Camala Templeton, EA

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noreply@blogger.com (Anonymous) — Sun, 24 Mar 2019 05:25:00 +0000

Attention S Corp Business Owners Are You Paying Yourself a Reasonable Sa...

noreply@blogger.com (Anonymous) — Tue, 01 Jan 2019 01:46:00 +0000

Have you thought about any last minute actions for this years taxes You ...

noreply@blogger.com (Anonymous) — Fri, 14 Dec 2018 17:13:00 +0000

If you are in a solid position financially, a good way to use the tax co...

noreply@blogger.com (Anonymous) — Tue, 11 Dec 2018 16:46:00 +0000

With tax reform many taxpayers have not adjusted their tax payments corr...

noreply@blogger.com (Anonymous) — Wed, 05 Dec 2018 21:54:00 +0000

If your itemized deductions are slightly less than the standard deductio...

noreply@blogger.com (Anonymous) — Wed, 05 Dec 2018 21:38:00 +0000

Year end tax planning Have you ever thought about pre paying your state ...

noreply@blogger.com (Anonymous) — Fri, 16 Nov 2018 14:56:00 +0000

A Thanksgiving Thank You!

noreply@blogger.com (Anonymous) — Thu, 15 Nov 2018 23:17:00 +0000

Year end tax planning tip: Are you paying outstanding medical or dental ...

noreply@blogger.com (Anonymous) — Tue, 13 Nov 2018 02:20:00 +0000

Legitimate Tax-Deductible Charity or Scam?

noreply@blogger.com (Anonymous) — Tue, 06 Nov 2018 18:22:00 +0000

Articles Highlights:

Holiday Giving
Scammers and How to Avoid Them
Verifying Legitimate Charities
Substantiation
Special Situations

With the holiday season approaching, and with the great need for aid in the wake of the recent hurricanes and wildfires, you no doubt are being solicited for donations. However, do not be fooled by the scammers who come out from hiding whenever there is a disaster and during the holiday season. The last thing you want to do is get ripped off; not only will your charitable dollars go to waste, but you will also lose your tax deduction, as contributions are only tax-deductible if they are made to qualified charities.

Soon, your physical and electronic mailboxes – not to mention your voicemail box – will be filled with charitable solicitations. Before you break out your checkbook, however, be sure to do your homework, especially if you are contemplating a donation to an organization that you are not already familiar with. The Federal Trade Commission suggests avoiding any charity or fundraiser that

refuses to provide detailed information about its identity, mission, and costs, as well as how your donation will be used;
will not provide proof that your contribution would be tax-deductible;
uses a name that closely resembles that of a better-known (more reputable) organization;
thanks you for a pledge that you do not remember making;
uses high-pressure tactics to get you to donate immediately;
asks for donations in cash or asks you to wire money; or
offers to send a courier or overnight delivery service to collect a donation immediately.

Numerous websites can help you to check the validity of a charity. The IRS provides one, but it is rather cumbersome to use. Charity Navigator allows you to search for a charity name and provides details about that charity’s function. When in doubt, take the time to verify a charity’s legitimacy.

If you plan to itemize your deductions – after you have determined that you are not contributing to a scam operation – ensure that your charitable donations meet the requirements for being tax-deductible. The recipient organization must be one or more of the following:

a church, synagogue, mosque, or other place of worship;
a tax-exempt educational institution or hospital;
a federal, state, or local governmental unit, if the contribution is used for public purposes;
a publicly supported corporation, trust, fund, foundation, or community chest that is organized and operated only for charitable, religious, educational, scientific, or literary purposes; to prevent cruelty to children or animals; or to foster certain national or international amateur sports competitions; or
a certain type of private operating foundation or agricultural research organization.

Substantiation – First and foremost, you must receive substantiation of your cash gift in order to deduct it on your tax return; you also must itemize your deductions rather than use the standard deduction. Cash contributions include those paid by cash, check, electronic fund transfer, and credit card. However, you cannot deduct a cash contribution, regardless of the amount, unless you can document the contribution in one of the following ways:

A bank record that shows the qualified organization’s name, as well as the date and amount of the contribution. Eligible bank records include a. a canceled check, b. a bank or credit union statement, or c. a credit card statement.
A receipt (or a letter or other written communication) from the qualified organization showing the organization’s name, as well as the date and amount of the contribution.

Cash contributions of $250 or more – To claim a deduction for a contribution of $250 or more, you must provide a written acknowledgment of the contribution from the qualified organization. This acknowledgment must include the following details:

The amount of cash contributed
Whether the qualified organization gave the taxpayer goods or services (other than certain token items and membership benefits) as a result of the contribution, including a description and good-faith estimate of the value of those goods or services (not counting intangible religious benefits)
A statement that you received no benefit (other than an intangible religious benefit)

The value of any goods or services received in exchange for a donation must be subtracted from the amount claimed as a contribution. If the acknowledgment does not show the date of the contribution, then you must also supply one of the bank records described above to verify the contribution date. If this acknowledgment includes the contribution date and meets the other requirements, it is not necessary to provide other records.

The acknowledgment must be in your hands before the date you file your tax return but not later than the April due date for return (or the extended due date of October if you filed an extension).

Christmas Kettles – It is quite common for charitable organizations to collect cash donations at malls during the holiday shopping season. Consider writing a check to place in these kettles rather than using cash so that you will have the substantiation required for a tax-deductible contribution.

Needy Individuals – You may wish to help out a needy family; although that is a very kind thing to do, no charitable deduction is allowed for such gifts to private individuals (either directly or as through a charitable organization).

GoFundMe – Through this website (and others like it), people raise funds for good causes such as starting a business, paying medical bills or funeral costs, replacing damaged or destroyed homes. However, these websites are not qualified charities for the purposes of claiming a charitable contribution on your tax return.

Special Contribution Rule for Taxpayers Age 70½ and Over – The tax code includes a special provision that allows taxpayers who are at least 70½ years old to directly transfer up to $100,000 from an IRA account to a qualified charity. Instead of receiving a charitable deduction, that person instead gets the benefit of the IRA distribution being nontaxable and counting toward the required minimum distribution for the year. This is especially beneficial for people who receive Social Security benefits and those who take the standard deduction. Although this is generally considered a good tax-saving strategy for those who can afford to make large donations, there is actually no minimum for this rule, so it will likely even benefit individuals in lower tax brackets.

Bunching – When taxpayers’ itemized deductions are only marginally different from the standard deduction, they can consider the method known as bunching. In this technique, the taxpayer make two years’ worth of donations in a single year and then skips making donations in the next year. For example, if you annually contribute $5,000 to a house of worship but have total itemized deductions that are consistently a few hundred dollars less than the standard deduction, you can instead double up by donating $10,000 in a single year. That way, you will be able to claim itemized deductions for the year when you make the donation and can then take the standard deduction in the following year.

For large donations, there are limitations based on adjusted gross income, and there are other available techniques, such as donor-advised funds. This article also did not covered donations of noncash items, such as used furniture or household goods; these have additional substantiation requirements. Please call if you have questions or if you would like to set up an appointment to strategize about maximizing the tax benefits of your charitable contributions.

Important steps to protect your business from embezzlement

noreply@blogger.com (Anonymous) — Thu, 11 Oct 2018 03:16:00 +0000

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We Can Help!

noreply@blogger.com (Anonymous) — Tue, 09 Oct 2018 22:24:00 +0000

When You Should Amend A Tax Return

noreply@blogger.com (Anonymous) — Tue, 09 Oct 2018 22:20:00 +0000

Got Healthcare?

noreply@blogger.com (Anonymous) — Mon, 13 Nov 2017 17:11:00 +0000

Affordable Care Act open enrollment is underway now through Dec. 15. Despite Republican efforts to repeal and replace it, Obamacare is still the law. If you don't have acceptable health insurance, use the ACA enrollment time to get a policy in place or so that you avoid a penalty at tax time! Get Covered!

We Can Help!

noreply@blogger.com (Anonymous) — Mon, 23 Oct 2017 04:11:00 +0000

Business owners juggling too much - let Ascend Tax & Accounting ease some of the burden!

The Latest from the IRS on Identity Theft

noreply@blogger.com (Anonymous) — Tue, 08 Aug 2017 01:05:00 +0000

From the IRS' Summertime Tax Tip Series comes an article packed with information on how to protect yourself from Identity Thieves.

Eight Tips to Protect Taxpayers from Identity Theft

Identity theft happens when someone steals personal information for financial gain. Tax-related identity theft happens when someone uses another person’s stolen Social Security number (SSN) or Employer Identification Number (EIN) to file a tax return to obtain a fraudulent refund.

Many people first find out they are victims of identity theft when they submit their tax returns. That’s because the IRS lets them know someone else already used their SSN to file.

The IRS continues to work hard to stop identity theft with a strategy of prevention, detection and victim assistance. So far, the agency has stopped millions of dollars from getting into the hands of thieves.

Check out these eight tips on how to protect against identity theft:

1. Taxes. Security. Together. The IRS, the states, and the tax industry need everyone’s help. The IRS launched The Taxes. Security. Together. awareness campaign in 2015 to inform people about ways to protect their personal, tax and financial data. Learn more at www.IRS.gov/TaxesSecurityTogether.

2. Protect Personal and Financial Records. Taxpayers should not carry their Social Security card in their wallet or purse. They should only provide their Social Security number if it’s necessary. Protect personal information at home and protect personal computers with anti-spam and anti-virus software. Routinely change passwords for online accounts.

3. Don’t Fall for Scams. Criminals often try to impersonate banks, credit card companies and even the IRS hoping to steal personal data. Learn to recognize and avoid those fake communications. Also, the IRS will not call a taxpayer threatening a lawsuit, arrest or to demand immediate payment. Beware of threatening phone calls from someone claiming to be from the IRS.

4. Report Tax-Related ID Theft. Here’s what taxpayers should do if they cannot e-file their return because someone already filed using their SSN:

File a tax return by paper and pay any taxes owed.
File an IRS Form 14039, Identity Theft Affidavit. Print the form and mail or fax it according to the instructions. Include it with the paper tax return and/or attach a police report describing the theft if available.
File a report with the Federal Trade Commission using the FTC Complaint Assistant.
Contact Social Security Administration at www.ssa.gov and type in “identity theft” in the search box.
Contact financial institutions to report the alleged identity theft.
Contact one of the three credit bureaus so they can place a fraud alert or credit freeze on the affected account.
Check with the applicable state tax agency to see if there are additional steps to take at the state level.

5. IRS Letters. If the IRS identifies a suspicious tax return with a taxpayer’s stolen SSN, that taxpayer may receive a letter asking them verify their identity by calling a special number or visiting an IRS Taxpayer Assistance Center.

6. IP PIN. If a taxpayer is a confirmed ID theft victim, the IRS may issue them an IP PIN. The IP PIN is a unique six-digit number that the taxpayer uses to e-file their tax return. Each year, they will receive an IRS letter with a new IP PIN.

7. Report Suspicious Activity. If taxpayers suspect or know of an individual or business that is committing tax fraud, they can visit IRS.gov and follow the chart on How to Report Suspected Tax Fraud Activity.

8. Service Options. Information about tax-related identity theft is available online. The IRS has a special section on IRS.gov devoted to identity theft and information for victims to obtain assistance.

For more on this Topic, see the Taxpayer Guide to Identity Theft.

Avoid scams. The IRS does not initiate contact using social media or text message. The first contact normally comes in the mail. Those wondering if they owe money to the IRS can view their tax account information on IRS.gov to find out.

Additional IRS Resources:

Publication 5027, Identity Theft Information for Taxpayers
Publication 5199, Tax Preparer Guide to Identity Theft
Publication 4524, Security Awareness-Identity Theft Flyer
Publication 4523, Beware of Phishing Schemes
Tax Topic 101, IRS Services – Volunteer Tax Assistance, Outreach Programs, and Identity Theft
IRS Tax Map, Identity Theft

RX Tax Deductions

noreply@blogger.com (Anonymous) — Sun, 28 Aug 2016 06:03:00 +0000

I do not have allergies, that I am aware of; however, my son is allergic to most everything it seems. At a certain time of the year, he sniffles, sneezes and has watery eyes for long stretches of time. Fortunately, we are able to remedy a great deal of his ailments with over-the-counter allergy medicines. Those who rely on EpiPens are in a bad place with the EpiPen price increases.

The lifesaving EpiPens are used when a person has an allergic emergency - anaphylaxis. The EpiPen dispenses epinephrine; which, according to the NewYork Times, will reverse swelling, closing of the airways and other symptoms of severe allergic reactions to bee stings, peanuts or other allergens. These pens are important for children and adults to carry at all times. Mylan Pharmaceuticals acquired the EpiPen in 2007. At that time, it was priced at $100 for a two-pen set. It is now running at more than $600 for the set, according to GoodRx.

Mylan is undergoing questioning on the price hike. The CEO, Heather Bresch, chalks it up to running a for-profit business.

Meanwhile, what can you do with the expenses you incur from purchasing these pricey pens? The best case scenario is your insurance carrier covering the cost of the pens. If that is not the case or there is a copay involved, the out-of-pocket medical expenses can be paid or reimbursed with non-taxed dollars.

A Flexible Spending Account (FSA) is a great way to set aside pre-tax dollars to pay the cost of copays, medications and other medical expenses. This option is beneficial tax wise as fewer dollars are subject to tax. The drawback to this type of account-it is a use it or lose it plan. The money must be spent by a certain date or it is forfeited.
A Health Spending Account (HSA) plan is similar to the FSA except the money in the account is not forfeited at the end of the time period. An HSA is a tax-exempt account that is part of a high deductible health plan. This account is used to pay or reimburse certain medical expenses. After-tax dollars contributed to the HSA can qualify for a tax deduction without itemizing. Contributions can be made through the employer payroll deduction with pre-taxed dollars (these do not qualify for the tax deduction because they are pre-tax). The contributions stay in the account until they are used.
Medical deduction through itemizing is another option. All your medical expenses must exceed 10 percent of adjusted gross income (AGI). If you are 65 or older you have a 7.5 percent limit. How this works is if your AGI is 50,000, your medical expenses must be 5001 to take 1 dollar of medical deduction on your tax return (assuming your total itemized deductions are greater than the standard deduction-more on this another day).

This is not an answer to the rising cost of medicine but hopefully it will help at tax time.

Let's Help Louisiana

noreply@blogger.com (Anonymous) — Wed, 24 Aug 2016 08:25:00 +0000

Picture courtesy of Pixabay

Catastrophic is one word I'd use to describe the Louisiana flood. As the CNN report states; 60,000 homes damaged, 6.9 trillion gallons of rainfall in one week, $30 million in estimated cost and the most tragic are the many lives lost. There is controversy over whether political figures visited the devastation untimely or planned later arrivals to allow rescue crews to perform without interference. Whatever the case, Louisiana has been declared a state of emergency and tax relief is in place for the flooding victims.

Help is needed in a great way. Many families are in need of support from Americans across our Nation. If you want to help, monetary donations are welcome. Send cash donations to trusted organizations such as:

The Salvation Army: Gulf Coast Flood Relief Efforts – click the link to donate online or text STORM to 51555.
The American Red Cross: Louisiana Floods – click the link to donate online.

“We talk a lot about hope, helping, and teamwork. Our whole message is that we are more powerful together” – Victoria Osteen

As small reminder, your charitable contribution may provide a tax deduction.

Read more about the flooding devastation and see the numbers associated on the CNN website: Louisiana's Mammoth Flooding By The Numbers

Divorce & Taxes

noreply@blogger.com (Anonymous) — Sun, 21 Aug 2016 08:06:00 +0000

This photo is courtesy of Pixabay.com

Unfortunately, life doesn’t always work out as planned. One day, love is in the air, flowers are blooming and vows are promised. The next day, the couple is in court dividing property down to who gets Fido! What happens to the tax return - part of the year, the couple was married, the other part they weren’t? Are they able to file a joint tax return since they were married part of the year? Can they file married filing separate? Who gets to claim the child?

These are very good questions and very common. Here are some answers that may help:

Marital Status: December 31^st is the date to remember in terms of what filing status should be claimed on the tax return. Marital status at the end of the tax year determines how the tax return should be filed. It doesn’t matter whether or not the marriage lasted for more than half the year. If the divorce was finalized on December 31^st, do not file a joint tax return nor a married filing separate tax return.

The appropriate filing status may be single. If there is a qualifying child, then the head of household filing status may apply. The head of household status is more favorable because it provides a larger standard deduction ($9,300 in 2016 versus $6,300 for the single status).

Who claims junior? Review the divorce decree for specifications as to which party claims the dependent for which year. The non-custodial parent should request the custodial parent sign the Form 8832 and the non-custodial parent attach this signed form to the tax return. According to 26 US Code §152(e)(2) the non-custodial parent needs to attach written release of claim to be granted the dependency exemption (claim the child).

Alimony This is taxable income to the recipient. Child support is not taxable income however, alimony is and must be claimed as income not subject to self-employment tax. The payer of alimony receives a tax deduction on their return for the payments made. Again, there is not a deduction for child support as it is not taxable income.

Tax law can be complicated, seek the assistance of a trusted advisor, a tax professional.

This blog is not meant to offer legal or comprehensive advice. You should consult a tax professional for questions regarding your unique situation.

IRS and Identity Theft

noreply@blogger.com (Anonymous) — Sun, 03 Jan 2016 23:23:00 +0000

https://youtu.be/aMH8TBeA4lE

Resolutions

noreply@blogger.com (Anonymous) — Sat, 02 Jan 2016 21:24:00 +0000

Forbes Now: Avoid IRS Problems And Save Taxes With These Simple Resolutions. http://google.com/newsstand/s/CBIwuvf9gSQ

Free File

noreply@blogger.com (Anonymous) — Fri, 16 Jan 2015 17:30:00 +0000

Google Images

Free File now available, get a jump on your taxes

The IRS has worked with major tax return providers to offer Free File. If your income is below $60,000, you can use free tax preparation software.

Warning...while the Federal tax return is free, not all State returns are free.

You can begin preparing your tax returns now. The companies will securely hold your completed tax return until January 20, 2015, when the IRS begins accepting returns.

For more information or begin using the IRS Free File, please click on the link:

IRS Free File.

*Google Images: http://www.davidhill.co/2014/06/get-first-month-free-vcloud-hybrid-service/

This blog is not meant to offer legal or comprehensive advice. You should consult a tax professional for questions regarding your unique situation.

Accounting: Year End Wrap Up

noreply@blogger.com (Anonymous) — Sun, 11 Jan 2015 14:00:00 +0000

It is that time of year to wrap-up your accounting and prepare for 2015. Is your accounting ready for Uncle Sam? Do your ending balances in the temporary accounts begin 2015 with zero balances? The checklist below contains some of the important items that need your attention to ensure you are ready to submit your tax return with no surprises.

Reconcile all bank, credit card and petty cash accounts	Reconciling is a matching process that ensures the accuracy of your accounts. The petty cash account should be replenished so the amount on hand is equal to the balance in the account and all disbursements are recorded.
Make year-end adjusting entries	Accrued Revenues	Revenues/Receivables have been earned, but the invoices have not yet been processed
	Accrued Expenses	Expenses/Payables have been incurred, but the invoices have not been processed.
	Deferred Revenues	Currency received in advance of being earned
	Deferred Expenses	Currency paid for future expense
	Depreciation Expense	An asset purchased and cost allocated to expense in its useful life periods
Close the books	Set a closing date to limit changes to prior year data
Adjust Retained earnings/Owners capital account	Close out the income into the retained earnings section of the financial statement.
Review fringe benefits that need to be reported on Form W-2	Taxable fringe benefits are considered compensation and must be reported on the W-2 such as bonuses, vacation, personal use of an employer-provided vehicle, excess moving expenses paid, group term life insurance in excess of $50,000, clergy housing cash.
Take a physical inventory and reconcile with book inventory	Count all inventory and compare it to what should be on hand according to the accounting records.
Print financial reports	Print the Balance Sheet, Income Statement, Statement of Cash Flows, and Statement of Retained Earnings/Owner’s Equity
Print and file information returns	See General Instructions for Certain Information Returns on the IRS.gov website. Due dates. File Forms 1097, 1098, 1099, 3921, 3922, or W-2G electronically through the FIRE System by March 31, 2015. File Forms 5498, 5498-ESA, or 5498-SA by May 31, 2015. In general, the recipients must receive their statements posted by January 31 or February 15 or on a website accessible to the recipient through October 15
Archive and backup data

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This blog is not meant to offer legal or comprehensive advice. You should consult a tax professional for questions regarding your unique situation.

Avoid Common Tax Return Errors

noreply@blogger.com (Anonymous) — Tue, 06 Jan 2015 14:00:00 +0000

“The hardest thing in the world to understand is the income tax.” — Albert Einstein, physicist

At the close of each tax filing season, the Internal Revenue Service (IRS) compiles a list of the most common errors taxpayers make when filing their tax returns. Believe it or not, incorrect mathematical calculations are not the number one error. The most frequent offense for the past several years is incorrect Social Security numbers being submitted on individual income tax returns.

According to the IRS, the eight common tax-filing errors to avoid are:

Wrong or missing Social Security numbers.
Wrong names.
Filing status errors (single, head of household, married filing joint/seperate, qualifying widow)
Math mistakes.
Errors in figuring credits or deductions.
Wrong bank account numbers.
Forms not signed or dated.
Electronic filing PIN errors.

Many of these errors can be avoided by e-filing the tax return. If there is an issue with the return, the IRS e-file system will reject the return. This may delay processing the tax return and receiving the refund ultimately.

For more information, please visit: IRS.GOV

Contacting Camala Templeton, EA is the easiest way to e-file. Camala keeps current on tax law changes.

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This blog is not meant to offer legal or comprehensive advice. You should consult a tax professional for questions regarding your unique situation.