Category Archives for "Taxes"

Simplified Option for Home Office Deduction

[Editorial note: Below is a notice that came directly from the IRS.] Do you work from home? If so, you may be familiar with the home office deduction, available for taxpayers who use their home for business. Beginning this year, there is a new, simpler option to figure the business use of your home.

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Itemizing vs. Standard Deduction

People often ask me if they should itemize on their tax return.  I try to explain the difference between taking the standard deduction that the government automatically gives you or utilizing deductions (itemized deductions) you may have accumulated throughout the year.  Many deductions you have may not exceed the standard deduction but it is always […]

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Medicare Payroll Tax Update

The Medicare Payroll Tax is Increasing for Certain Individuals According to information obtained from Paychex payroll services, with the the new tax year starting on or after January 1, 2013, the 2010 Health Care Bill requires higher-income taxpayers to pay a higher Medicare tax rate on wages, other compensation, and self-employment income over the below […]

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Eight Facts about Amended Returns

Below is information the IRS publishes regarding amending of a return.  Remember that if you are amending to receive more of a refund, you need to wait until you receive your original refund before filing a Form 1040X.  I hope you find this information helpful!

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Standard Deductions

From time to time people will ask me what the standard deductions are for a specific year and what the difference is between taking the standard deduction or itemizing.  Basically, if you have more itemized deductions than what your standard deduction would be than it may be more beneficial for you to itemize.  For example, […]

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Eight Facts About Filing Status

Read below for more information on which filing status is best for you! Your filing status is used to determine your filing requirements, standard deduction, eligibility for certain credits and deductions, and your correct tax. There are five filing statuses: Single, Married Filing Jointly, Married Filing Separately, Head of Household and Qualifying Widow(er) with Dependent Child.

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Energy Credit for 2011

The IRS released information regarding the energy credit that is still available for 2011. Below are two credits that the IRS is allowing for 2011, the Nonbusiness Energy Property Credit and the Residential Energy Efficient Property Credit. As stated, these are credits and not deductions so they reduce the amount of tax owed dollar for dollar.

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