Category Archives: Uncategorized

Do You Rent Rooms in Your House?

Room Rentals Generate Good Income

Are you familiar with how the IRS treats the income and expenses for when you rent rooms in your home? Due to the shortage of affordable housing these days, many homeowners are renting out rooms in their homes, providing themselves with some additional cash. Some questions that often come up in regard to room rentals include: Is the income taxable? If so, how do I report the income from a room rental? What deductions can I take on my tax form? Can I claim a loss on rent? Answers to these questions are as follows: Continue reading

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Get Ready for Tax Season, Tax Time 2019

Are You Ready for Tax Season? Time to Gather Your Information for Your Tax Appointment

We are aware of what it takes to get ready for tax season. Are you ready for tax season? Like most taxpayers, you have the overwhelming task of pulling together all the records for your tax appointment. This blog is Part 2 of Tax Time 2019 Is Around the Corner, and has additional suggestions as to how to get ready for tax season.
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Tax Time 2019 is Around the Corner, Are You Ready?

It’s Tax Time 2019, Time to Gather Your Information for Your Tax Appointment

When we say Tax Time 2019 is just around the corner, like most taxpayers, you are finding yourself with the massive chore of pulling together the records for your tax appointment. The difficulty of this task depends upon how well you maintained your tax records throughout the year. This is Part 1 of Tax Time 2019 is Around the Corner, Are You Ready? No matter how good your record keeping was, arriving at your tax appointment full and accurate tax information will give us more time to: Continue reading

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Tax Reform is Confusing! Here is a Side by Side Comparison Part 1

Tax Reform is confusing to Many People.

Yes, tax reform is confusing; however, in this article we will make it easier to understand. This year has flown by so fast, and tax reform is in full swing. We decided to put together a side-by side comparison of the old and new law. All that is left to close this deal is filing that first tax return to the IRS. Below is an infographic to help you maneuver all the details behind Tax Reform. Below we will break down this very long infographic for you into pieces for an easier understanding. Are you ready? Continue reading

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Minimizing Tax on Social Security Benefits

Minimizing Tax on Social Security Has An Income Factor 

Often, people ask, “How do I go about minimizing tax on social security income?” Let’s face it, people make very little on social security income and it is only going to get harder and harder. How much (if any) of your Social Security benefits are taxable depends on a number of issues. The following facts will help you understand the taxability of your Social Security benefits.
For this discussion, the term “Social Security benefits” refers to the gross amount of benefits you receive (i.e., the amount before any reductions due to payments withheld for Medicare premiums). For tax purposes, Social Security benefits are treated Continue reading

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Top 6 Tax Scams List for 2017

Top 6 Tax Scams List Put Out by the IRS

Are your taxes done? If you haven’t and you are feeling the pressure to get them done. There are unscruplous tax preparers out there who will try to make you feel very good about a great big refund. However, the truth is, they are scamming you. This list will show you how they deceive you with unethical tax preparation practices. Instead of getting caught in this ordeal, we suggest you file an extension.

The IRS recently put this list of the top six tax scams on the website to help you avoid being caught victim to illegal tax practices. If you fall victim to one or more of these tax scams, you could end up with tax penalties, interest and worse, no refund! Continue reading

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Thinking of Converting Your Home to a Rental? Read this First

If you are considering converting your home to a rental, there are a number of tax issues you need to consider before making a final decision.

What You Should Consider Before Converting Your Home to a Rental

One of the first issues to consider is that by converting your home to a rental, your main home that is, you may give up an opportunity to realize tax-free income. Currently, taxpayers are allowed to Continue reading

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Spooked Over October Tax Due Dates?

Pumpkin season with ghouls and goblins are upon us and so are the October tax due dates. Don’t get spooked by it all, at least the tax due dates anyway. Read below for what a person’s or business’ tax responsibility may be for the month of October 2016. Halloween is not the most frightening part of October. If you are not ready for your tax deadlines, you could have a very scary experience when it comes time to file your tax returns in April.

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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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