How to choose your tax preparer!!

Knowing who you are doing business with when filing your income taxes is a major issue.  They have your most guarded financial information in their hands!  You should feel comfortable and trust who you are dealing with!  IRS has made it mandatory that a reputable preparer is now required:

  1. To obtain a PTIN number which registers them with the IRS and is a form of notification to IRS that that individual is now preparing taxes for money.
  2. They should voluntarily display their educational certificates also required by IRS.
  3. They should have no disciplinary actions recorded against them which can be found on IRS.gov.
  4. They should be offering E-filing as IRS also requires that returns be e-filed unless they meet one of 8 issues for filing paper return which are related to business returns.
  5. Their pricing should NOT be based on a percentage your amount of refund.  They should provide you with a complete copy of your return including all schedules and worksheets and pricing before preparation begins.
  6. They should require you to provide all documents such as 1099s, W2s and expenses you are about to claim BEFORE doing your tax return.
  7. They should require you to sign Form 8879 to e-file your return before it is sent to the IRS.
  8. They should go through your return with you to make sure you understand what has been reported on your return on your behalf.
  9. They should be available year round for your questions or changes in your tax situation such as marriage, new dependents, retirement and other things that may change after tax season has ended.

 

Making yourself aware of these things will allow you to enjoy a safe and knowledgeable next tax season!   Good luck!!

Free tax class coming this fall

A 10 week, basic tax class will be taught Fall of 2016. The actual class is free, but the cost of books and food provided each day of class is $159.  Registration will open August 1, 2016 and no late entry allowed after the 2nd week of class. Actual Class start date TBA.

Any questions please call 702-642-1040 from 9am to 2pm Monday thru Thursdays.

Employee Business Expenses

Office in the home can be also deducted for an employee whose employer requires you to work out of your home rather than coming into the office some of the days during the week.  Along with this you can also claim union dues, safety equipment, safety shoes, reference books, membership dues, client gifts, overnight lodging and meals not reimbursed by the employer, laundry and many other items.  People who leave their tax home to work away and then come back to the tax home also can claim mileage while travelling away from home.  The mileage to and from home to the worksite is considered commuting mileage, but once to the worksite, all mileage is counted.  That means that from home in Las Vegas to California does not count but staying at the Holiday Inn in California and going to work for 3 weeks daily and back to the Holiday Inn counts all mileage.  From California back to Las Vegas home does not.  Give us a call for any questions you may have!!

Office in the Home

A percentage of all utilities costs of your primary home may be deductible if you are self-employed and working out of your home. Things like lawn care, HOA fees, homeowner’s insurance, mortgage interest, real estate taxes, PMI insurance, trash removal and repairs can be part of office in the home deductions. You will be able to determine the portion of the living space of your home that is used for business and deduct that percentage as part of the business. This deduction is also available for childcare businesses as well. Give us a call for any questions you may have!!

Self Employed?… We can help you Set Up the right way

Being self-employed means that no one paid your Social Security, Medicare or Federal taxes throughout the year! That means “you” are the one responsible for paying the taxes at tax time. For every dollar collected from you customers, you will owe IRS at least 25.3% in taxes at the end of the year.

It is a good idea to pay quarterly estimated taxes in to have those taxes paid “before” you file your annual tax return. All expenses incurred in doing business are deductible which will lower your “net” profit and will in turn, lower your Social Security, Medicare and Federal tax liability. Keeping track of your mileage instead of actual auto expenses will result in almost 3 times more deduction. This year’s mileage deduction is $ .575 per mile which means 60 miles will allow a deduction of $34.50 and the actual cost of gas would be about $10.00.

Give us a call for any questions you may have!!

(702) 642-1040