Category Archives: Tax Preparation

Tax Season Has Begun, Here’s What You Should Know

The IRS 2019 Tax Season Has Begun

The 2019 tax season has begun for taxpayers and businesses. The agency is officially accepting and processing federal tax returns for tax year 2018. Even though major tax law changes are in effect due to the Tax Cuts and Jobs Act, the IRS has been able to kick off the season without a hitch. Continue reading

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Early Year-End Tax Planning To Take Advantage Of Possible Tax Reform

Wouldn’t you like to know about early year-end tax planning to take advantage of possible tax reform?

So, why do we think early tax planning is appropriate this year? Actually, with the prospect of major tax reform on the horizon, some strategies can be put into place before the end of the year that can substantially reduce your 2017 tax bill. That would be nice.

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Do You Owe Taxes to the IRS? Can You Afford the Tax Penalty?

Did you just learn that you owe taxes to the IRS this year? Can you afford the tax penalty on the money you owe to the IRS?

Nothing can be more stressful than finding out you owe the IRS when calculating your taxes, especially when you already are struggling financially. The issue of course, is even though you can’t pay the tax, you still must file your tax return by the deadline. And, if you owe money, and you don’t have it, you will face a tax penalty. More people hate tax time because of this! Continue reading

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Childcare Providers Enjoy Special Tax Deductions

Childcare providers, did you know that the tax law provides you with special tax breaks. Daycare tax breaks are not limited to childcare providers only. They also include those who care for the disabled and eldercare providers as well. These daycare tax breaks include deductions for travel, capital purchases, supplies, children’s meals and the business use of your home. Continue reading

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Seniors With Medical Deductions Beware, Affordable Care Act Will Trump Them!

Seniors With Medical Deductions

One example of itemizing deductions includes the cost of medical and dental expenses. For seniors with medical deductions, these include health insurance premiums. In the past, the medical expense deduction had a limit to the amount that exceeds 7.5% of a taxpayer’s adjusted gross income (AGI). I know this is not the most exciting subject; yet, is important that you pay attention to this change. Continue reading

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No Tax Return Filed? Oh Oh!

You did not file your tax return you say? No tax return filed in years? You are not alone. There are millions of individuals who do not file a tax return each year. Many of them don’t simply because their income is below the filing threshold levels for the year based upon their filing status.

Still others simply procrastinate. They risk giving up their refunds and credits. These credits include earned income tax credits, child tax credits, tuition credits and excess withholding. Mind you, these credits and refunds belong to them. Continue reading

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File Your Taxes In Less Than 1 Week!

We are not trying to stress you out, BUT you have less than one week to file your taxes. You have until April 18 to file your tax return. That’s one week away. These suggestions should help you reach the goal.

File an Extension

Yup, that is our first suggestion, unless you have all your information consolidated, just file an extension. You will automatically get six more months to complete your return. If you decide to go this route, remember that if you owe the IRS money, you still have to pay at least 90% of what you ow by April 18. This will allow you to dodge the Failure-To-Pay penalty.

The good news for our military? If you or a spouse are currently in an active combat zone, or you live overseas, you have to file by

Note that if you are in the military, have a spouse in an active combat zone, or live abroad there are are granted a deadline and payment extension. The IRS website states, “In general, the deadlines for performing certain actions applicable to his taxes are extended for the period of service in the combat zone, plus 180 days after last day in the combat zone. In addition to the 180 days, an extension period may include the 46 days that were left before the April 18th deadline when entered the combat zone.  During a 226-day extension period, assessment and collection deadlines will be extended, and will not be charged interest or penalties attributable to the extension period.” You can read more here.

You can file your taxes yourself, but there goes your weekend!

2016_04_14 Tax filingYou can, but keep in mind, it will be grueling. On average, according to the IRS, tax returns take an average of 13 hours to prepare and file. That’s almost 6.5 hour work days, four 3.25 hour days and if you start today, it will be almost 3 hours every night starting tonight!

First, find all the backup documentation for earnings (W2’s, 1099’s), proof of expenses, donations, 1095 form (health coverage), or whatever information you have to file, such as your 1098-T for student loan interest. Here is a full list of forms and publications that we have for your reference.

What? You don’t have your tax information?

You could look in every file you have or you can just call the place that issued the form. Some resources will have a website that you can download your forms too. If your employer or the person who hired you as a contractor emails the forms then you have the backup right online (provided you did not delete the link to access it). Also, Navient has a link you can download your student loan interest information from too (provided your loan is with the former Sallie Mae).

If you are not familiar with the IRS Interactive Tax Assistant you will be! It is a great tool. You can try and look up your tax questions there. Just plug in common keywords related to taxes and returns or scroll down the page and review the Topics by Category and select the link. You will be asked questions that should help you determine your specific tax need along with a solution.

We suggest next year, whenever something comes via email, print it right away and electronically file he document in an email folder. And, if you get something in the mail have one pocket folder that you can just file the information in and have ready for when you are about to file.

Before You Hit Submit to File Your Taxes

2016_04_14 Tax filingkeyboardDouble check all your information! Spelling of names, addresses, social security numbers, bank information, etc. It may be a good idea to have your spouse check the information while you quote it to avoid any typos or mistakes. You may know it by heart, but when you are looking at numbers and information for hours and then you are under pressure, mistakes can happen. Plus, do you really want to file an amended return?

If you do, you can file online using a software package; however you should note fees to file online can be anywhere from $0 to $25 depending if it is a state return or an IRS return.

Call WorthTax (or another trusted professional)

Why put yourself through all the stress, when WorthTax can help? We can file your extension or your return for you. Call l Alex Franch, BS EA at 781.849.7200 right away so that he can schedule an appointment and/or file an extension if necessary. You can also schedule an appointment at one of Worthtax’s locations in Quincy, Weymouth and Dedham.

Sources and Resources:

2015 Tax Changes for Massachusetts
Tax Deadline is Rapidly Approaching
Massachusetts Tax Filing
April is a Very Busy Tax Month
Employer Relief: Affordable Care Act Reporting
Deadline Changes: Congress Did Something Right!
Statute of Limitations: How Long Am I On the Hook for a Tax Assessment?

 

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Broncos Win Super Bowl 50 – California Wins With Jock Tax

bronchos winBroncos win of Super Bowl 50 was a surprise to some. Not to me, they had a tight defense. I just hope their defense was just as good when planning to pay the Jock Tax.

Superbowl 50 was in California this year. California is one of those states that charges a “jock tax.” I know your are moaning, are you kidding me? A Jock Tax? It’s true! Payton Manning will have a hefty amount to share with the state after the Broncos win. But take comfort, the referees will be subject too.

Just like you may earn overtime or a bonus at your job, these Bronco and Panther athletes make a hefty bonuses for the playoffs and Superbowl. The athletes who play for the Broncos, Panthers or our beloved Patriots are subject to taxes on a State and local basis. This makes their taxes are very complicated. They have to have a really good CPA on their team. Hum, they should call Worthtax!

Since these athletes play in many cities throughout the US, each city may have a local tax imposed. And, each city is located in a state that may require a jock tax on a portion of their multi-million dollar contracts. This jock tax, another form of income tax, is not only collected where they are based, but also where they live.

Oh, and when we say the Broncos win got them a big, beautiful ring? They they may be taxed on the that as well. I guess in the end, we can really say, California won.

Each State Has Their Own Tax Rules

States tax all earnings of the residents residing in that state. However what about non-residents? That is not always the case. In Massachusetts, nonresidents are taxed on the income that results from sources within the Commonwealth.

Some states will tax nonresident income. Chances are if a city (and state they are located in) hosts a large NFL, NBA, NHL or other major league sports events, then it is likely that they have the jock tax. It is just one more opportunity for generating revenue, I guess you can say.

Not All Fun and Taxes When Broncos Win or Lose

You may ask yourself, “Why don’t more athletes live in Massachusetts?” Guess what?  Massachusetts has a jock tax. Think about it, we are home to the New England Patriots, the Boston Red Sox, Boston Celtics and New England Revolution. That is a lot of tax revenue to be made for the Commonwealth. States that do not have a jock tax are Florida, Washington, Texas and Tennessee. That is why those states, especially Florida, are able to successfully recruit those big names and keep them as residents. And I bet you thought the awesome weather was the only reason that athletes live in Florida? Well, partially, but professional athletes, who live in Florida do not have to pay taxes against the income they earn playing there.

So when a player happens to mention they would rather play in one city rather than another, it may not be due to loyalty or rivalry. Although, we would like to think that. They very well could be thinking about their tax return. Keep that in the back of your mind the next time you play fantasy football.

Regardless of the Broncos Win – We don’t discriminate if you are subject to a Jock Tax

Professional NFL player or not, we are here to help you sort through your taxes. Call Alex at 781.849.7200 . Worthtax has a sign-on bonus of our own. In addition to our guaranteed pricing, we are giving $50 American Express gift cards to any new clients who have their taxes completed and filed by WorthTax. Worthtax provides ultra-convenient service and triple check accuracy. We have locations in Quincy, Weymouth and Dedham. Although, if you are a Broncos’ fan and you booed our beloved Patriots, well … don’t do it again!

Superbowl 50 Fun Fact

What is Superbowl 50 without the commercials? Did you know that advertising for Superbowl 50 will generate $377 Million in advertising revenue. Imagine paying taxes on that!

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photo credit: Denver Broncos 2008 Schedule Wallpaper via photopin (license)
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2015 Tax Organizer: Find Missing Deductions

2015 Tax Organizer, Tax OrganizerOur 2015 Tax Organizer is planning tool to help you find missing tax deductions. It is designed to help you to be more organized before your tax appointment. The tax organizer is updated yearly to make sure you comply with the latest tax law changes. The tax organizer posted below is primarily for the 2015 tax year, although it can be used as a general guide for other years.

The 2015 individual tax organizer is provided in three versions. There is also one for the prior year as well. This assists you in collecting important tax information needed to properly prepare your tax return. Access any of the three versions by double clicking on the links below. The tax organizers can be downloaded to your computer. There you can fill it out and save it until you have completed collecting all of your information. After you have finished it and you are ready to make an appointment. Once your appointment is made, forward the organizer (printed or digitally) to our office for immediate service. If you have an office appointment, you can print it out and bring it with you to the meeting.  A word of caution: you can fill out the organizers online and print them. If you close the file, your data will not be saved. You must save the form to your computer first.

Once you have scheduled your appointment with one of our tax experts, mention to them that you would like to send over the tax organizer. They will direct you on where to fax it. Someone from one of our WorthTax locations will contact you by phone, fax or e-mail with any questions, comments, or suggestions. If you e-mail our office advising us that you have sent your tax materials, we will notify you of their receipt.

What 2015 Tax Organizer fits Your Need?

Basic Organizer – This organizer is suitable for clients that are not itemizing their deductions and DO NOT have rental property or self-employment expenses.

Basic Organizer plus Itemized Deductions – This organizer is suitable for clients that are itemizing their deductions and DO NOT have rental property or self-employment expenses.

Full Organizer – This organizer includes the information included in the basic organizer, plus entries for itemized deductions, rental properties and self-employment expenses.

Business Organizer – Use this organizer for partnerships and incorporated business entities.

Prior Year Individual Organizer – If you are filing your 2014 return late, please use this organizer.

Should you have any questions, you can call Alex Franch, BS EA  at 781-849-7200.

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