Accounting Today has the best summary of the new delays caused by last minute changes in the tax laws.
People claiming any of these three items — involving the state and local sales tax deduction, higher education tuition and fees deduction and educator expenses deduction as well as those taxpayers who itemize deductions on Form 1040 Schedule A — will need to wait to file their tax returns until tax processing systems are ready, which the IRS estimates will be in mid- to late February.
Click the above link to read more.
Thursday, December 30, 2010
Monday, December 27, 2010
Here is our list of last minute tax strategies for 2010
Tax Partners Holdings Inc.
Affordable expert tax preparation
2060 W Monroe
Springfield IL 62704
taxpartner@gmail.com
Visit us online at 1taxes.com or our blog at http://justmakingcommonsenseblogspot.com/
Dear Client,
We know your thoughts are on the holiday and not tax savings ... but taking actions in the next few weeks specifically designed to reduce your 2010 tax liability will prove to be rewarding when you file your taxes next year.
Here is our list of last minute tax strategies for 2010:
1. Increase your contributions to your 401(k) or IRA retirement investment plans. A retirement plan is an easy deduction. If your employer is not participating in your retirement plan, you should consider an IRA or participate in the self funded 401(k) if at all possible. Also, while some employers require a wait time or require employees to wait until open enrollment to start up payroll deductions, some companies will let you start at the end of the year or even on the next paycheck. It’s worth looking into, since the money contributed to a retirement account is typically not subjected to income taxes.
2. Charitable giving. Not only are donations good for your taxes, they're good for society as a whole. While there may be no large tax benefit for some donations, please consider the social benefits to making donation to charitable organization.
Even older computers and cell phones can be useful for training or other charitable causes -- it doesn't have to be an iPad. You're entitled to fair market value for clothes and furniture, among other things, so take time right after Christmas to clean your closets and head to your favorite charity.
The little things add up too, and you can write off out-of-pocket costs incurred while doing good works. For example, ingredients for casseroles you prepare for a nonprofit organization’s soup kitchen and stamps you buy for your school’s fundraising mailing count as a charitable contribution. You can also deduct any out-of-pocket travel expenses for charitable causes, which includes everything from mileage for travel, to taxis or parking expenses.
3. Choose stock donations over cash. If you're thinking about making a large cash donation, you might want to think about using stock in a company that has done well. Make a donation of those shares; if you sell the shares to make a large donation you have to pay the taxes on the profit. However, if you donate the shares then you receive a tax deduction for the fair market value of the stock.
4. Buy an energy-efficient appliance for your home. It’s too late to qualify for a tax credit for buying a new home, but you can get some money for buying an energy efficient appliance. That’s a lot cheaper than buying a house, and tax credits are up to $1,500.
5. There is still time to claim the energy tax credit. If you're adding solar panels, caulking, storm windows or energy-efficiency improvements, you may be eligible for a tax credit of up to $1,500. Work has to be paid for and completed before the end of the year.
6. Double check employment expenses. Did you have any job related expenses? Did you search for a job? If so, some of those expenses can be deducted. Hang on to your receipts for everything from dry cleaning for uniforms to courses for your career. If your employer does not offer reimbursement you may be eligible for additional deductions.
7. Sell losing investments. Capital losses are first used to offset capital gains, and then up to $3,000 of the net loss can be deducted against income, such as your salary. Any excess loss is carried forward to future years.
8. See if you can deduct any medical costs. You have to itemize to qualify for this deduction and expenses have to be more than 7.5% of your adjusted gross income, but if you have a lot of doctors' visits and medical procedures it may be worth checking out. Will you need surgery in near future? If so, try to get it in before the end of the year.
I hope this helps your planning! My wish is for bigger refunds. See you next year!
Donald C. Fuener E.A.
President
TAX ADVICE DISCLAIMER: In accordance with IRS Circular 230, any tax advice included in this communication, including attachments, is not intended or written to be used, and cannot be used by you or any other person or entity, for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions, nor may any such advice be used to promote, market or recommend to another party any transaction or matter addressed within this communication. If you would like such advice, please contact us.
Affordable expert tax preparation
2060 W Monroe
Springfield IL 62704
taxpartner@gmail.com
Visit us online at 1taxes.com or our blog at http://justmakingcommonsenseblogspot.com/
Dear Client,
We know your thoughts are on the holiday and not tax savings ... but taking actions in the next few weeks specifically designed to reduce your 2010 tax liability will prove to be rewarding when you file your taxes next year.
Here is our list of last minute tax strategies for 2010:
1. Increase your contributions to your 401(k) or IRA retirement investment plans. A retirement plan is an easy deduction. If your employer is not participating in your retirement plan, you should consider an IRA or participate in the self funded 401(k) if at all possible. Also, while some employers require a wait time or require employees to wait until open enrollment to start up payroll deductions, some companies will let you start at the end of the year or even on the next paycheck. It’s worth looking into, since the money contributed to a retirement account is typically not subjected to income taxes.
2. Charitable giving. Not only are donations good for your taxes, they're good for society as a whole. While there may be no large tax benefit for some donations, please consider the social benefits to making donation to charitable organization.
Even older computers and cell phones can be useful for training or other charitable causes -- it doesn't have to be an iPad. You're entitled to fair market value for clothes and furniture, among other things, so take time right after Christmas to clean your closets and head to your favorite charity.
The little things add up too, and you can write off out-of-pocket costs incurred while doing good works. For example, ingredients for casseroles you prepare for a nonprofit organization’s soup kitchen and stamps you buy for your school’s fundraising mailing count as a charitable contribution. You can also deduct any out-of-pocket travel expenses for charitable causes, which includes everything from mileage for travel, to taxis or parking expenses.
3. Choose stock donations over cash. If you're thinking about making a large cash donation, you might want to think about using stock in a company that has done well. Make a donation of those shares; if you sell the shares to make a large donation you have to pay the taxes on the profit. However, if you donate the shares then you receive a tax deduction for the fair market value of the stock.
4. Buy an energy-efficient appliance for your home. It’s too late to qualify for a tax credit for buying a new home, but you can get some money for buying an energy efficient appliance. That’s a lot cheaper than buying a house, and tax credits are up to $1,500.
5. There is still time to claim the energy tax credit. If you're adding solar panels, caulking, storm windows or energy-efficiency improvements, you may be eligible for a tax credit of up to $1,500. Work has to be paid for and completed before the end of the year.
6. Double check employment expenses. Did you have any job related expenses? Did you search for a job? If so, some of those expenses can be deducted. Hang on to your receipts for everything from dry cleaning for uniforms to courses for your career. If your employer does not offer reimbursement you may be eligible for additional deductions.
7. Sell losing investments. Capital losses are first used to offset capital gains, and then up to $3,000 of the net loss can be deducted against income, such as your salary. Any excess loss is carried forward to future years.
8. See if you can deduct any medical costs. You have to itemize to qualify for this deduction and expenses have to be more than 7.5% of your adjusted gross income, but if you have a lot of doctors' visits and medical procedures it may be worth checking out. Will you need surgery in near future? If so, try to get it in before the end of the year.
I hope this helps your planning! My wish is for bigger refunds. See you next year!
Donald C. Fuener E.A.
President
TAX ADVICE DISCLAIMER: In accordance with IRS Circular 230, any tax advice included in this communication, including attachments, is not intended or written to be used, and cannot be used by you or any other person or entity, for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions, nor may any such advice be used to promote, market or recommend to another party any transaction or matter addressed within this communication. If you would like such advice, please contact us.
Subscribe to:
Posts (Atom)