Small Office Home Office (SOHO) Tax Tips

Making Charitable Donations this year?

Aug 23, 2010 Tax Strategies Leave a comment

Making Charitable Donations this year?

Have you made a donation to charity this year? Do you plan to make one before December 31? Times are tough but people routinely give money to those with greater needs. The IRS just released more tips regarding a tax deduction on your 2010 personal tax return. Remember the following details:

• Make contributions to qualified organizations. Use IRS Publication 78, Cumulative List of Organizations from the IRS.gov website to point out the best candidates for your good intentions.

Changing Tax Preparer Procedures and Fees

Aug 19, 2010 Tax Changes 1 Comment

The Internal Revenue Service (IRS) has announced new filing procedures, fees and regulations for people who prepare tax returns for compensation. Any person who is paid to prepare part or all of an income tax return or claim for tax refund after December 31, 2010 must complete an application and file for a Preparer Tax Identification Number (PTIN).  These special “Social Security Numbers” are assigned by the IRS and appear on tax returns completed by the tax preparer.  They provide personal identity protection to the tax preparer and now greater quality assurance to both the IRS and consumer.

Summer Vacation Ideas? Visit the IRS…

Aug 18, 2010 Tax Management Leave a comment

There are few summer vacation locations that are open 24 hours a day, 7 days a week, and have free admission.  Looking for that special place to spend an hour or two and maybe save money?   Does your computer have a cable connection, ADSL, or dialup?   Consider bringing the entire family together with a bag of potato chips and a six-pack of Diet Coke and visit IRS.gov this summer.  This G-rated website, offering entertainment and useful information, will significantly impact your life, your spouse’s life, and the lives of your children and beneficiaries… and you don’t need IMAX or special 3D glasses!   Admittedly, the graphics are a bit low-key but all the topics are age-appropriate and can be view without fear of political incorrectness.  For example:

Summertime Child/Dependent Care Expenses

Aug 17, 2010 Tax Strategies Leave a comment

Summertime Child/Dependent Care Expenses

The IRS reminds us that this summer’s child-care expenses can be used as a tax credit when you file after January, 2011.  Since parents work or are actively looking for employment, the documented cost of care for children under 13 years of age during the summertime (a period of school recess) may qualify for a tax credit on personal federal income tax.  This child and dependent care credit covers up to 35% of the following expenses depending on your reported income incurred during the tax year:

• Documented costs of day camp; overnight camp expenses DO NOT qualify for a credit.

Refund Anticipation Loan (RAL) Changes

Aug 16, 2010 Tax Strategies 1 Comment

Refund Anticipation Loan (RAL) Changes

The Internal Revenue Service (IRS) announced last week that it would no longer provide tax preparers with taxpayer profile information that relates to debt.  These debt indicators (DI) help determine a taxpayer’s eligibility for Refund Anticipation Loans known typically as RALs.  Though extremely controversial, these RALS, which are secured by the amount of the anticipated tax refund, help provide a quick infusion of cash into taxpayers’ pockets but also cover fees for the tax preparation service.  With a RAL, all you have to say is “Have the bank deduct my preparation fees from my refund!”