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The Seven Most Common Mistakes on Tax Returns
Mistakes on tax returns mean they take longer to process, which in turn may cause your refund to arrive alter. The IRS cautions against these seven common errors so your refund is timely
The Seven Most Common Mistakes on Tax Returns
2011 Best Accounting Firms to Work for
Walthall Drake & Wallace was recently named as one of the 2011 Best Accounting Firms to Work for. The annual list of "Best Accounting Firms" was created by Accounting Today and Best Companies Group.
This survey and award program was designed to identify, recognize and honor the best places of employment in the accounting industry, benefiting the nation's economy, its workforce and businesses.
Ohio's New Tax Amnesty Program
The Ohio Department of Taxation is notifying all business owners of Ohio's new tax amnesty program. Please read the Tax Commissioner's explanatory letter. This program is intended to raise awareness of the Ohio tax obligations that face business owners. They are providing this window of opportunity for business owners to file delinquent returns and pay any outstanding tax liabilities.
We value our relationship with you and are confident to the best of our knowledge that your tax returns and responsibilities are current. If you do have any questions or concerns on this tax amnesty program, please call us at (216) 573-2330.
Tax Planning for the Self Employed continued -Planning opportunities
As a self-employed individual, you have a number of income tax planning opportunities, some of which are not available to employees. You may wish to consider.
Shifting income/timing income
Shifting income to family members can be an important tax planning technique. If you run your own business, your ability to shift income to a family member who is in a lower marginal tax bracket can be a significant advantage. Your relative may benefit from the increased income, and you may benefit by the decreased tax liability. In addition, it's possible that the overall amount of federal income taxes paid by the two of you would be lower. However, be aware that the IRS could question compensation paid to a family member unless the compensation was reasonable in amount, considering the services actually provided by the family member.
Retirement plans
Establishing a retirement plan is another tax planning advantage for the self-employed. If you are self-employed and have no employees, a qualified retirement plan (such as a Keogh of Solo 401K) may allow you to place pretax dollars into a retirement account to grow tax deferred until withdrawal. If you have employees, your business may have to provide coverage for them as well. The type of retirement plan that your business should establish depends on your specific circumstances.
Business expenses and other deductions
Are you taking advantage of all of the deductions to which it is entitled, including certain start-up costs. While our discussions on deductions aren't exhaustive, we've tried to pick out some key items that you should consider, including the use of a home office, automobiles, and business assets.
Some of your health-care related expenses may be tax deductible. For instance, you may be eligible for the self-employed health insurance deduction, which would enable you to deduct the cost of health insurance that you provide for yourself, your spouse, and your dependents. This deduction is taken on the front of your federal Form 1040 (i.e., "above-the-line") when computing your adjusted gross income, so it's available whether you itemize or not.
Contributions you make to a health savings account (HSA) are also deductible "above-the-line." An HSA is a tax-exempt trust or custodial account you can establish in conjunction with a high-deductible health plan to set aside tax-free funds for health-care expenses.
Read the Aug. 22, 2011 IRS Release, "Marketability Study for Estate and Gift Taxes as of Sept. 25, 2009."
Walthall, Drake & Wallace was rated a TOP WORKPLACE in Northeast Ohio!
IRS increases Mileage Rate to 55.5 Cents per Mile - For details on the mileage rates for specific types of travel, read the full article on Mileage Rate Increases.
"Medical Professionals: A Prescription for your Financial Health" - Educating yourself on new research in your chosen specialty, staying current on the latest technology, paying attention to business considerations, and complying to ever-changing state and federal insurance regulations is a daunting task.
Often, substantial demands on your time make it difficult for you to accurately evaluate your financial plan or monitor changes that affect it. Read this article for a quick check-up of your financial health.
- Retirement
- Investments
- Tax Considerations
- Liability Insurance
- Disability Insurance
- Practice Management and Business Planning
- Practice Valuation
- Estate Planning
"Repeal of New Information Reporting Requirements!" The Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011 repealed expanded business information reporting requirements previously scheduled to take affect for payments made after December 31, 2011 and also repealed rental property expense reporting which was effective for payments made after December 31, 2010.
"Tax Saving Strategies for the 2011 Filing Season" - an overview of key tax-law provision that may affect your return and practical strategies for minimizing your tax bill.
Read full article (above) or choose specific sections
Federal Depreciation Recap - Tax years 2008-2012
DISCLOSURE UNDER UNITED STATES TREASURY RULES - If this communication contains any tax advice, such advice is not intended or written by the practitioner to be used, and can not be used by the taxpayer, for the purpose of avoiding penalties that may be imposed on the taxpayer.
