Tax Preparation and Problem Solving

Taxpayers Underreporting Retirement Income: Accounting Today

2012-02-08T08:58:00.000-05:00

So whenever the 1099-R leaves the box marked "TAXABLE AMOUNT NOT DETERMINED" the taxpayer is suppose to figure out the taxable amount? How does a taxpayer figure that out without clear instruction from the IRS or the financial company that issues the 1099-R? Taxpayers Underreporting Retirement Income: Accounting Today

Senator Introduces Buffett Rule Tax Reform Bill: Accounting Today

2012-02-02T21:15:00.000-05:00

Do I hear "snowball's chance in hell" getting this bill passed? Millionaires pay 30%Senator Introduces Buffett Rule Tax Reform Bill: Accounting Today

Federal Employees Owe $3.4 Billion in Taxes: Accounting Today

2012-01-30T08:35:00.000-05:00

Time for the Feds to look in the mirror. See how much federal employees owe for back taxes: Federal Employees Owe $3.4 Billion in Taxes: Accounting Today

Obama s State of the Union and the Outsourcing Backlash: Accounting Today

2012-01-25T11:35:00.000-05:00

It's going to be a political war this year, Main St, K St, who's paying, who's receiving. The ticket to this event will, no doubt, be expensive to taxpayers and small businesses. Obama s State of the Union and the Outsourcing Backlash: Accounting Today

2012-01-24T12:04:00.004-05:00

IRS Reminds Parents of Ten Tax Benefits

Your kids can be helpful at tax time. That doesn't mean they'll sort your tax receipts or refill your coffee, but those charming children may help you qualify for some valuable tax benefits. Here are 10 things the IRS wants parents to consider when filing their taxes this year.

1. Dependents In most cases, a child can be claimed as a dependent in the year they were born. For more information see IRS Publication 501, Exemptions, Standard Deduction, and Filing Information.

2. Child Tax Credit You may be able to take this credit for each of your children under age 17. If you do not benefit from the full amount of the Child Tax Credit, you may be eligible for the Additional Child Tax Credit. For more information see IRS Publication 972, Child Tax Credit.

3. Child and Dependent Care Credit You may be able to claim this credit if you pay someone to care for your child or children under age 13 so that you can work or look for work. See IRS Publication 503, Child and Dependent Care Expenses.
4. Earned Income Tax Credit The EITC is a tax benefit for certain people who work and have earned income from wages, self-employment or farming. EITC reduces the amount of tax you owe and may also give you a refund. IRS Publication 596, Earned Income Credit, has more details.
5. Adoption Credit You may be able to take a tax credit for qualifying expenses paid to adopt an eligible child. If you claim the adoption credit, you must file a paper tax return with required adoption-related documents. For details, see the instructions for IRS Form 8839, Qualified Adoption Expenses.
6. Children with earned income If your child has income earned from working, they may be required to file a tax return. For more information, see IRS Publication 501.
7. Children with investment income Under certain circumstances a child’s investment income may be taxed at their parent’s tax rate. For more information, see IRS Publication 929, Tax Rules for Children and Dependents.
8. Higher education credits Education tax credits can help offset the costs of higher education. The American Opportunity and the Lifetime Learning Credits are education credits that can reduce your federal income tax dollar-for-dollar. See IRS Publication 970, Tax Benefits for Education, for details.
9. Student loan interest You may be able to deduct interest paid on a qualified student loan, even if you do not itemize your deductions. For more information, see IRS Publication 970.
10. Self-employed health insurance deduction If you were self-employed and paid for health insurance, you may be able to deduct any premiums you paid for coverage for any child of yours who was under age 27 at the end of the year, even if the child was not your dependent. For more information, see the IRS website.

IRS Issues Regulations on Damages Received from Physical Injury or Sickness: Accounting Today

2012-01-23T14:01:00.000-05:00

Not all personal injury lawsuit awards are excludable from income. The IRS issued new regulations that are consistent with recent court rulings. The old regulations referred to exclusing of income for "tort" type of cases. The new regulations specify that the damages must be received on account of personal physical injuries. So "pain and suffering" as a general category are not personal physical injuries unless there is some medical manifestation that can be documented by a doctor. IRS Issues Regulations on Damages Received from Physical Injury or Sickness: Accounting Today

Gingrich, really?

2011-12-15T09:51:00.001-05:00

Newt Gingrich Tax Plan Would Lower Federal Tax Revenues $1.3 Trillion

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Senate Fails to Pass Payroll Tax Cut Extension Bills: Accounting Today

2011-12-02T09:41:00.000-05:00

Senate Fails to Pass Payroll Tax Cut Extension Bills: Accounting Today

Click here to find out if the IRS owes you money.

2011-12-01T21:39:00.001-05:00

http://www.freep.com/apps/pbcs.dll/article?AID=2011111201054

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IR-2011-113: IRS Seeks to Return $153 Million in Undelivered Checks to Taxpayers; Recommends e-file, Direct Deposit to Avoid Future Delivery Problems

2011-11-30T13:39:00.000-05:00

IR-2011-113: IRS Seeks to Return $153 Million in Undelivered Checks to Taxpayers; Recommends e-file, Direct Deposit to Avoid Future Delivery Problems

MyStateWill.com | New Jersey Intestacy Calculator™

2011-11-10T12:52:00.000-05:00

When someone dies without a will, the heirs receive benefits according to State law. For a short handed approach to discovering how much the heirs will get this intestacy calculator works well. It should not be used in lieu of quality legal advise, but it is a starting point.

MyStateWill.com New Jersey Intestacy Calculator™

IRS Summertime Tax Tip 2011-12: Ten Facts from the IRS about Amending Your Tax Return

2011-08-03T10:33:00.000-04:00

IRS Summertime Tax Tip 2011-12: Ten Facts from the IRS about Amending Your Tax Return

IRS Summertime Tax Tip 2011-13: Does the IRS Have Money Waiting For You?

2011-08-03T10:31:00.000-04:00

IRS Summertime Tax Tip 2011-13: Does the IRS Have Money Waiting For You?

IRS Summertime Tax Tip 2011-11: Seven Tax Tips for Job Seekers

2011-07-29T10:29:00.000-04:00

IRS Summertime Tax Tip 2011-11: Seven Tax Tips for Job Seekers

The 2010 Tax Filing Season is here, are you ready?

2011-04-15T21:12:00.001-04:00

Tax Season here at TAX-ON-TIME is into full swing. Getting organized for your tax appointment can make the difference. Use a Tax Organizer To Prepare For Your Appointment. When you make a tax appointment at TAX ON TIME we will send you a tax organizer which includes a questionaire and information from your prior year return (if we prepared your return) so that you can check off items that have changed from the prior year, look for tax documents you get in the mail during the month of January, and add up your receipts for itemized deductions of charity and work expenses, if any. If we did not prepare your return, we will send you a blank organizer. Send your request to cipriano@tax-on-time.com

IRS Tax Tips explains Capital Gains and Losses

2011-02-21T22:16:00.000-05:00

"IRS Tax Tip 2011-35: Ten Important Facts About Capital Gains and Losses

Did you know that almost everything you own and use for personal or investment purposes is a capital asset? Capital assets include a home, household furnishings and stocks and bonds held in a personal account. When a capital asset is sold, the difference between the amount you paid for the asset and the amount you sold it for is a capital gain or capital loss.

Here are ten facts from the IRS about gains and losses and how they can affect your Federal income tax return.

Almost everything you own and use for personal purposes, pleasure or investment is a capital asset.
When you sell a capital asset, the difference between the amount you sell it for and your basis – which is usually what you paid for it – is a capital gain or a capital loss.
You must report all capital gains.
You may deduct capital losses only on investment property, not on property held for personal use.
Capital gains and losses are classified as long-term or short-term, depending on how long you hold the property before you sell it. If you hold it more than one year, your capital gain or loss is long-term. If you hold it one year or less, your capital gain or loss is short-term.
If you have long-term gains in excess of your long-term losses, you have a net capital gain to the extent your net long-term capital gain is more than your net short-term capital loss, if any.
The tax rates that apply to net capital gain are generally lower than the tax rates that apply to other income. For 2010, the maximum capital gains rate for most people is 15%. For lower-income individuals, the rate may be 0% on some or all of the net capital gain. Special types of net capital gain can be taxed at 25% or 28%.
If your capital losses exceed your capital gains, the excess can be deducted on your tax return and used to reduce other income, such as wages, up to an annual limit of $3,000, or $1,500 if you are married filing separately.
If your total net capital loss is more than the yearly limit on capital loss deductions, you can carry over the unused part to the next year and treat it as if you incurred it in that next year.
Capital gains and losses are reported on Schedule D, Capital Gains and Losses, and then transferred to line 13 of Form 1040.

For more information about reporting capital gains and losses, see the Schedule D instructions, Publication 550, Investment Income and Expenses or Publication 17, Your Federal Income Tax. All forms and publications are available at http://www.irs.gov or by calling 800-TAX-FORM (800-829-3676).