by Fresh Start Tax | Sep 20, 2012 | Back Taxes, Income Tax Preparation, Tax Returns
Fresh Start Tax LLC , since 1982 and “A” rated by the BBB. Serving all of South Florida. 954-492-0088
You can have Former IRS Agents and Managers who worked out of the South Florida IRS offices prepare your tax returns. Over 60 years with the local South Florida IRS offices.
Also staffed with CPA’s and Former IRS Appeals Agents.
It is very important your find a very good tax preparer. A good tax preparer can save you money, audit proof your tax return and give you a solid tax plan for the future.
They are a very important part of your financial life. You should chose a person or firm that you can trust to give you rock solid financial advice while saving tax and can keep you from a IRS tax audit.
Tips to find a Tax Preparer:
After working for the IRS for 10 years and being a Former IRS Instructor I have seen the good, the bad and the ugly with income tax preparation.
Living in South Florida presents challenges if you are randomly selecting a tax preparer. People put up shingles with little or no training. Many of these so called tax practitioners take one or two class and they believe they are tax experts.
Personally, I would not go to any firm unless they have processed over one thousand tax returns.
I would recommend these tax tips in choosing your preparer.
1. Find a local company. It is very important you get to met the person or firm preparing your tax return.
2. You should want to interview the preparer and get a gut feeling about he /she and the office environment.
3. Ask how many tax returns they have prepared.
4. Ask about there accounting achievements as well as there formal training and degrees.
5. Find out how long they have been practicing in the local area.
6. Ask them if they made a mistake who pays.
7. Contact the BBB or the Internet and find out if there are any complaints.
8. Ask them about there fees, are there fees flat rated. How much is tax planning?
Cautions
9. If they promise you a bigger refund, run!
10. If they do not ask for your receipts and documentation,run.
Tax Preparer, Income Tax Preparation, Former IRS , Fresh Start Tax LLC, Miami, Ft.Lauderdale, South Florida
by Fresh Start Tax | Sep 13, 2012 | Income Tax Preparation, Tax Help
Sooner or later everyone will ask this question,” Is my social security benefit taxable?”
The Social Security benefits you received in may be taxable but as always certain tax rules apply.
You should receive a Form SSA-1099 which will show the total amount of your social security benefits.
The information provided on this SSA-1099 statement along with the following seven facts will help you determine whether or not your social security benefits are taxable.
To determine how much of your Social Security benefits maybe taxable depends on your Total income and Marital status for the given tax year in question.
If your Social Security Benefits were your only income, your benefits are not taxable and you probably do not need to file a federal income tax return.
If you received income from other sources, your benefits will not be taxed unless your modified adjusted gross income is more than the base amount for your filing status.
Your taxable benefits and modified adjusted gross income are figured on a worksheet in the Form 1040A or Form 1040 Instruction booklet.
You can do the following quick computation to determine whether some of your benefits may be taxable:
First, add one-half of the total Social Security benefits you received to all your other income, including any tax exempt interest and other exclusions from income.
Then you are to compare this total to the base amount for your filing status.
If the total is more than your base amount, some of your benefits may be taxable.
The 2010 base amounts are:
a. $32,000 for married couples filing jointly,
b.$25,000 for single, head of household, qualifying widow/widower with a dependent child, or married individuals filing separately who did not live with their spouses at any time during the year,
c.$0 for married persons filing separately who lived together during the year.
by Fresh Start Tax | Aug 31, 2012 | Income Tax Preparation, Tax Lawyer
There is many excellent income tax preparation tax firms in South Florida especially in Dade, Palm, and Broward County.
Fresh Start Tax LLC is one of those tax firms because of our care, excellence, and affordability.
We are “A” plus rated and without compliant.
Why choose Fresh Start Tax L.L.C.
1. We are comprised of Former IRS Agents with over 60 years of direct IRS experience in the local South Florida offices.
2. Our former IRS Agents were also teaching Instructors and Managers with the IRS.
3. We have prepared thousands of tax returns since 1982 all without audit if possible.
4. All tax returns are prepared and reviewed by two tax professionals for accuracy and making sure we got the most out of every possible tax deductions so you pay the lowest amount allowed by law.
5. We are affordable and assessable.
6. Also have on staff Board Certified Tax Attorneys and CPA’s.
7. We audit proof all tax returns to make sure your tax return gets processed without error and without audit.
Newsletter Tip
As part of our newsletter to our clients here are some tax tips for Students and Parents with College Expenses.
Back-to-School Tips for Students and Parents Paying College Expenses
The IRS offers some tips about education tax benefits that can help offset some college costs for students and parents and we need them all.
These benefits apply to you, your spouse or a dependent for whom you claim an exemption on your tax return.
American Opportunity Credit.
This tax credit, originally created under the American Recovery and Reinvestment Act, is still available for 2012.
This tax credit can be up to $2,500 per eligible student and is available for the first four years of post secondary education at an eligible institution. Forty percent of this credit is refundable, which means that you may be able to receive up to $1,000, even if you don’t owe any taxes.
Qualified expenses include:
1.tuition,
2. fees,
3.course related books,
4.supplies and equipment.
Lifetime Learning Tax Credit.
In 2012, you may be able to claim a Lifetime Learning Credit of up to $2,000 for qualified education expenses paid for a student enrolled in eligible educational institution
There is no limit on the number of years you can claim the Lifetime Learning Credit for an eligible student.
You can claim only one type of education credit per student in the same tax year. However, if you pay college expenses for more than one student in the same year, you can choose to take credits on a per-student, per-year basis. For example, you can claim the American Opportunity Credit for one student and the Lifetime Learning Credit for the other student.
For more information call us today for a no cost professional tax consultation. 954-492-0088
Income Tax Preparation, Former IRS Agents , Fresh Start Tax LLC, South Florida , Broward, Dade, Palm Beach County
by Fresh Start Tax | Aug 27, 2012 | Income Tax Preparation
Many questions are asked regarding IRS and tax rules and regulations regarding same-sex domestic partners and civil unions.
State Laws vary from State to State however federal law is very specific regarding these issues.
Questions and Answers to Federal Tax Law and the IRS.
The following questions and answers provide information to same-sex domestic partners, same-sex individuals in civil unions and same-sex couples whose marriage is recognized by state law (for convenience, these individuals are referred to as “same-sex couples” and each individual is referred to as a “same-sex partner” in these questions and answers).
Below this information are questions and answers for same-sex couples who reside in community property states and are subject to their state’s community property laws:
1.Can same-sex partners who are legally married for state law purposes file federal tax returns using a married filing jointly or married filing separately status?
Same-sex partners may not file using a married filing separately or jointly filing status because federal law does not treat same-sex partners as married for federal tax purposes.
Head of Household
2.Can a taxpayer use the head-of-household filing status if the taxpayer’s only dependent is his or her same-sex partner?
A taxpayer cannot file as head of household if the taxpayer’s only dependent is his or her same-sex partner. A taxpayer’s same-sex partner is not one of the related individuals described in the law that qualifies the taxpayer to file as head of household, even if the same-sex partner is the taxpayer’s dependent.
Qualifying Child
3. If a child is a qualifying child under section 152(c) of both parents who are same-sex partners, which parent may claim the child as a dependent?
If a child is a qualifying child under section 152(c) of both parents who are same-sex partners, either parent, but not both, may claim a dependency deduction for the qualifying child.
However if both parents claim a dependency deduction for the child on their income tax returns, the IRS will treat the child as the qualifying child of the parent with whom the child resides for the longer period of time.
Should the child resides with each parent for the same amount of time during the taxable year, the IRS will treat the child as the qualifying child of the parent with the higher adjusted gross income.
Itemized Deductions
4.Can a same-sex partner itemize deductions if his or her partner claims a standard deduction?
Yes. A same-sex partner may itemize or claim the standard deduction regardless of whether his or her partner itemizes or claims the standard deduction.
The law prohibits one spouse from itemizing deductions if the other spouse claims the standard deduction , same-sex partners are not spouses as defined by federal law, and this provision does not apply to them.
Income Tax Preparation – Tax Services- CPA’s, Former IRS – Upper Montclair
Child Adoption
5.If a same-sex couple adopts a child together, can one or both of the same-sex partners qualify for the adoption credit?
Yes. Each same-sex partner may qualify to claim the adoption credit on the amount of the qualified adoption expenses paid or incurred for the adoption.
The same-sex partners may not both claim credit for the same qualified adoption expenses, and neither same-sex partner may claim more than the amount of expenses that he or she paid or incurred. The adoption credit is limited to $13,360 per child in 2011.
Thus, if two same-sex partners each paid qualified adoption expenses to adopt the same child, and the total of those expenses exceeds $13,360, the maximum credit available for the adoption is $13,360.
The same-sex partners may allocate this maximum between them in any way they agree, but the amount allocated to a same-sex partner may not be more than the amount of expenses he or she paid or incurred.
The same rules generally apply in the case of a special needs adoption.
Total Tax Credit
The total tax credit for such an adoption is limited to $13,360, but the amount that each same-sex partner may claim is not limited by the amount of expenses paid or incurred.
Second Parent
6. If a taxpayer adopts the child of his or her same-sex partner as a second parent or co-parent, may the taxpayer (“adopting parent”) claim the adoption credit for the qualifying adoption expenses he or she pays or incurs to adopt the child?
Yes. The adopting parent may claim an adoption credit to the extent provided under the law. The law does not allow taxpayers to claim an adoption credit for expenses incurred in adopting the child of the taxpayer’s spouse.
However, this limitation does not apply to adoptions by same-sex partners because same-sex partners, even if married for state law purposes, are not treated as spouses under federal law.8.Is a same-sex partner the stepparent of his or her partner’s child?
If a same-sex partner is the stepparent of his or her partner’s child under the laws of the state in which the partners reside, then the same-sex partner is the stepparent of the child for federal income tax purposes.
Recognized by State Law
7. The following questions and answers provide information to same-sex domestic partners, same-sex individuals in civil unions and same-sex couples whose marriage is recognized by state law (for convenience, these individuals are referred to as “same-sex couples” and each individual is referred to as a “same-sex partner” in these questions and answers). Below this information are questions and answers for same-sex couples who reside in community property states and are subject to their state’s community property laws:
State Law vs Federal Law
8. Can same-sex partners who are legally married for state law purposes file federal tax returns using a married filing jointly or married filing separately status?
A. No. Same-sex partners may not file using a married filing separately or jointly filing status because federal law does not treat same-sex partners as married for federal tax purposes.
Head of Household
9. Can a taxpayer use the head-of-household filing status if the taxpayer’s only dependent is his or her same-sex partner?
A. No. A taxpayer cannot file as head of household if the taxpayer’s only dependent is his or her same-sex partner. A taxpayer’s same-sex partner is not one of the related individuals described in the law that qualifies the taxpayer to file as head of household, even if the same-sex partner is the taxpayer’s dependent.
Qualifying child
10. If a child is a qualifying child under section 152(c) of both parents who are same-sex partners, which parent may claim the child as a dependent?
A. If a child is a qualifying child under section 152(c) of both parents who are same-sex partners, either parent, but not both, may claim a dependency deduction for the qualifying child. If both parents claim a dependency deduction for the child on their income tax returns, the IRS will treat the child as the qualifying child of the parent with whom the child resides for the longer period of time. If the child resides with each parent for the same amount of time during the taxable year, the IRS will treat the child as the qualifying child of the parent with the higher adjusted gross income.
Standard vs Itemized Deductions
11. Can a same-sex partner itemize deductions if his or her partner claims a standard deduction?
A. Yes. A same-sex partner may itemize or claim the standard deduction regardless of whether his or her partner itemizes or claims the standard deduction.
by Fresh Start Tax | Aug 26, 2012 | Income Tax Preparation, Representation
Fresh Start Tax L.L.C. of South Florida is a local tax specialty firm dealing with income tax, business and corporate tax preparation and planning. We also are IRS and State Tax Representation Experts. 954-492-0088
You can have your tax return ( income or business tax preparation ) prepared and filed through former IRS agents and managers who worked out of the local South Florida IRS offices. 954-492-0088. Free Consults for income tax preparation.
Tax Tips for our clients and potential clients in regard selling your home.
Taxpayers are eligible to exclude the gain from income if you have owned and used your home as your main home for two years out of the five years prior to the date of its sale. Make sure you can prove all sell dates.
If you have a gain from the sale of your main home, you may be able to exclude up to $250,000 of the gain from your income ,$500,000 on a joint return in most cases. Check with us to make sure.
You will not eligible for the full exclusion if you excluded the gain from the sale of another home during the two-year period prior to the sale of your home.
If you can exclude all of the gain, you do not need to report the sale of your home on your tax return.
If you have a gain that cannot be excluded, it is taxable.
You must report it on Form 1040, Schedule D, Capital Gains and Losses.
You cannot deduct a loss from the sale of your main home.
Special Note : If you have more than one home, you can exclude a gain only from the sale of your main home. You must pay tax on the gain from selling any other home.
If you have two homes and live in both of them, your main home is ordinarily the one you live in most of the time.
Call us to find out more, 954-492-0088.
Income Tax Preparation, Former IRS Agents, Fresh Start Tax LLC , South Florida , Broward & Dade County, Tax Tips, Selling your Home
by Fresh Start Tax | Aug 22, 2012 | Income Tax Preparation
Income Tax Preparation – Former IRS Agents can save you money – Ft.Lauderdale, Miami, Palm Beach – Moving Tax Tips 954-492-0088
Have Former IRS agents and managers who worked out of the local South Florida offices prepare your income tax return.
We are comprised of CPA’s and former IRS Agents and Managers. We have been practicing in South Florida since 1982. We are “A” Plus rated by the BBB.
We worked out of the South Florida IRS offices and have over 60 years of direct work experience as Former IRS Agents, Instructors and Managers.
We have prepared thousands of tax returns of both income, business and corporate tax.
Call us today for a free consultation and learn how you can save tax dollars by using Former IRS Agents. 954-492-0088.
We are a full service tax firm and offer an array of tax services.
Tax Tips – Moving Expenses from Fresh Start Tax LLC.
1. Expenses.
You must be close to the time you start work. Generally, you can consider moving expenses that you incurred within one year of the date you first report to work at a new job location.
2. The Distance Test.
Your move meets the distance test if your new main job location is at least 50 miles farther from your former home than your previous main job location was from your former home. For example, if your old main job location was three miles from your former home, your new main job location must be at least 53 miles from that former home.
3. The Time Test.
Upon arriving in the general area of your new job location, you must work full time for at least 39 weeks during the first year at your new job location. Self-employed individuals must meet this test, and they must also work full time for a total of at least 78 weeks during the first 24 months upon arriving in the general area of their new job location.
If your income tax return is due before you have satisfied this requirement, you can still deduct your allowable moving expenses if you expect to meet the time test.
4. Travel Test.
You can deduct lodging expenses (but not meals) for yourself and household members while moving from your former home to your new home. You can also deduct transportation expenses, including airfare, vehicle mileage, parking fees and tolls you pay, but you can only deduct one trip per person.
5. Household goods.
You can deduct the cost of packing, crating and transporting your household goods and personal property, including the cost of shipping household pets. You may be able to include the cost of storing and insuring these items while in transit.
6. Utilities. Test
You can deduct the costs of connecting or disconnecting utilities.
7. Nondeductible expenses Test.
You cannot deduct as moving expenses: any part of the purchase price of your new home, car tags, a drivers license renewal, costs of buying or selling a home, expenses of entering into or breaking a lease, or security deposits and storage charges, except those incurred in transit and for foreign moves.
8.Tax Form.
You can deduct only those expenses that are reasonable for the circumstances of your move. To figure the amount of your deduction for moving expenses, use Form 3903, Moving Expenses.
9. Reimbursed expenses.
If your employer reimburses you for the costs of a move for which you took a deduction, the reimbursement may have to be included as income on your tax return.
Final important note:
Update your address.
When you move, be sure to update your address with the IRS and the U.S. Postal Service to ensure you receive mail from the IRS. Use Form 8822, Change of Address, to notify the IRS.
Income Tax Preparation – Former IRS Agents can save you money – Ft.Lauderdale, Miami, Palm Beach
