A third common question asked during tax season is will I have to pay taxes on my social security benefits? If the benefits are supplemental security income, also known as SSI, those payments are not taxable. However, if the income includes monthly retirement, survivor, or disability benefits the question is not answered as easily as […]
Tax Season FAQs (Part 2 of 4)
A second common question asked during tax season is what is the age limit on claiming a child as a dependent? A child must be under the age of 19 at the end of the year or a student under the age of 24 at the end of the year and must be younger than […]
Tax Season FAQs (Part 1 of 4)
One common question asked during tax season is whether or not a college student with a part-time job, who can still be claimed as a dependent, can claim a personal exemption when filing his or her own tax return? The answer is no. Your son or daughter’s tax return should have the box checked stating […]
Standard Mileage Rates for 2014
The standard mileage rates have been released by the IRS for 2014 (Notice 2013-80). Beginning on January 1, 2014, the standard mileage rates for the use of a car (vans, pickup trucks or panel trucks) will be: 56 cents per mile for business miles driven. 23.5 cents per mile for medical or moving purposes. 14 […]
Year in Review
As 2013 draws to a close, let’s take a look back at some of our favorite postings: 1099 Contractor vs. Employee – Learn how to determine whether an individual is an employee or independent contractor. Home Office Deduction – Familiarize yourself with the new option available for claiming the home office deduction. A Small Guide […]
Expiring Tax Provisions
There are several widely used credits and deductions for both individuals and business that are set to expire at the end for 2013. Here are a few of the credits and deductions that are set to expire: Individual The deduction for certain elementary and secondary school teacher expenses: allows teachers to deduct up to $250 […]
IRS Phone Scam Warning
The IRS is currently warning taxpayers regarding a phone scam occurring nationwide. In this scam, a taxpayer is informed of the amount of money he or she owes to the government and is then given a couple of choices to pay off the debt immediately to avoid jail time or loss of a driver’s license […]
A Small Business Guide to Tax Deductions
It is always a good idea to track business deductions throughout the year, so they are not missed when tax time comes around. However, determining what can and cannot be claimed can be challenging. Here is a list to help: Travel and Meal Expenses Travel Expenses are 100% deductible Meal Expenses are 50% deductible, except […]
Avoiding a Tax Surprise
You can avoid a surprise tax bill next April by taking some time now to review your withholdings and estimated tax payments. This is increasingly important if you’ve recently experienced a major change in your life – new job, birth of a child, or purchased a home. These events materially change the amount of taxes […]
Home Office Deduction
The IRS has announced a new option for claiming the home office deduction beginning in 2013 with a less detailed form. This option places a $1,500 cap ($5 per square foot with a 300 square foot maximum) on the deduction and does not allow depreciation for the portion of the home used for business purposes. However, […]