The IRS continues to provide up to date information and assistance for those who suffered from any of the major disasters from the last couple of years.  For more information you can call 1-886-562-5227 or visit www.Irs.gov.

Save yourself some time and confusion by reviewing the following information on common misconceptions as well as answers to frequently asked questions.  If you need further details on the topics below, or you can’t find the answer to a question you are looking for, please email your question or call our office so we can add it to our page.

Q) The Schedule A – What personal expenses can I claim?
A) Filing a Schedule A allows you to itemize your personal expenses. And if the amount exceeds the standard deduction given by the IRS based on filing status, then the calculated sum is your deduction. Following is a list of qualified expenses that can be included on the Schedule A:  Medical Expenses, State Income Tax or Sales Tax, Real Estate Taxes, Mortgage Interest Paid, Unreimbursed Job Related Expenses, Tax Preparation Fees, Investment Expenses, Safety Deposit Box and Charitable Donations.

Q) The 1099-MISC – How does this affect the tax return?
A) If an individual works for an organization as an “Independent Contractor”, their wages are then reported on a 1099-MISC as non-employee compensation. As a result, there was no withholding for Federal tax, Social Security tax and Medicare. For this reason, the taxpayer is required to file a Schedule C with their tax return. In most cases, the Federal tax is eliminated from the deductions and credits claimed on the return. However, the individual is still obligated to pay in a percentage of Social Security and Medicare which is figured separately from the Federal income tax. In order to avoid having to pay in when filing the tax return, planning and saving for this liability should be done during the year. Ask one of our preparers for more information and ways to plan and budget.

Q) Payroll Deductions – Is what you are claiming helping you or hurting you?
A) No matter how many times you have done it, filling out your W-4 can be so confusing. And not knowing what to claim can hurt you if you are not careful. Based on an individual’s employment situation, claiming too much may leave you owing when you file your return. The more exemptions you claim the less taxes will be withheld all year long. If you are unsure of what you should claim, contact our office and we can help you better understand.