Tuesday May
- 2013
- 21
Tax Breaks for Charity Volunteers
by Lee Reams in 1040 & Personal Finance
If you volunteer your time for a charity, you may qualify for tax breaks. Although no tax deduction is allowed for the value of services performed for a charity, some deductions are permitted for out-of-pocket costs incurred while performing the services. The normal deduction limits and substantiation rules also apply. Read More
Thursday May
- 2013
- 16
Tax Rates Increase in 2013
by Lee Reams in 1040 & Personal Finance
As part of the 2012 American Taxpayer Relief Act (ATRA), tax rates, both ordinary and capital gains, increased in 2013 for higher income taxpayers whose taxable income exceeds the income threshold for their filing status. Read More
Tuesday May
- 2013
- 14
Convert Unused Property Into a Tax Deduction
by Lee Reams in 1040 & Personal Finance
When you give away items like clothing, appliances, vehicles, and other goods to a qualified charity, your generosity can add up to a tax write-off if you itemize your deductions. The amount of your deduction is generally the donated property's “fair market value.” The IRS definition of fair market value (FMV) is “the price a willing buyer would pay and a willing seller would accept for an item, when neither party is compelled to buy or sell and both parties have reasonable knowledge of the relevant facts.” Read More
Thursday May
- 2013
- 9
Occasionally, clients will realize that an item of income was overlooked, a deduction was not claimed, or that an amended tax document was received after the tax return was already filed. Regardless of whether the oversight will result in more tax due or a refund, it should not be dismissed. Failing to report an item of income will most certainly generate an IRS inquiry, which typically happens a year after the original return was filed and after the interest and penalties have built up. On the other hand, if you have a refund coming, you certainly don't want that to go by the wayside. Read More
Thursday May
- 2013
- 2
Miss the April 15 Deadline?
by Lee Reams in 1040 & Personal Finance
Did you miss filing your 1040 tax return by the April 15 due date? If you did, you may be accruing late filing penalties, late payment penalties, and interest. Late filers can mitigate those penalties by filing as soon as possible. There are no late filing penalties or late payment penalties if you had no tax liability (i.e., did not owe or would have gotten a refund) on April 15. Read More
Tuesday April
- 2013
- 30
Don't Panic If You Receive an IRS Notice
by Lee Reams in 1040 & Personal Finance
A letter from the IRS will probably increase your heart rate a little. Don't panic; many of these letters can be dealt with simply and painlessly.
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Tuesday April
- 2013
- 23
Read This Before Tossing Old Tax Records
by Lee Reams in 1040 & Personal Finance
Now that your taxes have been completed for 2012, you are probably wondering what old records can be discarded. If you are like most taxpayers, you have records from years ago that you are afraid to throw away. It would be helpful to understand why the records must be kept in the first place. Read More
Thursday April
- 2013
- 18
President's Proposed Tax Changes for 2014
by Lee Reams in 1040 & Personal Finance
The budget proposal released by President Obama on April 10 includes a substantial number of proposed tax changes impacting individuals, businesses, estate taxation, energy incentives, and international issues. Although these are only proposals, they provide an insight into the administration's thinking on tax reform. An overview of the most prominent issues related to individuals and small business is provided below. Read More
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