Preparing your own income tax return can leave you with more questions than answers. Incorrectly filed returns, missed deduction opportunities, late filing and ignorance of the new tax laws could put you at risk. Let Accounting Solutions maximize your deductions and virtually eliminate the risk of an IRS audit.
We specialize in personal income tax form preparation. We help resolve IRS and NYS personal income tax problems and will respond to tax notices on your behalf.
Detailed knowledge of state and federal tax laws can overwhelm any business. We can work with your accounting staff to assemble the documents required to file your return.
We can help prepare and submit your amended tax return. Overlooked deductions, windfalls, recharacterizing a Roth Conversion could require you to update your return.
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The IRS explained that homeowners could prepay their 2018 property taxes and deduct them in 2017, ahead of the new legislation, under certain circumstances. For starters, the taxes must have been assessed prior to 2018. In other words, anticipated taxes that have not yet been assessed will not be deductible.
An extension will keep you from getting hit with a late-filing penalty of 5% of the unpaid taxes for each month or part of a month you’re late, up to 25%. That’s in addition to a late-payment penalty of 0.5% of the unpaid taxes for each month or part of a month—plus interest at a rate of the federal short-term interest rate plus 3%. If you expect a refund, you obviously have an incentive to get your return in as soon as possible to get those dollars in your pocket. If you file for an extension thinking you’ll get a refund and instead find that you owe, you’ll have to tack on the late-payment charges..
Three-year time limit. You usually have three years from the date you filed your original tax return to file Form 1040X to claim a refund. You can file it within two years from the date you paid the tax, if that date is later.
You are allowed a dependent exemption for each relative that you support. For purposes of claiming an exemption, you must provide more than half of your relative’s support during the tax year, and no one else must have provided more than half of your support. Qualifying relatives include your child, stepchild, foster child, grandchild, niece, nephew, grandparent, parent, stepparent, in-law, sibling, half sibling, aunt or uncle. Restrictions based on income, residence and citizenship apply to the dependent exemption
Renovation of a home is not generally an expense that can be deducted from your federal taxes, but there are a number of ways that you can use home renovations and improvements to minimize your taxes. These include both tax deductions and tax credits for renovations and improvements made to your home either at the time of purchase or after.
The U.S. tax code provides a tax deduction for certain work-related training and education expenses. To get the deduction, you must be working. If you are employed, you must itemize deductions on Schedule A or, if you are self-employed, claim the expense on Schedule C. Work-related education expenses are among miscellaneous deductions subject to a 2 percent income exclusion, meaning you get a deduction only for the miscellaneous deduction total that exceeds 2 percent of your adjusted gross income.
If your employer has a policy that covers reimbursements or allowances for mileage, you need to determine whether the policy is an accountable plan before claiming any deduction. Assuming that all mileage covered under the policy solely relates to your employer’s business, the IRS treats the policy as an accountable plan if you must account to your employer for your business automobile expenses and return any excess reimbursement within a reasonable period of time. If these conditions are met, your employer doesn’t have to report the reimbursements as taxable wages on your W-2, which means you don’t pay income tax on them. But, since you receive tax-free mileage reimbursements, it means you’re precluded from also taking a deduction for the same mileage expenses. However, if your reimbursement or allowance doesn’t cover the entire expense, you can deduct the unreimbursed portion as if no reimbursement policy exists. Your Form 2106 will show your expenses and the amount of employer reimbursement; the difference between the two will be your deduction.