What to Do If You Are Missing a W-2

by Lee Reams in 1040 & Personal Finance

Have you received your W-2? These documents are essential to filling out most individual tax returns. You should receive a 2011 Form W-2, Wage and Tax Statement, from each of your employers each year. Employers have until January 31, 2012 to provide or send you a 2011 W-2 earnings statement either electronically or in paper form. However, you should wait a week or so before becoming concerned. If by then you have not received your W-2, follow these steps: Read More

Are You Required to File 1099s?

by Lee Reams in Small Business

If you use independent contractors to perform services for your business and you pay them $600 or more for the year, you are required to issue them a Form 1099-MISC after the end of the year to avoid facing the loss of the deduction for their labor and expenses. The 1099s for 2011 must be provided to the independent contractor no later than January 31 of 2012. Read More

Dependents & Medical Expenses

by Lee Reams in 1040 & Personal Finance

Medical expenses paid for dependents may be deducted. To claim these expenses, the person must have been a dependent either at the time the medical services were provided or at the time the expenses were paid. Read More

To File or Not to File

by Lee Reams in 1040 & Personal Finance

A frequent question asked is whether or not an individual needs to file a tax return. There are two issues associated with this question: Read More

A Name Change Can Complicate Tax Filing

by Lee Reams in 1040 & Personal Finance

If you changed your name as a result of a recent marriage or divorce, you will want to take the necessary steps to ensure the name on your tax return matches the name registered with the Social Security Administration (SSA). A mismatch between the name shown on your tax return and the SSA records can cause problems in the processing of your return and may even delay your refund. Read More

Revising Your W-4? Seek Professional Advice.

by Lee Reams in 1040 & Personal Finance

This time of the year, many employers will request from their employees updated W-4 forms (and the equivalent state form for those who live in a state with income tax). The W-4 form allows you to specify your filing status and the number of dependent exemptions to be used for figuring the amount of income tax to be withheld from your payroll. Even though the IRS provides an on-line W-4 calculator, it is generally suitable for the more simple returns and may not be appropriate in all cases since it does not take into account all income adjustments, credits, and deductions available. Be careful when completing the W-4 form because errors can create some significant financial problems. Read More

It's Tax Time! Are You Ready?

by Lee Reams in 1040 & Personal Finance

If you're like most taxpayers, you find yourself with an ominous stack of “homework” around TAX TIME! Unfortunately, the job of pulling together the records for your tax appointment is never easy, but the effort usually pays off when it comes to the extra tax you save! When you arrive at your appointment fully prepared, you'll have more time to: Read More

Your Payroll Tax Cut is Safe for Now!

by Lee Reams in 1040 & Personal Finance

Congress gave all wage earners a short-lived 2012 reprieve by temporarily extending the 2% payroll tax cut though February of 2012 Read More