Whether you’re self-employed or an employee, if you use a car for business, you get the benefit of tax deductions. There are two choices for claiming deductions: 1. Deduct the actual business-related costs of gas, oil, lubrication, repairs, tires, supplies, parking, tolls, drivers’ salaries, and depreciation. 2. Use the standard mileage deduction in 2014 and…
We’re almost at the halfway point of the 2015 fiscal year, and I am following up with you to share important information about our financial situation. As discussed in January, the IRS had to take some difficult steps to absorb the severe cuts to our budget. Throughout the process, we tried to balance cuts…
Most people claim the standard deduction when they file their federal tax return. But did you know that you may lower your taxes if you itemize your deductions? Find out if you can save by doing your taxes using both methods. Usually, the bigger the deduction, the lower the tax you have to pay. You…
In a last-minute push before a special enrollment begins Sunday, officials from the Centers for Medicare and Medicaid Services and Treasury Department Friday wanted to remind consumers to sign up for coverage and avoid fees seen in this year’s tax season. “We’re certainly not in the business of looking to collect fees or to penalize…
More than 40 tax provisions, including the tax rate schedules, and other tax changes are adjusted for inflation in 2015. Let’s take a look at the ones most likely to affect taxpayers like you. The tax rate of 39.6 percent affects singles whose income exceeds $413,200 ($464,850 for married taxpayers filing a joint return), up…
(Bloomberg Business) States have been pushing taxpayers to get their refunds via direct deposit for years. Now people choosing that option may be surprised with a paper check instead. South Carolina informed residents this week that, in response to a recent spike in fraud, the state is converting some refunds for people who requested direct…
Sen. Rand Paul, R-Ken., has re-introduced a bill to repeal certain provisions of the Foreign Account Tax Compliance Act that he contends violate taxpayer privacy. Paul, who is widely expected to run for President, originally introduced the bill in 2013 (see Rand Paul Introduces Bill to Repeal Parts of FATCA). FATCA, which was included as…
The IRS has issued nearly 40 million tax refunds worth almost $125 billion for this season as of February 20. The average refund is $3,120. Altogether, the IRS has processed almost 50 million returns, or about a third of the total individual federal income tax returns the agency expects to receive this year. Almost 83%…
The Child Tax Credit may save you money at tax-time if you have a qualified child. Here are six things you should know about the credit. 1. Amount. The Child Tax Credit may help reduce your federal income tax by up to $1,000 for each qualifying child that you are eligible to claim on your tax…
The Minnesota Society of Certified Public Accountants recently surveyed its CPA members in public accounting on the most outrageous tax deductions clients tried to take on their tax returns. Their responses included everything from pets and weddings to cars impounded by the police. Here are some examples of Outrageous Tax Deductions: Questionable Dependents Attempting to…
