Tag: taxes

Getting the Most Out of Your Education

Did you know that by including certain scholarships as income you might be able to increase your education credit, reduce your total tax, or increase your tax refund?   The key is finding awards that may be used for other expenses such as books, or  room and board.

For detailed instructions on determining what kinds of grants and scholarships are eligible and how to apply these for best tax savings, see Maximizing the higher education tax credits: Including a scholarship in gross income can sometimes save on taxes in the Journal of Accountancy.

 

Go Tax Paperless

Ready to ditch your file cabinet?  Explore going paperless with your tax documents.  A great start is organizing your files using a document scanner.  Many of these have wifi capabilities and function as part of your at-home network.  Shredding old paper documents helps protect against identity theft.
Once your scanning is complete, create one file on your computer to hold these documents.  Be sure to back-up your documents in more than one place, such as on a flash drive, external drive, or a personal cloud.  Experts suggest keeping these files for up to seven years.  Make collecting this information easy by tracking receipts and invoices with simple budgeting apps and watch the clutter in your home office disappear.  Want to learn more?  Click here: How to Go Paperless in Your Home Office

 

How The Younger Set Lives

Millennials are getting the raw end of the deal. Both state and national policies tend to favor the older and more affluent. Medicare costs often outweigh money paid in taxes by those who benefit, and programs that support higher education have been cut, leaving students with more debt. The millennials of our country have flat incomes and wealth is down.
What can be done about this issue? How do we insure financial safety for the youngest members of the workforce?  Not to be left behind, many of this set are finding their way into politics.  Maybe this will be the answer?

Spend More Make Less?

The IRS outsourced tax collection in an effort to “put a dent in the $138 billion that taxpayers owe the government.”  This action cost the agency $20 million and netted a little over six million in past due monies.  Combined with contractor payments and relatively low collection rates, other cost factors included the streamlined approval of “tax-exempt organizations” as well as lack of funding for better direct (IRS) communication with tax payers.

I.R.S. Paid $20 Million to Collect $6.7 Million in Tax Debts

Musicians Filing Taxes

Here in #ATX, the self-proclaimed, “Music Capital of the World,” we play host to all levels of musicians.  This article from Tom Tom magazine offers a great look at best practices for filling taxes as a working musician.   Drummer and owner of Math LLC, a tax preparation service, Emily Kingan, gives detailed information on all things money from handling cash transactions to dealing with a multi-facited career.  Tips from an Accountant: The Best Way for Musicians to Do Their Taxes.  

Repair or Improvement?

What is the difference between a home repair and a home improvement?  As defined by the IRS, an improvement lasts for more than one year and adds value to your home.  There are exceptions, such as when the upgrade is no longer part of your residence.  (Ex. You installed wall-to-wall carpet years earlier and then replaced it with wood flooring.). In cases of fire damage and natural disasters, all work applies, from the smallest repair to the largest addition.  Knowing these details is especially important when you plan to sell your home because it may help reduce the taxes you owe on profit.

Tax differences between home repairs & home improvements

Short-Term Rentals

Ever thought about renting your home for holiday travelers or summer vacationers?  Or maybe during a music festival or race?  There are tax implications that come with this type of real estate.  Before you take the plunge, read this informative article by Mike D’Avolio, CPA, J.D. for the Journal of Accountancy.

Short-term rentals, the sharing economy, and tax

Taxes?

What do you think about taxes?  Are they a good way to support public services? How do you vote when raising or lowering taxes is on the ballot?  What would you do without, say, your public library?

In the current anti-tax climate, some towns are finding it hard to produce enough money to keep even basic city services afloat.

Where Anti-Tax Fervor Means ‘All Services Will Cease’

Home Office Deductions

As we enter tax season, it’s time to examine a variety of deductions you may be eligible to take.  Home office deductions are a simple way to recoup money when using your home as an office space.   Those who are self-employed or part of an LLC have one form to complete this process, but S-Corp brings a new challenge.  Thank you to wilsonrogers.net for this detailed description of how to legally claim this important deduction.

S-Corp Home Office Deduction

The IRS Always Sends A Bill First

safety-first-283x300Recently there has been a rash of phone scams concerning taxes.  Many people have paid money over the phone, believing that they would be in trouble with the US government if they did not.  As a certified public accountant, I wanted to make sure you understand that the IRS will always send you a letter first.  They do not make cold calls demanding money.  Please read this article to better inform yourself about the scams currently in play, and remember that the IRS will not call you, they will send a bill.

Phone Scams Continue to be a Serious Threat, Remain on IRS “Dirty Dozen” List of Tax Scams for the 2016 Filing Season