Get Credit for Generating Your Own Home Power

Through 2016 taxpayers can get a 30% tax credit for installing certain power generating systems on their homes.  The credit is non-refundable which means it can only be used to offset a taxpayer’s current tax liability but any excess can be carried forward to offset tax through 2016.

Health Insurance Tax Breaks for the Self-Employed

Self-employed taxpayers may be able to deduct premiums paid for medical and dental insurance and qualified long-term care insurance for themselves, their spouse, dependents and children under the age of 27 if the self-employed taxpayer is one of the following:

100% Write-off for Qualified Leasehold Improvements

In an effort to get the economy back on the rails again, the 2010 Tax Relief Act permits businesses to claim a 100% depreciation deduction (100% bonus depreciation allowance) in the year that qualifying assets are placed in service. Qualified leasehold improvements clearly are eligible for this special 100% write-off. 

Surprised By the Kiddie Tax? There Are Ways To Avoid It!

Tips to Avoid a Tax Audit

An IRS tax audit can come in a number of forms.  The most demanding are the face-to-face audits, which require sitting down with an auditor and reconciling income and deductions.  Others are the less demanding correspondence audits where the IRS has reason to believe that the taxpayer failed to include reported income or has overstated deductions.  

Is the IRS Withholding Some or All of Your Refund?

If the IRS kept all or a portion of your federal refund it may be because you owe money for certain delinquent debts. If that is true, the IRS or the Department of Treasury's Financial Management Service (FMS), which issues IRS tax refunds, can offset or reduce your federal tax refund or withhold the entire amount to satisfy the debt.

Rejoice - Congress Overturns Enhanced 1099 Reporting Requirements

In earlier newsletters we had notified you of two new 1099 reporting requirements for business and rentals. 

Plan Your Withholding & Estimates for 2011