Yes, those codes in box 12 on your W-2 form really do have meaning. Sometimes using the right code on your income tax preparation can result in an added tax break for you. Other times, for example with code DD, you can see just how much your employer has paid out so that you could […]
Tax Season 2014 Has Begun – Yes, I’m Preparing Taxes this Year
Hello Clients and Friends I’m sure many of you have wondered just where is your dear tax lady Michelle. Well, I am still here and have been trying to figure out how to make this tax season work for us. I have many uncertainties and demands on my schedule, making it difficult (if not impossible) […]
How the Affordable Care Act Impacts Your Taxes
The 2014 tax year will look very similar to past years; but 2015 is when you’ll see the changes. You may: pay more taxes (especially for high income earners – ie those above $200,000/year) See forms and receive notices from the IRS that you’ve never seen before Receive tax forms from your health insurance company […]
When is the Soonest I Can Get My Taxes Prepared in 2014?
The 2014 tax season officially begins on January 31, 2014. That is the soonest you can get your taxes prepared IF you have all of your W-2, 1099 and other tax forms in your possession. A few years ago we saw a trend where tax preparers would prepare and e-file a client’s tax return using […]
Obamacare Open Enrollment Starts Now
Like it or not. Want it or not. Agree with it or not… #Obamacare is here and “Covered California” open enrollment begins OCTOBER 1ST, 2013. #Mandatory #healthcare coverage begins 1/1/14. Anyone who does not have health #insurance by 3/14/14 can expect to pay a fine when you do your 2014 income tax return. If you […]
Can I Claim My Spouse As a DEPENDENT? — NO
I keep hearing this crazy notion of one spouse claiming the other spouse as a dependent. What’s most disturbing is that I’m hearing tax preparers state this absurdity, sending their clients on wild goose chases to gather sufficient documentation as proof that their spouse has no gross income so they can claim the spouse as […]
Things Small Business Owners Do The IRS Calls “Negligence” and “Intentional Disregard”
Somewhere in the world of small business we’ve come up with clever ideas to keep the IRS from getting all of the tax dollars due to them. I’m not sure why, but we think we can outsmart the highly trained and educated IRS auditor who makes his living investigating financial rabbit trails. You should know […]
Sole proprietor and Independent Contractors Prepare for Tax Season
As a sole proprietor/independent contractor, your income is the most heavily taxed of all wage earners. You will be assessed a federal tax, state tax, local tax, and a self-employment tax. The best way to lower your tax liability (the amount of tax dollars you owe to these entities) is for you to take time […]
2013 Tax Season – Income Tax Preparation by Michelle Walker-Wade
This year’s tax season is off to a late start, with the IRS not opening until January 30th, and other regulatory agencies adding more requirements and deadlines to the tax preparers. Having said that, I will begin seeing clients in February, but may not be able to offer certain services until closer March. Know that […]
Early Withdrawal From Retirement Penalty – What Are the Exceptions?
For the most part, any person who withdraws funds from his or her tax-deferred 401k or IRA account before reaching age 59 1/2 will end up paying 40% or more in income taxes and penalties. You may ask the financial institution to withhold taxes, and they will do so, but only up to a certain […]