By: Julian Block Tax Planning Views: 2016 | Comments: 0 | Votes: 0
Many refund delays, time-consuming correspondence and audits are triggered by taxpayer carelessness. Here are some IRS reminders about items to check in advance of filing your return, along with some steps to take afterward. START WITH THE BASICSCheck the package of forms and schedules that came from the IRS. First read the instructions to make sure you have all the ones you need. More
By: Yolanda Trimble Tax Planning Views: 1999 | Comments: 3 | Votes: 0
The Energy Policy Act of 2005 replaced the clean-fuel burning deduction with a tax credit. A tax credit is subtracted directly from the total amount of federal tax owed, thus reducing or even eliminating the taxpayer’s tax obligation. The tax credit for hybrid vehicles applies to vehicles purchased or placed in service on or after January 1, 2006. More
By: Jill Cooper Tax Planning Views: 1985 | Comments: 0 | Votes: 0
It's that time of year when all that "free" money starts rolling in. I'm talking about the bonus money, you know -- the fun money (otherwise known as our tax refund)! We are going to do so much with it and it seems to have such amazing powers. I mean a $1000 tax return can buy a car, furniture, big screen TV, or a family vacation all in one fell swoop. It is not mad money. More
By: Julian Block Tax Planning Views: 1943 | Comments: 0 | Votes: 0
You need no reminder to hold on to your tax records in case your returns are questioned by the Internal Revenue Service. But just how long do you need to save those old records that clutter up your closets and desk drawers? Unfortunately, there is no flat cutoff and the time limits go all over the lot. But wait! The audit, admonishes the IRS, can begin "at any time." More
By: Yolanda Trimble Tax Planning Views: 1753 | Comments: 0 | Votes: 0
Suggested Holding Periods for Tax Records:1. It is a good policy to save copies of your 1040 and supporting schedules indefinitely.2. The IRS requires record retention as long as they are important for Federal Tax law. Keep ALL--bank statements, checks, receipts and other financial records for at least three years, especially those documents that will support your tax return figures.4. More
By: Julian Block Tax Planning Views: 1743 | Comments: 0 | Votes: 0
This year, the deadline for filing Form 1040 is Tuesday, April 17. The additional time is because the 15th falls on a Sunday and the 16th is a legal holiday in the District of Columbia. Miss the deadline and you could get nicked for a sizable, nondeductible penalty. The maximum penalty is 25 percent of the balance due. More
By: Kristine A. McKinley, CFP, CPA Tax Planning Views: 1735 | Comments: 0 | Votes: 0
There are three types of tax that you will be responsible for when you start your eBay business. They are 1) sales and use tax, 2) payroll tax and 3) income tax.Sales and use tax - Just about every state, and many cities and other local authorities, imposes a sales tax on items sold. Each state has different rules, so it's important to find out the rules in your state and city. More
By: Steven Leibold, EA Tax Planning Views: 1190 | Comments: 0 | Votes: 0
Required Minimum Distributions (RMD) are required taxable distributions from qualified retirement plans and are commonly associated with traditional IRAs, but they also apply to 401(k)s and SEP IRAs. The tax code does not allow taxpayers to indefinitely keep funds in their qualified retirement plans. More
By: GrowthRapidly Tax Planning Views: 872 | Comments: 0 | Votes: 0
The 401k contribution limits for 2020 is $500 more than the contribution limits for the year of 2019. If you’re at least younger than 50 years old, you can contribute up to $19,500 in 2020. The 401k contribution limits for older employees, i.e., 50 years and older, is $19,500 plus an extra $6500.That extra is called a catch up contribution limit. More
By: Kevin E. Thorn Tax Planning Views: 648 | Comments: 0 | Votes: 0
Many employees spend the bulk of their working lives trying to become a partner of the business to which they’ve devoted so much of their time and effort. Employees are typically rewarded for their hard work and dedication, while partnerships offer the chance to retain a highly-prized asset. An employee typically gets a W-2 and files an annual tax return. More
