by steve | Feb 27, 2012 | Back Taxes
File Back Tax Returns – Does the IRS Owe you Money South Florida – Miami, Ft. Lauderdale, Palm Beaches – Fresh Start Tax LLC
Make sure you file your back tax returns.
If you have not filed your back tax returns contact us today.
We are comprised of former IRS agents and managers who have over 60 years of direct working experience in the local South Florida Internal Revenue Service office.
We can file all your back returns and work out a tax settlement. Many people who do not file their back tax returns lose out on hundreds or thousands of dollars of tax refunds.
Did you lose out on a tax refund?
Over 70,000 taxpayers in the South Florida area are giving their money back to the IRS. Don’t that make you sick.
The statute of limitations is ticking. Over 70,500 South Floridians did not file their 2008 tax return and as April 17th rolls around the tax refunds are lost for good.
So, if you forgot to file your tax return in 2008 call us today and get your money back from the IRS plus interest.
I have seen hundreds of clients and former clients miss out on tax refunds for a variety of reasons. Many thought they were going to owe the IRS and were afraid to file their tax returns.
What is shocking, the average refund going back to South Floridians is approximately $700. Some losing out on thousands of dollars. In one case of a walk in client lost, $8750. Boy did that hurt.
That is a whooping $67 million dollars that goes back to the IRS because South Floridians forgot to file their tax returns.
Some Floridians may also have qualified for the 2008 Earned Income Tax Credit (EITC) for low- and moderate-income families. Taxpayers can file the form and still get the tax credit.
Call us today to get your refund before you lose out.
by steve | Feb 27, 2012 | Income Tax Preparation, IRS Tax Advice
Fresh Start Tax LLC wants to keep all of our clients aware of different tax credits offered by the IRS. Here are some valuable tax tips regarding Education Credits.
Education Tax Credits can help pay higher education costs
Two Federal Tax Credits are available.
This may help you offset the costs of higher education for yourself or your dependents.
These are the American Opportunity Credit and the Lifetime Learning Credits.
To qualify for either tax credit, you must pay post secondary tuition and fees for yourself, your spouse or your dependent.
The tax credit may be claimed by either the parent or the student, but not both. If the student was claimed as a dependent, the student cannot file for the credit.
For each student, you may claim only one of the credits in a single tax year. You cannot claim the American Opportunity Credit to pay for part of your daughter’s tuition charges and then claim the Lifetime Learning Credit for $2,000 more of her school costs.
If you pay college expenses for two or more students in the same year, you can choose to take credits on a per-student, per-year basis.
You may claim the American Opportunity Credit, AOC, for your sophomore daughter and the Lifetime Learning Credit for your spouse’s graduate school tuition.
Here are some facts the IRS and Fresh Start Tax LLC wants you to know about these valuable education credits:
1. The American Opportunity Credit
a. The credit can be up to $2,500 per eligible student.
b. It is available for the first four years of post secondary education.
c. Forty percent of the credit is refundable, which means that you may be able to receive up to $1,000, even if you owe no taxes.
d. The student must be pursuing an undergraduate degree or other recognized educational credential.
e.The student must be enrolled at least half time for at least one academic period.
f. Qualified expenses include tuition and fees, coursed related books supplies and equipment.
The full credit is generally available to eligible taxpayers whose modified adjusted gross income is less than $80,000 or $160,000 for married couples filing a joint return.
2. Lifetime Learning Credit
a. The credit can be up to $2,000 per eligible student.
b. It is available for all years of post secondary education and for courses to acquire or improve job skills.
c. The maximum credited is limited to the amount of tax you must pay on your return.
d. The student does not need to be pursuing a degree or other recognized education credential.
e. Qualified expenses include tuition and fees, course related books, supplies and equipment.
f. The full credit is generally available to eligible taxpayers whose modified adjusted gross income is less than $60,000 or $120,000 for married couples filing a joint return.
g. If you don’t qualify for these education credits, you may qualify for the tuition and fees deduction, which can reduce the amount of your income subject to tax by up to $4,000. However, you cannot claim the tuition and fees tax deduction in the same year that you claim the American Opportunity Tax Credit or the Lifetime Learning Credit.
You must choose to either take the credit or the deduction and should consider which is more beneficial for you.
For professional tax help and to audit proof your tax return call Fresh Start Tax LLC today.
by steve | Feb 27, 2012 | Income Tax Preparation
There are different ways to find Free Tax Help to prepare your income tax return.
First go to the The IRS.
The IRS offers free assistance by computer, telephone and in person.
The easiest and fastest way to get free tax help is through the IRS website – www.irs.gov.
The Internal Revenue Service also can also help find free tax preparation sites for those who qualify.
Here are some easy ways to get the help you need to file your tax return.
1. IRS website .
The IRS website at www.irs.gov is a one-stop shop for a wide array of tax information. You can even prepare and file your federal tax return for free through Free File, a service offered by IRS and its partners who offer free tax preparation software and free electronic filing.
But you must go through www.irs.gov to use Free File.
Do you have some tax questions?
Check out 1040 Central on the individuals page for the latest news.
You can even check the status of your refund with Where’s My Refund?
2. Community resources.
Free income tax preparation is available through the Volunteer Income Tax Assistance and Tax Counseling for the Elderly programs in many communities.
Volunteer tax return preparation programs are provided through partnerships between the IRS and community based organizations.
They offer free help in preparing simple tax returns for low-to-moderate-income taxpayers. To find a site near you, visit www.irs.gov, or call 800-906-9887. Qualified taxpayers (age 60 or older) can also find help at a local TCE site by visiting www.aarp.org or calling 888-227-7669.
3. Telephone Call.
The IRS Tax Help Line for Individuals, 800-829-1040, to get answers to your federal tax questions, To hear pre-recorded messages covering various tax topics or to check the status of your refund, call 800-829-4477.Prepare yourself for a long wait. If it is free you will wait.
4. Taxpayer Assistance Centers.
When you believe your tax issue cannot be handled online or by phone and you want face-to-face assistance, you can find help at a local IRS Taxpayer Assistance Center. Locations, business hours and an overview of services are available at www.irs.gov.
Just go to the Individuals tab and click on the Contact My Local Office link on the left under IRS Resources.
Remember, it is always best to hire a professional tax preparer. You will know you are going to pay the lowest amount of tax allowed by law because tax professional know all the tax loopholes.
by steve | Feb 24, 2012 | IRS Tax Advice, Tax News
Early Distributions from Retirement Plans can have a tax impact so you should plan carefully because it can significantly impact your available income.
Many taxpayers may sometimes find themselves in situations when they need to withdraw money from their retirement plan early. What they may not realize is that that transaction may mean a tax impact when they file their return. This will hurt.
Therefore Tax Planning is important.
Here are some facts from the IRS about the tax implications of an early distribution from your retirement plan or pension plan.
1. Payments you receive from your Individual Retirement Arrangement before you reach age 59 ½ are generally considered early or premature distributions.
2. Early distributions are usually subject to an additional 10 percent tax. This is a killer!
3. Early distributions must also be reported to the IRS. The benefit provider will report this to the IRS.
4. Income distributions that roll over to another IRA or qualified retirement plan are not subject to the additional 10 percent tax. You have to complete the rollover within 60 days after the day you received the distribution.
5. The amount you roll over is generally taxed when your new plan makes a distribution to you or your beneficiary.
6. If you made nondeductible contributions to an IRA and later take early distributions from your IRA, the portion of the distribution attributable to those nondeductible contributions is not taxed.
7. If you received an early distribution from a Roth IRA, the distribution attributable to your prior contributions is not taxed.
8. If you received a distribution from any other qualified retirement plan, generally the entire distribution is taxable unless you made after-tax employee contributions to the plan.
9. There are many exceptions to the additional 10 percent early distribution tax, such as when the distributions are used for the purchase of a first home (up to $10,000), for certain medical or educational expenses, or if you are totally and permanently disabled.
Call us should you have any questions.
by steve | Feb 23, 2012 | Income Tax Preparation, IRS Tax Advice
Questions about Capital Gains come up every year at tax time.
Here are the top tax tips regarding Capital Gains for 2011.
This presentation is to aid and assist all our clients of Fresh Start Tax LLC.
Capital Gains and Losses from Tax Experts:
Capital Assets
Capital assets include a home, household furnishings and stocks and bonds held in a personal account. When you sell a capital asset, the difference between the amount you paid for the asset and its sales price is a capital gain or capital loss.It is the net equity or profit IRS is concerned about.
Facts from the IRS about how gains and losses can affect your Federal Income Tax Return or 1040.
1. Almost everything you own and use for personal purposes, pleasure or investment is a capital asset. Bet you did not know that!
2. When you sell a capital asset, the difference between the amount you sell it for and your basis is usually what you paid for it. That is called a capital gain or a capital loss for income tax purposes.
3. You the taxpayer must report all capital gains.
4. You may only deduct capital losses on investment property, not on personal-use property.
5. Capital gains and losses are classified as long-term or short-term. If you hold the property more than one year, your capital gain or loss is long-term. If you hold it one year or less, the gain or loss is short-term.
6. If you have long-term gains in excess of your long-term losses, the difference is normally a net capital gain. Subtract any short-term losses from the net capital gain to calculate the net capital gain you must report.
7. The tax rates that apply to net capital gain are generally lower than the tax rates that apply to other income. For 2011, the maximum capital gains rate for most taxpayers is 15 percent.
For lower-income individuals, the rate may be 0 percent on some or all of the net capital gain. Rates of 25 or 28 percent may apply to special types of net capital gain.
8. If your capital losses exceed your capital gains, you can deduct the excess on your tax return to reduce other income, such as wages, up to an annual limit of $3,000, or $1,500 if you are married filing separately.
9. If your total net capital loss is more than the yearly limit on capital loss deductions, you can carry over the unused part to the next year and treat it as if you incurred it in that next year. A Break!
10. This year 2012, a new form, Form 8949, Sales and Other Dispositions of Capital Assets, will be used to calculate capital gains and losses.
You should use IRS Form 8949 to list all capital gain and loss transactions. The subtotals from this form will then be carried over to Schedule D (Form 1040), where gain or loss will be calculated.
Should you have any question or need professional tax representation call us today.
