Friday, December 30, 2011

How much of my mortgage interest will I be able to deduct ?

The Question
 How can I guesstimate how much mortgage interest I will get back?

The Answer
You are going to receive an official end of year statement probably in two weeks or less. However, you can go to your November statement (if you didn't get a December statement yet), and look at your principal paid and then the interest paid (year to date). It may be on the back of your statement...and then of course, you can always call to get a verbal account. 
Great question Joyce...Thanks

Based on some limitations, not all interest will be 100% deductable.  Please check with your tax professional for a full answer to your tax scenario.

Friday, February 4, 2011

Money is tight for ya, ain't it ?

Have you built a repoir with your tax practitioner ?  Trust , we know that it's tough out there for you.  You want to have your tax return prepared as soon as you receive your W2(s), but you just don't have the funds.  Speak up !  Talk to your tax professional about financing, partial payments, credit card payments, and even a barter agreement....Look, I'll take quarters if that's all that you have. 
The quickest way to get a little money is to prepare your taxes and to get your refund.  Don't miss your filing deadline because you didn't have all the money at one time to prepare your taxes.

Always accurate and affordable tax preparation...always free efile and direct deposit.


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Friday, January 21, 2011

Do you know that you have to report the tips that you receive ?

Do you know that all employees who receive tips have to report their tips to the IRS.  Tips are also considered to be income.  If in any month you receive more than $20 in tips from customers, tips added to credit cards, and any tips you receive under a tip splitting arrangement,  you must report your tips to your employer so your employer can withhold the proper federal income tax, social security tax, and Medicare tax.  Let me clarify something here.  If you make over $20 in tips, you must report it to your employer, however all tips must be reported to the IRS.

You must keep a daily log of all tips received. You employer is automatically going to allot tips received to all employees based on their income received.  If you turn in your figures for tips received, your employer will withhold the taxes and it will be reported on your W2.  When it's time to file your taxes, you will report your figures (in gross income) and not your employer's tip figures.

Keeping a daily log is important.  This shows due diligence in the event of an audit.  

Contact me for clarification on this topic or to ask any tax questions.
Now is the time to start your daily log for tax year 2011, if you haven't already.

Always accurate and affordable tax preparation.
Wanda E Green