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Auto Related Deductions (File: Auto Related Deductions.pdf)
Date Posted: 12/03/14
Your automobile may provide you with several
tax deductions that may lower your income tax. As with all deductions, it’s important to maintain accurate records of your expenses. |
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Casualty and Theft Losses (File: Casualty and Theft Losses.pdf)
Date Posted: 12/03/14
The loss of business or personal property may provide a deduction on your individual income tax return. But first you need to determine if the loss qualifies for a deduction. |
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Charitable Contributions and Tax Deductions (File: Charitable Contributions & Tax Deductions.pdf)
Date Posted: 12/03/14
Giving to charitable organizations is a win/win activity for both the giver and the receiver. Gifts help the organization and can provide a tax benefit for the giver. |
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Choosing Your Business Entity (File: Choosing Your Business Entity.pdf)
Date Posted: 12/03/14
Starting a business? One of the most important decisions you’ll make is choosing what type of
entity to operate as. A business can operate under five different forms (or entities). Your decision
affects how you will be taxed and also plays a role in management, owner liability, ability to
raise capital, and the liquidation process. As your business changes, it is possible to change your form
of entity. This could be quite simple, or could turn out to be a very complex procedure. By making
an informed decision initially, you can save a great deal of time and expense later. |
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Contact From the IRS (File: Contact from the IRS.pdf)
Date Posted: 12/03/14
The IRS normally communicates with taxpayers
by letter, but other types of correspondence
occasionally occur also. There are a variety of
reasons the IRS may contact you. Some are:
• To ask minor questions or seek additional
information.
• To send a refund.
• To notify you of an adjustment on your return.
• To confirm an address change.
• To set an appointment for an audit. |
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Coverdell Education Savings Account (File: Coverdell Education Savings Account.pdf)
Date Posted: 12/03/14
What is a Coverdell Education
Savings Account?
The Coverdell Education Savings Account
(formerly called an Education IRA) is a
nondeductible individual account that allows
$2,000 per year, plus earnings, to be accumulated
for educational expenses. Contributions are
allowed for each qualified child in a family.
Distributions are both tax-free and penalty-free,
if used in accordance with the account guidelines. |
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Death and Taxes (File: Death and Taxes.pdf)
Date Posted: 12/03/14
Regardless of whether death is unexpected or
anticipated, it is always difficult and usually catches
people unprepared. A little planning goes a long way
in easing an already difficult time for our loved ones. |
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Divorce and Taxes (File: Divorce & Taxes.pdf)
Date Posted: 12/03/14
Determining the tax consequences that can arise
during a divorce or marital separation can be vital
for the financial protection and well being of
you and your family. That’s why it’s important to
understand applicable tax laws before making any
major decisions. |
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Earned Income Tax Credit Eligibility (File: Earned Income Tax Credit Eligibility.pdf)
Date Posted: 12/03/14
The earned income tax credit (EITC) is a
refundable tax credit available to certain lowincome
taxpayers who have children or who do
not have children and meet certain age and income
requirements.
Because the EITC is refundable, qualifying taxpayers
may receive a refund that exceeds the amount of
taxes they owe. |
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Education Credits (File: Education Credits.pdf)
Date Posted: 12/03/14
The Hope Credit and the Lifetime Learning Credit
were introduced in 1998 to help with higher
education expenses. The credits are available for
qualifying education expenses beyond high school
for taxpayers, their spouses, and their dependents.
The 2009 Recovery Act modified the Hope Credit
and renamed it The American Opportunity Tax
Credit |
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Health Savings Accounts (File: Health Savings Accounts.pdf)
Date Posted: 12/03/14
What is a Health Savings
Account (HSA)?
An HSA works like a savings account into which you
can deposit money on a tax-deductible basis for medical
expenses. HSAs enable you to pay for current health
expenses and save for future qualified medical and
retiree health expenses on a tax-free basis. Technically,
an HSA is a tax-exempt trust or custodial account.
HSAs must be set up through a qualified HSA trustee
such as a bank or insurance company. |
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Hobby vs. Business (File: Hobby vs. Business.pdf)
Date Posted: 12/03/14
Is Your Trade or Business a Hobby
for Tax Purposes?
Webster’s defines a hobby as an activity or interest
pursued outside of one’s regular work primarily for
pleasure. For tax purposes, the classification of a
“hobby” refers to an activity not engaged in for profit. |
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Home Ownership and Taxation (File: Home Ownership and Taxation.pdf)
Date Posted: 12/03/14
If you’re like most people, your home is the largest
investment you’ll make in a lifetime. It’s a longterm
investment that plunges most homeowners
into instant debt, but it also provides ongoing tax
deductions, such as mortgage interest and property
taxes. To take full advantage of these deductions,
it’s important to keep accurate records of your
expenses. |
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Meals and Incidental Expenses (File: Meals and Incidental Expenses.pdf)
Date Posted: 12/03/14
If you travel away from home for business and stay
overnight, the IRS allows you to deduct certain
expenses connected with that travel. This is true
whether you are an employee or self-employed.
The deduction that causes most problems and
questions from the IRS is the meal and incidental
expense deduction. |
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Qualifying Child and Dependents (File: Qualifying Child and Dependents.pdf)
Date Posted: 12/03/14
You are allowed one exemption for each person
you can claim as a dependent on your tax return.
A dependent is either a qualifying child or a
qualifying relative. |
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Reporting Gambling Proceeds (File: Reporting Gambling Proceeds.pdf)
Date Posted: 12/03/14
Have you ever wondered how gambling activities
are treated for tax purposes? Many taxpayers are
unprepared for the tax consequences of reporting
gambling winnings and losses.
Gambling winnings are fully taxable, while
gambling losses are allowed as a deduction only to
the extent of winnings. |
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Rollovers to a Roth IRA (File: Rollovers to a Roth IRA.pdf)
Date Posted: 12/03/14
Roth IRAs are different than traditional IRAs
in that the contributions are never deductible.
However, if the Roth IRA is held long enough,
the distributions are tax-free. That means you may
never have to pay tax on the earnings. Annual
contributions are not the only way to invest
in a Roth IRA. You can also rollover eligible
distributions from a traditional IRA. Such rollovers
are also called conversions. The rules for rollover
contributions are different from the rules for
making regular contributions to a Roth account. |
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Roth 401k (File: Roth 401(k).pdf)
Date Posted: 12/03/14
Beginning January 1, 2006, a new type of savings
plan became available. The Roth 401(k) is an
account to which you can make contributions in
excess of the normal Roth IRA contribution limits. |
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Roth IRA (File: Roth IRA.pdf)
Date Posted: 12/03/14
What Are the Features of a Roth IRA? An individual retirement account that allows you to exclude earnings from income tax. Contributions are not tax deductible, but if certain rules are followed, earnings are never included in income. No minimum distribution requirements for original account owner and spouse. Savings can be distributed as needed after the account is held five years and age 59½ is attained, or passed on tax-free to beneficiaries at death. |
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Saving Records (File: Saving Records.pdf)
Date Posted: 12/03/14
Why Save Records? Once you file a tax return, there is no need to keep
the records, right? Unfortunately, that perception is wrong. The main reason to save tax records is to substantiate the information reported on the tax
return. The statute of limitations for most federal tax
returns is three years. This is extended to six years if you understated
income by more than 25 percent. There is no time limit if the taxpayer does not file a return or files a fraudulent return in order to evade taxes. |
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