by Jim Magary | Mar 2, 2016 | Tax Help
Keep Track of Miscellaneous Deductions
Miscellaneous deductions can cut taxes.
These may include certain expenses you paid for in your work if you are an employee.
You must itemize deductions when you file to claim these costs.
So if you usually claim the standard deduction, think about itemizing instead. You might pay less tax if you itemize.
Here are some IRS tax tips you should know that may help you reduce your taxes:
Deductions Subject to the Limit.
You can deduct most miscellaneous costs only if their sum is more than two percent of your adjusted gross income.
These include expenses such as:
• Unreimbursed employee expenses.
• Job search costs for a new job in the same line of work.
• Some work clothes and uniforms.
• Tools for your job.
• Union dues. • Work-related travel and transportation.
• The cost you paid to prepare your tax return.
These fees include the cost you paid for tax preparation software. They also include any fee you paid for e-filing of your return.
Deductions Not Subject to the Limit. Some deductions are not subject to the two percent limit. They include:
• Certain casualty and theft losses. In most cases, this rule applies to damaged or stolen property you held for investment. This may include property such as stocks, bonds and works of art.
• Gambling losses up to the total of your gambling winnings.
• Losses from Ponzi-type investment schemes.
There are many expenses that you can’t deduct. For example, you can’t deduct personal living or family expenses. You claim allowable miscellaneous deductions on Schedule A, Itemized Deductions. For more about this topic see Publication 529, Miscellaneous Deductions.
You can get it on IRS.gov/forms at any time.
Additional IRS Resources:
• Tax Topic 508 – Miscellaneous Expenses
• Interactive Tax Assistant tool – Can I Claim My Expenses as Miscellaneous Itemized
Deductions on Schedule A (Form 1040)?
by Jim Magary | Mar 2, 2016 | Tax Help
Home Energy Credits Save Money and Cut Taxes
You can trim your taxes and save on your energy bills with certain home improvements. Here are some key facts to know about home energy tax credits:
Non-Business Energy Property Credit
Part of this credit is worth 10 percent of the cost of certain qualified energy-saving items you added to your main home last year. This may include items such as insulation, windows, doors and roofs.
The other part of the credit is not a percentage of the cost. It is for the actual cost of certain property. This may include items like water heaters and heating and air conditioning systems. The credit amount for each type of property has a different dollar limit.
This credit has a maximum lifetime limit of $500. You may only use $200 of this limit for windows.
Your main home must be located in the U.S. to qualify for the credit.
Be sure you have the written certification from the manufacturer that their product qualifies for this tax credit.
They usually post it on their website or include it with the product’s packaging. You can rely on it to claim the credit, but do not attach it to your return. Keep it with your tax records.
You may claim the credit on your 2015 tax return if you didn’t reach the lifetime limit in past years.
Under current law, this credit is available through Dec. 31, 2016.
Residential Energy Efficient Property Credit
This tax credit is 30 percent of the cost of alternative energy equipment installed on or in your home.
Qualified equipment includes solar hot water heaters, solar electric equipment, wind turbines and fuel cell property.
There is no dollar limit on the credit for most types of property. If your credit is more than the tax you owe, you can carry forward the unused portion of this credit to next year’s tax return.
The home must be in the U.S. It does not have to be your main home, unless the alternative energy equipment is qualified fuel cell property.
This credit is available through 2016.
Use Form 5695, Residential Energy Credits, to claim these credits. For more information on this topic, refer to the form’s instructions. You can get IRS forms anytime on IRS.gov/forms.
by Jim Magary | Mar 2, 2016 | Tax Help
What is the Additional Medicare Tax and Who Pays It?
Some taxpayers may be required to pay an Additional Medicare Tax if their income exceeds certain limits.
Here are some things that you should know about this tax:
• Tax Rate. The Additional Medicare Tax rate is 0.9 percent.
• Income Subject to Tax. The tax applies to the amount of certain income that is more than a threshold amount. The types of income include your Medicare wages, self-employment income and railroad retirement (RRTA) compensation. See the instructions for Form 8959, Additional Medicare Tax, for more on these rules.
• Threshold Amount. You base your threshold amount on your filing status. If you are married and file a joint return, you must combine your spouse’s wages, compensation or self-employment income with yours. Use the combined total to determine if your income exceeds your threshold.
The threshold amounts are:
Filing Status
Threshold Amount
Married filing jointly
$250,000
Married filing separately
$125,000
Single
$200,000
Head of household
$200,000
Qualifying widow(er) with dependent child
$200,000
• Withholding/Estimated Tax. Employers must withhold this tax from your wages or compensation when they pay you more than $200,000 in a calendar year. If you are self-employed you should include this tax when you figure your estimated tax liability.
• Underpayment of Estimated Tax. If you had too little tax withheld, or did not pay enough estimated tax, you may owe an estimated tax penalty. For more on this, see Publication 505, Tax Withholding and Estimated Tax.
If you owe this tax, file Form 8959, with your tax return. You also report any Additional Medicare Tax withheld by your employer on Form 8959.
Visit IRS.gov for more on this topic.
You can also get forms and publications on IRS.gov/forms anytime.
by Jim Magary | Feb 12, 2016 | Tax Help
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The Internal Revenue Service will need to be contacted and the taxpayer will need to have certain information available. When you call our office we will explain the process to you.
As a general rule, certain facts of your case are pertinent to the resolution of your tax debt.
Smaller cases may be treated differently than larger cases.
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3. what you plan to do about resolving the back IRS Tax Debt.
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As a general rule, the IRS will take a current financial statement on form 433F and they will want that financial statement completely documented along with bank statements, pay stubs, monthly income and expenses.
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by Jim Magary | Feb 12, 2016 | Tax Help
We are a full service tax firm and experts who specialize in affordable IRS Tax Wage Garnishment Levy Assistance Help, Since 1982.
We are composed of CPAs and former IRS agents, managers and teachings instructors that know the IRS system of resolving back IRS tax debt and getting immediate release and stopping Back IRS Tax Levies, both bank and wage garnishment.
We have been offering tax levy assistance held since 1982.
As a general rule, within 24 hours of receiving a current financial statement we can stop and get a bank tax levy or wage garnishment released and settle your case.
We only work cases of tax debt over $15,000. We are a professional tax firm that gets results.
Not only were we former IRS agents and teaching instructors we also were on the job trainers for new IRS agents. We lived this system for 10 years and understand the protocols, settlement theories and know every possible way to resolve back IRS tax debt.
How the process works of Wage Garnishment Releases Work – 668w
There is a difference between an IRS wage garnishment and bank levy garnishment. Your employer will receive a 668W which is a continuing garnishment. It does not stop.
An IRS wage garnishment is an immediate seizure of your paychecks minus some exemptions that you may claim on a form that will be sent to your employer.
A bank levy garnishment is a 21 day hold or freeze on the account the day the levy was received by the bank.
An employer may not give you your paycheck until IRS sends a release of levy to the entity.
IRS issues a tax levy ( bank and or wage garnishments) because taxpayers have failed to respond to final notices sent.
IRS generally sends a series of five billing notices out over five with billing cycles. Many times taxpayers have never even receive those final notices. Nevertheless a call to the Internal Revenue Service will need to be made to get your paycheck back.
The IRS systemically sends out bank or wage garnishment levies to the taxpayers employer or bank account. Levy sources are accumulated by IRS because of W-2 or 1099 transmittal. IRS keeps set information on your system for seven years.
The taxpayer or the representative will need to call IRS with the current financial statement. Once IRS has the information in hand they will immediately go ahead and issue a release of levy.
As a general rule, certain facts of your case are pertinent to the resolution of your tax debt. Smaller cases may be treated differently than larger cases.
IRS has a variety of options available depending on the type of tax debt that you owe.
Factors IRS takes into account to resolve your case and release a Back Tax Levy.
A couple of factors IRS take into account are the dollar amount, your prior compliance history, and what you plan to do about resolving the back IRS Tax Debt.
IRS will conduct a full compliance check to make sure all your tax returns are filed.
As a general rule, the IRS will take a current financial statement on form 433F and they will want that financial statement completely documented along with bank statements, pay stubs, monthly income and expenses.
IRS will complete an analysis based on the national and regional standards of expenses in the area in which you live.
IRS has specified formulas and coming up with a solution to resolve your tax debt. As a general rule, the IRS will either place your case into a currently non-collectible, ask for a monthly payment or installment agreement or let you know you could be considered for an offer in compromise.
When you call our office we will review with you every possible solution and let you know the most affordable and fastest way to resolve your back tax debt problem with the IRS and get you an immediate release of the tax levy garnishment.
It is important for you to know that all back tax returns will need to be filed before IRS will close their case
We have over 206 years of professional tax experience, 65 years of direct IRS work experience and resolved thousands of taxpayer issues since 1982.
When you call our office you will speak not to a salesperson but to a true IRS tax expert who understands the process of how you can resolve your back tax debt.
Please feel free to call us and get a second opinion if you need IRS tax garnishment levy assistance help.
We are the fast and affordable professional tax firm that has been resolving taxpayer debt since 1982.
We can get immediate and permanent releases a bank garnishment levies and wage garnishment levies and settle your case all at the same time.
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