How do you know if someone has filed a tax return using your Social Security number to commit income tax refund fraud? And what do you do then? This is happening all the time—the latest General Accounting Office (GAO) report says that IRS paid out over $5.8 billion in fraudulent returns in 2013. The IRS does have security measures in … Read More
2016 Tax Changes: A Checklist
Welcome, 2016! As the New Year rolls around, it’s always a sure bet that there will be changes to current tax law and 2016 is no different. From health savings accounts to retirement contributions and standard deductions, here’s a checklist of tax changes to help you plan the year ahead. Individuals For 2016, more than 50 tax provisions are affected … Read More
Six New 2015 Tax Breaks
The Protecting Americans from Tax Hikes Act of 2015 is a long-awaited legislation which offers a slate of personal and business tax breaks that had expired at the end of 2014. Here’s a quick summary of how the resurrected breaks can affect your 2015 federal income tax return (Form 1040). Option to deduct state and local sales taxes instead of … Read More
2015 Tax Provisions for Individuals
From tax credits and educational expenses to the AMT, many of the tax provisions affecting individuals for 2015 were related to the signing of the American Taxpayer Relief Act (ATRA) in 2012… …tax provisions that were modified, made permanent, or extended. With that in mind, here’s what individuals and families need to know about tax provisions for 2015. Personal Exemptions … Read More
11 Tips for Year-End Tax Planning
With the end of the year approaching, it’s time for strategic moves to lower your 2015 tax bill. Strategy: Prepay deductible expenditures If you itemize deductions, accelerating some deductible expenditures into this year to produce higher 2015 write-offs makes sense — if you expect to be in the same or lower tax bracket next year. See the table at the … Read More
Choosing the Right Tax Professional
Choosing a return preparer before the next tax season allows you more time to consider the appropriate options. Doing it early also gives you the chance to find and talk with prospective tax preparers rather than during tax season when they’re most busy. Furthermore, it enables taxpayers to do some wise tax planning for the rest of the year. If … Read More
Time to Check Tax Withholding
Income tax is often withheld from wages and other types of income such as pensions, bonuses, commissions and gambling winnings. Ideally, taxpayers should try to match their withholding with their actual tax liability. If not enough tax is withheld, they will owe tax at the end of the year and may have to pay interest and a penalty. If too … Read More
Year-End Tax Planning Tips
Got your year-end tax planning underway for December 31, 2015? WE UNDERSTAND that year-end can be a drudge because it means making sure your business accounts are up to date and in order. But don’t leave it until the last minute. No decision, or rushed decisions, can lead to the wrong outcome and cost you more in taxes. Here are … Read More
Is Your Accountant Right for Your Business?
Is Your Accountant Proactive or Reactive? Does your Accounting and Tax Firm offer you advice before it happens or late or not at all? Do they offer value added services that help your business improve and grow or do they just process your work? Are they constantly looking for legitimate but creative ways to minimize your taxes or do they … Read More
Is Forgiven Debt Taxable?
Generally, debt that is forgiven by a lender is considered taxable income by the IRS and must be included as income on your tax return. Examples include a debt for which you are personally liable such as mortgage debt, credit card debt, and sometimes, student loan debt. When that debt is forgiven, negotiated down (when you pay less than you … Read More