Tax Tips

Applying Early for Social Security Benefits

Early retirement is an option for many taxpayers. However, before making the decision, you need to be aware of a few facts. It’s important to understand that the more years of work you put in after the age of 62 (the earliest possible social security retirement age), the more social security benefits you’ll have to […]

IRS Alerts Payroll, HR Professionals: New W-2 Phishing Scheme

The Internal Revenue Service recently issued an alert to payroll and human resources professionals to beware of an emerging phishing email scheme that purports to be from company executives and requests personal information on employees. The IRS has learned that this scheme – part of the surge in phishing emails seen this year – already has claimed […]

Saving 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 […]

Contact From the IRS

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 […]

Medical Expense Deductions: What You May Not Know

On occasion, clients will have certain medical expenses that seem obscure but are in fact tax deductible. Some of these deductions might surprise you: Lasik eye surgery Wigs for those dealing with hair loss Breast pumps Remedial reading for dyslexic children In-vitro fertilization treatments Pregnancy tests Hormone therapy medications Smoking cessation medication/programs Acupuncture Alcoholism treatment […]

Investing in Rental Property: Things To Know About Income & Deductions

Investing in rental property can be a smart financial move, but when it comes to your federal tax responsibilities, it’s important to be aware of what is considered rental income and the associated expenses that can be deducted from your rental income. What’s considered rental income? Anything received as rent must be reported as part […]

Paying Estimated Taxes: The Who, What, When, Why, Where

Why pay estimated tax? Estimated tax payments are used to pay tax on income that is not subject to withholding. This includes income from self-employment, interest, dividends, alimony, rent, gains from the sale of assets, prizes and awards. You may also have to pay estimated tax if the amount withheld from your salary, pension or […]

Student Loan Interest Deduction: Ease the Burden of Payments

If you pay interest on a qualified student loan, you’re generally able to deduct some of that interest. Here are a few pointers to help guide you in claiming the deduction: You can deduct up to $2,500 in student loan interest that you paid during the year. You can claim the deduction as an adjustment […]

Self-Employed Health Insurance Deduction: Are you eligible?

If you’re self-employed and paying your own health insurance, you may be eligible for a large tax deduction. Those who can claim the deduction include: Small businesses, sole proprietorships, qualified joint ventures or farmers reporting income on Schedule C, Schedule C-EZ or Schedule F. Partners with self-employment earnings reported on Schedule K-1. Shareholders who were […]

Automobile Expenses: Do You Use Your Car for Business Purposes?

If you use an automobile for business, you may be able to receive a tax deduction to lower your income tax. Deducting auto expenses requires diligent recordkeeping and accurate calculations. There are two ways to calculate your auto deductions: Actual expenses. Track all eligible deductions, such as the cost of gas, oil, repairs, insurance, maintenance, […]