It's tax time again!
AARP will be scheduling free tax appointments on Mondays from February 1 through April 12. These appointments will be held in our computer lab, so we will not have Open Computer Lab on those days.
AARP will be scheduling appointments on an hourly basis beginning at 9 a.m.
To make an appointment, please call 615-646-9622 x72259.
Please clearly leave your name and phone number on the voicemail and someone will return your call.
Showing posts with label tax tips. Show all posts
Showing posts with label tax tips. Show all posts
Importance of Tax Planning
Importance of Tax Planning
By Ron Dubois, CPA
www.ronduboiscpa.com
Does anyone like unexpected or unnecessary income taxes?
I have been a tax professional during the past 25 years and I have seen many people pay more taxes than would have been required by law simply because they were not familiar with the current tax regulations and they did not know they could strategically plan ahead for taxes. It is important to know what the tax laws are so that you can plan a transaction and know the consequences of your choices before it is finalized. Most people don’t think about their tax situations until it is too late and you are filing your return. For this year, at least, your ship has already gone aground.
It pays to plan ahead.
Tax situations that can change during the year include changing jobs, working a second job, changing from being an employee to being an independent contractor or self-employed, getting married, getting divorced, becoming unemployed, selling property, selling a business, having or adopting a child, or taking a withdrawal from a retirement account. All these events affect the amount of taxes you will pay. Unfortunately, many times it results in unexpected additional money being owed at the end of the year.
How can you avoid owing additional money at the end of the year?
You do it by taking corrective action during the year. I always encourage my clients to contact me if their tax situation changes in any way or if they’re going to do anything that they think may impact their taxes and to run their plans by me “before” they do them. This gives me the opportunity to advise them of what the tax consequences could be, and what they can do so they don’t wind up owing a lot of money at the end of the year.
To help illustrate this here are some real examples I have seen. A single client purchased a new home and took money out of an IRA for the down payment. The IRA withdrawal combined with her wages exceeded the income limit for the First-Time Homebuyer Credit and she ended up being disqualified for half of the credit due to her income being too high. In another instance a client sold a rental property on December 31, 2008 and was required to pay the tax on the gain by April 15, 2009. If the property had closed on January 2, 2009 this client would have had an additional 12 months in order to pay the tax by April 15, 2010.
Good planning and knowledge of current tax rules will save you time and give you peace of mind with your finances.
Use of any information referred to is for general information only and does not represent personal tax advice either express or implied. You are encouraged to seek professional tax advice for personal income tax questions and assistance.
By Ron Dubois, CPA
www.ronduboiscpa.com
Does anyone like unexpected or unnecessary income taxes?
I have been a tax professional during the past 25 years and I have seen many people pay more taxes than would have been required by law simply because they were not familiar with the current tax regulations and they did not know they could strategically plan ahead for taxes. It is important to know what the tax laws are so that you can plan a transaction and know the consequences of your choices before it is finalized. Most people don’t think about their tax situations until it is too late and you are filing your return. For this year, at least, your ship has already gone aground.
It pays to plan ahead.
Tax situations that can change during the year include changing jobs, working a second job, changing from being an employee to being an independent contractor or self-employed, getting married, getting divorced, becoming unemployed, selling property, selling a business, having or adopting a child, or taking a withdrawal from a retirement account. All these events affect the amount of taxes you will pay. Unfortunately, many times it results in unexpected additional money being owed at the end of the year.
How can you avoid owing additional money at the end of the year?
You do it by taking corrective action during the year. I always encourage my clients to contact me if their tax situation changes in any way or if they’re going to do anything that they think may impact their taxes and to run their plans by me “before” they do them. This gives me the opportunity to advise them of what the tax consequences could be, and what they can do so they don’t wind up owing a lot of money at the end of the year.
To help illustrate this here are some real examples I have seen. A single client purchased a new home and took money out of an IRA for the down payment. The IRA withdrawal combined with her wages exceeded the income limit for the First-Time Homebuyer Credit and she ended up being disqualified for half of the credit due to her income being too high. In another instance a client sold a rental property on December 31, 2008 and was required to pay the tax on the gain by April 15, 2009. If the property had closed on January 2, 2009 this client would have had an additional 12 months in order to pay the tax by April 15, 2010.
Good planning and knowledge of current tax rules will save you time and give you peace of mind with your finances.
Use of any information referred to is for general information only and does not represent personal tax advice either express or implied. You are encouraged to seek professional tax advice for personal income tax questions and assistance.
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tax tips
2009 End of Year Tax Tips
With less than nine weeks left until 2010, it makes sense to look at your personal and business tax situation and to know what tax easings set to expire in 2009 or delay action until new rules take effect in 2010. No one enjoys a larger tax bill in April only to find out that if action had been taken prior to December 31, hundreds or thousands of dollars could have been saved.
Most taxpayers benefit by accelerating tax deductions from 2010 into 2009 and deferring income until 2010 unless they expect to be in a higher tax bracket in 2010. Income tax rates are not expected to change in 2010.
First time home buyers won’t have to act by Nov. 30 to get a tax credit. Congress will extend the $8,000 credit for several months, well into 2010. Prospective buyers who already own a home should wait a brief time to buy because Congress is working on a bill that will give a $6,500 credit to buyers who’ve owned a home for 5 of the last 8 years.
If you are considering buying a new vehicle, it may be better to purchase by December 31, 2009. The deduction of sales tax on up to $49,500 of the cost of new vehicles for those who do not itemize their deductions is set to expire December 31, 2009 and is not expected to be extended.
If you have considered converting your IRA to a Roth, wait until 2010. Beginning in 2010 the tax on the conversion can be spread out over two years. Additionally, the ban on conversion for high incomers goes away.
Retirement plan distributions for those over 70 ½ are not required for 2009 but will be required again in 2010.
If you are an employee and also operate a side business, or have considerable other income you may want to consider increasing your employee withholding until December 31 to cover any tax shortfall thereby eliminating any underestimating tax penalty.
You should consult a qualified tax professional before making any decision.
Ron Dubois is a CPA licensed in both the states of Tennessee and Florida with offices in Brentwood, TN and Rockledge, FL www.ronduboiscpa.com 615-274-4203
Most taxpayers benefit by accelerating tax deductions from 2010 into 2009 and deferring income until 2010 unless they expect to be in a higher tax bracket in 2010. Income tax rates are not expected to change in 2010.
First time home buyers won’t have to act by Nov. 30 to get a tax credit. Congress will extend the $8,000 credit for several months, well into 2010. Prospective buyers who already own a home should wait a brief time to buy because Congress is working on a bill that will give a $6,500 credit to buyers who’ve owned a home for 5 of the last 8 years.
If you are considering buying a new vehicle, it may be better to purchase by December 31, 2009. The deduction of sales tax on up to $49,500 of the cost of new vehicles for those who do not itemize their deductions is set to expire December 31, 2009 and is not expected to be extended.
If you have considered converting your IRA to a Roth, wait until 2010. Beginning in 2010 the tax on the conversion can be spread out over two years. Additionally, the ban on conversion for high incomers goes away.
Retirement plan distributions for those over 70 ½ are not required for 2009 but will be required again in 2010.
If you are an employee and also operate a side business, or have considerable other income you may want to consider increasing your employee withholding until December 31 to cover any tax shortfall thereby eliminating any underestimating tax penalty.
You should consult a qualified tax professional before making any decision.
Ron Dubois is a CPA licensed in both the states of Tennessee and Florida with offices in Brentwood, TN and Rockledge, FL www.ronduboiscpa.com 615-274-4203
Labels:
tax tips
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