term capital loss, you have a 'net capital gain.’
6. The tax rates that apply to net capital gains will usually depend on your income. For lower-income individuals, the rate may be zero percent on some or all of their net capital gains. In 2013, the maximum net capital gain tax rate increased from 15 to 20 percent. A 25 or 28 percent tax rate can also apply to special types of net capital gains.
7. If your capital losses are more than your capital gains, you can deduct the difference as a loss on your tax return. This loss is limited to $3,000 per year, or $1,500 if you are married and file a separate return.
8. If your total net capital loss is more than the limit you can deduct, you can carry over the losses you are not able to deduct to next year’s tax return. You will treat those losses as if they happened that year.
9. You must file Form 8949, Sales and Other Dispositions of Capital Assets, with your federal tax return to report your gains and losses. You also need to file Schedule D, Capital Gains and Losses with your return.
Tax Preparers Assaulted, Shot at This Season
MARCH 14, 2014
BY JEFF STIMPSON
This season is turning dangerous for tax preparers, according to published reports.
Chicago Heights, Ill.: In mid-February a Liberty Tax preparer pulled a gun on a customer’s boyfriend who police said threatened to beat him up during a dispute over fees. The boyfriend, 34, has reportedly been charged with assault after confronting the preparer over $500 in additional fees that the girlfriend was charged for her return. Police told reporters the preparer, 45, had a valid firearm owner’s ID.
Kirkwood, Mo.: A 53-year-old local man is accused of choking an H&R Block worker earlier this month after reportedly becoming enraged about his “tax situation.” Police told news outlets that the assailant knocked the Block employee to the ground and is now charged with misdemeanor assault. The Block worker reported minor injuries but did not require hospital treatment.
Deerfield Beach, Fla.: A bullet narrowly missed the ear of preparer Michelle Merced as she sat in the office of Dixie Fast Tax in late February. “I wanted [tax season] to be busy with people, not bullets, coming in,” she told news outlets. The shooting was connected to a dispute outside her office and police confirmed that Merced and her staff were not intended targets.
The incidents come on the heels of reports of gunfire and the beating of a preparer in the Detroit office of Tax City Tax Service on February 28 by a 19-year-old local man after the woman he was in the office with couldn’t get her refund in cash. Four people were shot in the scuffle and the preparer told news outlets that she plans tighter security when she re-opens her office.
This is hardly the first season refunds and taxes turned clients and their companions violent. Two years ago, according to reports, a Toledo, Ohio, woman and her son robbed and threatened to shoot their Liberty Tax preparer using a curling iron wrapped in a towel.
This is another reason why we take referrals ONLY, we love when you give us the opportunity to help your friends and family, but we expect you to use refined judgement too, our preparers have the right to refuse service if our preparers are uncomfortable in any situation