Tax Tips Archives • Page 4 of 5 • Financially Simple

October 31, 2017

October 31, 2017

6 Requirements for Tax-Deductible Charitable Contributions

Throughout the year, many taxpayers contribute money or gifts to qualified organizations. These are often tax-deductible charitable contributions if they meet certain criteria. If you are a taxpayer planning to claim a charitable deduction on your tax return, you must do two things: have a bank record or written communication from a charity for any monetary contributions. A written acknowledgment from a charity for any single donation of $250 or more is vital for your records.

October 3, 2017

Tax Tip: Check Out College Tax Benefits

Reminder for Parents, Students: Check Out College Tax Benefits With back-to-school season in full swing, the Internal Revenue Service reminds parents and students about tax benefits that can help with the expense of higher education. Two college tax credits apply to students enrolled in an eligible college, university or vocational school. Eligible students include the taxpayer, their spouse, and dependents. American Opportunity Tax Credit The American Opportunity Tax Credit, (AOTC) can be worth a maximum annual benefit of $2,500 per eligible student. The credit is only available for the first four years at an eligible college or vocational school for students pursuing a degree or another recognized education credential. Taxpayers can claim the AOTC for a student enrolled in the first three months of 2018 as long as they paid qualified expenses in 2017. Lifetime Learning Credit The Lifetime Learning Credit, (LLC) can have a maximum benefit of up to $2,000 […]

September 19, 2017

Tax-Exempt Organizations Affected by Hurricanes Harvey and Irma Granted Tax Relief

Tax-exempt organizations affect by Hurricanes Harvey and Irma, in parts of Texas, Florida, Puerto Rico and the Virgin Islands, may qualify for tax relief from the IRS. Organizations may get some extra time to file returns if they: are in the Hurricane Harvey and Hurricane Irma disaster areas, and have a filing due date after the hurricane hit and before Jan. 31, 2018. These organizations now have until Jan. 31, 2018 to file. The relief applies to original and extended due dates in this period. The start date of the relief varies by area. Texas: Aug. 23, 2017 Florida: Sept. 4, 2017 Puerto Rico and the Virgin Islands: Sept. 5, 2017 About annual information returns for tax-exempt organizations: Most organizations are required to file an information return each year. These may include Forms 990, 990-PF, 990-EZ, 990-T or 990-N. The normal due date for 990 returns is the 15th day of the fifth month after the […]

September 5, 2017

Moving Expenses May Be Deductible

Moving Expenses May Be Deductible Taxpayers may be able to deduct certain expenses of moving to a new home because they started or changed job locations. Use Form 3903, Moving Expenses, to claim the moving expense deduction when filing a federal tax return. Home means the taxpayer’s main home. It does not include a seasonal home or other homes owned or kept up by the taxpayer or family members. Eligible taxpayers can deduct the reasonable expenses of moving household goods and personal effects and of traveling from the former home to the new home. Reasonable expenses may include the cost of lodging while traveling to the new home. The unreimbursed cost of packing, shipping, storing and insuring household goods in transit may also be deductible. Who Can Deduct Moving Expenses? The move must closely relate to the start of work. Generally, taxpayers can consider moving expenses within one year of the […]

August 10, 2017

August 10, 2017

Achieving Charitable Desires While Increasing Your Net Gain

When it comes to philanthropic giving business owners are often at the top of the list. Not only do owners give on a regular basis, but many of my clients have the goal to give a portion of their proceeds of the sale of their business to their favorite charity. Luckily, there are tax benefits to making charitable donations. Giving allows you to experience personal satisfaction as well as knowing the money will go directly to the needy, rather than going through Uncle Sam.

August 8, 2017

Tips to Protect Taxpayers from Identity Theft

Eight Tips to Protect Taxpayers from Identity Theft Identity theft happens when someone steals personal information for financial gain. Tax-related identity theft happens when someone uses another person’s stolen Social Security number (SSN) or Employer Identification Number (EIN) to file a tax return to obtain a fraudulent refund. Many people first find out they are victims of identity theft when they submit their tax returns. That’s because the IRS lets them know someone else already used their SSN to file. The IRS continues to work hard to stop identity theft with a strategy of prevention, detection and victim assistance. So far, the agency has stopped millions of dollars from getting into the hands of thieves. Check out these eight tips on how to protect against identity theft: 1. Taxes. Security. Together. The IRS, the states, and the tax industry need everyone’s help. The IRS launched The Taxes. Security. Together. awareness […]