TAX TIP OF THE DAY... child's first job, need to file tax returns?
Federal... you should file to get back any tax withholding. However the child may not be required to file if total income is under $6,300 and comprised of only W-2s. PA... REQUIRED if received even the smallest W-2 Local... REQUIRED if received even the smallest W-2 SHARE WITH A FRIEND. If you need a tax appointment... www.baboiancpa.com TAX TIP OF THE DAY... did you buy, sell or refi a home?
You may have received 50-100 pages of documents at closing. But there is just one document usually needed for tax preparation. This document was formerly called HUD-1. For 2015 this document may be titled: 1) HUD-1 2) Settlement Statement 3) Closing Disclosure. SHARE WITH A FRIEND. If you need a tax appointment... www.baboiancpa.com TAX TIP OF THE DAY... new surge in IRS email scams
https://www.irs.gov/uac/Newsroom/Consumers-Warned-of-New-Surge-in-IRS-Email-Schemes-during-2016-Tax-Season-Tax-Industry-Also-Targeted SHARE WITH A FRIEND. If you need a tax appointment... www.baboiancpa.com TAX TIP OF THE DAY... pay the IRS online
Consider identity theft issues before paying any bill online. If you choose this option, here is how to do it: https://www.irs.gov/Payments/Direct-Pay Welcome to IRS Direct Pay!Use this secure service to pay your individual tax bill or estimated tax payment directly from your checking or savings account at no cost to you. You'll receive instant confirmation that your payment has been submitted. Bank account information is not retained in IRS systems after payments are made. If you have already made a payment through Direct Pay, you can use the Look Up a Payment feature to view your payment details and status. You can modify or cancel your payment there until two business days before your payment date. Availability notice: Direct Pay will be unavailable for short maintenance periods daily between 11:45 p.m. and midnight Eastern time. Saturday's outage will extend through 7 a.m. Eastern time on Sunday. Thank you for your patience while we perform this required maintenance. Other planned outages of Direct Pay may occur. When you begin your Direct Pay session, you will be notified if planned outages are imminent or under way, or if unforeseen technical difficulties have caused an unplanned outage. Important: IRS Direct Pay availability has no bearing on your due date. Plan ahead to ensure timely payment. SHARE WITH A FRIEND. If you need a tax appointment... www.baboiancpa.com TAX TIP OF THE DAY... setting up an IRS payment plan
You may be eligible to apply for an online payment agreement
source: https://www.irs.gov/Individuals/Payment-Plans-Installment-Agreements SHARE WITH A FRIEND. If you need any help... www.baboiancpa.com TAX TIP OF THE DAY... Roth or Traditional IRA?
This question can be debated for hours. But this post boils it down to 2 sentences: 1) Roth IRA... best tax advantage for younger investors who expect many years of investment growth. 2) Traditional IRA... best for those in a high tax bracket now and expect to be in a lower tax bracket when retired. SHARE WITH A FRIEND. If you need any help... www.baboiancpa.com TAX TIP OF THE DAY... your W-2 may have a few hidden deductions
Box 14... "LST" is a deductible tax Box 14... "SUI" is a deductible tax Box 14... sometimes shows union dues paid Box 14... sometimes shows payroll deducted charity donations SHARE WITH A FRIEND. If you need a tax appointment... www.baboiancpa.com TAX TIP OF THE DAY... most can ignore new forms 1095-B & 1095-C
New forms are arriving right about now.... 1095-B from health insurance companies and 1095-C from employers. The forms are incredibly CONFUSING. These forms details your health insurance coverage, but are not necessary for tax preparation as long as you know which months you had health insurance. SHARE WITH A FRIEND. If you need a tax appointment... www.baboiancpa.com TAX TIP OF THE DAY... adjust your withholding at work
Use form W-4 to increase or decrease your Federal withholding at work. Unfortunately the form instructions and worksheets are WORTHLESS! 1) Ignore IRS instructions on the form. 2) Do not complete the top 1/2 of the page. Start 1/2 way down the page at your name. Ignore page 2. 3) For less withholding use a higher number such as 3 or above. 4) For more withholding, choose a lower number of allowances such as zero or 1. For more withholding choose Single even if you are married. (3rd box says... "Married but withhold at the higher single rate") 5) The highest rate of withholding is Single with zero allowances 6) You can override the IRS withholding tables by using box 7... "additional amount withheld from each paycheck". Your employer would withhold your chosen setting plus the additional amount requested. 7) never use box 7 "exempt" IS THERE A SIMPLER WAY? YES, have your tax preparer sugggest a withholding level for you. SHARE WITH A FRIEND. If you need a tax appointment... www.baboiancpa.com TAX TIP OF THE DAY... use college tuition paid by another
Do you claim a college student on your tax return... but you aren't the one who pays the tuition? It doesn't matter. ALL the tuition paid is considered yours: 1) tuition paid by your ex-spouse 2) tuition paid by student loans 3) tuition paid by the child SHARE WITH A FRIEND. If you need a tax appointment... www.baboiancpa.com |
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AuthorDavid S. Baboian, CPA Archives
February 2018
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