Medical Expenses
Unreimbursed medical expenses that exceed 7.5% of your adjusted gross income are tax deductible. Sounds like a lofty number, but it is possible with some strategy.
Health Savings Accounts
Health Savings Accounts allow you to save pre-tax dollars for health care expenses, but it has similar savings features like an IRA.
1099 OID: Odd but Interesting Doohickeys
Did you get a 1099: OID in the mail? Did you know they’re for reporting “phantom income?” Odd indeed!
What To Do If You Have Not Received A Form W-2
Although employers are required to furnish your Form W-2 by January 31, 2009, sometimes circumstances prevent this from happening. Nonetheless, you still must file your tax return on time, even if you do not receive your W-2. There are ways in which you can substitute the W-2 form in order to meet the tax filing deadline. For more information about what to do if you haven’t received your Form W-2, read this C.P.A. Insight.
Student Loans and Taxes
Among the many tax breaks for higher education, tax payers should not overlook student loan interest.
Pay Your Taxes Electronically
They say paying your federal taxes is the hard part. Actually, the U.S. Department of Treasury has made it pretty easy by providing taxpayers a free service called Electronic Federal Tax Payment System so that you can pay your tax bill 24 hours a day, seven days a week by phone or by Internet. For more information on how the process works, read this C.P.A. Insight.
Big Refund or Big Tax Bill?
In a sneaky attempt to avoid FICA, Social Security and Medicare payroll taxes, some S corporation owners and officers pay themselves artificially low salaries. The IRS is catching on and is paying very close attention to the salaries and corporate distributions S corporations pay out. For more information on how the IRS categorizes officers of S corps, read this C.P.A. Insight.
Tax Audits by the IRS—Should You Worry?
It is no secret that the IRS has increased the number of audits they perform. If you receive an envelope from the IRS, there is no need to run screaming for the hills. The IRS generates thousands of letter, many of them a benign correspondence to clarify information you have sent them. For more information on IRS correspondence, read this C.P.A. Insight.
Alternative Minimum Tax (AMT)
As if calculating your taxes were not difficult enough, many middle-income families now have to recalculate their taxes to determine if they must pay the alternative minimum tax. For a brief overview of what deductions may have to be included in income according to AMT rules, and some of the deductions that may put you in the AMT bracket, read this C.P.A. Insight.
Electronic Payment Options
The IRS accepts multiple forms of payment–check, money order, direct debit and credit cards–to pay due taxes. Most tax preparation software or tax professional offer electronic payment options. For detailed information on the features and benefits of the available electronic payment options, read this C.P.A. Insight.