Before I start-in on the answer to this question, please understand this article only pertains to individuals who use their personal vehicle for self-employed, freelance, or 1099 contract work. Any work you do for an employer from whom you receive a form w-2 does not apply; even if you are the owner. If you (as […]
What to do When You OWE the IRS and Cannot Afford to Pay
What should you do if you cannot pay now, neither do you believe you can afford to pay throuugh a stream-lined installment agreement? You can submit a Form 433-A for Wage Earners and Self-Employed (see instructions in IRS Pub 1854 – How to Prepare form 433-A) to appeal the collections process. Form 433-A is six […]
An Income Tax Preparers’ Secret Loves
I’m sitting here working on my clients taxes and thinking… There are a few things I LOVE to see and hear from my clients. I decided to share a few of them with you. I LOVE to see Form 1099-INT (Interest Income) that is independent from your to do with a home mortgage escrow account. […]
Can You Take the Tax Credit for Your New Electric Vehicle? For Some, But Not All
What a great sales and marketing scheme to move more electric vehicles off your sales lot! Tell you customers they can get a tax credit for it, and wallah! People will buy an eco vehicle even if they’re not concerned about their carbon footprint. So sorry… The bubble-buster is here to set the record straight […]
Affordable Care Act Penalty Examples – 2015 Income Tax Return
Yes… the penalty for not having medical insurance has increased this tax year. Whereas it was relatively painless on your 2014 income taxes, at about $95 per person, it’s much higher in 2015 and will be even higher in 2016. I will post various scenarios throughout this tax season; but for now, here are just […]
What Are ‘Qualified Education Expenses’ for Income Tax Purposes
Once you’ve chosen a school, your qualified education expenses (registration, tuition, books & supplies, and in some cases, activity fees) are generally tax advantageous unless those expenses were offset by a scholarship or grant of some kind. The two most applicable education credit options are the American Opportunity Credit and the Lifetime Learning Credit. There is also […]
Calling the IRS? Expect Major Delays
Due to major budget cuts in the IRS you should expect: Delays in refunds are expected especially for taxpayers who are still filing paper returns Major sloooowwww downs on tax returns errors Extensive delays on getting questions answered on the phone due to the reduced number of IRS agents. I’m already hearing reports of people […]
It’s Tax Time 2015!
Hello Clients and Friends The 2015 Tax Season officially begins on January 20th. I will officially begin working with clients on Saturday, January 24th. In an effort to combat the rampant fraud, the IRS continues its crackdown on tax preparers. This will require me to ask even more questions and even obtain proof of certain […]
I don’t fight dirty and don’t want money from clients who want to fight dirty
I have had my small tax business since 2003; and over the years I’ve retained more clients than I lost. I’m glad to know that of the clients lost, most of them were due to my straight, by-the-book, no-nonsense approach to income tax preparation. My goal has been and will always be three-fold: To provide […]
Where’s My Adjusted Gross Income? AGI?
Sometimes, when completing forms such as those for financial assistance, you’ll be asked to provide your Adjusted Gross Income, also called your AGI. Adjusted Gross Income is defined as gross income minus adjustments to income. Where you’ll find it on your income tax forms depends on which form you filed. Here’s where you should look […]