IRS Rules, Tax Tips business use, home office, safe-harbor rule
There is a simplified way to take a home office expense for a portion of your home. This ‘safe-harbor’ option greatly simplifies how to record valid expenses for business use of your home. Here is how it works. You may opt to take your office space square feet times $5 and use this as a […]
Individual Taxes, Retirement Direct Deposit, documentation, mistakes, retirement plan, tax surprises, tax-deferred accounts
Don’t let them happen to you Every year taxpayers are hit with tax surprises that could be avoided if they just knew the rules. Here are five big ones that are easy to avoid with some simple planning. Mistake #1. Withholding too little. This results in a tax surprise when filing your income tax. Don’t be […]
IRS, Money Management convenience fee, Installment payments, interest, penalties, tax bill
Your tax bill is now due and you may be considering paying the bill with your credit card. Is this a good idea? How does it work? Here is what you need to know. The IRS has contracted with a few credit card merchants to offer credit cards as a method of payment. Why not? […]
Audit, IRS additional tax, compliance, improper deductions, Tax gap, underreporting income
The “tax gap” is a concept developed by the Internal Revenue Service to measure voluntary compliance with the tax laws by taxpayers. The tax gap is the difference between what taxpayers should have paid and the amount that is actually paid voluntarily and timely. According to the latest tax gap figures, about 83% of all […]
Credits, Individual Taxes business credit, child credit, earned income tax credit
Tax credits are one of the most powerful ways to lower your income taxes. A tax credit reduces your tax bill dollar for dollar. A tax deduction, on the other hand, only reduces your taxable income, so your benefit is determined by your tax bracket. For example, a tax deduction of $1,000 will lower your tax […]
Tax Tips rental, second home, Tax Benefits, vacation home
Are you planning to use your vacation home soon? If you’re not going to use it, have you considered renting it? Or are you thinking of buying a vacation home? Vacation homes, with proper tax planning, can help create tax benefits. Some types of qualifying vacation or “second homes” which might have escaped your notice […]
IRS, IRS Rules, Tax Tips audit, CPA, Falls Church, Questions, Tax
IRS employees returned to work on January 28, 2019 and resumed activities. Upon their return to the office, they will begin to review mail, voice messages, and their audit and collection files as well as completing administrative tasks to reopen operations. 1. I sent documents to my auditor but have not heard back. What should I […]
Tax Law, Tax Planning, Tax Tips IRS, Log, mileage, Tax
The tax code allows deductions for qualified miles driven for business, medical, moving and charitable purposes. But to claim this deduction you must keep adequate records of actual miles driven. During an audit this is an often disallowed deduction, despite the fact that you actually drove the distance claimed. Here are some suggestions. Keep a […]
Tax Break, Tax Law, Tax Planning, Tax Tips AMT, Child Tax Credit, deductions, Rates
Lower Tax Rates and Changed Income Ranges The bill retains the seven tax brackets found in current law, but lowers a number of the tax rates. It also changes the income thresholds at which the rates apply. The current brackets are: 10%, 15%, 25%, 28%, 33%, 35% and 39.6% The new brackets will be: 10%, 12%, […]
Credit, Investments, Tax Tips Cash Flow, investment, Value
Investing basics: Picking the right stocks We have witnessed such volatile activity in the stock market in recent years that the old stock selection rules are not always applicable. Seasoned investors and new investors alike want a sure-fire way to pick the winners. Well, no one can offer any guarantees, but smart investors do have […]
