Is There a Fairer Tax System for America?

I’ve been a certified tax preparer since 2003, and the tax code has done nothing but get more complicated for everyone, less favorable for the low and middle class, and is down right unfair to people who actually saved for retirement via any tax-deferred savings account. The extreme poor, who benefit from the taxes we […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

When Businesses Barter Is it Taxable Income?

Due to our slow moving economy, we’ve seen an increase in businesses bartering with one another. Bartering occurs when you exchange goods or services without exchanging money. An example of bartering is a plumber doing repair work for a dentist in exchange for dental services. – IRS Topic 420 So, is this exchange considered taxable […]