WNBP Radio Show – 5 Tax Deductions for 2011 tax returns

In this Radio Podcast on WNBP.com 1450 AM with morning host Win Damon we discuss 5 big deductions that people need to maximize on when filing their 2011 Tax Returns.  These deductions include claiming unreimbursed business expenses, claiming student loan interest, making energy efficient home improvements, landlord deductions, and charitable contributions.

 

Tax tip of the day for Teachers!

Teachers Take Your Deductions!

Teachers who spend money on teaching related supplies and are not reimbursed by their employer are allowed to deduct those expenses to reduce their taxable income. The first $250 is deducted directly from taxable income. Unreimbursed teacher expenses above $250 can be deducted as a business expense on form 2106. Some dedcutions include travel to conferences, computer and school supplies, and education publications, journals, or magazines.

For more valuable tax and financial tips, visit our website at www.erocktax.com. Please contact us with your tax questions or come see us in person.

Take Your IRA Deductions on your Tax Return

In 2011, taxpayers and their spouses may each be able to contribute up to $6,000 or $12,000 total to their traditional IRAs. Not only will $12,000 help a couple save for retirement, but it often results in a valuable tax deduction. Taxpayers have until April 15, 2012 to make a 2011 contribution and get the tax deduction.  SEP IRA’s for self employed individuals can be funded up until the return is filed, as late as October 15!

For more valuable tax and financial tips, visit our website at www.erocktax.com. Please contact us with your tax questions or come see us in person.

QUICK HIT TAX FIGURES FOR THE 2011 FILING SEASON

 

Some important figures to know when preparing your 2011 Taxes!

  • PAYROLL TAX CUT for employees extended through February 29, 2012. (Social security tax rate on wages up to $110,100 will be 4.2% rather than 6.2%.)
  • ADOPTION TAX CREDIT decreases to $12,650 for adoption of an eligible child.
  • SECTION 179 maximum deduction decreases to $139,000, with a phase-out threshold of $560,000.
  • STANDARD MILEAGE RATE for business driving remains at 55.5¢ a mile. Rate for medical and moving mileage decreases to 23¢ a mile. Rate for charitable driving remains at 14¢ a mile.
  • ESTATE TAX top rate remains at 35%, and the exemption amount increases to $5,120,000. The ANNUAL GIFT TAX EXCLUSION remains at $13,000.
  • 401(k) maximum salary deferral increases to $17,000 ($22,500 for 50 and older).
  • SIMPLE maximum salary deferral remains at $11,500 ($14,000 for 50 and older).
  • IRA contribution limit remains at $5,000 ($6,000 for 50 and older).
  • KIDDIE TAX threshold remains at $1,900 and applies up to age 19 (up to age 24 for full-time students).’
  • NANNY TAX threshold increases to $1,800.
  • TRANSPORTATION FRINGE BENEFIT limit decreases to $125 for vehicle/transit passes and increases to $240 for qualified parking.
  • SOCIAL SECURITY taxable wage limit increases to $110,100. Retirees under full retirement age can earn up to $14,640 without losing benefits.
  • HSA CONTRIBUTION limit increases to $3,100 for individuals and to $6,250 for families. An additional $1,000 may be contributed by those 55 or older.

Stress lowering Tax tips for the 2011 filing season #2

Pay your taxes on time.  Don’t give the IRS any extra incentive to review your particular case.  Paying and filing on time doesn’t ensure that you will not be audited but being on top of your taxes does show diligence and will not draw any unnecessary attention.

For more valuable tax and financial tips, visit our website at www.erocktax.com. Please contact us with your tax questions or come see us in person.

I am blogging about Taxes

I am Blogging about Taxes

I can’t believe I am blogging about taxes!  I thought I would never do it, but here I am writing about a subject that nobody likes!

You see the subject of taxes brings out the worst in many folks. And it doesn’t have to be that way.  You know the saying:  “Death and Taxes”. Well, it’s true. And the sooner we all realize this, the better off we will be. Taxes are not going away. There will be no pure flat tax. So we all have to deal with this very touchy subject every year. Instead of dreading tax season let me teach you how to embrace your tax filing.

 A few quick tips: 

  • As I said, embrace your tax filing. 
  • Try to stay organized for your advisor.
  • Meet with your CPA early in the tax season even if you do not have all your documents.
  • Make sure you ask as many questions as you may have as there are no dumb questions.

The best time to plan is right now!  It is early 2012, and we can adjust your withholdings to make sure you don’t get a large refund or owe too much when you file next year. .

Stuart Steinberg, CPA, MBA has owned a strategic tax planning practice on theNorth Shore for 23 years.  Please feel free to contact him anytime and let Erock Tax take care of you!

Stress lowering Tax tips for the 2011 filing season #1

Set up a meeting with your qualified Tax Accountant early in tax season.  Many people wait until the last minute when their tax preparer is under the gun her/himself. To get the most thorough service, it behooves you to meet with your professional when they have more time and attention for you. Get on their calendar today.

For more valuable tax and financial tips, visit our website at www.erocktax.com. Please contact us with your tax questions or come see us in person.

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Tax Tip of the Day – Start a Small Business

January 20, 2012

Start your own business – you can deduct up to $5000 in start up costs in the first year when you start your own business!   Other valuable deductibles that you can use to offset your self employment income include health insurance, retirement contributions, business miles driven and buying or leasing a car.     In our new economy, being a self employed business owner or having a second business is the new American employee.   Plus, small business is the engine of the country and what has made it so great!

For more valuable tax and financial tips, visit our website at erocktax.com.  Please contact us and let Erock Tax take care of you!

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WNBP Radio Show – 3 Quick Tips for the 2011 Filing Season

In this radio podcast with WNBP.com 1450am morning host Win Damon we discuss 3 quick things to do to get ready for the upcoming tax filing season.  First, you need to stay organized, when handling documents needed to prepare your 2011 return as well as planning for 2012.  You also need to hire a qualified preparer such as a CPA or Enrolled Agent to help you .  Finally, you should reach out to this professional early in the tax filing season with any issues you may have.

 

Click here to listen to a our recorded podcast: 3 Quick Tips for the 2011 Filing Season

Tax Tip of the Day – Organize your Tax Records

January 19, 2012

Organize your tax records – Try not to get overwhelmed by the crazy amount of tax paperwork you will receive in January and February.  Store your documents in a safe place and look at all of them at the same time when you are ready.  If you have a new tax issue with which you are not familiar, or questions on your return in general, now is a perfect time to reach out to an experienced tax professional for help!

For more valuable tax and financial tips, visit our website at erocktax.com.  Please contact us and let Erock Tax take care of you!

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